Just Transition Fund
The three pillars of the Just Transition Mechanism
Ensuring that no one is left behind in the transition to a climate-neutral economy will require significant investment. The Just Transition Mechanism (JTM) is expected to mobilise around €55 billion in the period 2021–2027 to support the regions, sectors and workers most-affected by the transition.
On this page, you can find information funding under the JTM’s three pillars, additional EU funding instruments, and relevant technical assistance.
The first pillar of the Just Transition Mechanism is the Just Transition Fund (JTF). Through the JTF, the Commission primarily supports through grants territories most negatively impacted by the transition to a climate-neutral economy.
The JTF is established by the JTF Regulation and governed by the Common Provisions Regulation. It is implemented under shared management, under the overall framework of cohesion policy.
The Fund is equipped with €19.7 billion in current prices (including voluntary transfers from other funds) and it is expected to mobilise around €7.3 billion of national co-financing, amounting to a total of €27 billion. Member States may voluntarily transfer additional resources to the JTF from national allocations under the European Regional Development Fund and the European Social Fund Plus, provided the total amount transferred does not exceed three times the JTF allocation.
The table below shows the JTF funding split between Member States.
| MEMBER STATES | TOTAL (EUR) | JTF | NATIONAL COFINANCING |
|---|---|---|---|
| AUSTRIA | 284,456,990 | 135,769,268 | 148,687,722 |
| BELGIUM | 456,514,280 | 182,605,712 | 273,908,568 |
| BULGARIA | 1,474,423,561 | 1,198,140,005 | 276,283,556 |
| CYPRUS | 144,448,166 | 101,113,715 | 43,334,451 |
| CZECHIA | 1,931,167,073 | 1,641,492,008 | 289,675,065 |
| GERMANY | 4,044,170,634 | 2,477,674,410 | 1,566,496,224 |
| DENMARK | 177,937,926 | 88,968,963 | 88,968,963 |
| ESTONIA | 583,835,245 | 353,896,282 | 229,938,963 |
| GREECE | 1,629,187,543 | 1,375,059,412 | 254,128,131 |
| SPAIN | 1,255,311,030 | 868,744,863 | 386,566,167 |
| FINLAND | 665,253,987 | 465,677,790 | 199,576,197 |
| FRANCE | 1,693,278,865 | 1,029,952,599 | 663,326,266 |
| CROATIA | 218,690,220 | 185,886,687 | 32,803,533 |
| HUNGARY | 307,121,596 | 261,053,355 | 46,068,241 |
| IRELAND | 168,933,388 | 84,466,694 | 84,466,694 |
| ITALY | 1,211,280,659 | 1,029,588,558 | 181,692,101 |
| LITHUANIA | 321,481,486 | 273,259,262 | 48,222,224 |
| LUXEMBOURG | 18,528,966 | 9,264,483 | 9,264,483 |
| LATVIA | 225,419,788 | 191,606,819 | 33,812,969 |
| MALTA | 33,236,748 | 23,265,723 | 9,971,025 |
| NETHERLANDS | 1,246,206,602 | 623,103,298 | 623,103,304 |
| POLAND | 4,777,482,256 | 3,847,346,473 | 930,135,783 |
| PORTUGAL | 295,171,057 | 223,839,015 | 71,332,042 |
| ROMANIA | 2,530,738,057 | 2,139,715,532 | 391,022,525 |
| SWEDEN | 311,488,612 | 155,744,306 | 155,744,306 |
| SLOVENIA | 304,381,817 | 258,724,543 | 45,657,274 |
| SLOVAKIA | 653,992,788 | 459,019,001 | 194,973,787 |
| TOTAL | 26,964,139,340 | 19,684,978,776 | 7,279,160,564 |
The aim of the JTF is to alleviate the socio-economic costs triggered by the transition towards climate-neutrality, supporting the economic diversification and reconversion of the most-affected territories and helping people to adapt in a changing labour market.
Support can be provided to:
- productive investments in small and medium-sized enterprises
- the creation of new firms
- environmental rehabilitation
- investments in clean energy
- upskilling and reskilling of workers
- job-search assistance
- active inclusion of jobseekers programmes
- the transformation of existing carbon-intensive installations, when these investments lead to substantial emission cuts and job protection.
For detailed scope of support, please check the Regulation (EU) 2021/1056 establishing the Just Transition Fund (Art. 8). All activities to be funded should contribute to alleviating the socio-economic impact towards climate-neutrality and be justified in the description of the transition process in the’ Territorial Just Transition Plans (TJTPs).
For more information on what can be funded, please also refer to the Commission’s Staff Working Document on the Territorial Just Transition Plans.
When the investments are not related to the transition’s impacts, regions may consider other funding sources such as the European Regional Development Fund and Cohesion Fund.
As with other Cohesion Policy funds, the JTF is governed under shared management. The Commission and each Member State had to adopt a Partnership Agreement and one or several programmes for the 2021-2027 period. As part of their Cohesion Policy programmes, Member States also had to prepare strategic TJTPs.
Following the adoption of the programmes including the TJTPs, national or regional authorities are responsible for selecting the projects to be funded. Specific questions on application procedures may be addressed directly to the managing authorities.
