The European Commission’s Just Transition Platform from 2021 onwards is organising Working Groups to bring together different stakeholders across Europe who share a common concern for the people and regions affected by the transition to a climate-neutral economy. In this context, in February 2025, it set up a Working Group on the future of Just Transition in Europe and the financial instruments that can support it.
The Working Group, in which the Green Tank is an active participant, aims to contribute to the debate on the future of the Just Transition both in the context of the review of the implementation of this policy in the current programming period (2021 – 2027) and by formulating proposals for the continuation of the Just Transition policy in the next EU budget for the period 2028 – 2034. Working Group members were asked to identify successful examples of the implementation of the Just Transition Mechanism (JTM) to date and areas for improvement, and expressed views on the targeting of the JTM, its governance and its alignment with broader European objectives.
The Working Group prepared a discussion paper that reflects the views of the members, their convergences and divergences. In particular,
1. The members of the Working Group highlight the basic factors that contribute to the success of the JTM, such as:
- The creation of a dedicated financial mechanism for coal+ regions in transition: it is recorded as the key success factor of the Just Transition policy.
- The territorial approach of the JTM: enabled the tailoring of support.
- The targeting of vulnerable population groups and regions: the JTF has in many cases been the first financial instrument to help specific regions to cope with the socio-economic impact of the transition and coal phase-out.
- Territorial Just Transition Plans: they have reinforced long-term planning and have served in many regions as the roadmap for the transition of local communities.
- Active stakeholder engagement: this is an element that must be maintained in the next period, strengthening participatory governance structures.
- Flexibility in project eligibility: supporting a wide range of projects, from infrastructure to employment, enables many different beneficiaries to benefit from transition resources, which is not the case with other European funds.
- Support for capacity building: the availability of technical assistance, exchange of good practice between regions, knowledge sharing, and availability of experts were important tools to support regions in transition.
2. Alignment of the JTM with the evolving needs of areas in transition is needed and requires:
- Maintain targeted resource allocation,
- Coordination with other European instruments and funds,
- Improve in governance schemes,
- Strengthen capacity building and reduce administrative burden,
- Strengthen monitoring and transparency,
- Redesign of funded projects.
A point of disagreement for the Working Group members was the exclusion of fossil fuel projects from funding . The majority of members argued that this would lead the Just Transition regions, which are trying to wean themselves off fossil fuels, into a fossil fuel lock-in and a move away from the European targets. On the other hand, if it is deemed necessary to finance fossil fuel-related infrastructure, such as for heating infrastructure or carbon capture, storage or use (CCS/U) – raised by a minority of members – then other resources such as the Innovation Fund and the Modernisation Fund should be explored.
The Working Group’s discussion paper was published on 08/07/2025 under the title “Adapting the Just Transition Mechanism to the needs of regions in transition – Key lessons and recommendations for the future” and will be used in the context of the presentation of the EU proposal for the Union’s budget for the period 2028-2034.
