On Wednesday, EP and Council reached a provisional agreement on setting up the Just Transition Fund to mitigate the social impact of greening the economy. According to Jerzy Buzek, ITRE repporteur on Just Transition Fund, Poland is to get one fifth of the budget or about 4 bn euro.
European Parliament informs that the Just Transition Fund (JTF), worth 17.5 billion EUR, is one of the EU’s key tools to support regions in the transition towards climate neutrality by 2050. During their talks, EU institutions agreed to broaden its scope to also fund micro-enterprises, universities and public research institutions, digital innovation and activities in the areas of education and social inclusion. Investments in renewable energy and energy storage technologies, investments in energy efficiency and heat production for renewables-based district heating, smart and sustainable local mobility will also be financed.
The decommissioning or construction of nuclear power stations, activities linked to tobacco products and investment related to the production, processing, transport, distribution, storage or combustion of fossil fuels cannot be funded through the JTF. At the initiative of the Parliament, a “Green Rewarding Mechanism” will be introduced, if JTF resources are increased after 31 December 2024. The additional resources will be distributed among member states, with those that succeed in reducing greenhouse gas emitted by their industrial facilities receiving more funding.
According to Jerzy Buzek Poland is to stay the biggest beneficiary of JTF with possibility of getting 16 bn zł (around 4 bn euro) which are to be spent for coal regions transition. It is especially important for Silesia, Konin and Bełchatów centres of coal production.