The European Just Transition Fund program supports the conversion of regions that were mono-industrial, and from which the coal industry will disappear.

“For example, if we decide that the Jiu Valley becomes a pole of innovation or a tourist pole, it is likely that the energy infrastructure will be able to benefit from the Just Transition Fund,” according to Valeriu Binig, Director, Regulatory and Antitrust, Enel.

The Just Transition Fund is dedicated to helping coal-affected communities build strong, resilient, and diversified new energy economies.

The EU aims to cut greenhouse gas emissions by at least 50 percent by 2030 and achieve climate neutrality by 2050. This will require a socio-economic transformation in regions relying on fossil fuels and carbon-intensive industries.

As part of the European Green Deal, on 14 January 2020, the European Commission adopted a proposal for a regulation to create the Just Transition Fund, aimed at supporting EU regions most affected by the transition to a low carbon economy. Funding will be available to all Member States, while focusing on regions with the biggest transition challenges.

The fund will support workers, companies, and regional authorities, encouraging investments that facilitate the transition. The proposed budget for the Just Transition Fund (JTF) is €7.5 billion, to be complemented with resources from cohesion policy funds and national co-financing (up to a total of €30-50 billion). The Fund will be part of a Just Transition Mechanism, which also includes resources under InvestEU and loans from the European Investment Bank. Total funding mobilised under the mechanism is expected to reach €100 billion, according to the Commission.