State aid for Just Transition Fund projects in 2021-2027

About

The Just Transition Fund (JTF) is a new instrument of the Cohesion Policy 2021-2027, as the first pillar of the Just Transition Mechanism in the context of the European Green Deal aiming at achieving the EU climate-neutrality by 2050. The JTF supports the territories most affected by the transition towards climate neutrality to avoid regional inequalities growing, in line with EU cohesion policy’s aim to reduce regional disparities and to address structural changes in the EU.

The JTF will bring wide-ranging benefits, including job and re-skilling opportunities and economic diversification. Focusing on economic diversification and reskilling, the Fund aims to support regions facing serious socio-economic challenges due to the transition process. Regions that are heavily reliant on fossil fuels or greenhouse gas-intensive industrial activities will need to phase out certain activities and restructure their industries, while also protecting the environment and providing job and re-skilling opportunities to workers and their families.

State aid rules are essential to help avoid distortions of competition when Member states intervening in support of certain undertakings. Strengthening State aid mechanisms is key to further improve the functioning of the Single market and must go hand in hand with a strong focus on stimulus and growth. JT funds are considered State resources and the use of those can give the recipient an advantage on a selective basis, for example to specific companies or industry sectors, or to companies located in specific regions, as a result, competition may be distorted and the intervention is likely to affect trade between Member States. In this context JTF projects are subject to State aid assessment.                                                                                                                                                                                                                                                                                                          
In the framework of the 2021-27 mandate with DG REGIO and DG MOVE, JASPERS provides advisory and capacity building support to Member States on the preparation of programmes and projects financed by Cohesion Policy, including JTF. JASPERS assistance also covers horizontal subjects relevant to project preparation, such as State aid, climate and environmental consideration and methodologies for project prioritisation and appraisal.

Target audience

This webinar brought together stakeholders involved in the preparation and State aid assessment of JTF projects. Participants presented experiences, difficulties and good practices among Member States, identified the tools/procedures that can be used in State aid assessment for JTF projects, and discussed needs for possible further support.

Objectives

Participants learned the available tools in State aid assessment of JTF projects, which are crucial for the timely implementation of the projects. 

Attendees had the chance to join Q&A sessions and discussed needs for further advisory and capacity building support in this specific knowledge area.