The Commission has disbursed €5.9 billion in pre-financing under the Just Transition Fund (JTF) to European regions. This was enabled by the entry into force of the Strategic Technologies for Europe Platform (STEP) initiative on 1 March, which aims to boost investments in critical technologies in Europe, leveraging and steering resources across various EU funding programmes.
- 08 March 2024
Each Member State will receive over 30% of their national allocation under JTF for the 2021-2027 budgetary period allowing increased prefinancing for JTF projects in 96 territories across the EU.
Under its focus on the green transition, the JTF is already contributing to the objectives of STEP. Now, with this injection of liquidity, the JTF will strengthen its support to new manufacturing capacities and projects in strategic sectors, such as digital technologies, deep tech innovation, clean and resource-efficient technologies, and biotechnologies. The possibility to use these funds to support private sector entities in regions with weaker financing capacity will also help reinforce the level playing field in the Single Market and enhance territorial cohesion.
JTF already progressing on the ground
The JTF is contributing to the development of circular economy initiatives in the region of North Savo, Finland, by supporting a project that is producing new fossil-free products with the utilization and commercialization of new bio-based materials. This will enhance the hydrogen economy locally and expand R&D operations in bioeconomy in the region.
In Sweden, JTF funding supports research on electrolysis to produce hydrogen for the steel industry. This will help the Norrbotten County transition to a more energy, cost-efficient and fossil-free steel production.
In Greece, JTF funds the upgrade of the digital infrastructure of the Green Data and Supercomputer Centre of Western Macedonia, which is one of the largest public technology operators in the country. It will also lead to the creation of new jobs and the reduction of greenhouse emissions from the data centre, while increasing the users of smart systems and technologies.
Background
JTF is the first pillar of the Just Transition Mechanism (JTM). It is implemented under shared management, under the overall framework of Cohesion Policy, which is the main EU policy to reduce regional disparities and to address structural changes in the EU. Equipped with a total budget of €19.3 billion, the JTF helps to ensure that the transition to a climate-neutral economy leaves no one behind by alleviating the impact of the climate transition, supporting local economic diversification, the reskilling of workers and jobseekers, and the reconversion of the specific EU regions.
STEP is Europe’s response to address the needs of EU industry and boost investments in critical technologies in Europe. STEP seeks to reinforce, leverage and steer EU funds to deep-tech innovation, digital, bio, clean and resource efficient technologies, in the EU, and in people who can implement those technologies into the economy.
To that end, STEP introduces dedicated priorities to the European Regional Development Fund, the Cohesion Fund, and the European Social Fund+. These priorities may open support to large enterprises in less developed and transition regions, and to more developed regions in Member States with a GDP per capita below the EU average. STEP priorities can benefit from increased EU co-financing and pre-financing, which will help to speed up project implementation.
Furthermore, Member States will be able to include STEP projects when revising their Recovery and Resilience Plans, and to contribute to the InvestEU fund to achieve STEP objectives.
The Regulation establishing the STEP entered into force on 1 March 2024.