The Fair Transition Mechanism is the EU's most important tool for a fair transition to a climate-neutral economy where no one will be neglected.

Under the 2021-2027 mechanism, at least € 100 billion will be mobilized in the form of targeted support to mitigate the socio-economic consequences of transition in the most affected regions.

Financing

The Fair Transition Mechanism is intended to mitigate the social and economic consequences of the transition, primarily for the regions, industries and workers who will find the transition most difficult. Under the three pillars, at least 100 billion euros will be mobilized.

Three pillars

1. A new € 40 billion Fair Transition Fund that will generate at least € 89-107 billion in investment

2. A special fair transition program under the InvestEU program will mobilize € 45 billion in investment

3. The EIB's Public Sector Lending Facility will mobilize up to € 30 billion in investments through € 10 billion in loans supported by the EU budget of € 1.5 billion

How can EU Member States gain access?

The Fair Transition Platform helps EU Member States and regions in a fair transition. It consists of a single access point and customer service. Provides comprehensive technical and advisory support. Authorities and users on the platform can find all the necessary information about financial resources, including opportunities for them, relevant regulatory innovations or sectoral initiatives.

Territorial plans for a fair transition define the areas in which the Fund for a Fair Transition will be used. These areas are identified in dialogue with the Commission. These plans identify challenges in each area and the development needs and objectives to be met by 2030. They elaborate on the types of operations envisaged and management mechanisms. Once the territorial plans for a fair transition have been approved, dedicated funding from the other two pillars of the fair transition mechanism will be available.
If you have questions about the Fair Transition Mechanism / Platform / Fund, fill out the contact form.
Platform access
Who will benefit from this?
The support will be available to all Member States, but will be mostly allocated to regions with higher carbon emissions and regions where a large proportion of the population is employed in the fossil fuel industry. To join, Member States must draw up territorial plans for a fair transition for the period up to 2030 and identify the areas most in need of support. These plans should also identify the best ways to address social, economic and environmental problems.

Citizens who are most sensitive to transition
The Fair Transition Mechanism will protect such citizens as follows:
• facilitating employment in new and transition sectors
• enabling retraining
• improving energy efficient housing
• investing in the fight against energy poverty
• facilitating access to clean, affordable and secure energy.

Businesses and sectors with high carbon emissions
The mechanism for a fair transition will enable them to:
• transition to low-carbon technologies and economic diversification based on investment and climate-resilient jobs
• creating attractive conditions for investors from the public and private sectors
• easier access to loans and financial support.
• investing in the establishment of new enterprises, small and medium-sized enterprises and newly established enterprises
• investing in research and innovation activities.

Member States and regions that are highly dependent on fossil fuels and high carbon industries
The mechanism for a fair transition will enable them to:
• transition to low-carbon, climate-resilient activities
• creating new jobs in the green economy
• investing in public and sustainable transport
• providing technical assistance
• investment in energy from renewable sources
• strengthening digital connectivity
• providing affordable loans to local public bodies
• Improving energy infrastructure, district heating and transport networks.

More information: https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/actions-being-taken-eu/just-transition-mechanism_hr