The European Commission approves Spain's Just Transition Programme with 868 million euros

It will support more than 1,900 companies and create some 6,000 jobs

The European Commission has approved Spain's Just Transition Programme, which includes the Territorial Just Transition Plan. It contains the types of actions eligible for implementation of the 868 million euros of aid from the European Just Transition Fund (JTF) that is applicable to the country and that will go to eligible territories in six autonomous communities -Andalusia, Aragon, Asturias, Castile and Leon, Galicia and the Balearic Islands- affected by the closure of coal mines and thermal power plants. The grants, which will run until 2027, will support more than 1,900 companies, the vast majority SMEs, boosting the creation of some 6,000 full-time jobs.

The Institute for Just Transition (ITJ), a body attached to the Ministry for Ecological Transition and the Demographic Challenge (MITECO), has designed the Plan and the Programme in close cooperation with the six Autonomous Communities involved, seeking to optimise the possibilities of the JTF, a new funding instrument of the European Cohesion Policy, which has for the first time focused on specific challenges -those linked to just transition- and on specific territories at provincial level or lower.

The types of actions to be financed have been classified into the following categories, common to all the territories:

·    Green transformation of industry and promotion of sustainable mobility, circular economy and energy efficiency.

·    Boosting the renewable energy value chains, self-consumption, energy storage and renewable hydrogen.

·    Promoting SMEs and business projects that are key to the economic diversification of the territories.

·    Promoting research, development and innovation (R&D&I), ICT integration and digital transformation.

·    Environmental rehabilitation, nature conservation, biodiversity and ecosystems, promotion of cultural heritage related to mining and industry, and promotion of sustainable tourism.

·    Promotion of social infrastructure, the social economy, and training and qualification initiatives.

Examples of actions
Actions to be carried out under the JTF include:

In Asturias, the renewable hydrogen value chain, the renewable energy value chain and the energy storage value chain will all be promoted, as well as the ecological, circular and digital transformation of industry and diversification of the industrial fabric, in addition to training activities, particularly for young people.

In A Coruña, support will be given to industrial decarbonisation, a financial instrument will be created for loans to companies that create and maintain employment, a centre for R&D in marine renewables and storage will be created, and a training centre for digital and green occupations will be set up.

In León and Palencia, a major commitment will be made to biomass (forest management, logistics and final use in the heat network), business incubators will be created, a project will be launched to enhance the value of mining heritage, and renewable energy training skills will be boosted.

In Teruel, the focus will be on energy efficiency and circular economy in industry, smart energy systems (including storage and green hydrogen), coworking centres, and rural and entrepreneurial workshops for women.

In Cadiz, Cordoba and Almeria, industrial ecosystems will be promoted in each province, including the circular economy, the production of green hydrogen and other renewable fuels, the development of electricity infrastructure in just transition areas, the regeneration and decontamination of degraded areas, and training and access to employment.

In the Alcudia Just Transition Zone, as part of the Alcudia Tech Mar project, rehabilitation of  land at the old thermal power plant will be financed, as well as a heat network, green hydrogen installations and renewable energy for self-consumption. This will be in addition to training activities in sailing, new energies and sustainable tourism.

Complementing previous work
Investments provided by the JTF will complete the extensive previous work of the Spanish Government to meet the objectives of supporting the transformation of territories where coalmines have closed with new ventures and tractor projects. This will complete an innovative energy transition based on renewables, supporting the working population to obtain employment opportunities and adequate training, and transforming local areas into environmentally and socially sustainable economies.

JTF funds are in addition to the aid that the ITJ has been channelling: since 2019 it has granted 350 million in aid to workers, companies and local public organizations, plus a further 300 million from the Recovery, Transformation and Resilience Plan (PRTR).

Source: Ministry for the Ecological Transition and Demographic Challenge
Read the full news article: Free hand to distribute 868 million in aid under the European Just Transition Fund (miteco.gob.es)