On 16 July 2025, the European Commission proposed a fundamentally re-designed long-term EU budget for 2028–2034, amounting to nearly €2 trillion (around 1.26% of the EU gross national income). The proposal streamlines existing programmes into a smaller number of policy-focused pillars, with the stated aim of better aligning EU spending with strategic priorities such as competitiveness, security, cohesion and external action. Its key innovations include the introduction of National and Regional Partnership Plans, as well as the establishment of a European Competitiveness Fund, which concentrates resources on the clean transition, industrial decarbonisation, digital innovation, health and defence.

In this evolving policy context, the just transition has increasingly slipped out of the political spotlight, and the commitment that “nobody will be left behind” risks being diluted. This report, therefore, seeks to explain why continued and targeted support for regions in transition remains essential. While current implementation progress may appear modest when assessed through headline indicators, this reflects structural and timing-related constraints rather than a lack of relevance or need.

What is the Just Transition Fund?

The Just Transition Fund (JTF) is a key tool to support territories most affected by the transition towards climate neutrality. Formally adopted in 2021, the JTF is the first pillar of the Just Transition Mechanism (JTM).

The Just Transition Fund has been implemented under shared management, within the broader framework of the EU’s Cohesion Policy, which serves as the primary instrument for reducing regional disparities and addressing structural changes in the EU.

The JTF has been endowed with €17.5 billion (€19.7 billion in current prices, including transfers from other funds). This amount corresponds to resources that have been made available under a newly established allocation to support EU Member States in their green transition. €7.5 billion is financed under the EU’s 2021–2027 budget, while the remaining €10 billion constitutes external assigned revenue stemming from the European Recovery Instrument (NextGenerationEU).

The Just Transition Fund aims to support regions and people in addressing the social, employment, economic and environmental impacts of the energy transition, related to economic diversification, support for small and medium-sized enterprises, the creation of new companies, research and innovation, repurposing of land and assets, clean energy deployment, re- and upskilling of workers, as well as job-search assistance and the active inclusion of jobseekers programmes. The JTF is expected to mobilise close to €30 billion in investments.

Unpacking the JTF: Insights, Governance, and Local Impact

Forum Energii, in collaboration with CEE Bankwatch Network, has released a report titled: To be or not to be continued? Analysis of the Just Transition Fund implementation across six EU countries. This report meticulously examines how the Just Transition Fund currently functions and what effects it brings by analysing six geographically diverse countries – Czechia, Germany, Greece, Poland, Romania, and Spain.

These nations were selected to represent different JTF governance models, funding management systems, and public participation processes. For the sake of clarity, countries have been presented alphabetically. Each of the selected countries also has extensive needs in terms of the energy transformation process (the impacts of which the JTF is meant to be mitigating). However, these countries differ significantly in how the transition is proceeding and the consequences it is having on their energy mixes and directly on the regions.

NOTE: The report is available only in English.