The Just Transition Mechanism (JTM) is a cornerstone of the European Green Deal, ensuring the transition to a climate-neutral economy is fair and inclusive, leaving no one behind. It aims to mobilise EUR 65-75 billion between 2021 and 2027 to alleviate socio-economic impacts in the most affected regions.

Key components:

• Just Transition Fund (JTF):  offers grants to regions for economic diversification and modernisation to mitigate negative impacts of the transition.
• InvestEU 'Just Transition' scheme: attracts private investments for decarbonisation, economic diversification, and social infrastructure in transition regions.
• Public sector loan facility:  combines EU grants with European Investment Bank loans to fund public sector projects, including energy and transport infrastructure, district heating, and building renovations.

The JTM prioritises regions dependent on fossil fuels and carbon-intensive industries, providing financial and technical support to help workers and communities adapt. By addressing social and economic challenges, the JTM ensures the transition to a sustainable, climate-neutral economy is equitable and inclusive.