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EU ‘confident’ €100bn green transition fund will see the light

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A draft €100-billion “Just Transition Mechanism” outlined by the European Commission as part of its Green Deal last week will eventually see the light in January, EU officials have said. The amount of “fresh money” under the new fund is however expected to be limited.

Work on the detail of the fund has started after EU heads of state and governments “clearly endorsed” the European Green Deal’s “vision and path” at last week’s EU summit, officials said. The Commission confirmed on Monday (16 December) that it is currently “in the process of developing its proposal” for the €100bn Just Transition Mechanism.

 

EU leaders have instructed the Commission to work on the funding “that will be necessary to support the transition towards climate neutrality by 2050,” said Dana Spinant, the EU executive’s deputy chief spokesperson.

 

Leaders from the 28 EU member states endorsed the Commission’s European Green Deal at a summit last week, including a flagship objective to make Europe the first climate neutral continent in the world by 2050. But Poland abstained, saying it needed more clarity on the new sources of funding available for regions expected to be the most affected by the transition to net-zero emissions.

 

The Just Transition Mechanism will bring together public and private funding, including around €30bn for poorer EU regions under a new fund outlined last week under the European Green Deal. In addition, up to €1 trillion worth in loans is expected to be available under the European Investment Bank’s new energy lending policy.

 

“This transition should leave no one behind,” said European Commission President Ursula von der Leyen, as she unveiled the Green Deal last week.

 

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