What changed between the plenary report and the adopted text

S. whereas the technical assistance for public authorities under the JTF, InvestEU and the Public Sector Loan Facility – the three pillars of the Just Transition mechanism – should be strengthened;

T. whereas the application process for the JTF must be simplified, streamlined and made more flexible in order to ensure broader accessibility and enable a faster and more effective deployment of resources; whereas simplifying procedures is essential to maximise the JTF’s impact, particularly for smaller regions and local authorities with limited administrative capacity, and to ensure that support reaches the communities and workers most affected by the green transition in a timely manner;

Targeting areas of job losses

1. Calls on the Commission, upon a proposal from the Member States, in partnership with the regions and local authorities, to facilitate the establishment of special JTF economic zones for areas affected by site closures, until such a time as the majority of jobs lost locally are replaced in the local area, with priority access to funding given initially to locations directly affected in the general proximity of the area where jobs were lost, as well as to other areas, provided that it is duly justified that the direct or indirect impact of these losses warrants access to the JTF; underlines the importance of also taking into account social criteria such as local unemployment rates, socio-economic precariousness and increased risks of social exclusion, ensuring that economic recovery is community-led and sustainable;

2. Calls for the introduction of swifter planning decisions along with special measures, financial instruments and incentives in these zones, including temporary and targeted tax incentives for businesses and investments, provided that they do not undermine the stability of the single market; reaffirms that such measures can create jobs, provide opportunities for people living in these regions and support economic operators, giving priority to SMEs, microenterprises and those operating traditional local and family-run businesses, enhancing regional development and competitiveness;

3. Stresses that special economic zones have the potential to stimulate investment and growth in regions, such as the special economic zones established at Shannon Airport in County Clare, Ireland in 1959, and in Katowice, Silesia region, Poland in 1996; insists, however, that these mechanisms must be governed by stringent rules to ensure that the economic benefits effectively reach local populations, prevent any form of social or fiscal dumping, money laundering and tax evasion, and are subject to strict criteria for social, economic and environmental sustainability, giving priority to local businesses, especially SMEs and microenterprises;

4. Calls for the inclusion of island regions as eligible areas for the application of reduced tax rates within the framework of insular JTF economic zones, with the aim of addressing the disproportionately high cost of living in these territories, which is further exacerbated by the impacts of the green and energy transitions; stresses that such fiscal measures are essential to enhance the economic viability of island communities, support local businesses and attract sustainable investment; highlights that targeted tax incentives can serve as an effective tool to counteract the persistent trend of island depopulation, promote job creation and foster resilient, self-sustaining local economies, while ensuring a fair and inclusive transition towards climate neutrality;

Education, training of workers and apprenticeships

5. Points out that EU funds (the European Structural and Investment Funds and, in particular, the European Social Fund Plus (ESF+) and the Recovery and Resilience Facility (RFF)) and the JTF are being used to supplement the investments of the various regions in early childhood education;

6. Reiterates that many regions covered by the JTF have a significant and proud history of training and apprenticeship programmes, which are essential for the reskilling of workers and also for responding to the new demands of the labour market; underlines that their continuation should be prioritised; calls for funding within the JTF to support access to training and apprenticeship opportunities, especially for women, young people and marginalised communities;

7. Stresses, in this regard, the need to prioritise investment in all levels of education and training in affected areas, including by integrating green and digital skills, literacy and basic numeracy, as well as science, technology, engineering and mathematics (STEM) skills, into training programmes, in line with the Commission’s recent communications on the Skills Union, the Basic Skills Action Plan and the strategic framework for STEM education; insists on the importance of funding to strengthen basic digital and technical skills in order to enhance employability and competitiveness; emphasises the need for adequate EU funding for tuition for the children and students coming from the affected areas, including financial support for secondary level and higher education;

8. Stresses that the shortage of specialised teachers exacerbates skills gaps in strategic sectors and undermines the economic competitiveness of less developed regions; calls for the development of targeted programmes to improve the attractiveness of the teaching profession, particularly in STEM, through economic and non-economic incentives, especially in regions affected by the transition; stresses the importance of allocating specific resources for innovative teacher and trainer training, as well as the development of digital pedagogical skills, which are essential to prepare workers for industrial transitions; calls for measures to improve teachers’ salary and working conditions in order to attract and retain qualified educators, particularly in areas undergoing transition, recognising their crucial role in preparing the workforce for future industrial needs; calls on the Commission to assess the impact of investments in trainer and teacher training to ensure better use of funding and optimise the skills outcomes acquired by students and workers in less developed regions;

