Changes from report parliamentary committee draft to plenary report

AddedO. whereas the European continent is warming faster than the rest of the world and the risks posed by climate change are becoming more intricate and challenging to address;

AddedP. whereas particular focus and support need to be directed to the vulnerable situation of islands and insular and outermost regions, given the serious socio-economic challenges they face in the transition towards the EU’s 2030 energy targets and the goal of a climate-neutral economy by 2050; whereas the co-existing handicaps of islands, stemming from insularity, combined with the severe impact of the climate crisis, place their citizens at further disadvantage, exacerbating existing social and economic disparities; whereas the increasing occurrence of extreme weather events and natural disasters, such as droughts, floods and wildfires, further widens development gaps and hinders progress in the sustainable development of EU island regions;

AddedQ. whereas without adequate attention and financial support, regions formerly dependent on energy production, including peat production, mining activities and refinery processes, as well as other heavily industrialised regions, face the risk of economic decline, reducing their competitiveness; whereas these areas often experience demographic challenges such as persistent depopulation, in particular in rural areas, islands and outermost regions, as well as ageing and brain drain, combined with limited access to investment, inadequate infrastructure, insufficient connectivity and a widening gap in productivity and employment opportunities when compared to more dynamic regions; whereas they require comprehensive support and specific reconversion strategies to turn these challenges into opportunities;

AddedR. whereas the effectiveness of just transition strategies depends on the coherent and strategic use of EU financial instruments; whereas it is therefore essential to maintain a territorial and place-based approach for the Territorial Just Transition Plans, ensuring the involvement of regional and local authorities in the design of bottom-up strategies for the territories covered by the programme;

AddedS. whereas the technical assistance for public authorities under the JTF, InvestEU and the Public Sector Loan Facility – the three pillars of the Just Transition mechanism – should be strengthened;

AddedT. whereas the application process for the JTF must be simplified, streamlined and made more flexible in order to ensure broader accessibility and enable a faster and more effective deployment of resources; whereas simplifying procedures is essential to maximise the JTF’s impact, particularly for smaller regions and local authorities with limited administrative capacity, and to ensure that support reaches the communities and workers most affected by the green transition in a timely manner;

Targeting areas of job losses

Change 5

Changed1. Calls on the CommissionCommission, upon a proposal from the Member States, in partnership with the regions and local authorities, to facilitate the establishment of special JTF economic zones for areas affected by site closures, until such a time as the majority of jobs lost locally are replaced in the local area, with priority access to funding given initially to locations withindirectly aaffected 50in kmthe radiusgeneral proximity of jobthe lossarea siteswhere andjobs were lost, as well as to other areasareas, whereprovided that it is duly justified that the direct or indirect impact of suchthese losses would justifywarrants access to the JTF; underlines the importance of also taking into account social criteria such as local unemployment rates, socio-economic precariousness and increased risks of social exclusion, ensuring that economic recovery is community-led and sustainable;

Change 6

Changed2. Calls for the introduction of swifter planning decisions along with special regulationsmeasures, financial instruments and incentives in these zones, including lowertemporary and targeted tax ratesincentives for businesses and investments, alongprovided withthat swifterthey planningdo decisions;not undermine the stability of the single market; reaffirms that such measures can create jobs andjobs, provide opportunities for people living in these regions;regions and support economic operators, giving priority to SMEs, microenterprises and those operating traditional local and family-run businesses, enhancing regional development and competitiveness;

Change 7

Changed3. Stresses that special economic zones have beenthe shownpotential to booststimulate investment and growth in regions, such as the special economic zones established at Shannon Airport in County Clare, Ireland in 1959, and in Katowice, Silesia region, Poland in 1996; insists, however, that these mechanisms must be governed by stringent rules to ensure that the economic benefits effectively reach local populations, prevent any form of social or fiscal dumping, money laundering and tax evasion, and are subject to strict criteria for social, economic and environmental sustainability, giving priority to local businesses, especially SMEs and microenterprises;

Change 8

Added4. Calls for the inclusion of island regions as eligible areas for the application of reduced tax rates within the framework of insular JTF economic zones, with the aim of addressing the disproportionately high cost of living in these territories, which is further exacerbated by the impacts of the green and energy transitions; stresses that such fiscal measures are essential to enhance the economic viability of island communities, support local businesses and attract sustainable investment; highlights that targeted tax incentives can serve as an effective tool to counteract the persistent trend of island depopulation, promote job creation and foster resilient, self-sustaining local economies, while ensuring a fair and inclusive transition towards climate neutrality;

Education, training of workers and apprenticeships

Change 9

Removed4. Reiterates that many of the JTF regions have a proud history of training and apprenticeships and that their continuation should be prioritised;

