Austria will receive €76 million for a just climate transition

Austria will receive €76 million for a just climate transition shutterstock
Katerina Belousova

The plan will create employment and mitigate job losses linked to the green transition

The European Commission approved Territorial Just Transition Plans (TJTP) for Austria together with the first funding under the Just Transition Fund (JTF) of €76 million.

In total, the country will receive €136 million, as part of the JTF, to support the local economy and society, reports European Commission.

"The green economy is our future and the Just Transition Fund is here to support a smooth and fair green transition in Austria's regions that face the steepest path to climate neutrality," said Executive Vice President of the European Green Deal Frans Timmermans.

Cohesion and Reforms Commissioner Elisa Ferreira said that the program will strengthen innovation and research to accelerate the fight against climate change and ensure that no one is left behind in the transition.

Austrian regions and municipalities undergoing significant transformation which will receive support from the JTF are located in Upper Austria, Carinthia, Lower Austria, and Styria. These regions have a strong presence of carbon-intensive industries such as metals, paper, cement, and chemicals.

The plan will create employment and mitigate job losses linked to the green transition. This will be done by investing in the development of new business models and sustainable green business areas proactively accompanying companies in their transition process.

The plan will finance advisory services to local small and medium-sized businesses (SMEs) and start-ups (incubation, acceleration, related infrastructure investments) and local start-up ecosystems.

The JTF supports the territories facing biggest challenges in the transition towards a climate-neutral economy.The JTF is the first of the three pillars of the Just Transition Mechanism. The approval of TJTPs also opens the door to dedicated financing under the other two pillars: a specific scheme under InvestEU and a Public Sector Loan Facility for Just Transition that combines Commission grants with European Investment Bank loans

Earlier, EcoPolitic wrote, that Estonia will receive €3.5 billion on the implementation of key EU priorities, such as green and digital transition.

As EcoPolitic previously reported, the EU approved its eco-modernization of centralized heating to Germany for €3 billion.

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