If you are looking for ideas and guidance on approaches for funding JTF projects, check out our helpful catalogue for just transition regions.
You can also consult the interactive map on our JTP homepage for an overview of the JTF territories included in the approved TJTPs and links to the relevant programming documentation for each territory.
For more information about the JTF and TJTPs, please consult our frequently asked questions page.
The second pillar of the Just Transition Mechanism is a dedicated InvestEU scheme, which helps to crowd in private investment.
InvestEU can support investments in the framework of TJTPs in a wide range of projects, such as projects for energy and transport infrastructure, including gas infrastructure and district heating, as well as decarbonisation projects, economic diversification and social infrastructure.
The European Commission will provide a budgetary guarantee to implementing partners to provide financing directly or indirectly to project promoters located in just transition territories with an approved TJTP.
Projects not located in those territories can also benefit from the scheme, provided that those projects contribute to meeting the development needs stemming from the transition of those territories as set out in the relevant TJTP.
The InvestEU Advisory Hub is the central entry point for those seeking advisory and technical assistance for projects under pillars 2 and 3 of the JTM, as well as for some projects to be financed under the JTF.
Managed by the Commission and financed by the EU budget, it provides tailor-made technical assistance and capacity-building support, depending on the needs of the project promoter. The hub connects project promoters and intermediaries with advisory partners, who work together directly to help projects reach the financing stage.
The InvestEU Advisory Hub complements the InvestEU Fund by supporting the identification, preparation and development of investment projects across the EU, as well as the capacity-building of project promoters. The InvestEU Portal brings together investors and project promoters on a single EU-wide database of investment opportunities.
The third pillar of the Just Transition Mechanism is the public sector loan facility (the PSLF), established by Regulation (EU) 2021/1229 . The facility leverages public financing to support projects that do not generate a sufficient stream of revenues to cover their investment costs.
The European Investment Bank (EIB) provides up to €6-8 billion in loans as finance partner, while the Commission provides up to €1.3 billion in grants. These loans and grants support public sector entities to meet their development needs in the transition towards a climate-neutral economy.
The grant component is provided and managed by DG REGIO, assisted by the European Climate, Infrastructure and Environment Executive Agency (CINEA). You can read more about the EIB’s role in the JTM in this article . Further details about grants will be made available on CINEA’s website.
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.
| NATIONAL SHARE (percentage of total) |
NATIONAL SHARE (in millions EUR) |
|
|---|---|---|
| BE | 0.95 % | 13.85 |
| BG | 6.73 % | 98.25 |
| CZ | 8.53 % | 124.54 |
| DK | 0.46 % | 6.75 |
| DE | 12.88 % | 187.98 |
| EE | 1.84 % | 26.85 |
| IE | 0.44 % | 6.41 |
| EL | 4.31 % | 62.97 |
| ES | 4.52 % | 65.91 |
| FR | 5.35 % | 78.14 |
| HR | 0.97 % | 14.10 |
| IT | 5.35 % | 78.12 |
| CY | 0.53 % | 7.67 |
| LV | 1.00 % | 14.54 |
| LT | 1.42 % | 20.73 |
| LU | 0.05 % | 0.70 |
| HU | 1.36 % | 19.81 |
| MT | 0.12 % | 1.77 |
| NL | 3.24 % | 47.28 |
| AT | 0.71 % | 10.30 |
| PL | 20.00 % | 291.90 |
| PT | 1.16 % | 16.98 |
| RO | 11.12 % | 162.34 |
| SI | 1.34 % | 19.63 |
| SK | 2.39 % | 34.83 |
| FI | 2.42 % | 35.33 |
| SE | 0.81 % | 11.82 |
| TOTAL | 100.0 % | 1,459.50 |
In this case, a public sector entity means a legal entity established in a Member State either as a public law body or a body governed by private law entrusted with a public service mission.
The PSLF can support investments in a wide range of sectors, including:
- renewable energy and green and sustainable mobility, including the promotion of green hydrogen
- efficient district heating networks
- public research
- digitalisation
- environmental infrastructure for smart waste and water management
- sustainable energy, energy efficiency and integration measures, including renovations and conversions of buildings
- urban renewal and regeneration
- the transition to a circular economy
- land and ecosystem restoration and decontamination, taking into account the ‘polluter pays’ principle
- biodiversity
- up-skilling and re-skilling, training and social infrastructure, including care facilities and social housing.
Investments in other sectors may also be supported if they are consistent with the approved TJTPs.
Public sector entities may submit funding proposals for eligible projects via the EU Funding & Tenders Portal, where the Commission published a call for proposals.
Successful applicants will receive both a grant from the Commission and a loan from the EIB, so proposals must first be selected for a grant by the Commission and then receive approval for a loan after assessment by the EIB.
Potential beneficiaries may request advisory support for the preparation, development and implementation of eligible projects, including support before submitting a funding proposal. Requests should be addressed to the InvestEU Advisory Hub .
