Just transition

Supporting the EU’s Just Transition Mechanism

Strategic partnerships are critical for the successful development of the EBRD’s just transition initiative. The EBRD will look to build partnerships with other stakeholders who are also working to achieve a just transition. This includes multilateral development banks, international organisations, civil society and donors.

Through its “European Green Deal”, the European Union aims to become the world’s first climate-neutral continent by 2050. And its Just Transition Mechanism, part of the European Green Deal Investment Plan, ensures that the green transition is socially just, through a financial package worth €100 billion.

The EBRD focuses on supporting the European Commission’s effort and has been engaging with the national, regional and local governments in its EU countries of operations to support the preparation of Territorial Just Transition Plans and identify financing and technical cooperation opportunities stemming out of them.

As one of the advanced example, in Greece, the EBRD has liaised with the Government, the World Bank, the EU and the European Investment Bank to provide feedback to the draft Just Transition Plan and is looking to build a portfolio of investments linked to it. Similar contacts and work are underway in countries both inside and outside the EU.

Outside the EU, the Bank will support its countries of operations through establishing policy dialogue with authorities and help them designing and implementing just transition plans. As a most recent example, the EBRD has leading role on the financing component of the Platform Initiative in Support of Coal Regions in Transition in Western Balkans and Ukraine, which has been developed with, the European Commission (DG ENER), the World Bank and the Energy Community Secretariat and others.

The aim of the platform is to mirror the similar EU platform for coal regions in transition through knowledge exchange, technical assistance and financing to coal regions. As part of this initiative, the EBRD will lead the coordination on financing, including providing own financing where appropriate. As a recent step and part of the initiative, the European Commission launched the Secretariat for the Initiative for Coal Regions in Transition in the Western Balkans and Ukraine in February 2021 to deliver support to coal regions.

The EBRD will continue forming alliances and prepare the ground for projects and policy initiatives through engaging with its countries of operations and helping them design and implement just transition plans.