The European Commission is planning to set up a €40 billion ($44.9 billion) Just Transition Fund aimed to encourage the transition from high-carbon industries to more sustainable alternatives. The fund will also help coal miners to find new low-carbon jobs and support regions whose economies rely on polluting industries to develop new sectors.
The fund consists of €10 billion ($11.2 billion) of the EU 2021-2027 budget and €30 billion ($33.7 billion) EU COVID-19 recovery fund. European Union countries on Wednesday agreed that the fund should not be used to finance investments related to fossil fuels nor the decommissioning or construction of nuclear power plants.
The Commission, EU Parliament, and member states will negotiate and finalize the proposal, with nuclear and gas expected to be excluded. This is despite a call from eight eastern European countries in May to include natural gas projects in the EU's next funding to help them sever dependence on coal.
