On Thursday 28 May, the European Commission presented how it intends to increase the size of the Just Transition Fund: €2.5 billion will come from the 2021-2027 Multiannual Financial Framework (MFF) and €30 billion from the specific Next Generation EU recovery plan.
Added to the €7.5 billion initially announced at the beginning of the year, this would bring the total amount of the Fund to €40 billion (in 2018 prices).
Asked at a press briefing, Budget Commissioner Johannes Hahn assured that this extra money would not be backed by the structural funds, contrary to the mechanism foreseen in the January proposal (see EUROPE 12403/2).
Another source qualified the Commissioner’s words: the €2.5 billion, which will come from the next MFF, will in fact be subject to the same compulsory spending and co-financing rules with the Structural Funds and national co-financing as the Fund budget put forward in January.
Unsurprisingly, the main Member States that will benefit from this extension are countries with carbon-intensive or particularly lignite and coal-based economies. Poland should there expect to receive €8 billion, followed by Germany (€5.1 billion) and Romania (€4.4 billion).
These proposals could satisfy the European Parliament. MEPs want a substantial increase in the Fund's endowment to almost €18 billion by disconnecting it from co-financing from other structural funds (see EUROPE 12485/12). (Original version in French by Pascal Hansens)