Other EU funding instruments
The following EU funding instruments may also be relevant for programmes and projects seeking financial support:
- Horizon Europe
- Funding for climate action
- LIFE Programme
- Innovation Fund
- Modernisation Fund
- Connecting Europe Facility
- The Strategic Technologies for Europe Platform (STEP)
STEP was set up by the EU to support European industry and boost investment in critical technologies in Europe. It brings new opportunities to accelerate the implementation of funds, including but not limited to the JTF.
STEP leverages additional investments into strategic technologies and skill areas, allowing Member States to accelerate expenditure through increased pre-financing and co-financing, and boost liquidity.
Moreover, STEP introduces a new Sovereignty seal, an EU label for top-tier projects, enhancing their visibility and facilitating cumulative or combined funding from various EU budget instruments or national investments.
For more information about STEP in the context of the JTF, you can watch the recording of the side event on STEP at the Just Transition Platform (JTP) Conference on 16-17 April 2024, or read the summary of the side event in this report. For more information about STEP in the context of Cohesion Policy as a whole, watch this webinar.
State aid in the just transition context
Companies that receive public support, also known as State aid, could gain an advantage over their competitors. State aid is generally prohibited unless it is justified by reasons of general economic development.
To ensure that this prohibition is respected and exemptions are applied equally across the EU, the European Commission is in charge of ensuring that State aid complies with EU rules. More information about these rules is available on this State aid legislation webpage.
For more information on State aid in just transition projects in the 2021-2027 Period, please refer to this JASPERS webinar on the topic. Various resources are also available from the previous JASPERS training on State aid for Just Transition projects in 2021-2027, which took place in July 2023.
For more information on State aid in the context of cohesion funding, please watch this recording of a recent REGIO webinar on the topic. You can also find extensive training materials on DG REGIO’s training page (see ‘Module 4: State aid’).
Technical Assistance
Since 2023, the Commission has delivered technical assistance to JTF regions to implement their TJTPs via the JTP Groundwork programme.
Detailed information about JTP Groundwork, including information about the 2024 round and deliverables and lessons learned from the 2023 round, is available on our JTP Groundwork webpage. This factsheet also provides an overview of the programme.
Previously, in March 2020, the Commission launched a call under the Structural Reform Support Programme for requests to assist Member States with the preparation of their Territorial Just Transition Plans.
Through this programme, the Commission provided hands-on support to regions to help prepare long-term economic strategies for their transition away from coal.
As mentioned under pillar 2 above, the InvestEU Advisory Hub is a central entry point for those seeking advisory and technical assistance for projects under pillars 2 and 3 of the JTM, as well as for some projects to be financed under the JTF.
Technical assistance is also delivered to a number of territories in the EU through the Initiative for Coal Regions in Transition, including START and TARGET technical assistance.
Please see below for a description of these technical assistance schemes and several others of relevance to the just transition.
Technical assistance for a green energy transition (TARGET)
The TARGET technical assistance facility aims to support EU coal, peat and oil shale regions with the identification and preparation of clean energy and energy efficiency projects. TARGET will support sustainable investments and local jobs moving away from fossil fuel-based activities. The facility was developed jointly by the Commission’s DG ENER and the EIB to support a just transition in EU coal, peat and oil shale regions, complementing existing mechanisms such as the JTM and other technical assistance schemes.
Joint Assistance to Support Projects in European Regions (JASPERS)
JASPERS is a partnership between the Commission and the EIB. Combined in JASPERS, the policy expertise of the Commission and the project experience of the EIB are available to beneficiaries of cohesion policy funds (including the Just Transition Fund), under JASPERS’ main mandate from DG REGIO. JASPERS’ advisory function covers all aspects of project development, horizontal issues relevant to more than one project or country, and other aspects such as capacity building and implementation. Capacity building is a key success factor for the JTF, as less experienced regional authorities connect with first-time beneficiaries who also have limited experience of project preparation.
Technical Support Instrument (TSI)
The Commission's TSI, managed by DG REFORM, provides tailor-made technical support to EU Member States to design and implement reforms. The TSI provides technical support in a wide range of policy areas, including regulatory and administrative reforms related to the just transition. The support is demand driven and does not require co-financing from Member States. Member States may request support under the TSI via a national Coordinating Authority. Further information about the Instrument and its calls is available on the TSI webpage.
European Local Energy Assistance (ELENA)
ELENA is a joint initiative by the EIB and the Commission under the Horizon 2020 programme. Established in 2009, the ELENA facility has awarded more than €180 million of EU support, mobilising an estimated investment of over €6.6 billion. ELENA provides technical assistance for energy efficiency and renewable energy investments targeting buildings and innovative urban transport. A team of experts, consisting of engineers and economists with extensive experience in the energy and transport sectors, leads the ELENA facility.
C4T GROUNDWORK
The Cohesion for Transitions (C4T) Community of Practice is a community-based platform that aim to support EU Member States and regions to make a better use of EU funds for sustainability transitions. The C4T GROUNDWORK programme offers technical assistance to enable EU Member States and regions to effectively implement sustainability transitions with funding from the European Regional Development Fund and Cohesion Fund. Tailored technical assistance is provided to selected beneficiaries, including managing and implementing authorities of EU funds, environment and energy authorities, and local and regional governments.