Activities of Frances FITZGERALD related to 2020/0006(COD)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council establishing the Just Transition Fund
Amendments (45)
Amendment 68 #
Proposal for a regulation
Recital 2
Recital 2
(2) The transition to a climate-neutral and circular economy constitutes one of the most important policy objectives for the Union. On 12 December 2019, the European Council endorsed the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement. This will require significant new investment, particularly in new and innovative technologies. While fighting climate change and environmental degradation will benefit all in the long term and provides opportunities and challenges for all in the medium term, not all regions and Member States start their transition from the same point or have the same capacity to respond. Some are more advanced than others, whereas the transition entails a wider social and economic impact for those regions that rely heavily on fossil fuels - especially coal, lignite, peat and oil shale - or greenhouse gas intensive industries. Such a situation not only creates the risk of a variable speed transition in the Union as regards climate action, but also of growing disparities between regions, detrimental to the objectives of social, economic and territorial cohesion.
Amendment 82 #
Proposal for a regulation
Recital 3
Recital 3
(3) In order to be successful, the transition has to be fair and socially acceptable for all. Therefore, both the Union and the Member States must take into account its economic, environmental and social implications from the outset, and deploy all possible instruments to mitigate adverse consequences. The Union budget has an important role in that regard.
Amendment 94 #
Proposal for a regulation
Recital 5
Recital 5
(5) This Regulation establishes the Just Transition Fund (‘JTF’) which is one of the pillars of the Just Transition Mechanism implemented under cohesion policy. The JTF should aim to complement and develop synergies with the other pillars of the Just Transition Mechanism in order to ensure that all three pillars are working towards the same objectives. The aim of the JTF is to mitigate the adverse effects of the climate transition by supporting the most affected territories and workers concerned. In line with the JTF specific objective, actions supported by the JTF should directly contribute to alleviate the impact of the transition by financing the diversification and modernisation of the local economy and by mitigating the negative repercussions on employment. This is reflected in the JTF specific objective, which is established at the same level and listed together with the policy objectives set out in Article [4] of Regulation EU [new CPR].
Amendment 133 #
Proposal for a regulation
Recital 10
Recital 10
(10) This Regulation identifies types of investments for which expenditure may be supported by the JTF. All supported activities should be pursued in full respect of the climate and environmental priorities of the Union and should be in line with the EU Taxonomy for Sustainable Investment. The list of investments should include those that support local economies and are sustainable in the long- term, taking into account all the objectives of the Green Deal. The projects financed should contribute to a transition to a climate- neutral and circular economy. For declining sectors, such as energy production based on coal, lignite, peat and oil shale or extraction activities for these solid fossil fuels, support should be linked to the phasing out of the activity and the corresponding reduction in the employment level. As regards transforming sectors with high greenhouse gas emission levels, support should promote new activities through the deployment of new technologies, new processes or products, leading to significant emission reduction, in line with the EU 2030 climate objectives and EU climate neutrality by 205013 while maintaining and enhancing employment and avoiding environmental degradation. Particular attention should also be given to activities enhancing innovation and research in advanced and sustainable technologies, as well as in the fields of digitalisation and connectivity, provided that such measures help mitigate the negative side effects of a transition towards, and contribute to, a climate- neutral and circular economy. __________________ 13 As set out in “A Clean Planet for all European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy”, Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank - COM(2018) 773 final.
Amendment 135 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10a) To ensure effective buy-in from the private sector, the Commission should ensure that funding from the Just Transition Fund does not crowd out private sector investment that will be facilitated through the Just Transition Mechanism. Insists that public and private investment must complement each other, where possible, so that funding for the transition to climate neutrality is maximised.
Amendment 136 #
Proposal for a regulation
Recital 11
Recital 11
(11) Securing sustainable employment opportunities for workers and territories affected by the climate transition is a fundamental objective of the JTF. To protect citizens who are most vulnerable to the climate transition, the JTF should also cover professional training, new skills development, the up-skilling and reskilling of the affected workers, with the aim of helping them to adapt to new employment opportunities and to help adapt labour markets in the Union, as well as providing job-search assistance to jobseekers and their active inclusion into the labour market. Special emphasis should be placed on gender equality when it comes to providing employment opportunities for citizens affected by the climate transition.
