The Just Transition Mechanism

The Just Transition Mechanism (JTM) is part of the European Green Deal policy framework and provides resources to alleviate the socio-economic impacts of the transition towards the European Union’s 2030 climate target and the 2050 climate neutrality objective.

The JTM is intended to ensure that no one and no region is left behind in the transition to a climate-neutral economy. It mobilises around EUR 55 billion between 2021 and 2027 to address the social and economic implications of the transition, particularly for the most affected regions and social groups.

Its main beneficiaries are expected to be:

• Member States and regions which are highly dependent on fossil fuels and have carbon-intensive industries
• Citizens, who will be supported for instance in accessing employment opportunities in new sectors and re-skilling opportunities, improving energy-efficient housing, accessing clean, affordable and secure energy and investing against energy poverty
• Carbon-intensive companies and industries. During the transition, they will be supported towards low-carbon technologies, economic diversification and with climate-resilient investments and jobs, attractive conditions for investors, preferential access to loans and financial support, investment in research and innovation.

The Mechanism consists of three components:

• A Just Transition Fund
• A Public Sector Loan Facility
• An InvestEU Just Transition Scheme

The Just Transition Platform acts as a helpdesk, supporting EU countries and regions with technical, advisory and regulatory assistance about the just transition. It also promotes exchanges and interactions among stakeholders.

How does the JTM promote gender equality and social inclusion?

Gender equality and social inclusion are integral to the Just Transition Mechanism, which has stronger requirements in terms of gender equality inclusion: when applying for JTM funding, applicants need to demonstrate how their plans address gender issues. Countries applying for JTM funding need to explain how their projects will impact gender equality, how it will affect women’s opportunities and address any potential drawbacks.

Equally, the JTM pursues a gender mainstreaming approach, by encouraging the inclusion of gender equality throughout the transition process and project design, and not as a separate, ad hoc issue.

In its focus on reskilling and upskilling, the JTM supports training programs for workers affected by the green transition. These programs should be designed to be appealing to and accessible for all genders and equip also women with skills for emerging green jobs, which tend to be traditionally male-dominated.

Likewise, when proposing territorial plans for specific regions, Member States are encouraged to consider demographic challenges, including gender imbalances, in the workforce and the specific needs of women along the transition in those regions.