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| short description | The Just Transition Mechanism (JTM) is a key tool to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind. It provides targeted support to help mobilise around €55 billion over the period 2021-2027 in the most affected regions, to alleviate the socio-economic impact of the transition. |
| program objectives | The Just Transition Mechanism (JTM) is 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. It provides support to the most negatively affected regions and helps them to alleviate the socio-economic costs of the transition. The third pillar of this Mechanism is a blending facility called Public Sector Loan Facility (JTM PSLF). This facility aims to address serious social, economic and environmental challenges deriving from the transition towards the EU’s 2030 climate and energy targets and the EU’s 2050 objective of climate neutrality as set out in the European Climate Law Regulation 2021/1119, for the benefit of the EU territories identified in the Territorial Just Transition Plans established in accordance with Article 11 of Regulation 2021/1056. In this context, the PSLF intends to increase public sector investments which address the development needs of the territories identified in the Territorial Just Transition Plans, by facilitating the financing of projects that do not generate sufficient streams of revenues to cover their investment costs. Applicants will receive blended support in the form of:
Projects must benefit a region covered by an approved Territorial Just Transition Plan and relate to the following sustainable investment areas:
Investments in other sectors may also be eligible for funding if they are in line with the approved Territorial Just Transition Plans. The following sectors are excluded from the scope of the JTM Public Sector Loan Facility support:
Territorial Just Transition PlansThe public sector loan facility intends to increase public sector investments which address the development needs of the territories identified in the Territorial Just Transition Plans (TJTPs). Therefore, the project activities must benefit a territory covered by an approved Territorial Just Transition Plan. TJTPs are prepared by EU Member States as part of their cohesion policy programmes. They include an outline and timeline for the transition process until 2030 and 2050, and identify the eligible territories expected to be most negatively impacted by this transition. TJTPs also set out the social, economic, and environmental challenges stemming from the phasing out of fossil fuel-related activities or decarbonisation of greenhouse gas-intensive processes or products. keeps track of the adoption of the Territorial Just Transition Plans. Information about the Territorial Just Transition Plans is also published by the Member States on the relevant websites. Information about the individual Territorial Just Transition Plans can be found in the map below. read more |
| Expected effects and impacts | Support will be available to all Member States, focused on regions that are the most carbon-intensive or with the most people working in fossil fuels. Member States can get access by preparing territorial just transition plans that cover the period up to 2030, identifying the territories that should get the most support. The plans should also set out ways to best address social, economic and environmental challenges.
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| Expected results | The Just Transition Mechanism addresses the social and economic effects of the transition, focusing on the regions, industries and workers who will face the greatest challenges, through three pillars:
Territorial just transition plans define the territories in which the Just Transition Fund will be used. The identification of these territories is carried out through a dialogue with the Commission. These plans set out the challenges in each territory, as well as the development needs and objectives to be met by 2030. They identify the types of operations envisaged and specify governance mechanisms. The approval of the territorial just transition plans opens the doors to dedicated financing under the other two pillars of the Just Transition Mechanism. The Just Transition Platform assists EU countries and regions with the just transition. It consists of a single access point and helpdesk. It provides comprehensive technical and advisory support. Authorities and beneficiaries can access it to find all they need to know about the funds, including opportunities, relevant regulatory updates or sector specific initiatives. The Platform also promotes actively the exchange of best practices among all stakeholders involved, including through regular physical and virtual gatherings. read more |
Eligibility criteria
| Regions / countries for funding | Overseas Countries and Territories (OCT), EU Member States |
| eligible entities Partners |
Other, Non-Profit Organisation (NPO) / Non-Governmental Organisation (NGO), Small and medium-sized enterprise (SME), Private institution, incl. private company (private for profit), International organization, Public Body (national, regional and local; incl. EGTCs), Research Institution incl. University, Education and training institution |
| Mandatory partnership | No |
| other eligibility criteria | The PSLF is available to all public sector entities through an open call for proposals. Applications may be made by any public sector entity wishing to finance a project located in, or benefitting, a just transition territory identified in a TJTP. In order to receive a grant, funding applications must demonstrate the compliance of the project with the relevant TJTP, showing how they address development needs stemming from the transition. Each Member State has a national share under the PSLF, reserved until December 2025 (see table below). Any amount not used by then will be made available on a competitive basis to projects across all Member States. |
Additional information
| Topics | Agriculture & Forestry, Fishery, Food, Soil quality, Air Quality, Biodiversity & Environment, Climate & Climate Change, Water quality & management, Circular Economy, Natural Resources, Competitiveness of Enterprises, Employment/Labour Market, SME & entrepreneurship, Digitalisation, Digital Society, ICT, Education & Training, Children & Youth, Media, Energy Efficiency, Renewable Energy , Health, Social Services, Sports, Mobility & Transport, Rural & Urban Development/Planning |
| Relevance for EU Macro-Region | EUSAIR - EU Strategy for the Adriatic and Ionian Region, EUSALP - EU Strategy for the Alpine Space, EUSBSR - EU Strategy for the Baltic Sea Region, EUSDR - EU Strategy for the Danube Region |
| UN Sustainable Development Goals (UN-SDGs) |
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