Just Transition Mechanism (JTM)

The Just Transition Mechanism (JTM)¹ is the EU’s instrument for ensuring that the transition to a climate-neutral economy is fair and inclusive, by supporting regions, sectors and communities most affected by the shift away from carbon-intensive activities. It is an integral part of the European Green Deal and directly supports the implementation of the European Climate Law by addressing the social and economic impacts of decarbonisation.

The JTM focuses primarily on regions with high dependence on fossil fuels, carbon-intensive industries or processes, where the transition could otherwise lead to job losses, economic disruption and social challenges. Its objective is to help these regions diversify their economies, create new employment opportunities, and support workers and communities through reskilling, upskilling and social support measures.

The Mechanism is implemented through three complementary pillars. The Just Transition Fund (JTF)² provides grants to support economic diversification, reskilling of workers, support for SMEs, and investments in clean energy and sustainable activities. The InvestEU Just Transition scheme³ mobilises private investment for transition-related projects, while the Public Sector Loan Facility⁴ combines EU grants with loans from the European Investment Bank to support public sector investments in affected regions.

Access to JTM support is linked to the preparation of Territorial Just Transition Plans (TJTPs), which identify the regions most impacted by the transition and set out concrete measures to address their socio-economic challenges. These plans ensure that JTM funding is targeted, strategic and aligned with jurisdiction’s climate and energy objectives.