9. While recognising investments already made in apprenticeships, calls for a significant portion of education funds in affected regions to be used for apprenticeships and vocational training that aligns with the needs of the local community where jobs are lost, through high-quality apprenticeship programmes, ensuring that these programmes offer adequate remuneration, decent working conditions, and quality training;

10. Stresses that cohesion policy is the right response to economic disparities, and that its role is particularly important now in view of the threat of deindustrialisation; calls for greater coordination between the JTF, the ESF+ and the European Regional Development Fund to maximise their impact on the redeployment and reskilling of workers affected by industrial restructurings; further calls for the management of ESF+ funding to be more regionally focused, guided by a multilevel approach, involving national, regional and local authorities, and for greater and better synergies between the ESF+ and the JTF, particularly in relation to education and training; recognises also the essential role of the European Investment Bank in supporting the just transition and the need to continue strengthening cooperation between public and private investment;

11. Stresses the importance of aligning cohesion policy, including the JTF, with regional innovation strategies and smart specialisation priorities to enhance regional competitiveness and support economic diversification and the resilience of transitioning areas; urges the Commission and the Member States to pay special attention to areas in demographic decline and to prioritise affected areas over those not affected by transition in the selection criteria for projects eligible for JTF financing, increasing the score of entrepreneurial initiatives located squarely in municipalities affected by the closure of carbon-intensive sectors, thus ensuring that this incentive translates into tangible results; urges the Commission and the Member States to make sure that the funds available under the RRF contribute to supporting the transition process in the territories in question;

12. Recognises the pivotal role of the automotive industry in the EU, including in generating employment across various regions; considers the inclusion of the automotive sector within the scope of the just transition essential, given the challenges posed by global competition in the shift to electromobility and the impact of unjustified trade barriers; stresses the need for targeted policies that prioritise worker reskilling and initiatives aimed at diversifying the economic model of regions with a significant automotive industry;

13. Is of the opinion that vocational training is a necessary response to the economic transformation of regions; stresses the need to establish, through the JTF, ambitious and targeted vocational training and reskilling programmes for job seekers and workers directly affected by the economic transitions, in order to prevent the emergence of long-term structural unemployment; insists on the need to allocate funding for these programmes in the territorial just transition plans;

14. Calls on the Commission to work with Member States, local and regional authorities, trade unions and local businesses to ensure that particular attention is given to the fact that workers who have lost their jobs have the possibility of participating in ESF+ supported employment and training programmes or other EU-funded programmes in their communities;

15. Emphasises the need to develop apprenticeship and training programmes for areas affected by the transition, in collaboration with local businesses, education institutions, centres for training and lifelong learning, social partners and local and regional authorities and public administration, to provide students and unemployed workers with opportunities and meaningful experiences within their communities and safeguard their ‘right to stay’;

16. Underlines that effective retraining and upskilling programmes require adequate planning and preparation well in advance of any phase out or significant industrial change; notes that the training and retraining of workers and jobseekers, upskilling, reskilling and lifelong education must be carried out in a manner that ensures that no one, regardless of their work sector, type of contract, gender or geographical location, is forgotten on the path to the EU’s green and digital transitions; calls for measures to facilitate the proactive anticipation and planning of skills needs and to ensure these rights for all affected workers; invites the Member States and regional authorities to establish ‘Local Skills Councils’ or similar multi-stakeholder bodies, tasked with diagnosing local skills gaps, anticipating skills needs related to the green and digital transitions, and advising on targeted investments under the JTF and the ESF+;

17. Proposes the creation of a regional mechanism for monitoring and evaluating the impact of apprenticeship schemes, involving all stakeholders – local authorities, employers, education institutions and young people; believes that this would allow training strategies to be quickly adjusted to the demands of the labour market and the direct feedback from participants, thus ensuring the sustainability and efficiency of apprenticeships in the long term;

18. Points out that regions affected by the ecological transition are facing a shortage of skills and labour, while in many parts of Europe, there is a housing crisis and overcrowding in urban areas; proposes the creation of an affordable housing programme in such regions and notes that this programme should attract young people, thus contributing to the economic and social revitalisation of these areas;

19. Encourages the Member States to integrate housing guarantees, co-living schemes and rental support for apprentices and students into JTF and ESF+ supported projects, particularly in regions with high youth unemployment rates or those experiencing demographic decline;

20. Calls for a portion of cohesion funds to be specifically allocated to renovating the homes of the lowest-income households and the least energy-efficient buildings, as they would otherwise be left behind in the green transition;

