Just Transition Fund (JTF)
The EU established the JTF to reduce the negative impact of the climate transition. This goal is to be achieved by supporting the regions and employees that will be the most significantly affected by the transition, and by promoting a balanced socioeconomic transition.
In Finland, the JTF measures are based on the Government Programme’s goal to halve the use of peat as energy by 2030. The JTF offsets the adverse socioeconomic and environmental impact caused by halving the use of peat as energy. The JTF will be implemented in 14 JTF regions through regional transition plans.
JTF funding responds to the adverse socioeconomic and environmental impact of the low-carbon transition to secure employment and sustainable regional economies. Funding will be allocated to just transition measures in accordance with the Innovation and Skills in Finland 2021–2027 programme.
Just transition for discontinuing the use of peat in regions: The goal is to diversify business, adapt the sector’s workforce, and restore adverse environmental impacts. The measures for diversifying business address the development potential presented in each region’s smart specialisation strategy, focusing on jobs in the green economy and new green technology solutions, as well as the new business opportunities they present. The measures for re-educating and re-employing the workforce will primarily be targeted at individuals who have remained unemployed in the peat sector and those who are at a risk of unemployment in the sector, focusing on young people. The skills and capabilities of peat entrepreneurs will be developed in the sectors of harvesting and peatland remediation, for example, to enable new business. Regions no longer used in peat production will be restored and remediated, and their purpose of use will be changed to reduce environmental and emissions impacts and to diversify business.
Finland’s EU funding from the JTF is approximately EUR 466 million. Public national funding, including some EUR 665 million, can be allocated to projects during the 2021–2027 programme period.
JTF funding covers seven regions in Eastern and Northern Finland, as well as the regions of Southern Ostrobothnia, Satakunta, Central Finland, South Karelia, Kymenlaakso, Ostrobothnia and Pirkanmaa. However, the Pirkanmaa JTF area only comprises Parkano, Kihniö, Virrat and Punkalaidun. Funding will be allocated to measures in accordance with each region’s transition plan.