The second and third pillars of the Just Transition Mechanism
Wind turbines near a highway in Poland. Photo: Shaiith, Getty Images via Canva
Briefing | 13 March 2023
The Just Transition Mechanism will provide funding to countries and regions expected to be particularly negatively affected by the transition away from fossil fuels as part of the European Green Deal. The Just Transition Mechanism consists of three separate pillars: the Just Transition Fund, the InvestEU Just Transition Scheme and a new public sector loan facility operated by the European Investment Bank (EIB). This briefing takes stock of all three pillars, but in particular focuses on the second and third, aiming to identify key differences between the pillars and their strengths and weaknesses. In addition to providing key information on the pillars, the briefing also identifies possible threats and issues related to their management, including transparency, stakeholder consultation, and projects that may increase greenhouse gas emissions. The briefing concludes with policy recommendations.