The European Union offers a wide array of funding instruments—including the Just Transition Mechanism, Cohesion Fund, Modernisation Fund, and the European Agricultural Fund for Rural Development—designed to support fair, inclusive, and efficient transitions toward a climate-neutral economy.
The LIFE project JUSTEM contributed to this goal by co-developing project ideas aligned with just transition principles in six coal-dependent regions. It also examined the associated costs and financing options required for successful implementation.
The recently published JUSTEM discussion paper serves as a roadmap for regional actors navigating the complexity of EU funding systems. It maps project ideas from six European coal regions—Asturias, Istria, Jiu Valley, Silesia, Stara Zagora, and Western Macedonia—to relevant financial instruments. The paper provides a comprehensive analysis of EU funding mechanisms and evaluates their suitability to support sustainable development in regions undergoing economic, social, and environmental transformation. By doing so, it enables regional stakeholders to access tailored funding opportunities and draw lessons from cross-regional examples.
What are the key insights?
- Diversity of funding mechanisms exists
A broad range of EU programmes is available to support both “hard” infrastructure projects (e.g., energy-efficient renovations, renewable energy integration) and “soft” initiatives (e.g., workforce reskilling, advisory services).
- Peer learning enhances regional innovation
Cross-regional collaboration allows stakeholders to draw on successful examples, adapt best practices, and build capacity through shared experience.
- Funding alignment and simplification are essential
Strategic coordination of funding sources is needed to ensure projects are viable and impactful. This includes aligning funding with local needs, simplifying administrative procedures, and improving access for smaller-scale projects.
Where do we see the need for improvement?
Funding programmes should be reviewed to potentially broaden their eligibility criteria to better support the needs of transition regions. Funding is required that supports smaller projects led by citizens and entrepreneurs, as well as small and medium-sized enterprises (SMEs), to foster social innovation.
Furthermore, capacity building at the regional level is essential to equip stakeholders with the skills and knowledge needed to access funding opportunities and to ensure that supported projects contribute to long-term sustainability, economic diversification, the development of new cultural identities, and strengthened social cohesion.
Conclusion
The JUSTEM discussion paper concludes that funding remains a critical enabler of a successful and just transition. To ensure long-term sustainability, funding must be sensitive to the specific needs of transitioning regions, promote regional cooperation, and support the scaling of successful models. This will help build resilient and inclusive regional economies, advancing efforts in economic diversification, the development of new cultural identities, and social inclusion.
Find out more by reading the discussion paper: Funding just transitions in coal regions.
