EU countries approve USD 21.27 billion fund for green energy drive

European Union lawmakers have recently approved a flagship fund of USD 21.27 billion to eliminate the dependence on fossil fuel and protect affected communities, enabling EU members to start receiving the cash.

The multibillion-dollar initiative, called the Just Transition Fund (JTF), will be backed by the EU's budget as well as the COVID-19 recovery fund. It is designed to provide relief to communities most affected by plans to shut down peat, coal, and oil shale sectors and other emission-intensive factories, while also bearing the costs of retraining the workforce, according to sources.

To receive funds, countries will have to submit proposals to the European Commission showing how they will use the cash to shift towards greener industries.

Planning Minister of Portugal, Nelson de Souza, was quoted saying that the JTF will provide much-needed relief to companies and workers operating at the local levels.

Sources have also revealed that Poland is in line for the largest share of the funding, trailed by Germany and Poland, owing to the countries’ extensive coal-mining activities.

The Commission has notified, however, that the Polish town, Bogatynia, will not receive funds if the local government follows through with its plan to keep the Turow coal mine open till 2044.

It is worth noting that the Commission had originally proposed to put in USD 48.72 billion for the fund, although the amount was reduced during negotiations between EU countries due to the bloc's budget. Besides, money from the JTF shall not be spent on fossil fuels, including natural gas, or nuclear power, cited sources.

Replacing high-carbon emission sectors with green industries and creating more jobs in renewable energy segments is a key step to putting the EU on track to achieve zero net greenhouse gas emissions by 2050.

Source Link –

https://www.devdiscourse.com/article/headlines/1603035-eu-countries-give-final-approval-to-multibillion-euro-green-transition-fund