Added5. Points out that EU funds (the European Structural and Investment Funds and, in particular, the European Social Fund Plus (ESF+) and the Recovery and Resilience Facility (RFF)) and the JTF are being used to supplement the investments of the various regions in early childhood education;

Removed5. Stresses in this regard the need to prioritise investment in all levels of education and training in affected areas; emphasises the need for funding for tuition;

Added6. Reiterates that many regions covered by the JTF have a significant and proud history of training and apprenticeship programmes, which are essential for the reskilling of workers and also for responding to the new demands of the labour market; underlines that their continuation should be prioritised; calls for funding within the JTF to support access to training and apprenticeship opportunities, especially for women, young people and marginalised communities;

Removed6. Calls for at least 50 % of education funds in affected regions to be used for apprenticeships, recognising investments already made in apprenticeships;

Added7. Stresses, in this regard, the need to prioritise investment in all levels of education and training in affected areas, including by integrating green and digital skills, literacy and basic numeracy, as well as science, technology, engineering and mathematics (STEM) skills, into training programmes, in line with the Commission’s recent communications on the Skills Union, the Basic Skills Action Plan and the strategic framework for STEM education; insists on the importance of funding to strengthen basic digital and technical skills in order to enhance employability and competitiveness; emphasises the need for adequate EU funding for tuition for the children and students coming from the affected areas, including financial support for secondary level and higher education;

Removed7. Calls for European Social Fund Plus (ESF+) funding to be more regionally focused and for greater synergies between the ESF+ and the JTF, particularly in relation to education and training;

Added8. Stresses that the shortage of specialised teachers exacerbates skills gaps in strategic sectors and undermines the economic competitiveness of less developed regions; calls for the development of targeted programmes to improve the attractiveness of the teaching profession, particularly in STEM, through economic and non-economic incentives, especially in regions affected by the transition; stresses the importance of allocating specific resources for innovative teacher and trainer training, as well as the development of digital pedagogical skills, which are essential to prepare workers for industrial transitions; calls for measures to improve teachers’ salary and working conditions in order to attract and retain qualified educators, particularly in areas undergoing transition, recognising their crucial role in preparing the workforce for future industrial needs; calls on the Commission to assess the impact of investments in trainer and teacher training to ensure better use of funding and optimise the skills outcomes acquired by students and workers in less developed regions;

Removed8. Calls on the Commission to work with Member States to ensure that workers who have lost their jobs are given a special status for participating in ESF+ supported employment and training schemes in their locality;

Added9. While recognising investments already made in apprenticeships, calls for a significant portion of education funds in affected regions to be used for apprenticeships and vocational training that aligns with the needs of the local community where jobs are lost, through high-quality apprenticeship programmes, ensuring that these programmes offer adequate remuneration, decent working conditions, and quality training;

Removed9. Emphasises the need to develop apprenticeship schemes for the affected areas in collaboration with local businesses to provide students with experience in their communities, giving them the ‘right to stay’;

Added10. Stresses that cohesion policy is the right response to economic disparities, and that its role is particularly important now in view of the threat of deindustrialisation; calls for greater coordination between the JTF, the ESF+ and the European Regional Development Fund to maximise their impact on the redeployment and reskilling of workers affected by industrial restructurings; further calls for the management of ESF+ funding to be more regionally focused, guided by a multilevel approach, involving national, regional and local authorities, and for greater and better synergies between the ESF+ and the JTF, particularly in relation to education and training; recognises also the essential role of the European Investment Bank in supporting the just transition and the need to continue strengthening cooperation between public and private investment;

RemovedReplacement employment

Added11. Stresses the importance of aligning cohesion policy, including the JTF, with regional innovation strategies and smart specialisation priorities to enhance regional competitiveness and support economic diversification and the resilience of transitioning areas; urges the Commission and the Member States to pay special attention to areas in demographic decline and to prioritise affected areas over those not affected by transition in the selection criteria for projects eligible for JTF financing, increasing the score of entrepreneurial initiatives located squarely in municipalities affected by the closure of carbon-intensive sectors, thus ensuring that this incentive translates into tangible results; urges the Commission and the Member States to make sure that the funds available under the RRF contribute to supporting the transition process in the territories in question;

Removed10. Suggests that the just transition has overlooked the unique situations of affected full-time workers, part-time workers and students; suggests that there has been little or no consideration of providing replacement seasonal employment;

Added12. Recognises the pivotal role of the automotive industry in the EU, including in generating employment across various regions; considers the inclusion of the automotive sector within the scope of the just transition essential, given the challenges posed by global competition in the shift to electromobility and the impact of unjustified trade barriers; stresses the need for targeted policies that prioritise worker reskilling and initiatives aimed at diversifying the economic model of regions with a significant automotive industry;

