The Just Transition Fund is a new financial instrument in the field of cohesion policy which aims to support territories facing severe socio-economic challenges arising from the process of transition to climate neutrality. The Just Transition Fund will facilitate the implementation of the European Green Pact, which aims to achieve a climate-neutral Union by 2050.
As part of the European Green Pact and with the aim of achieving climate neutrality in the Union in an effective and fair manner, the European Commission proposed the creation of a Just Transition Facility including a Just Transition Fund. It suggested that the Facility should focus on those regions and sectors most affected by the transition, given their dependence on fossil fuels.
The Facility consists of three pillars.
El The Just Transition Fund mainly provides grants. The specific transitional regime under InvestEU attracts private investments. The European Investment Bank's activities should mobilize public funding.
For more information about the Fondo de Transición Justa: