The EU has set up the Fair Transition Fund (JTF) to support regions and sectors facing socio-economic challenges in the transition to climate neutrality.
Deep decarbonisation should be an opportunity to create shared and inclusive prosperity, rather than an additional burden on workers, households and consumers, reports LSE Blogs.
JTF directs € 17.5 billion for the regions and sectors most affected by decarbonization by 2027.
The fund was created in response to social movements such as the extinction uprising, yellow vests in France and the youth movement "Friday for the Future", as well as to mitigate the effects of the energy transition in the coal regions.
The European community has become increasingly aware of climate issues and has increasingly supported EU leadership in addressing such issues. Since 2019, the new European Commission, led by Ursula von der Leyen, has launched an ambitious project of the New Green Course.
The Fair Transition Fund takes into account greener and more socially sensitive positions. The main value of the JTF is to include in the public debate on the green transition the need to be sensitive to the consequences of redistribution between regions and classes.
The article noted that instead of creating a comprehensive and sufficient response to the problem, its likely contribution will be to identify the impact on the social policy of the green transition.