MEPs on the Committee on Regional Development (REGI) are proposing a substantial increase in the budget for the Just Transition Fund (JTF) to €25.3 billion (in 2018 prices) under the 2021–2027 Multiannual Financial Framework shows a report by Manolis Kefalogiannis (EPP, Greece) which was adopted (27 votes in favour, 7 against, 8 abstentions) on Monday 6 July.
“With an increased budget, we will be able to effectively support the regions which need it the most, but most of all we strongly support the citizens of these areas. We are moving into a new green era without leaving anyone behind”, said the rapporteur enthusiastically on this occasion, hoping that the European Parliament will “continue to lead the way in the implementation of the Paris agreement”.
In the new version of the Fund, updated in the wake of the pandemic, the European Commission has already increased the Fund's budget allocation from €7.5 billion (2018 prices) to €10 billion. This amount is to be supplemented by an additional €32.8 billion in current prices provided for under the Recovery Plan for Europe (see EUROPE 12495/5).
MEPs have proposed a decoupling of the Fund from the European Regional Development Fund (ERDF) and the European Social Fund (ESF+). The obligation to abut the Fund against these other structural and investment funds would therefore become voluntary. Such a development would fundamentally change the spirit of the instrument as well as its financial impact.
It is worth noting that the European Commission suggested a compulsory transfer from the ERDF and the ESF+ of between one and a half and three times the investment made by the JTF, with a cap not exceeding 20% of the national allocation of the two funds (see EUROPE 12403/2). In addition, MEPs are requesting co-financing rates of up to 85% for the most vulnerable communities within the eligible regions.
MEPs also endorsed Mr Kefalogiannis' proposal to introduce an “ecological response mechanism” whereby 20% of the Fund's total resources would be allocated according to the rate at which Member States reduce their greenhouse gas emissions.
It should be noted that out of the total budget of the Fund, 1% would be specifically allocated to the islands and 1% to the outermost regions.
Gas can be financed
In addition, Members of Parliament have broadened the scope by focusing it more sharply on social cohesion and job creation, thereby taking into account the impact of Covid-19.
The activities and areas supported by the fund would therefore also include: micro-enterprises, sustainable tourism, social infrastructure, research and innovation provided by universities and public research institutions, energy storage technologies, intelligent and sustainable mobility and environmentally friendly transport infrastructure, digital innovation, digitisation of agriculture, projects to combat energy poverty, as well as culture, education and community construction.
Members of Parliament have somewhat relaxed the ban on funding for activities linked to fossil fuels. The European Commission might additionally give the green light to territorial transition plans, including investments in activities linked to natural gas and low-emission district heating as a transitional energy source.
Such financing would therefore be possible: - if it is used as a bridging technology; - if it contributes to the Union's climate and environmental objectives; - if it helps to combat energy poverty; - and if it does not hinder the development of renewable energy sources in the relevant territories.
The GUE/NGL and Greens/EFA groups could call for a plenary vote on the latter, even though there is little chance of an amendment against gas financing getting passed. If the position were maintained, the European Parliament would have then adopted a more conservative position than the EU Council, since the latter has rejected any possibility of gas financing (see EUROPE 12513/9).
Inter-institutional negotiations are expected to start in September, once an agreement on the European Recovery Plan and the post-2020 MFF has been agreed at the European Council. (Original version in French by Pascal Hansens)