Brussels, 20 December 2022
Italy will receive €1 billion under the Just Transition Fund (JTF) following the adoption of its Territorial Just Transition Plan (TJTP). This EU support will help deliver a just climate transition in Taranto, Apulia, and in Sulcis Iglesiente, Sardinia, by fostering economic diversification and job creation in green sectors, including renewable energy.
Economic diversification and support to employment in Taranto
The climate transition in the province of Taranto is affected by the presence of the largest steel mill of Europe, the Acciaierie d’Italia (former Ilva). New business models, increased availability of renewable energy and green hydrogen and retraining are key to transform steel production.
As one third of industrial workers in the Taranto province are employed in the steel sector, the Fund will support the retraining of 4,300 workers for green jobs linked to the clean energy transition and circular economy. It will also enhance care services to tap the potential of women currently excluded from the labour market and to ensure assistance for the most vulnerable.
The JTF will also support the construction of wind turbines, the development of green hydrogen, and geothermal installations for buildings in the province, to ensure the availability of affordable renewable energy for economic and residential activities.
In addition, the Fund will finance the creation of service centres for SMEs to help them diversify, as well as hubs and accelerators for skills development, smart specialisation, and support to industrial transition. The programme will also finance projects to introduce innovative solutions to exploit the potential of cultural and creative enterprises, aerospace, and other sectors of excellence for the local economy.
Finally, the Fund will also help create a green belt around the city of Taranto. This green infrastructure composed by urban parks, and naturalistic areas will contribute to the restauration of degraded land and to the reduction of CO2 emissions.
New economic opportunities and environmental sustainability in Sulcis Iglesiente
Italy has committed to phase-out coal-fired electricity by 2025. This will impact the area of Sulcis Iglesiente, in Sardinia, which hosts the last coal mine of the country. The region however has a strong potential for the production of renewable power.
The JTF will invest to spur economic diversification in Sulcis Iglesiente’s green economy, agriculture, tourism, and marine economy sectors. In particular, micro-enterprises will receive support to foster product, process, organisational and marketing innovations. SMEs and start-ups will gain from projects in research, innovation, and technological transfer, with a particular focus on the circular economy.
The Fund will also help 2,250 workers acquire new skills through training courses, as well as reinforce support to jobseekers and to services dedicated to the creation of new enterprises.
Finally, the Fund will facilitate the creation of renewable energy communities to reduce energy poverty. It will also help optimise and reduce the energy consumption of SMEs by encouraging the use of clean technologies for the production of wind, solar and marine energy. Contaminated areas will be restored and rehabilitated to enable new economic activities.
Background
The JTF ensures that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind, in particular in the regions that face the most difficult transition. Those territories are identified during negotiations of the 2021-2027 Partnership Agreements and the associated programmes between the Italian authorities and the Commission. The Commission approved the Partnership Agreement with Italy in July 2022.
In the TJTP for the Province of Taranto, no support is foreseen for large companies. Therefore, the JTF cannot directly support former Ilva.
The TJTPs, developed by the national and regional authorities in close consultation with local partners, identify the challenges and development strategy and needs in each territory, and the objectives to be met by 2030. They also identify the planned actions with specific governance mechanisms.
The approval of TJTPs opens the door to funding by the JTF as well as to dedicated financing under the other two pillars of the Just Transition Mechanism (JTM): a just transition scheme under InvestEU and a Public Sector Loan Facility for Just Transition that combines Commission grants with European Investment Bank loans. The JTM provides targeted support to help mobilise around €55 billion over the period 2021-2027 in the most affected regions.
Local partners and all stakeholders can also get support and exchange best practices and experiences all across the EU via the Just Transition Platform.
Upon request by the Italian Authorities, the Commission provided tailor-made technical expertise for the preparation of the National Strategy and action plans for the transition from coal in the concerned Italian regions. The support was provided by the Technical Support Instrument under DG REFORM.
More information
The Just Transition Mechanism: making sure no one is left behind
The Just Transition Platform: Accompanying Member States and regions to achieve a just transition
Breakdown of Just Transition Fund allocations per Member State
Questions and Answers on the EU Cohesion Policy legislative package 2021-2027
Quotes
The Italian programme is targeted and specific to support the regions facing a challenging transformation in coal and the steel industry. Sulcis Iglesiente and Taranto will receive tailored support and investment to support workers and the economy while solving environmental concerns. The EU is here to help and to work closely together with Italy for achieving the structural transition towards climate-neutrality.
The transition to climate neutrality is necessary to give our children and grandchildren a future on this planet, but it is not a transition that’s necessarily easy. That’s why the Green Deal is built on the premise of proving it is possible to have a socially fair transition. We are committed to leave no one behind. In Taranto specifically, the Just Transition Fund will boost the production of clean and cheap renewable energy and kick-start the development of green hydrogen in the region, which can be vital for its industrial future. The European Commission is on Italy’s side to build a green, sustainable, and healthy future for all.