THE JUST TRANSITION MECHANISM AS PART OF THE EUROPEAN GREEN DEAL

Abstract

The European Green Deal (EGD) was presented by the EU as the world’s first public, state-led commitment to climate
neutrality. It encompasses a set of legally binding and non-binding measures that address climate change, biodiversity loss,
pollution, and sustainability across all sectors of the economy, while balancing economic, social, and ecological interests
within the EU legal order. The massive transformation envisaged by the EGD includes a “just transition,” focusing
on the economic diversification of the territories most affected by the climate transition, as well as the reskilling and active
inclusion of their workers and jobseekers.
To deliver on its promise to “leave no one behind,” the European Commission has set up the Just Transition Mechanism
(JTM), aimed at supporting those regions most affected by the structural impacts of a comprehensive and ambitious
decarbonisation strategy. Of the three types of funding (“pillars”) within the JTM, the Just Transition Fund (JTF) is most
relevant for Central and Eastern European countries, which have conditions similar to Ukraine’s. At the heart of the process
of distributing JTF investments are the so-called Territorial Just Transition Plans (TJTPs).
The JTF funding involves both negative and positive conditionalities, but these are hardly sufficient to ensure a just transition, given the magnitude of tasks and the multiplicity of actors involved. Therefore, the JTF mechanism relies on a place-based approach, promoting dialogue among different local stakeholders and allowing for a form of multilevel governance and trust-building. However, the JTF mechanism is not a silver bullet for ensuring a just transition due to its limited financial resources and institutional flaws, which result in insufficient stakeholder involvement.
Despite its current shortcomings, the JTM is seen as a promising tool for Ukraine, a future EU member, in its post-war recovery. For the process to succeed, it must not only be adequately funded but also truly participatory and inclusive to ensure the commitment of various Ukrainian stakeholders to the EGD goals.