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Financing the green transition: The European Green Deal Investment Plan and Just Transition Mechanism

To back up its commitment to becoming the first climate-neutral bloc in the world by 2050, the EU has presented the European Green Deal Investment Plan – the Sustainable Europe Investment Plan.

date:  16/01/2020

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The plan would mobilise public investment and help to unlock private funds through EU financial instruments, notably InvestEU, which would lead to at least €1 trillion of investments. While all Member States, regions and sectors will need to contribute to the transition, the scale of the challenge is not the same. Some regions will be particularly affected and will undergo profound economic and social transformation. The Just Transition Mechanism announced alongside the Investment Plan will provide tailored financial and practical support to help mobilise at least €100 billion over the period 2021-2027 in the most affected regions. The support is designed to help workers and to alleviate the socio-economic impact of the transition. The European Green Deal Investment Plan is based on three dimensions: financing to crowd in private funding; providing incentives to unlock and redirect public and private investment; and providing practical support to public authorities and project promoters in planning, designing and executing sustainable projects.