Hungary could be compensated through just transition fund

Portfolio
CEE member states including Hungary could be compensated for upcoming cuts in the EU's cohesion funds by the Just Transition Fund, the EU's financial fund for helping countries with coal-based economies through the climate and energy transition, Bruxinfo reported from Brussels. The EC plans to put about EUR 35 bn in the fund over seven years in its next budget.
Speakers at the Budapest Economic Forum will discuss the economic outlook of Hungary and the CEE region.

The European Commission estimates that the financial and humanitarian burden of transition for fossil fuel-dependent regions could require EUR 35 bn over the seven-year budget cycle..

The so-called Just Transition Fund (JTF) will focus on the "regions and industries most affected by the challenges," according to an EC document. Grants will be tied to decarbonising, such as closing down coal-fired power plants or retraining labour.

Partly in reaction to social pressure, the EU is accelerating its carbon dioxide emission cut programme and intends to achieve a climate-neutral economy by 2050. However, 240,00 people in 41 regions of 12 member states are still working in coal-related jobs, while 8 million employees across Europe are working in carbon-intensive industries.

The EUR 35 bn funding could come from two sources. For a start, there's the EUR 5 bn the EP approved to add to the multiannual financial framework (MFF) in May 2018 for fossil fuel-dependent regions. This could be doubled by regrouping funds from the two main structural funds, with a further EUR 5 bn added through national co-financing. Meanwhile, the InvestEU investment programme set up by the Juncker plan would create a separate financial product for the just transition, mobilising EUR 20 bn from the capital markets using a EUR 1.5 bn guarantee. As a result, the total amount earmarked for the transition of affected regions between 2021 and 2027 could reach EUR 35 bn.

This article is part of the work programme titled "The impacts of EU cohesion policy in Hungary - Present and Future" which is carried out by Net Média Zrt., the publisher of Portfolio.hu, between 1st April 2019 and 31st March 2020 with European Union financing. The views in this article solely reflect the opinions of the author. The European Commission as the funding entity does not take any responsibility for the use of information presented in this article.
 

More in EU funds

eu-támogatás uniós forrás kohéziós forrás-építészet-épület-Európai-Unió-homlokzat-Magyarország-unió-város-zászló
September 03, 2025 11:00

Hungary finds a loophole, but Brussels slams the door on EU funds

European Commission will not release Hungarian funds without rule of law reforms

GettyImages-1164003902 (1)-árfolyam-deviza-Európai-Unió-Magyar-Nemzeti-Bank-mátyás-király-pénz-valuta
September 03, 2025 09:21

Hungarians have a more favorable opinion of the EU than most people would think

Majority of Hungarians would keep EU funds frozen, even at their own expense

vlagyimir putyin
September 02, 2025 13:16

Russia never objected to Ukraine's EU membership - Putin

Russian President draws red line when it comes to security guarantees

Farkas Ádám
September 02, 2025 10:15

European authorities trap banks' capital and liquidity - AFME

Sobering report published by organization led by the Financial Supervisory Authority's former chair

antónio costa
September 01, 2025 11:15

A diplomatic message? European Council President visiting all neighboring countries, except Hungary

António Costa is holding talks with the government in almost every member state in the region

európai bizottság, eu, európai unió, uniós források, uniós vizsgálat
September 01, 2025 10:05

EU's grand plan nears completion, alternative trade routes being built in the shadow of the tariff war

Text of a very important agreement leaked

LATEST NEWS
Charting is displayed using TradingView's technology, a platform, where you can build advanced charts, spot upcoming trends in the stock screener, and find inspiration in multiple trading ideas

Detailed search