Removed11. Emphasises the need to fund higher education and training boards to retrain workers and their families, particularly those over the age of 50 who have lost their jobs; proposes that the JTF should also offer retraining opportunities to partners and spouses of affected workers;

Added13. Is of the opinion that vocational training is a necessary response to the economic transformation of regions; stresses the need to establish, through the JTF, ambitious and targeted vocational training and reskilling programmes for job seekers and workers directly affected by the economic transitions, in order to prevent the emergence of long-term structural unemployment; insists on the need to allocate funding for these programmes in the territorial just transition plans;

Removed12. Stresses that Member States must prioritise access to state-owned land and buildings for new JTF employment projects and that there should be oversight of this process;

Added14. Calls on the Commission to work with Member States, local and regional authorities, trade unions and local businesses to ensure that particular attention is given to the fact that workers who have lost their jobs have the possibility of participating in ESF+ supported employment and training programmes or other EU-funded programmes in their communities;

Removed13. Recalls that some EU regions are experiencing a continuous outflow of young and skilled workers due to demographic shifts and migration, with rural areas being particularly impacted;

Added15. Emphasises the need to develop apprenticeship and training programmes for areas affected by the transition, in collaboration with local businesses, education institutions, centres for training and lifelong learning, social partners and local and regional authorities and public administration, to provide students and unemployed workers with opportunities and meaningful experiences within their communities and safeguard their ‘right to stay’;

Removed14. Stresses the need for ‘social deals’ for employees to be approved by the Commission for the period 2025-2049;

Added16. Underlines that effective retraining and upskilling programmes require adequate planning and preparation well in advance of any phase out or significant industrial change; notes that the training and retraining of workers and jobseekers, upskilling, reskilling and lifelong education must be carried out in a manner that ensures that no one, regardless of their work sector, type of contract, gender or geographical location, is forgotten on the path to the EU’s green and digital transitions; calls for measures to facilitate the proactive anticipation and planning of skills needs and to ensure these rights for all affected workers; invites the Member States and regional authorities to establish ‘Local Skills Councils’ or similar multi-stakeholder bodies, tasked with diagnosing local skills gaps, anticipating skills needs related to the green and digital transitions, and advising on targeted investments under the JTF and the ESF+;

Added17. Proposes the creation of a regional mechanism for monitoring and evaluating the impact of apprenticeship schemes, involving all stakeholders – local authorities, employers, education institutions and young people; believes that this would allow training strategies to be quickly adjusted to the demands of the labour market and the direct feedback from participants, thus ensuring the sustainability and efficiency of apprenticeships in the long term;

Added18. Points out that regions affected by the ecological transition are facing a shortage of skills and labour, while in many parts of Europe, there is a housing crisis and overcrowding in urban areas; proposes the creation of an affordable housing programme in such regions and notes that this programme should attract young people, thus contributing to the economic and social revitalisation of these areas;

Added19. Encourages the Member States to integrate housing guarantees, co-living schemes and rental support for apprentices and students into JTF and ESF+ supported projects, particularly in regions with high youth unemployment rates or those experiencing demographic decline;

Added20. Calls for a portion of cohesion funds to be specifically allocated to renovating the homes of the lowest-income households and the least energy-efficient buildings, as they would otherwise be left behind in the green transition;

AddedQuality jobs plan

Added21. Notes that the Just Transition has not sufficiently taken into account the specificities of the different profiles of workers and affected communities; notes, with regret, that seasonal work alternatives have not been created, both as a source of additional income for workers and as an opportunity for income for students;

Added22. Draws attention to unemployment and youth unemployment, in particular, in many regions, rural areas and Member States; highlights, therefore, the need for accessibility to affordable housing, transportation and education, and for the inclusion of young generations, in particular from low-income households;

Added23. Emphasises the need to complement the financing of higher education and training boards in order to ensure the retraining or reskilling of workers who are considering changing their professional profile or who have lost their jobs, particularly women and those over the age of 50; proposes that the JTF should also offer retraining, reskilling and educational opportunities to the immediate family members of affected workers within the proximity of their local areas;

Added24. Warns that some of the industries that have closed, or are in the process of closing, offer labour conditions above the economic average, including higher wages, risk allowances and health insurance for workers and their families; highlights, therefore, the need for temporary funding under the JTF framework to compensate for the difference between unemployment benefits and the new salaries, allowing for a smoother transition and ensuring all of the previously assumed contractual obligations are fulfilled;

