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The Just Transition Mechanism (JTM) is a funding instrument to ensure the transition towards a climate-neutral economy happens for all EU Member States. It provides targeted support to help mobilise at least €150 billion over the period 2021-2027 in order to address the social and economic effects of the transition.

The Just Transition Fund is the first pillar of the Just Transition Mechanism which works through three pillars:

1. A new Just Transition Fund of €40 billion, generating at least €89-107 billion in investments.

2. InvestEU “Just Transition” scheme mobilising €30 billion in investments.

3. EIB public sector loan facility of €10 billion in loans, backed by €1.5 billion of the EU budget, mobilising up to €30 billion in investments.

Support will be available to all Member States focused on regions that are the most carbon-intensive or with the most people working in fossil fuels. Member States can get access by preparing territorial just transition plans that cover the period up to 2030, identifying the territories that should get the most support. The plans should also set out ways to best address social, economic and environmental challenges. The European Commission’s approval of the territorial just transition plans enables dedicated financing under InvestEU and the EIB loan facility.

The fund is targeted at supporting the economic diversification and reconversion of the territories concerned. Thereby, support will be enabled for productive investments in SMEs, the creation of new businesses, research and innovation, environmental rehabilitation, clean energy, up- and reskilling of workers, job-search assistance and active inclusion of jobseekers programmes, as well as the transformation of existing carbon-intensive installations when these investments lead to substantial emission cuts and job protection.

People and citizens, most vulnerable to the transition: The Just Transition Mechanism will protect them by
facilitating employment opportunities in new sectors and those in transition;
offering re-skilling opportunities;
improving energy-efficient housing;
 investing to fight energy poverty;
facilitating access to clean, affordable and secure energy.

Companies and sectors, active in or comprising carbon-intensive industries: The Just Transition Mechanism will protect them by
 supporting the transition to low-carbon technologies and economic diversification based on climate-resilient investments and jobs;
creating attractive conditions for public and private investors;
providing easier access to loans and financial support;
investing in the creation of new firms, SMEs and start-ups;
investing in research and innovation activities.

Member States and regions, with high dependence on fossil fuel and carbon-intensive industries: The Just Transition Mechanism will protect them by
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;
improving energy infrastructure, district heating and transportation networks.

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