The European Parliament gave its approval with a majority vote for the Just Transition Fund to subsidise green transition of European regions whose economies currently depend on coal and fossil fuels.

The €17.5 billion fund is earmarked for member states where fossil fuels have a significant role in their economies, in an effort to alleviate the negative economic effect of green transition.

The funds can be used to retrain workers, help workers in their efforts to find a new job, transform the existing plants in the fossil fuel industry, to support sustainable local mobility, fund retirement homes and the like, as well as to support to micro enterprises, entrepreneurial incubators, university ad public research institutes and invest in new energy technology and energy efficiency.

The motion was adopted with 615 votes for, 35 against and 46 abstentions.

MEP Sokol: The fund will help Petrokemija

Croatian MEPs – Tonino Picula (SDP/S&D) and Tomislav Sokol (HDZ/EPP) – supported the new mechanism to support those areas that will be the most affected by transition. Picula is pleased that an amendment was adopted that in particular supports the island and remote areas.

“I call on member states to allocate sufficient funds for a just transition on the islands,” said Picula.

Addressing lawmakers in the European Parliament, Tomislav Sokol underscored that the “transition to greener and more sustainable technology is an opportunity to develop European economies, but is also a large expense that affects the competitiveness of our enterprises on the global market.”

He nevertheless positively assessed that the fund will not be available to losers – those enterprises that in any case would not succeed in doing business.

Croatia will be able to use these funds in two regions: Sisak-Moslavina and Istria counties.

Sokol said in a press release that companies like the Kutina-based Petrokemija will be able to apply for these funds in an effort to achieve the ecological level set and to boost its competitiveness, and also local authorities will be able to apply to provide direct subsidies to citizens in energy poverty.

“A Green Rewarding Mechanism proposed by the Parliament will be introduced if the fund’s resources are increased after 31 December 2024. They would be distributed among EU countries, while those that had cut greenhouse gas emissions from industry the most receiving more,” the EP said on its website.