The European Union's member countries on Monday endorsed the regulation on establishing the Just Transition Fund (JTF) as the first pillar of the Just Transition Mechanism (JTM).
The fund will be equipped with €17.5 billion.
The allocations from the fund will be earmarked for member countries where fossil fuels have a significant role in their economies, in an effort to alleviate the negative economic effect of green transition.
Thus, Poland can count on the biggest allocation, €3.5 billion, or 20 percent of the fund. Germany is entitled to €2.25 billion, while, for instance, Croatia can tap €169 million.
“The fund will alleviate the socio-economic costs triggered by climate transition, supporting the economic diversification and reconversion of the territories concerned,” the European Commission said on its website.
“This means backing productive investments in small and medium-sized enterprises, the creation of new firms, research and innovation, environmental rehabilitation, clean energy, up- and reskilling of workers, job-search assistancem 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. It is expected to mobilise close to €30 billion in investments,” the Commission said.