Spain will receive almost €869 million from the Just Transition Fund(JTF) following the adoption of the Just Transition Programme and its Territorial Just Transition Plan (TJTP). The funding will

help the countryfirmly advance in the transition towards a climate-neutral economy in a fair way.

Spain is on track to phase out coal for energy production ahead of its initial planning of 2030. The EU will help deliver a just climate transition in the regions affected by the corresponding closures of coal mines and coal power plants. This includes most notably the region of Asturias, which will receive almost one third of the Spanish JTF funding. Other regions receiving funds are the province of A Coruña in Galicia, the provinces of Teruel in Aragón, León, and Palencia in Castilla y León, Almería, Cádiz, and Córdoba in Andalusia; and a group of municipalities around Alcúdia on the island of Mallorca.

Fostering economic resilience, renewable energy, and jobs

The JTF will invest in energy efficiency, circular economy, renewable energy sources (e.g., solar, offshore wind, renewable hydrogen), and the green transformation of the country's industry in those concerned areas. The Fund will finance a hub for technological innovation in offshore renewable energy and energy storage in A Coruña, support the renovation of public buildings in León to improve their energy performance; and promote an innovative project using microalgae to produce renewable fuels in Cádiz.

In addition, financial assistance will be provided to SMEs and projects that lead to economic diversification, targeting sectors that are considered strategic for these territories. For instance, the JTF will support SMEs in the agri-food industry in Córdoba, in particular in the municipalities affected by the closure of a coal power plant in the Guadiato Valley district. It will also support the Alcúdia Tech Mar initiative, which aims to reconvert the area around the local thermal power plant creating new opportunities for SMEs and spear-heading innovation in the maritime and aquaculture industry. Investments will also focus on incubator services for 160 SMEs and new process or product innovation for 90 SMEs.

Finally, the JTF will pay special attention to the training and reskilling of unemployed persons, SME staff and workers in carbon-intensive industries, developing the qualifications needed for a sustainable development of the territories and for workers to find well-paid jobs. Tailored apprenticeships will foster job creation for young people between 18 and 29 years. Overall, 6,000 jobs are expected to be created in entities supported with the JTF.

Promoting sustainable economic development of territories

The JTF will help develop solutions and new technologies that provide new economic activities for the territories affected by the transition. For example, in the region of Asturias, the JTF will support an innovation hub for artificial intelligence in a former mining site.

Several regions will develop projects fostering sustainable and cultural tourism as well as the conservation of the ethnographic heritage. In Teruel, the JTF will support the rehabilitation of mining and industrial heritage sites for cultural activities, honouring the legacy of mining municipalities; and in Palencia, in the municipality of Cervera de Pisuerga, a youth hostel will be rehabilitated with EU funding to help create permanent employment.

Background

The JTF ensures that the transition towards a climate-neutral economy leaves 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 Spanish authorities and the Commission. The Partnership Agreementwith Spain was approved in November 2022.

The TJTPs, developed by the national and regional authorities in close consultation with local partners and the Commission, 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 across the EU.

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 Spanish Authorities, the Commission provided tailor-made technical expertise for the preparation of the TJTPs. Support included the analysis and assessment of the social, economic and environmental impact of the transition, as well as an action plan to ensure the just transition in the concerned regions The support was provided by the Technical Support Instrument under DG REFORM. Photo by dronepicr, Wikimedia commons.