EU member states and regions should make fuller use of EU cohesion funding — including the Just Transition Fund — to support communities most affected by high energy prices, the European Commission said.
In a letter sent on Wednesday, Raffaele Fitto, the Commission’s Executive Vice-President for Cohesion and Reforms, told ministers responsible for cohesion policy that countries can speed up the use of the Just Transition Fund “wherever possible and necessary” through measures such as creating new financial instruments, changing programmes and using forms of financing not linked to costs.
Countries and regions can also shift other cohesion policy money towards energy-related investments, including funds from the European Regional Development Fund.
The Commission said these investments can include measures to reduce dependence on fossil fuels and to strengthen energy market stability, in line with its AccelerateEU strategy.
A separate letter will also be sent to regions, setting out how cohesion resources can be used for energy-related investments designed to deliver rapid impact.
Billions reallocated in mid-term review
A mid-term review has already allowed €34.6 billion to be reallocated towards energy security, competitiveness or defence, the Commission said.
Fitto stressed that the Commission is asking member states and regions to carry out a “reprogramming effort” focused on energy, with the aim of rapidly redirecting available cohesion resources towards investments intended to provide relief to families and businesses facing high energy prices.
The Just Transition Fund is part of the EU’s cohesion policy budget for 2021 to 2027 and supports areas and people most affected by the shift to climate neutrality — meaning cutting net greenhouse gas emissions to zero — to help diversify local economies.
