Programme in a nutshell
Budget for 2021-2027
Rationale and design of the programme
The Just Transition Mechanism has been proposed as part of the European Green Deal investment plan to make sure that no one and no region is left behind in the transition to a climate-neutral economy. The primary goal of the mechanism is to provide support to the most negatively affected regions and people and to help alleviate the socio-economic costs of the transition.
The transition towards climate neutrality will provide benefits and opportunities for the entire EU, but it will also present greater socio-economic challenges and difficulties for some regions and sectors than others.
The objective to support the people, economy and environment of territories facing economic and social transformation in their transition to a climate-neutral economy cannot be fully achieved by the Member States alone. There are many disparities between the levels of development and between the financial resources of Member States and territories. There is also a need for a coherent implementation framework covering several EU funds under shared management to support this complex process. Those objectives can be better achieved at EU level.
The Just Transition Mechanism aims at alleviating, for the most affected territories, the economic, environmental and social costs of the transition towards climate neutrality by 2050, thereby effectively ensuring that this key EU objective is achieved in an effective and fair manner.
The Just Transition Mechanism is mainly established as part of the European Green Deal investment plan within the framework of cohesion policy, the main EU policy instrument to reduce regional disparities and to address structural change in Europe’s regions. It shares the objectives of the cohesion policy in the specific context of the transition towards climate neutrality. While this is not an eligibility criterion, the resources from the mechanism should complement the other resources available.
The mechanism will contribute to a wide range of measures designed to promote public investment to foster sustainable development in the regions concerned. The mix of actions will depend on the circumstances of the territory affected by the climate transition challenge outlined in the territorial just transition plans
Beneficiary territories to be supported by the Just Transition Mechanism will be identified in one or more territorial just transition plans (providing an outline of the transition process until 2030), which will be approved by Member States in a dialogue with the European Commission, steered by the European semester process. These plans will devote special attention to those territories set to suffer the greatest expected job losses and to the transformation of industrial facilities with the highest greenhouse gas intensity. The plans will detail the social, economic and environmental challenges and the needs for economic diversification and reskilling.
The Just Transition Mechanism has three pillars. The first is the Just Transition Fund. It aims at alleviating the economic and social cost of the transition towards climate neutrality. The second is the dedicated just transition scheme under InvestEU. The third is the public sector loan facility. It will support projects that do not generate a sufficient stream of revenues to cover investment costs.
The Just Transition Fund will be implemented through shared management in close cooperation with national, regional and local authorities and stakeholders. This will ensure ownership of the transition strategy and provide the tools and structures for an efficient management framework. The Directorate-General for Regional and Urban Policy leads on behalf of the Commission. The Public Sector Loan Facility will be implemented through direct management by launching open calls for proposals.
In 2022, a Just Transition Fund-related study will assess the outcome and impact of the establishment of territorial just transitions plans
Implementation and performance
Budget programming (million EUR):
|Financial programming||4.0||1 446.6||1 535.0||1 559.2||1 583.8||1 322.1||1 347.7||8 798.4|
|NextGenerationEU||1 066.6||4 329.7||5 472.2||10 868.5|
|Decommitments made available again (*)||N/A||N/A|
|Contributions from other countries and entities||46.3||p.m.||p.m.||p.m.||p.m.||p.m.||p.m.||46.3|
|Total||1 116.8||5 776.3||7 007.2||1 559.2||1 583.8||1 322.1||1 347.7||19 713.1|
(*) Only Article 15(3) of the financial regulation.
Cumulative implementation rate at the end of 2021 (million EUR):
|Implementation||2021-2027 Budget||Implementation rate|
Voted budget implementation in 2021 (million EUR):
|Voted budget implementation||Initial voted budget|
Pillar I – The Just Transition Fund
- Implementation will only start after the Just Transition Fund programmes are adopted. The programmes are expected to be adopted in 2022.
Pillar III – The public sector loan facility
- The first calls for proposals will be launched once a sufficient number of territorial just transition plans are adopted, towards the middle of 2022 and the first grant agreements are expected to be signed in 2023.
Contribution to horizontal priorities
EU budget contribution in 2021 (million EUR):
|Climate||Biodiversity||Gender equality (*)|
|9.3(ℹ)||0||Score 0*: 3.9|
(*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:
- 2: interventions the principal objective of which is to improve gender equality;
- 1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;
- 0: non-targeted interventions;
- 0*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.
(ℹ) Item corrected after adoption of the AMPR. See also link.
|Enterprises supported||No results||No data|
|Additional production capacity for renewable energy||No results||No data|
|Additional capacity for waste recycling||No results||No data|
|Jobs created in supported entities||No results||No data|
|Annual users of new or modernised public transport||No results||No data|
|Overall investment mobilised||No results||No data|
|Number of projects receiving financing under the facility||No results||No data|
|Greenhouse gas emission reduced, where relevant||No results||No data|
(*) % of target achieved by the end of 2021.