The Just Transition Mechanism role in the European Green Deal
A Just Transition mechanism is designed to support any employee in an ETS sector. It operates in a manner similar to the NER300. It could also be extended to support families and local communities which are also in at risk when a company closes a plant or facility. This way no worker, family or community is left behind in the move to a low-carbon society.
Dynamic Supply Updating, innovative financing for commercial-scale demonstration and incorporating a Just Transition mechanism to support workers are vital to making the carbon market an important driver for decarbonisation.
Worries over ‘fresh money’ as EU cooks up energy transition fund. Whether €5 billion or €35 billion, the EU’s upcoming Just Transition Fund alone is unlikely to be enough to pay for the energy transition of Europe’s remaining coal countries.
Countries with a high use of coal in their energy mix undoubtedly face a major challenge in achieving zero emissions by 2050. And the creation of a Just Transition fund will undoubtedly help them overcome the difficulties of becoming climate neutral.
At the same time however, expectations for what this fund can deliver should be tamed. Whether €5 billion or €35 billion, the new fund alone is unlikely to be enough to pay for the energy transition of Europe’s remaining coal countries.