The European Parliament has approved the EU's €17.5bn Just Transition Fund (JTF), which will combine funds from the EU’s budget and its COVID-19 recovery fund to support countries and communities affected by the planned closure of coal, peat and oil shale sectors. The JTF is expected to support a smooth transition from energy-intensive industries to low-carbon industries, as the European Union aims to cut its greenhouse gas (GHG) emissions by 2050. Funds will be dedicated to green investments, and not to the decommissioning of coal-fired or oil-fired power plants nor to the construction of nuclear power plants.
20% of the funds should be directed to Poland, which accounts for over half of the EU's coal sector employees, followed by Germany (13%) and Romania (11%). To access JTF support, the EU countries will have to submit territorial just transition plans. Those that have not yet committed to achieving a climate neutrality by 2050 - such as Poland - will only be awarded 50% of their planned allocation.