European Parliament on Tuesday voted to spend €17.5 billion on supporting countries in their green transition as the bloc looks to continue winding down the use of fossil fuels.
European Parliament has just confirmed its coronavirus green recovery fund. Credit: Salim Shadid / Flickr
The Just Transition Fund combines money from the EU budget and its coronavirus recovery fund. The bloc hopes to spur a green revolution in member states as part of their pandemic recovery schemes.
The EU has also pledged itself to net-zero goals in line with the Paris Climate Agreement, although significant strides in renewable energy are required in order to reach them.
Read more: EU to enshrine net-zero goals
The package was adopted with 615 votes in favour, 35 against and 45 abstentions. It will look to help fund communities reliant on fossil fuels such as coal and should help fund economic development.
Eligible projects must focus on economic diversification, conversions or job creation as well as contributing to the decarbonisation of industries or moving to net-zero emissions.
It will help communities move away from coal, peat or shale and any other emissions-heavy industries such as mining and to replace them with low-carbon alternatives such as renewable energy or hydrogen.
However, projects such as waste incineration and nuclear energy - both construction and decommissioning of plants - are excluded from the fund.
There are currently rumours the bill may be given extra funding allocation after 2024. If this is the case, countries may be allocated extra funding should they make strides in decarbonisation over the next three years, the bloc revealed.
Manolis Kefalogiannis, parliament's lead legislator on the fund told the assembly on Monday: "JTF is a key tool to ensure the transition towards climate-neutral economy happens in a fair way, leaving no one behind."
Larger nations with higher shares in certain carbon-intensive industries will receive larger packages under the fund.
For example, Poland currently operates the largest share in Europe's coal industry, employing over 230,000 people.
The country has recently announced a "historic deal" to close all its mines by 2049.
Read more: Poland signs 'historic' deal to close all coal mines by 2049
It is set to receive the largest share of any member state as more of its economy hinges on moving away from carbon-intensive operations.
In order to be eligible for funding, members will have to submit details for their net-zero plans, including managing mine closures or retraining workers with different skill sets.
However, the bloc has warned Poland that its deadline may be too lax and has said not closing its mines sooner could cost the region its share of the fund.
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