Where is the money that the EU promised to workers in order to go green
By Peter Yeung
The latest data available from the European Commission shows that the EU member states spent only EUR735 millions ($840 million US), the total amount of the fund, between March 2021 and March 2025.
The Just Transition Fund is failing to provide adequate assistance for workers who are out of work, said Ciaran Mulooly. He was investigating the performance of the fund as a reporteur.
"It's a total disaster from an employment standpoint." The towns are left with nothing. He said that it's as if they've given up on the next generation.
The fund, which was launched as part of the European Green Deal, was designed to ensure that "no region or person is left behind" when it comes to the transition to net zero. Its purpose included retraining workers in coal mines and steel factories, and on peat fields.
Ursula Von der Leyen, President of the Commission, has championed this fund, which will run until 2027 after which new projects won't be considered.
She pledged last year to "significantly" increase the funding in future iterations.
The critics have expressed concern that delayed spending may hinder the transition of workers to clean energy. They also fear that rushed misappropriations could occur before the 2027 deadline, resulting in a backlash towards green policies.
According to a report by the EU, the EU's ambitious 2030 emission reduction plans could result in the loss of 494,000 global jobs. The coal industry is expected to shrink by half in the next five-year period.
The assessment concluded that if policies like tax cuts and investments were implemented, they could lead to an increase of net 110,000 jobs, especially in sectors such as electricity supply.
Mullooly stated that the slow spending was due to a bureaucratic application process. Community groups were required to obtain financing up front, such as loans.
Just Transition Fund targets regions where traditional polluting industry such as coal, oil shale and peat production, cement, paper, and fertilizer are the major employers.
Poland, Germany, and Romania will be the top beneficiaries of this program with EUR4.7 billion ($5.4billion US), EUR3.7billion ($4.2billion US), and EUR2.5billion ($2.9billion US) respectively.
The grants may be used for training workers, job search assistance, investing in small and medium-sized business, supporting research, and launching clean energy projects.
The fund was used to launch Greece’s first women-led cooperative for energy production, with a 3 megawatt output from wind and solar power, as well as a gaming hub and technology hub located in an old coal mine in Poland.
Five EU member states – Spain, Italy Belgium, Slovenia, and Cyprus – have not spent any money despite having over EUR3 billion ($3.4bn US) in their collective hands, according to EC statistics.
According to the figures, 43% of funds allocated by EU members states have not yet been spent.
Mullooly demanded changes, including the creation special economic zones (SEZs) within 50 km of sites of job losses with priority funding access and upfront funds for local groups. He also called for higher education and training to be provided for workers who lost their jobs.
A spokesperson from the Commission stated that the low rate of spending was misleading, as significant amounts of funds were in the process to be allocated for projects - even if they have not been spent yet.
The initial roll-out was delayed by the pandemic, Russia's invasion in Ukraine, and the states are "optimistic" and "confident" that all resources will be spent on schedule, according to the spokesperson. The spokesperson said that no one has the skills to do it.
Union leaders and NGOs have a more skeptical attitude.
The representative of a major European union has said that the input of workers is not sufficiently taken into account in the budget plans.
The representative, who requested anonymity, also said that workers were not being trained, putting them at risk of a skills shortage and mass unemployment.
They said, "They're not being consulted and no one is equipped to handle the transition."
Alberto Vela is a climate and energy spokesperson for the European Environmental Bureau, a non-profit network. He said that the Commission should demand minimum spending in order to support marginalized groups. It also needs better technical assistance and more credible plans of emission reduction.
He said: "The Just Transition Fund is a powerful tool for decarbonization as well as socio-economic change in regions that rely heavily on fossil fuels. But we risk missing this opportunity."
Damijan Fiser is a spokesperson for the European Court of Auditors. This independent body audits EU finances.
(source: Reuters)
