The Just Transition Fund (JTF) is a new financial instrument within the framework of the Cohesion Policy, targeting the regions and sectors that will face the greatest socio-economic challenges connected with the implementation of the European Green Deal (EGD).

One of the key goals of the EGD is to achieve EU climate neutrality by 2050. As a result, funding under the JTF will be directed to regions and sectors whose past growth has been based primarily on the extraction of fossil fuels (including coal, peat, and oil) and industrial activities characterised by high GHG emissions. The aim of the JTF aid is to diversify and modernise local economies and mitigate the adverse effects of climate change on the local labour market through retraining and actively integrating human resources.

Just Transition Fund | What are the possible sources of funding?

JTF’s total 2021-2027 budget amounts to EUR 19.3 billion (at current prices). The funds will be distributed in the form of grants based on territorial just transition plans.

Poland may receive about EUR 3.85 billion from the JTF. The funds will be used for the just transition of the following regions:

  • Silesian voivodship (subregions: Katowice, Bielsko-Biala, Tychy, Rybnik, Gliwice, Bytom, and Sosnowiec);
  • Lesser Poland voivodship (subregion: Oświęcim);
  • Lower Silesian voivodship (subregion: Wałbrzych);
  • Łódź voivodship (subregions: Piotrków and Sieradz);
  • Greater Poland voivodship (subregion: Konin).

The JTF will be implemented according to dedicated priorities under 5 regional programmes for the aforementioned voivodships.

European Funds for Silesia 2021-2027 EUR 2,216.9m

European Funds for Lesser Poland 2021-2027 – EUR 264.5m

European Funds for Lower Silesia 2021-2027 – EUR 581.6m

European Funds for the Łódź Voivodship 2021-2027 – EUR 369.5m

European Funds for Greater Poland 2021-2027 – EUR 414.8m

The first competitions for JTF funding should be launched in 2Q2023.

The JTF will provide support e.g. for:

  • production investments in SMEs, leading to economic diversification, modernisation, and restructuring;
  • investments in establishing new businesses;
  • investments in R&D&I activities, including activities conducted by universities and public research institutions,
  • activities supporting the transfer of advanced technologies;
  • investments in technology implementations as well as in systems and infrastructure that provide affordable clean energy, including the deployment of energy storage technologies, and in GHG emission reduction;
  • investments in renewable energy and energy efficiency;
  • investments in smart and sustainable local mobility, including decarbonising the local transport sector and its infrastructure;
  • renovation and modernisation of district heating networks to improve the energy efficiency of district heating systems, and investments in thermal energy production, provided that thermal energy production facilities are based solely on RES;
  • investments in digitisation, digital innovation, and digital connectivity;
  • investments in revitalising and decontaminating or restoring the function of degraded areas;
  • investments in strengthening circular economy;
  • projects focused on improving qualifications or requalifying the labour force and job seekers.

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