Quality jobs plan

21. Notes that the Just Transition has not sufficiently taken into account the specificities of the different profiles of workers and affected communities; notes, with regret, that seasonal work alternatives have not been created, both as a source of additional income for workers and as an opportunity for income for students;

22. Draws attention to unemployment and youth unemployment, in particular, in many regions, rural areas and Member States; highlights, therefore, the need for accessibility to affordable housing, transportation and education, and for the inclusion of young generations, in particular from low-income households;

23. Emphasises the need to complement the financing of higher education and training boards in order to ensure the retraining or reskilling of workers who are considering changing their professional profile or who have lost their jobs, particularly women and those over the age of 50; proposes that the JTF should also offer retraining, reskilling and educational opportunities to the immediate family members of affected workers within the proximity of their local areas;

24. Warns that some of the industries that have closed, or are in the process of closing, offer labour conditions above the economic average, including higher wages, risk allowances and health insurance for workers and their families; highlights, therefore, the need for temporary funding under the JTF framework to compensate for the difference between unemployment benefits and the new salaries, allowing for a smoother transition and ensuring all of the previously assumed contractual obligations are fulfilled;

25. Welcomes the Commission’s commitment to propose a quality jobs roadmap by the end of 2025, developed together with the social partners to ensure a just transition for all; recalls that the roadmap should support fair wages, high standards for health and safety, good working conditions, training and fair job transitions for workers, including the self-employed, notably by increasing collective bargaining coverage; stresses that the roadmap should make the management of transitions a key priority and include accompanying proposals that concretely support workers;

26. Stresses the need for ‘social contracts’ concluded for the economic sectors undergoing the just transition process and notified to the Commission to be approved without delay; stresses that these social contracts should be based on a sound diagnosis and economic forecasts, support collective bargaining and respect for workers’ rights, and take into account the specificities of the regions concerned; supports the creation of social protection mechanisms for workers directly affected by industrial and energy transitions, including a transition income and targeted extensions of unemployment benefits; calls for a directive on the just transition in the world of work that sets out a legislative framework to ensure the creation of quality jobs in the regions affected by the transition; encourages the creation of worker groups in industries affected by the transition, allowing former employees to benefit directly from regional economic renewal;

27. Calls on the Commission to facilitate the establishment of a social training programme for older unemployed workers, especially women and long-term unemployed persons who are unable to retrain and acquire new jobs, ensuring that they are supported until retirement in order to guarantee them a decent standard of living; stresses the need to strengthen the role of women and promote the integration of persons with disabilities;

28. Stresses that the Member States must prioritise access to state-owned land and should, where possible, recover, rehabilitate and repurpose buildings and other assets, such as old industrial facilities and mining sites, for new projects funded under the JTF framework, including renewables, energy efficiency renovation, or green reindustrialisation; stresses that there should be oversight and monitoring of this process by the Member States and the Commission;

Implementation and governance

29. Stresses that the transition of regions eligible for JTF support is not yet complete and that these regions will continue to require specific support in tackling the different challenges connected with the energy transition in the future; considers it necessary to adopt measures to ensure maximum take-up of these funds, including by simplifying administrative procedures, setting up support and advisory mechanisms to help local authorities to access and successfully use necessary investments, and increasing pre-financing for local authorities;

30. Regrets that some EU regions are experiencing a continuous outflow of young and skilled workers due to demographic shifts and migration, with rural and inland areas, islands and outermost regions being particularly impacted; recalls, in this context, the importance of strong rural-urban linkages as well as targeted support for women in rural areas; recalls that such levels of migration and depopulation seriously affect the competitiveness, economic growth, food security, productivity and sustainability of the regions impacted;

31. Notes, with concern, the severe drop in recent years in adequate levels of national funding by Member States for their poorer regions; recalls the importance of respecting the EU rule on additionality; calls on the Commission to ensure that national authorities duly take into account internal cohesion when drafting and implementing Structural and Investment Fund projects;

32. Accepts that the implementation of the JTF process is a matter for Member States, but calls for a stronger role for local and regional authorities and those involved in the decision-making process, ensuring that funding strategies are aligned with the specific needs of the communities affected by the transition and are consistent with investments under other strategic funds linked to the just transition; stresses that it is crucial to simplify access to applications and broaden the scope of the fund so as to allow other equally affected regions and sectors to benefit from the JTF; underlines the need for the Commission, in cooperation with the Member States, to present clear guidelines on implementation issues in order to speed up the allocation of funds and the efficient implementation of JTF initiatives;

