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Volume XI, Number 209

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EP Announces Funding For Projects Focused On The Transition To A Sustainable, Climate-Neutral, And Circular European Economy

On May 18, 2021, the European Parliament (EP) issued a press release announcing the Just Transition Fund (JTF) to assist European Union (EU) countries to address climate neutrality goals. The Just Transition Fund is composed of €7.5 billion from the European Commission’s (EC) long-term EU budget under the 2021-2027 Multiannual Financial Framework (MFF) and €10 billion from the EU recovery plan, NextGenerationEU. According to the press release, eligible projects must focus on economic diversification, reconversion, or job creation, or they must contribute to the transition into a sustainable and circular European economy. JTF will finance:

  • Job seeking assistance, upskilling, and reskilling to help workers as Europe shifts to a climate-neutral economy;

  • Micro-enterprises;

  • Business incubators;

  • Universities;

  • Public research institutions; and

  • Investments in new energy technologies, energy efficiency, and sustainable local mobility.

A “Green Rewarding Mechanism” could be introduced to the JTF for distribution of additional funding to member states if the EP decides to increase the fund’s resources after December 31, 2024. The goal is for the €7.5 billion JTF funds to generate between €30 and €50 billion from investments. Member states that succeed in reducing industrial greenhouse gas (GHG) emissions will receive additional funding.
 
Access to JTF for member states is conditional upon adoption of national-level commitments to achieve climate neutrality by 2050. Before adoption of such commitments, member states will be entitled to only 50 percent of their national allocations. The portion of the investments provided by EC is set at a maximum of 85 percent for less developed regions, 70 percent for transitional regions, and 50 percent for more developed regions.
 
JTF is part of the European Green Deal Just Transition Mechanism (JTM) initiative, which provides targeted support to regions and sectors in the EU that are most affected by the transition into a green economy. JTM aims to help EU member countries by also:

  • Supporting the transition to low-carbon and climate-resilient activities;

  • Creating new jobs in the green economy;

  • Investing in public and sustainable transport;

  • Providing technical assistance;

  • Investing in renewable energy sources;

  • Improving digital connectivity;

  • Providing affordable loans to local public authorities; and

  • Improving energy infrastructure, district heating, and transportation networks.

In support of JTM, Frans Timmermans, Executive Vice President of EC stated that “[w]e must show solidarity with the most affected regions in Europe, such as the coal mining regions and others, to make sure the [European] Green Deal gets everyone’s full support and has a chance to become a reality.”

©2021 Bergeson & Campbell, P.C.National Law Review, Volume XI, Number 144
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About this Author

Lynn Bergeson, Campbell PC, Toxic Substances Control Act Attorney, federal insecticide lawyer, industrial biotechnology legal counsel, Food Drug Administration law
Managing Partner

Lynn L. Bergeson has earned an international reputation for her deep and expansive understanding of the Toxic Substances Control Act (TSCA), the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), European Union Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), and especially how these regulatory programs pertain to nanotechnology, industrial biotechnology, synthetic biology, and other emerging transformative technologies. Her knowledge of and involvement in the policy process allows her to develop client-focused strategies whether...

202-557-3801
Ligia Duarte Botelho Bergeson Campbell Manager
Manager

Ligia Duarte Botelho, M.A., Manager with B&C® Consortia Management, L.L.C. (BCCM), assists consortia in reaching and exceeding their institutional goals in policy advocacy, public outreach, product stewardship, and testing and compliance.  Ms. Botelho offers BCCM clients the significant experience she gained as manager of a national medical science research and policy consortium, with a demonstrated excellence in synthesizing and communicating effective advocacy messages in her work with academic, global health, and science institutions.  Ms. Botelho holds a Master’s degree...

202-833-6583
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