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Just Transition Fund – a new instrument of the 2021-2027 programming period

A press conference on the funding opportunities and the use of the funding made available under the Just Transition Fund was held in Velenje today. The Just Transition Fund (JTF) is a novelty of the 2021-2027 programming period. Two Slovenian coal regions are eligible for funding under this instrument, i.e., Savinjsko-Šaleška region and Zasavje region. The JTF aims to support the restructuring and diversification of the local economy to alleviate the impact of the regions’ coal phase-out as part of the transition towards climate neutrality.
Na fotografiji z leve: Andreja Katič, državna sekretarka na ministrstvu za kohezijo in regionalni razvoj; dr. Aleksander Jevšek, minister za kohezijo in regionalni razvoj, Peter Dermol, župan Mestne občine Velenje in Zoran Poznič, župan Trbovelj

Pictured from left to right: State Secretary Andreja Katič, Minister of Cohesion and Regional Development Dr Aleksander Jevšek, Mayor of Urban Municipality of Velenje Peter Dermol, and Mayor of Municipality of Trbovlje Zoran Poznič | Author Ministry of Cohesion and Regional Development

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The press conference featured Minister of Cohesion and Regional Development Dr Aleksander Jevšek, State Secretary at the Ministry of Cohesion and Regional Development Andreja Katič, Mayor of Velenje Urban Municipality Peter Dermol, and Mayor of Trbovlje Municipality Zoran Poznič. In his opening remarks, Minister Jevšek stressed that the two territorial just transition plans focus on the centres for the just transition. The centres will promote the involvement of stakeholders and cooperation of regional level actors in all stages of the implementation of the territorial just transition plans in both regions transitioning away from coal. The smartly designed governance mechanism has been recognised as an example of good practice by the European Commission.

''Around 250 million euros have been made available under the JTF for both regions. The Savinjsko-Šaleška region will get nearly 174 million euros and almost 75 million euros have been earmarked for the Zasavje region. Part of the funding, some 140 million euros, will have to be used by the end of 2026. This means that the projects will have to be completed by mid-2026. The remainder, around 109 million euros, can be used by the end of 2029; the same applies to other cohesion funds,'' explained Minister Jevšek.

State Secretary Andreja Katič shared the details of the call for proposals that was published on 24 November. The call seeks to co-finance the construction of economic and business infrastructure (business incubators) in the Savinjsko-Šaleška and Zasavje coal regions. ''The call for proposals supports Slovenia's goal to shift to a low-carbon circular economy, which complies with Slovenia's sustainable smart specialisation strategy and other development strategies. The call supports the construction and furnishing of new business incubators in both coal regions to facilitate growth of new businesses and support new job opportunities, especially for those who lost or will lose job because of coal phase-out. It follows the first call for proposals under the JTF that was published in July this year,’’ said State Secretary Katič.

The call for proposals may co-finance up to 100% of the eligible costs of the projects. The non-deductible part of VAT paid will also be considered eligible. Three municipalities in the Savinjsko-Šaleška region, i.e., Velenje, Šoštanj, and Šmartno ob Paki, as well as three municipalities in the region of Zasavje, i.e., Hrastnik, Trbovlje, and Zagorje ob Savi will be eligible for support from the JTF.

Velenje Mayor Peter Dermol praised the good cooperation of local communities with the ministry and the collaboration between mayors in the coal region. ‘’The restructuring process is one of the most challenging jobs ahead of us, after all, the future of the communities, valleys, and regions is at stake here. That is why it is all the more important to get the relevant processes through as quickly and efficiently as possible,’’ said Dermol.

‘’The JTF will allow the three valleys in the Zasavje region to leapfrog from an industrial to a post-modern society,’’ added Trbovlje Mayor Poznič.

Meanwhile, the Ministry of Cohesion and Regional Development will issue a funding decision for one of the country’s strategic projects. The project is about establishing a Centre for Demonstration and Training in Zero Carbon Technologies in the region that will focus on the research on climate-neutral technologies for the transition to a modern, sustainable, and green-oriented industry. The costs are estimated at over 32 million and the contribution from the JTF will stand at 27.3 million euros. The payment of the first balance, i.e., 10 million euros, is expected by the end of the year.