Description
The Just Transition Fund (JTF) is part of the EU’s Just Transition Mechanism, designed to support regions and communities most affected by the transition away from fossil fuels. The JTF provides financial assistance to regions heavily reliant on coal, oil, and other fossil fuels, helping them shift toward renewable energy and a low-carbon economy. It targets regions with significant challenges related to job losses and economic transition, offering funding for retraining workers, developing renewable energy projects, and economic diversification.
level of support
EU-wide
type of funding
Grants, Loans
Funding amount
For the period 2021-2027, the Just Transition Fund will have a total budget of EUR 17.5 billion, which can be supplemented by member states with funds from the European Regional Development Fund and the European Social Fund Plus. Project funding varies depending on the specific program and type of project being supported.
Eligibility criteria
Open to regions heavily reliant on fossil fuels, public authorities, businesses, and energy cooperatives that are helping communities transition to renewable energy.
Application Process and Timeline
The Just Transition Fund (JTF) finances programmes in shared responsibility between the European Commission and national and regional authorities in Member States. The Member States' administrations choose which projects to finance and take responsibility for day-to-day management. Applications for projects should support projects designed to support regions and communities most affected by the transition away from fossil fuels. The Commission has set up a Just Transition Platform to help EU countries and regions to unlock the support available through the Just Transition Mechanism.
Evidence Of Success
Slovakia’s Upper Nitra region is undergoing a significant transformation, as lignite mining and coal-fired energy production come to an end. With the industry officially phased out by the end of 2023, many workers in the region have been left without jobs and are facing an uncertain future. A new initiative funded by the Just Transition Fund (JTF) aims to offer these workers a lifeline by equipping them with the skills needed for new opportunities in a rapidly evolving labour market.
Expert Opinion
The Just Transition Fund (JTF) is essential for ensuring a fair transition to a green economy. By providing targeted support to regions most affected by the energy transition, it helps mitigate social and economic impacts, especially when combined with the Recovery and Resilience Facility (RRF) and the European Social Fund Plus (ESF+), it provides comprehensive financial and social support to ensure a fair, inclusive transition for communities across Europe.
