The Just Transition Fund is the only social policy instrument of the European Green Deal.Launched with €17.5 billion, it aims to address the socio-economic risks of the transition to a climate-neutral economy. In other words, the fund is designed to support the regions, sectors and workers most affected by the reduction in fossil fuel use. These regions may need to undergo a very major restructuring, with the ultimate aim of transitioning to a green economy.
The money will be used for job search assistance, vocational training and retraining, and to engage the workforce in energy transformation efforts. It will also support micro-enterprises, business incubators, universities and public research institutes, as well as investments in new energy technologies, energy efficiency and sustainable local mobility. Reducing net emissions to zero is almost synonymous with phasing out fossil fuels, in particular coal.
The biggest beneficiary of the fund is Poland, with Germany as the second biggest beneficiary. In total, Germany will receive around €2.2 billion.