Added25. Welcomes the Commission’s commitment to propose a quality jobs roadmap by the end of 2025, developed together with the social partners to ensure a just transition for all; recalls that the roadmap should support fair wages, high standards for health and safety, good working conditions, training and fair job transitions for workers, including the self-employed, notably by increasing collective bargaining coverage; stresses that the roadmap should make the management of transitions a key priority and include accompanying proposals that concretely support workers;

Added26. Stresses the need for ‘social contracts’ concluded for the economic sectors undergoing the just transition process and notified to the Commission to be approved without delay; stresses that these social contracts should be based on a sound diagnosis and economic forecasts, support collective bargaining and respect for workers’ rights, and take into account the specificities of the regions concerned; supports the creation of social protection mechanisms for workers directly affected by industrial and energy transitions, including a transition income and targeted extensions of unemployment benefits; calls for a directive on the just transition in the world of work that sets out a legislative framework to ensure the creation of quality jobs in the regions affected by the transition; encourages the creation of worker groups in industries affected by the transition, allowing former employees to benefit directly from regional economic renewal;

Added27. Calls on the Commission to facilitate the establishment of a social training programme for older unemployed workers, especially women and long-term unemployed persons who are unable to retrain and acquire new jobs, ensuring that they are supported until retirement in order to guarantee them a decent standard of living; stresses the need to strengthen the role of women and promote the integration of persons with disabilities;

Added28. Stresses that the Member States must prioritise access to state-owned land and should, where possible, recover, rehabilitate and repurpose buildings and other assets, such as old industrial facilities and mining sites, for new projects funded under the JTF framework, including renewables, energy efficiency renovation, or green reindustrialisation; stresses that there should be oversight and monitoring of this process by the Member States and the Commission;

Implementation and governance

Change 10

Removed15. Accepts that the implementation of the JTF process is a matter for Member States but underlines the need for simplification and for the Commission to take a more urgent approach to notifying Member States;

Added29. Stresses that the transition of regions eligible for JTF support is not yet complete and that these regions will continue to require specific support in tackling the different challenges connected with the energy transition in the future; considers it necessary to adopt measures to ensure maximum take-up of these funds, including by simplifying administrative procedures, setting up support and advisory mechanisms to help local authorities to access and successfully use necessary investments, and increasing pre-financing for local authorities;

Removed16. Believes that the Commission should have set out clear parameters for each Member State to pursue in areas such as investing in education and training and enabling third-party investors to preserve the culture and traditions of former coal and peat regions;

Added30. Regrets that some EU regions are experiencing a continuous outflow of young and skilled workers due to demographic shifts and migration, with rural and inland areas, islands and outermost regions being particularly impacted; recalls, in this context, the importance of strong rural-urban linkages as well as targeted support for women in rural areas; recalls that such levels of migration and depopulation seriously affect the competitiveness, economic growth, food security, productivity and sustainability of the regions impacted;

Removed17. Recognises that there is a shortfall in funding for bottom-up projects of scale; recommends that the JTF fill these gaps when a need is identified;

Added31. Notes, with concern, the severe drop in recent years in adequate levels of national funding by Member States for their poorer regions; recalls the importance of respecting the EU rule on additionality; calls on the Commission to ensure that national authorities duly take into account internal cohesion when drafting and implementing Structural and Investment Fund projects;

Removed18. Recognises the lack of matching funding for groups in the voluntary sector applying for the JTF; suggests advancing up to 90 % of funding for groups who are deemed to be of low risk, thereby ensuring that these groups avoid high interest rates for matching and bridging finance;

Added32. Accepts that the implementation of the JTF process is a matter for Member States, but calls for a stronger role for local and regional authorities and those involved in the decision-making process, ensuring that funding strategies are aligned with the specific needs of the communities affected by the transition and are consistent with investments under other strategic funds linked to the just transition; stresses that it is crucial to simplify access to applications and broaden the scope of the fund so as to allow other equally affected regions and sectors to benefit from the JTF; underlines the need for the Commission, in cooperation with the Member States, to present clear guidelines on implementation issues in order to speed up the allocation of funds and the efficient implementation of JTF initiatives;

Removed19. Highlights the negative impact of State aid rules on voluntary and not-for-profit groups, urges that voluntary groups that are deemed to be of low risk be given more flexibility to reach employment goals;

Added33. Believes that the Commission should have set out clear parameters for each Member State to pursue in areas such as investing in education and training, upskilling and reskilling of workers for alternative employment, and enabling third-party investors to preserve the culture and traditions of former coal and peat regions, as well as helping clean the polluted areas around the extraction sites; encourages the exchange of know-how and best practices between regions undergoing transition; calls, furthermore, for synergies with initiatives, such as the New European Bauhaus, on projects that repurpose old industrial facilities into social and cultural venues;