Czechia will continue to draw from EU Just Transition Fund

The European Commission has announced that it wants to retain the Just Transition Fund for Europe’s coal regions in the next programming period after 2027. This will be conditional on the programme’s success and the optimal use of funds in the current period.

The fund’s future has not yet been officially confirmed. However, as Euractiv reported, the possibility of drawing from it in the future is highly likely.

The Just Transition Fund, which primarily benefits coal regions in the European Union, is a new feature of the European Commission’s current 2021-2027 programming period. For the first time, the EU has earmarked funding directly for particularly affected regions to help them with the green transition.

"I think that after talks with the Commissioner (Kadri Simson), we can confirm that if the government and regions manage to invest the funds effectively, the same or a similar programme to the Just Transition Fund will continue," Environment Minister Petr Hladík (KDU-ČSL) said at a June conference on coal regions in Karlovy Vary.

However, the specific form of the continuing support is still under discussion. The Commissioner said that the programme still needs to be evaluated. But if it is clear that it is effective in delivering projects, it will continue. In what form remains an open question. Some Czech politicians expect simplification and flexibility.

One question is whether the funds would again be available in the future only to coal regions. The Environment Ministry is currently considering whether support could also go to regions structurally affected by industries other than coal mining, Minister Hladík said. However, according to him, a decision will not be made until June next year, after the European Parliament elections.

Czechia and other coal regions are now seeking more time to draw down the remaining funding from the 2021-2027 period. Czech regions have joined an initiative by seven member states and 18 coal regions, signing a written request calling on the European Commission to extend the deadlines for drawing funds from the Just Transition Fund.

Part of the Just Transition Fund resources must be spent by the end of 2026, as they come from the EU’s Next Generation recovery instrument.