Central and eastern European countries are among the biggest beneficiaries of transition funds due to their historic dependency on the coal mining sector and heavy industries.
Civil groups are calling on EU leaders to prioritise EU funding to support regions most affected by the transition to climate neutrality in upcoming budget talks, according to a statement released today (September 18) by 42 civil society organisations.
A statement led by the NGO Bankwatch Network, and backed by more than 40 environmental groups, is urging EU lawmakers to take into account the current 92 European regions relying on the Just Transition Fund, financial support designed to help regions move away from carbon-intensive industries like coal and mining or heavy manufacturing.
Czechia, Poland and Slovakia are among the EU countries benefiting from transition funds to mitigate the impacts of the closure of high-carbon industries and their reliance on coal.
“Some countries will complete the process within a few years, but others face a much longer and more painful journey towards full decarbonisation,” read the statement.
The joint plea comes as the European Commission is about to form a new executive team for the next mandate where discussions, likely to be commanded by Polish Commissioner-designate Piotr Serafin, will feature around the upcoming mid-term review of the EU’s cohesion policy, the review of the Just Transition Fund, and the Commission’s proposal for the new Multiannual Financial Framework (MMF). The transition fund, with a total budget of €17.5bn, is part of the EU’s broader MMF, with funding set to run until 2027.
While the next Commission has pledged to “significantly increase funding for a just transition across the next long-term budget”, the environmental groups are wary of a potential discontinuation or significant changes to the transition fund that has been supporting coal-reliant regions since 2021.
“This could lead to much dissatisfaction in regions that have already embarked on the just transition pathway,” the statement ran.
Miłosława Stępień, just transition coordinator for Central and Eastern Europe at Bankwatch Network, said the Just Transition Fund is the only dedicated and easily accessible fund to help these regions to deliver reskilling and employment programs and promote investments in sustainable infrastructure.
“It [Just Transition Fund] provides enormous support in revitalising areas that have been in decline for decades. These regions will continue to struggle if they’re not further assisted in their efforts to shift to a green economy,” said Stępień.
“It’s crucial that member states and EU institutions show that they can meet their [EU citizens’] basic needs and provide a safety net,” said Olivier Vardakoulias, finance and subsidies policy coordinator at the NGO Climate Action Network (CAN) Europe.
“Extending the Just Transition Fund beyond the current long-term EU budget would demonstrate that the EU is serious about the public’s demands for a socially just energy transition, particularly in regions shifting away from fossil fuels,” added Vardakoulias.
