Central and Eastern European countries, heavily reliant on coal mining and heavy industries, are among the biggest beneficiaries of EU transition funds. These funds are crucial for helping these regions move away from carbon-intensive industries and transition to a sustainable future. In a statement released today (September 18), 42 civil society organizations, led by the NGO Bankwatch Network, are urging EU leaders to prioritize funding for regions most affected by the transition to climate neutrality in upcoming budget talks.
The statement highlights the critical role of the Just Transition Fund, which provides financial support to 92 European regions relying on carbon-intensive industries. Countries like Czechia, Poland, and Slovakia have benefitted significantly from these funds to mitigate the impacts of closing coal-powered industries and shifting towards cleaner energy sources.
While some countries are making progress towards decarbonization, others face a longer and more challenging journey. Recognizing this, the environmental groups are concerned about potential changes or discontinuation of the Just Transition Fund, which has been supporting coal-reliant regions since 2021. They argue that such changes could lead to dissatisfaction in regions already committed to the transition path.
The plea comes as the European Commission prepares to form a new executive team, with discussions expected to focus on the mid-term review of the EU’s cohesion policy, the Just Transition Fund, and the Multiannual Financial Framework (MMF). The Just Transition Fund, with a total budget of €17.5 billion, is part of the broader MMF and is set to continue until 2027.
Miłosława Stępień, just transition coordinator for Central and Eastern Europe at Bankwatch Network, emphasizes the importance of the Just Transition Fund as the only dedicated and readily available resource for supporting these regions. She argues that the fund is vital for revitalizing areas struggling with economic decline and promoting investments in sustainable infrastructure.
Olivier Vardakoulias, finance and subsidies policy coordinator at Climate Action Network (CAN) Europe, stresses the need for EU institutions to demonstrate commitment to supporting a socially just energy transition. Extending the Just Transition Fund beyond the current budget would signal the EU’s dedication to meeting the public’s demand for a fair transition, especially in regions shifting away from fossil fuels.