33. Believes that the Commission should have set out clear parameters for each Member State to pursue in areas such as investing in education and training, upskilling and reskilling of workers for alternative employment, and enabling third-party investors to preserve the culture and traditions of former coal and peat regions, as well as helping clean the polluted areas around the extraction sites; encourages the exchange of know-how and best practices between regions undergoing transition; calls, furthermore, for synergies with initiatives, such as the New European Bauhaus, on projects that repurpose old industrial facilities into social and cultural venues;

34. Recognises the shortfall in funding for bottom-up projects of scale; recommends that a continuation of the JTF fill these gaps when a need is identified; stresses the importance of providing dedicated technical support from the JTF to regions, local authorities and community groups from the earliest stages in order to strengthen their capacity for bottom-up planning and to assist potential beneficiaries in preparing high-quality, impactful projects;

35. Recognises the lack of matching funding for groups in the voluntary sector applying for the JTF and calls for a simplified funding mechanism; stresses the importance of granting sufficient pre-financing of more than half of the capital cost or substantive part of the project for groups who are deemed to be of low risk, thereby ensuring that these groups avoid high interest rates and fees for matching and bridging finance, thus empowering local voluntary and community organisations in delivering transition-related projects effectively;

36. Calls for synergies between the public and private sectors to be stepped up so that they can tackle the transition process together, thus paving the way for productive conversion of the territories in question;

37. Highlights the negative impact of State aid rules on voluntary and not-for-profit groups; underlines, in this context, the essential role of social economy entities in providing concrete, community-based responses to the social needs of EU citizens and in supporting inclusive, people-centred solutions for a just transition; considers that the State aid rules could be relaxed, under justified conditions, for voluntary and not-for-profit groups deemed to be low-risk; calls on the Commission, in this context, to work with Member States so that there can be greater consistency and clarity in the interpretation of State aid rules insofar as they apply to community and not-for-profit groups;

38. Highlights the need to develop an enhanced community benefit model, tailored to each just transition region; calls on the Member States and managing authorities, to this effect, to allocate a share of JTF resources to supporting the establishment of green community schemes, social innovation and the social economy, notably by funding citizen energy cooperatives, participatory local renewable energy production projects and initiatives that promote a local circular economy; notes that former workers and their families should be allowed to invest or participate in these projects, thereby strengthening the link between the green transition and social inclusion;

39. Reiterates that housing-related cooperative or community-led projects should benefit from simplified access to JTF funding, including through lower co-financing thresholds and advance payments; calls for guidance to be provided to Member States on enabling housing actors to access funds;

40. Calls for a reduction in the administrative burden of the JTF on communities, through the creation of specialised ‘hands-on’ managers and the development of a one-stop shop and adequate digital platforms to provide support and assistance in handling applications and managing the projects once they are selected, ensuring that these communities also have equal access to funding, thereby helping to address regional disparities;

41. Calls for the JTF to support, highlight and preserve the cultural and industrial heritage of affected communities by promoting sustainable tourism development; encourages the establishment of dedicated training programmes for heritage guides so as to foster local employment and cultural continuity and support the creation of visitor centres and interpretive spaces that showcase local history, traditions and the transformation journey of these regions, thereby creating local employment and preserving cultural identity while attracting cultural and educational tourism;

42. Underlines the strategic importance of people’s ‘right to stay’ in their regions or local areas; calls on the Commission to issue specific guidelines on how to implement and enforce this principle across the EU and its regions; calls for stronger integration of this as a cross-cutting principle in all EU policies, so that they support the objectives of social, economic and territorial cohesion, as set out in the Treaties;

Social justice before transition for the whole economy

43. Underlines the key role cohesion policy plays in delivering on EU policy priorities and boosting the EU economy by contributing to just, inclusive and sustainable transition and development, promoting economic and social convergence between countries and regions, and fostering innovation and employment; regrets that, due to the limited flexibility of the current multiannual financial framework (MFF), the Commission has resorted to reorienting cohesion policy, which is not a crisis response tool but has been repeatedly called on to make up for shortcomings in budgetary flexibility or crisis response mechanisms in the MFF to the detriment of its long-term policy objectives; calls on the Commission and the Member States to accelerate the implementation of cohesion policy;

44. Believes that shifts in the geopolitical landscape, along with other factors, are resulting in massive changes to the functioning of the EU economy; underlines that the JTF should maintain a decisive role in the process of decarbonisation; calls on the Commission and the Member States to examine the timescales for the closure of key energy players in the EU, and to mitigate the impact of these closures, ensuring ‘social justice in transition’ for workers;