Changes from report parliamentary committee draft to plenary report

The European Commission will soon publish their midterm review of the EU JTF. This will be a crucial moment for the continuation of the fund, and provide a snapshot of how it functions currently. In this context, the rapporteur feels that this is a timely report which aims to examine the implementation of the JTF and propose targeted measures to enhance its effectiveness in supporting communities undergoing transition in the future, and also in the present.

The JTF was introduced as a key instrument to mitigate the negative effects of decarbonisation and ensure that no region or worker is left behind. However, according to the rapporteur, the EU JTF, while having benefited many across the EU, has many challenges which need to be addressed. In essence this file seeks to ensure that ‘justice before transition’ is central to the ethos that will in turn lead to the success of the fund.

The transition to a carbon neutral economy by 2050 has brought significant socio economic challenges for regions historically dependent on fossil fuel based industries. In some cases, entire local economies have been built around these industries, leading to potential job losses of tens of thousands of people, demographic shifts, and economic stagnation. A failure to address these issues adequately, risks exacerbating regional disparities and increasing economic inactivity in these regions. Moreover, the diverse economic and social realities of these regions require tailored solutions, in a flexible framework, rather than a one size fits all approach.

However, excessive administrative burden has discouraged the uptake of the fund, and absorption rates tell this story clearly. Furthermore, these complex rules make it very difficult for community and voluntary groups to access the fund without outside help. This is evidence that we must see further simplification of rules and procedures. However this must be simplification that benefits the stakeholders implementing the fund, while fully preserving the shared management model.

The JTF must not only address immediate challenges but also lay the foundations for a sustainable economic future. With major geopolitical shifts and rapid technological changes reshaping the EU’s economic landscape, a post-2027 JTF II should be established with greater financial resources and a strong commitment to shared management and partnership principles. This will ensure that the Just Transition process continues to evolve and deliver for communities most affected by the green transition.

The rapporteur emphasises the need for the preparation of coherent strategic plans in each Member State. There needs to be a focus on reaching a social agreement with workers affected over the period 2025 to 2049. We must see a simplification of the process, whereby local lands, buildings and other assets, owned by the Member States, could be used in the short term after closures for new JTF employment projects - particularly in the area of renewables and with an emphasis on working with local communities, social enterprises and the private sector. This file also calls on the European Commission to encourage Member States to fully implement the provisions of European Directive 2019 994 relating to Citizen Energy Communities.

In conclusion, the rapporteur believes that by implementing the proposed recommendations and seeking justice before transition for thousands of workers, the JTF can effectively contribute to ensure we help those who need it most, and that affected regions receive the necessary support to build resilient, diversified, and sustainable economies for the future.