The Just Transition Fund (JTF) is a new instrument of the Cohesion Policy 2021-2027, serving as the first pillar of the Just Transition Mechanism in the context of the European Green Deal, which aims to achieve climate neutrality for the EU by 2050.

In line with EU cohesion policy's goal of reducing regional disparities and addressing structural changes in the EU, the JTF supports the territories most affected by the transition to climate neutrality in order to prevent regional inequalities from growing.

The fund helps people adapt to a changing labour market by reducing the socio-economic costs of the climate transition by supporting economic diversification and reconversion in the affected areas.

This entails supporting activities that are directly related to the JTF's specific goal, such as:

  • productive investments in small and medium-sized businesses;
  • research and innovation activities;
  • environmental rehabilitation;
  • among other aspects.

To unlock and implement JTF resources, EU Member States must first develop strategic Territorial Just Transition Plans (TJTPs), which identify the eligible territories that will be most negatively impacted by the climate transition. The TJTP must be developed in collaboration with relevant internal partners, in consultation with the Commission, and in accordance with smart specialisation strategies and National Energy and Climate Plans.


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