Amendment 142 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) The COVID-19 pandemic has reinforced the importance of the JTF with regard to the need to rebuild the economies of regions most affected by the climate transition. Given the interdependence between the climate transition and sustainable economic growth, there needs to be sufficient resources as part of the JTF to address the challenges of the transition to a climate neutral economy, which have been exacerbated by the COVID-19 pandemic. The Commission Communication of 27 May 2020 "Europe's moment: Repair and Prepare for the Next Generation" proposes to increase the size of the Just Transition Fund to €40 billion.
Amendment 143 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to enhance the economic diversification of territories impacted by the transition, the JTF should provide support to productive investment in SMEs, start-ups and entrepreneurship. Productive investment should be understood as investment in fixed capital or immaterial assets of enterprises in view of producing goods and services thereby contributing to gross-capital formation and employment. For enterprises other than SMEs, productive investments should only be supported if they are necessary for mitigating job losses resulting from the transition, by creating or protecting a significant number of jobs and they do not lead to or result from relocation. Investments in existing industrial facilities, including those covered by the Union Emissions Trading System, should be allowed if they contribute to the transition to a climate-neutral economy by 2050 and go substantially below the relevant benchmarks established for free allocation under Directive 2003/87/EC of the European Parliament and of the Council14 and if they result in the protection of a significant number of jobs. Any such investment should be justified accordingly in the relevant territorial just transition plan. In order to protect the integrity of the internal market and cohesion policy, support to undertakings should comply with Union State aid rules as set out in Articles 107 and 108 TFEU and, in particular, support to productive investments by enterprises other than SMEs should be limited to enterprises located in areas designated as assisted areas for the purposes of points (a) and (c) of Article 107(3) TFEU. It should be ensured that the JTF remains consistent with State Aid rules in the context of the ongoing reform of State Aid Rules as part of the Commission's State Aid modernisation process, while also taking into account the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak. __________________ 14Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).
Amendment 154 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) The JTF should aim to only support investments that are economically viable and provide an added value to the territory concerned. The Commission and Member States should monitor the viability of investments derived from the JTF on an ongoing basis.
Amendment 164 #
Proposal for a regulation
Recital 14
Recital 14
(14) The JTF support should be conditional on the effective implementation of a transition process in a specific territory that includes targets as well as output and results indicators and effective monitoring in order to achieve a climate-neutral economy. In that regard, Member States should prepare, in cooperation with the relevant stakeholders and supported by the Commission, territorial just transition plans, detailing the transition process, consistently with their National Energy and Climate Plans. To this end, the Commission should set up a Just Transition Platform, which would build on the existing platform for coal regions in transition to enable bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors.
Amendment 168 #
Proposal for a regulation
Recital 15
Recital 15
(15) The territorial just transition plans should identify the territories most negatively affected, where JTF support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy, notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities, whilst maintaining and expanding employment opportunities in the affected territories in order to avoid social exclusion. Those territories should be precisely defined and correspond to NUTS level 3 regions or should be parts thereof. The plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the Green Deal. The plans should contain a description of how stakeholders and local communities will be consulted during the transition process. Only investments in accordance with the transition plans should receive financial support from the JTF. The territorial just transition plans should be part of the programmes (supported by the ERDF, the ESF+, the Cohesion Fund or the JTF, as the case may be) which are approved by the Commission.
Amendment 188 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes the Just Transition Fund (‘JTF’) to provide support to territories and citizens facing serious socio-economic and environmental- related challenges deriving from the transition process towards a climate-neutral economy of the Union by 2050.
Amendment 200 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
In accordance with the second subparagraph of policy objectives outlined in [Article [4(1)] of Regulation (EU) [new CPR], the JTF shall contribute to the single specific objective ‘enabling regions and people to address the social, economic and environmental impacts of the transition towards a climate- neutral economy’.
