While EU support to coal regions has had a limited impact on energy transition and employment, the European Court of Auditors calls on the European Commission to ensure that the implementation of the ‘Just Transition Fund’ (JTF) is effective. This is all the more so because, in the Court’s view, the design of the JTF does not sufficiently build on the lessons of the 2014-2020 period.
Limited effectiveness for employment and climate
The auditors looked at EU support for the period 2014-2020 in seven coal-dependent European regions. In terms of employment, they deplore a lack of monitoring of the impact of training subsidised by the European Social Fund for redundant workers. They also state that only a modest number of direct jobs have been created as a result of ERDF investments.
With regard to energy transition, they note that the projects financed have not had a significant impact on energy savings or renewable energy production capacity. They also warn that some countries, such as Germany and Poland, have replaced their coal production with imported coal or other fossil fuels.
The JTF risks not delivering on its promises
Faced with these mixed results, they criticise the Commission for not having sufficiently assessed the situation before designing the JTF. “With the JTF being over 19.3 billion euros [...], we would have expected this amount to be based on an analysis of the needs and what has already been achieved with existing EU structural funds," says Nikolaos Milionis, head of the audit.
In essence, the auditors are concerned that funds are being spent, but that there is no real transition. This risk is exacerbated, in their view, by the energy crisis linked to the war in Ukraine and by the fact that the funds must be committed by the end of 2023 and effectively used by the end of 2026. “The risk when you try to spend quickly, is that you don’t spend well […] you spend on what is the easiest, which isn’t necessarily what achieves the best results for the climate [and] that the transition element is not a key point for selecting projects” warns Kristian Sniter, Mr Milionis’ chief of staff.
In the absence of a review of the design of the instrument, the Court of Auditors calls on the Commission to ensure that Member States’ national territorial plans provide for a timetable, programmed resources consistent with the amounts defined and complementarity between the various EU and national funding sources. It also calls for monitoring the implementation of the projects developed under the JTF in 2026.
To read the audit report: https://aeur.eu/f/3ze (Original version in French by Hélène Seynaeve)