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POLAND: Just Transition Fund
The European Commission’s Executive Vice President in charge of the Green Deal Frans Timmermans announced the assumptions of a financial plan, which will facilitate the bloc’s climate neutrality ambitions. The Commission proposes to allocate EUR 7.5 billion to coal-dependent regions of the EU – predominantly Poland, Czechia and specific areas in Germany. These funds are supposed to trigger investments from state allocated cohesion funds. Furthermore, the so-called Just Transition Fund will be supported by preferential loans from InvestEU and the European Investment Bank. According to initial assessments, the EC hopes to allocate approximately EUR 100 billion for investments which will support climate neutrality goals.
So far, it is uncertain how the funds will be divided between specific regions, and under what criteria – this will determine the extent of the support Poland would receive. Most importantly, however, to benefit from these funds, Poland will most likely have to adopt the EU’s climate neutrality goals, which had previously rejected. Additionally, the funds will only be provided for specific projects, in compliance with territorial just transition plans and contributing to climate neutrality goals. Still, the proposed mechanism will open a new chapter in the EU’s climate neutrality negotiations. Poland will undoubtedly push to open the funds to a broader spectrum of projects.