By Andra Beltz
Romania is among the main beneficiaries of the Just Transition Mechanism, intended to help Europe become climate neutral by 2050, according to European Commission estimates presented to EU member states, Bloomberg says.
According to preliminary estimates, Poland would be the main beneficiary of the Mechanism for a just transition, given that it would benefit from investments worth around 27 billion euros. Next comes Germany, with investments of 13.4 billion euros, Romania with 10.1 billion euros and the Czech Republic with 7.8 billion euros, writes Bloomberg News.
The Mechanism for a Just Transition has at least 100 billion euros worth of financial and practical support package. Poland, a country that relies on coal for more than 80% of its electricity production, would benefit from more than a quarter of total investments.
“We invite Member States to identify regions in need of our money and practical support and to work with the Commission on a concrete change plan,” EC Executive Vice-President for the European Green Pact Frans Timmermans said on Tuesday. The mechanism for a just transition.
The investment plan for the European Green Pact will mobilize EU funds and create a favorable framework to facilitate and stimulate the public and private investments needed for the transition to a climate-neutral, green, competitive and inclusive economy. Coming to complement other initiatives announced in the Ecological Pact, the plan is based on three dimensions – financing, facilitation and practical support.
Regarding the financing, it is desired to mobilize, in the next decade, an amount of at least one billion euros representing sustainable investments. The largest proportion so far of spending in the EU budget for climate and environmental actions will make it possible to attract private funds, a key role to be played by the European Investment Bank.
Regarding the facilitation, it is envisaged to provide incentives for the unlocking and redirection of public and private investments. The EU will provide investors with instruments, placing sustainable financial resources at the center of the financial system, and will facilitate sustainable investment by public authorities, encouraging “greening” of the budget and green public procurement and devising ways to facilitate the procedures for approving state aid intended. regions targeted by the fair transition.
The Mechanism for a Just Transition is a key tool created to ensure that the transition to a climate-neutral economy takes place fairly and that no one is left behind. Although all regions will need financing, and the Investment Plan for the European Green Pact will provide it, the mechanism provides targeted support to help mobilize at least € 100 billion in the most affected 2021-2027 period. regions, in order to mitigate the socio-economic impact of the transition. The mechanism will create the necessary investments to help workers and communities that rely on the fossil fuel value chain. The mechanism will supplement the substantial contribution from the EU budget through all instruments that are directly relevant to the transition.
By Andra Beltz