Some MEPs made no secret of their disappointment after the budget cuts to the Just Transition Fund made by the European Council during negotiations on the Multiannual Financial Framework (MFF) 2021-2027. The EU27 have in fact reduced the budgetary extension for this fund from €30 to €10 billion (see EUROPE 12532/2).
Taking into account the €7.5 billion of the MFF outside the Recovery Plan, the total budget of the Just Transition Fund is now expected to be €17.5 billion, compared to the €40 billion proposed by the European Commission (see EUROPE 12495/5).
For the European Parliament rapporteur on the legislative proposal establishing the fund, Manolis Kefalogiannis (EPP, Greece), the count is not there and the European Green Deal requires much more “substantial” funding. “Under this scope, we suggested as a principal amount 25.3 billion euros which shall not result from the transfer of resources from other funds”, he said on Wednesday 22 July.
It is true that, without the combined effect of the Structural Funds with the Just Transition Fund, for some, a budget of €17.5 billion would no longer be at the level of ambitions and climate challenges.
The European Parliament is set to adopt a resolution on Thursday 23 July in which it deplores, among other things, the budget cuts to the Just Transition Fund.
European Court of Auditors calls for more coherence
On Wednesday 22 July, the European Court of Auditors issued an opinion on the Just Transition Fund, calling for a clearer link between Europe's climate and environmental objectives and the additional resources allocated to the fund.
European auditors also note that the link between performance and funding is relatively weak. Furthermore, although common performance indicators are proposed, they do not clearly reflect the climate transition objective of carbon-intensive sectors.
In the Court's view, there is therefore a significant risk that the Fund will not contribute to ending the heavy dependence of some regions on carbon-intensive activities.
To see the opinion: https://bit.ly/2CG3e98 (Original version in French by Pascal Hansens)