Amendment 214 #
Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 1
Article 3 – paragraph 2 – subparagraph 1
The resources for the JTF under the Investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be EUR 7.540 billion in 2018 prices, which may be increased, as the case may be, by additional resources allocated in the Union budget, and by other resources in accordance with the applicable basic act.
Amendment 222 #
Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 2
Article 3 – paragraph 2 – subparagraph 2
For the purposes of programming and subsequent inclusion in the Union budget, the amount referred to in the first subparagraph shall be indexed at 2% per yearnnually in line with EU inflation.
Amendment 224 #
Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 3
Article 3 – paragraph 2 – subparagraph 3
No more than 0.35% of the amount referred to in the first subparagraph shall be allocated to technical assistance at the initiative of the Commission.
Amendment 226 #
Proposal for a regulation
Article 3 – paragraph 3
Article 3 – paragraph 3
3. The Commission shall adopt a decision by means of an implementing delegated act setting out the annual breakdown of resources, including any additional resources referred to in paragraph 2, by Member State in accordance with the methodology set out in Annex I.
Amendment 238 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point a
Article 4 – paragraph 2 – subparagraph 1 – point a
(a) productive and sustainable investments in SMEs, including start-ups and entrepreneurs, leading to economic diversification and reconversion;
Amendment 248 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point b
Article 4 – paragraph 2 – subparagraph 1 – point b
(b) investments in the creation of new firms and the expansion of existing firms, including through business incubators, co- location facilities and consulting services;
Amendment 261 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point d
Article 4 – paragraph 2 – subparagraph 1 – point d
(d) investments in the deployment of technology and infrastructures for affordable clean energy, in greenhouse gas emission reduction, energy efficiency and renewable energy(including decarbonisation of buildings), electric vehicle charging infrastructure and renewable energy, including investments in district heating systems;
Amendment 285 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point f
Article 4 – paragraph 2 – subparagraph 1 – point f
(f) investments in regeneration, repurposing and decontamination of sites, land restoration including to act as carbon sinks and repurposing projects;
Amendment 286 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point f a (new)
Article 4 – paragraph 2 – subparagraph 1 – point f a (new)
(fa) investments in conservation and protecting and restoring biodiversity and natural habitats;
Amendment 289 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point g
Article 4 – paragraph 2 – subparagraph 1 – point g
(g) investments in enhancing the circular and bio- economy, including through waste prevention, reduction, resource efficiency, reuse, repair and recycling and green infrastructure;
Amendment 300 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point h
Article 4 – paragraph 2 – subparagraph 1 – point h
(h) upskilling and reskilling of workersprofessional training, upskilling, new skills development and reskilling of workers with a focus on gender equality;
Amendment 305 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point j
Article 4 – paragraph 2 – subparagraph 1 – point j
(j) active inclusion of jobseekers with a particular focus on gender equality;
Amendment 311 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point k
Article 4 – paragraph 2 – subparagraph 1 – point k
(k) technical assistance and advisory services.
Amendment 314 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 – point k a (new)
Article 4 – paragraph 2 – subparagraph 1 – point k a (new)
(ka) investments in the decarbonisation of the transport sector;
Amendment 318 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 2
Article 4 – paragraph 2 – subparagraph 2
Additionally, the JTF may support, in areas designated as assisted areas in accordance with points (a) and (c) of Article 107(3) of the TFEU, productive investments in enterprises other than SMEs, provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (h) of Article 7(2). Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan and provided they are considered eligible in accordance with the EU Taxonomy for Sustainable Investment.
Amendment 324 #
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 3 a (new)
Article 4 – paragraph 2 – subparagraph 3 a (new)
The JTF shall aim to support investments that are economically viable. The viability of investments shall be monitored on an ongoing basis by the Commission and the Member State concerned in accordance with the territorial just transition plans as established in Article 7.
Amendment 331 #
Proposal for a regulation
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) the decommissioning, maintenance or the construction of nuclear power stations as well as the management or storage of nuclear waste;
Amendment 365 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 2
Article 6 – paragraph 1 – subparagraph 2
The Commission shall only approve a programme where the identification of the territories most negatively affected by the transition process, contained within the relevant territorial just transition plan, is duly justified and the relevant territorial just transition plan is consistent with the National Energy and Climate Plan of the Member State concerned.
