Public sector loan facility and amendment to the Just Transition Fund

Key points:

The EESC

• Strongly supports and appreciates a big increase in the JTF (Just Transition Fund) financial allocation to facilitate a changeover from a carbon intensive economy and society to a more modern, sustainable and diversified one.
• Is deeply convinced that for reaching an optimal result in the Just Transition process, not only sufficient financial resources of a modern type addressed to precisely defined areas of support, but also the flexible interpretation of State Aid rules is of great importance.
• Appreciates the proposal for a public sector loan facility and considers it innovative, original and highly demanded by the public sector entities on their way to climate transition.
• Underlines that after the new proposals connected with the Recovery Plan and the Next Generation EU, the JTM has a real chance to become a very important tool of the future MFF 2021-2027 with its benefits not only for the EU Green Deal, but also for the post-COVID recovery and reconstruction.
• Calls on the relevant EU institutions to accelerate the preparatory, approving and implementation works with the adjusted JTM as much as possible to introduce it to practical functioning soon. In this game, time is a fatal parameter.
• Welcomes the specific attention paid in the public sector loan facility to the less developed regions in the just transition.
• Is convinced that the innovative idea on which the public sector loan facility is based could also serve as a source of inspiration for a similar type of financial products at the Member States level.
• Considers the eligibility selection criteria as well as the proposed investment areas very relevant for the purpose of a just transition.
• Also welcomes and supports additional financing in favour of the InvestEU Programme and its dedicated just transition scheme which increases the potential to utilise financial instruments in the process of just transition.