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Knowledge category: Funding and financing

Just Transition Fund

Updated on 03.03.2023

The Just Transition Fund aims to help certain territories with the green transition towards climate neutrality. The European Commission provides grants to Member States having identified the territories expected to be the most negatively impacted by the green transition. Each member state has identified the territories that need help with the transition. Territories draft their own Territorial Just Transition plan where they mention the areas they need to focus on.

Financial entity: European Commission

Relevance for Circular Systemic Solutions

The relevance of the Just Transition Fund (JTF) to cities and regions depends highly on the location of the city or region. If the city or region is located in a JTF region, it also highly depends on the focus of the Territorial Just Transition Plan (TJTP) that the region has drafted. In general, the Just Transition Fund is focused on the development of SMEs and human capital, while investments in chemical and industrial complexes are only allowed when the investment is not productive and necessary for the successful completion of the Territorial Just Transition Plan. To access the funding, a city or region must also find a collaboration between the relevant local actors for their Circular Systemic Solution (CSS) in the region. When the region is a Just Transition Fund region, the CSS is included in the TJTP and a collaboration between relevant local actors is found, the city or region can apply for funding.

Applicant criteria

The application criteria depend on the type of a project and the Territorial Just Transition Plan of the region. The managing authorities can be found on the following website.

Eligible projects/themes

The Just Transition Fund covers the following topics:

  • investments in small and medium-sized enterprises,
  • the creation of new firms,
  • research and innovation,
  • environmental rehabilitation,
  • clean energy,
  • up- and re-skilling of workers,
  • job-search assistance,
  • transformation of existing carbon-intensive installations.

Each Just Transition Territory has chosen their own themes on which the investments must focus. The specific themes that are covered in each region is described in the Territorial Just Transition Plan (TJTP) of that region. 

Amount of funding

The total budget for the Just Transition Fund is € 19.32 billion.

Application process

The application process is governed by the national or regional authorities responsible for carrying out the TJTP. These national or regional authorities will choose which projects will be funded. Specific questions on application procedures may be addressed directly to the managing authorities.


No specific deadlines apply after the TJTP is approved by the EC. 

Financing type

Grants & subsidies

Territories involved

Rural areas

<5 000


large 500 000-200 000, medium 200 000-50 000, and small cities 50 000-5 000

Metropolitan areas

large metropolitan area >1.5 million, metropolitan area 1.5 million-500 000



predominantly urban regions, intermediate and predominantly rural regions, refer to TERCET typology NUTS 3 region




Intra-territorial areas

Industrial zones

Agricultural zones

Brown field zones

Coastal areas

Mountain areas


Cross-border areas


Water areas


e.g. commercial, residential, service, industrial