Thanks to the Fair Transition Fund (JTF) program approved by the Commission, Sweden will receive €155.7 million in EU grants to support efforts to become climate neutral and reduce the impact of climate change. climate change by 2045. Sweden will mobilize a total investment of 311.5 million euros to ensure that this transition does not leave the local economy and society behind.
Frans Timmermans, Executive Vice President of the European Green Deal:
“The goal of achieving carbon neutrality five years ahead of the EU target is truly commendable. The more we move to climate neutrality, the more we’ll achieve. The climate crisis was also mitigated with the support of the Swedish Inclusion Only Transition Fund.” and agreed on a plan that would help achieve the equity goals of the country. them and provide new prospects for workers in the most industrialized regions of the nation.
Union and Reform Commissioner, Elisa Ferreira said:
“Sweden’s industrial sector generates a significant portion of the country’s greenhouse gases. By using the Just Transformation Fund, we are helping Sweden reduce emissions while protecting local people from negative economic and social impacts.”
FST support helps Swedish industry achieve climate neutrality, while maintaining competitiveness and economic and employment levels in the provinces of Norrbotten, Vestbotten and Gotland. As industrial emissions account for 32% of Sweden’s total greenhouse gas emissions, the transformation of the steel, mining and metal industries, which are the main sources of greenhouse gas emissions, would have significant socioeconomic consequences. FST helps reduce this impact by investing in research and innovation as well as upskilling and retraining staff.
Given the size of the decarbonization challenge, FST also supports targeted investments to reduce greenhouse gas emissions from Emissions Trading Program activities, such as: B. Steel and cement production bamboo shoots. This investment is critical to employment in the sector and will ensure the significant reductions in emissions required by the FST rules.
Finally, €9 million from FST will help increase the capacity of the Gotland network. Strengthening Gotland’s electricity grid and increasing renewable energy production are prerequisites for transforming the region’s cement mill.
Background
FST supports the regions most impacted by the transition to a carbon neutral economy. The definition of these areas will be provided in the Territorial Transformation Plan (TJTP) and the dialogue with the Commission on the partnership agreement for 2021-2027 and related plans. Developed in close consultation with local partners, the TJTP identifies regional challenges as well as development needs and goals for 2030. They also identify the types of activities to be covered. covered by certain governance mechanisms.
Approval of the TJTP will open the door to funding covered by the other two pillars of the Transition Only Mechanism (JTM): the InvestEU Forward-Only Program and the Public Sector Transition-Only Loan Fund, concluding Match Commission grants with loans. From Investment Europe. banks.
The JTM is an important tool to ensure that the transition to a carbon neutral economy is fair and that no one is left behind. Targeted support, mobilizing €55 billion in Europe’s most affected regions between 2021 and 2027 to reduce the socioeconomic impact of the transition.
The European Commission approved the cooperation agreement in Sweden in June 2022. The agreement includes a large investment – 30% of the European Regional Development Fund (ERDF) – as a support measure. Smart economy with climate and environmental sustainability.
In addition to the JTF plan, two ERDF plans have been approved regarding the partnership agreement: a regional plan for the northern central region of Sweden and a plan for the Stockholm region. Six other regional ERDF plans, as well as a national ERDF plan, are expected to be adopted by the end of 2022.
At the request of the Swedish authorities, the committee provided specialized technical expertise, including advanced and regional technical knowledge, in preparation for the TJTP. Support is provided through the technical support tools at DG REFORM.