Amendment 376 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Member States shall prepare, together with the relevant authorities of the territories concerned, and with the assistance of the EIB, where relevant, to ensure complementarity with the other pillars of the Just Transition Mechanism, one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘NUTS level 3 regions’) as established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council as amended by Commission Regulation (EC) No 868/201417 or parts thereof, in accordance with the template set out in Annex II. Those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition, in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity. __________________ 17 Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154 21.6.2003, p. 1).
Amendment 397 #
Proposal for a regulation
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) a description of the expected contribution of the JTF support to addressing the social, economic and environmental impacts of the transition to a climate-neutral economy by 2050;
Amendment 400 #
Proposal for a regulation
Article 7 – paragraph 2 – point f
Article 7 – paragraph 2 – point f
(f) a description of the governance mechanisms consisting of the partnership arrangements, thow effective monitoring and evaluation measures plannwill be conducted and the responsible bodiesgoverning bodies overseeing the plan;
Amendment 403 #
Proposal for a regulation
Article 7 – paragraph 2 – point g a (new)
Article 7 – paragraph 2 – point g a (new)
(ga) a description of how the economic viability of investments will be monitored on an ongoing basis;
Amendment 404 #
Proposal for a regulation
Article 7 – paragraph 2 – point h
Article 7 – paragraph 2 – point h
(h) where support is provided to productive investments to enterprises other than SMEs, an exhausindicative list of such operations and enterprises and a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of the investment;
Amendment 409 #
Proposal for a regulation
Article 7 – paragraph 2 – point i
Article 7 – paragraph 2 – point i
(i) where support is provided to investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC, an exhausindicative list of operations to be supported and a justification that they contribute to a transition to a climate neutral economy and lead to a substantial reduction in greenhouse-gas emissions going substantially below the relevant benchmarks established for free allocation under Directive 2003/87/EC and provided that they are necessary for the protection of a significant number of jobs;
Amendment 412 #
Proposal for a regulation
Article 7 – paragraph 2 – point j a (new)
Article 7 – paragraph 2 – point j a (new)
(ja) a description of how stakeholders and local communities will be consulted in the territory concerned;
Amendment 427 #
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
2. The power to adopt delegated acts referred to in Article 3(3) and Article 8(4) shall be conferred on the Commission for an indeterminate period of time from [the date of the entry into force of this Regulation].
Amendment 429 #
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. The delegation of power referred to in Article 3(3) and Article 8(4) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Amendment 432 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. A delegated act adopted pursuant to Article 3(3) and Article 8(4) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Amendment 461 #
Proposal for a regulation
Annex II – point 2 – point 2.1 – introductory part
Annex II – point 2 – point 2.1 – introductory part
2.1. Assessment of the economic, social, gender-related and territorial impact of the transition to a climate-neutral economy
Amendment 462 #
Proposal for a regulation
Annex II – point 2 – point 2.1 – Reference Article 7(2)(g)
Annex II – point 2 – point 2.1 – Reference Article 7(2)(g)
- types of operations envisaged, their economic viability and their expected contribution to alleviate the impact of the climate transition
Amendment 463 #
Proposal for a regulation
Annex II – point 2 – point 2.4 – Reference Article 7(2)(h)
Annex II – point 2 – point 2.4 – Reference Article 7(2)(h)
To fill in only if support is provided to productive investments other than SMEs: - an exhausindicative list of such operations and enterprises and for each of them a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of this investment
Amendment 464 #
Proposal for a regulation
Annex II – point 2 – point 2.4 – Reference Article 7(2)(i)
Annex II – point 2 – point 2.4 – Reference Article 7(2)(i)
To fill in only if support is provided to investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC: - an exhausindicative list of operations to be supported and a justification that they contribute to the transition to a climate- neutral economy and lead to substantial reductions in greenhouse gas emissions going below the relevant benchmarks used for free allocation under Directive 2003/87/EC and provided that they are necessary for the protection of a significant number of jobs