The Just Transition Fund (JTF) is a new instrument of Cohesion Policy 2021-2027, as the first pillar of the Just Transition Mechanism under the European Green Deal aiming to achieve EU climate neutrality by 2050.
The JTF supports the territories most affected by the transition to climate neutrality to prevent regional inequalities from widening, in line with the objective of EU cohesion policy to reduce regional disparities and respond to change structures in the EU.
The fund mitigates the socio-economic costs induced by the climate transition, supports economic diversification and the reconversion of the territories concerned, helps people to adapt to a changing labor market. This means supporting activities that are directly related to the specific objective of the JTF, for example:
- productive investments in small and medium enterprises
- research and innovation activities
- environmental rehabilitation
- clean energy
- upgrading and requalification of workers
- job search assistance and active integration of job seekers
- transformation of existing carbon-intensive facilities where such investments lead to substantial emissions reductions and job protection.
In order to unlock and implement JTF resources, EU Member States should prepare Territorial Just Transition Plans (TJTP) – identifying eligible territories that are expected to be most negatively impacted by climate transition. The TJTPs must be prepared with the internal partners concerned, in consultation with the Commission, and ensuring their consistency with the smart specialization strategies and the National Energy Climate Plans.