Decarbonisation will impact the whole economy, not only some regions

In line with the 2030 and 2050 EU climate targets covered by the Green Deal for Europe from December 2019, the EU is supporting regions in transition towards a climate-neutral economy. The transformation will most affect coal and heavy industry regions emitting large amounts of CO₂. The EU support is provided through Just Transition Mechanism. One part of the mechanism is the Just Transition Fund (JTF) which will aid the regions with the transition. The condition of using the Just Transition Fund is a national commitment to reduce CO₂ emissions and stop producing coal-based energy by 2050.

The transition to a carbon-neutral economy is to be socially acceptable and assure that no one is left behind in the green transition. Company closures and related job losses are a major challenge for regions in transition. Therefore, support should also focus on retraining, business support and job search assistance. The Czech Republic is the fourth largest recipient of EUR 581 million from the JTF (7.7% of JTF). This appropriation should mobilize EUR 2000-3300 million. JTF support in the Czech Republic concerns three regions: Karlovy Vary, Ústí and Moravia Silesia. The European Commission is now negotiating the proposal for a financial envelope, which is part of the cohesion policy, with the representatives of the Member States and / or regions.

On 17^th February, representatives of DG REGIO discussed the rules of JTF with stakeholders in Prague. Participants pointed out that the transformation must be carried out in a way that it will not drastically jeopardize jobs in the regions concerned as it could cause serious social problems and, ultimately, environmental degradation. They also stated that the EU must not be too committed to new innovative resources but to work with already available resources as dependence on innovative technologies could increase dependence on imports. Businesses also need to know possible alternatives. Signals from the EU often change and this makes investment decisions more difficult.

Business representatives who are ready to help the regions to fight climate change, pointed out that they can do it only with sufficient money. If we stifle economic growth, or competitiveness, we will not have the means to fight climate change. The EU must not be alone in the fight against climate change, as it can change little as an emitter of 9% of global CO₂. Last but not least, participants agreed that decarbonisation is not just about individual regions, but about the whole economy.