EU Cohesion Policy: €273 million for a just climate transition in Lithuania

Thanks to the adoption of its Territorial Just Transition Plan (TJTP) Lithuania will receive €273 million from the Just Transition Fund (JTF) to support a just climate transition to a more attractive and greener economy. The Fund will target the most affected regions, in Kaunas, Siauliai and Telsiai counties, which rely on a small number of highly greenhouse-gas-intensive industrial plants.

The JTF will introduce green hydrogen and other innovative technologies in production processes, for example €120 million will be invested into greening the biggest fertiliser plant in Kaunas.

Around €100 million will be dedicated to the creation of jobs in the sustainable sectors and the diversification of the economy in the fossil fuel intensive regions, especially backing small and medium-sized businesses (SMEs). Moreover, the Fund will help workers affected by the energy transition – a total of around 4,500 workers – to find new jobs and acquire the adequate skills for the green and digital economy, leaving no one behind.

The JTF will also increase the uptake of renewables and energy efficiency by replacing fossil fuel boilers by renewable heat pumps, and by using renewable hydrogen and other innovative technologies in production processes. Funding will be used as well to rehabilitate and modernise industrial sites to attract SMEs.

The TJTPs identify the territories that will receive JTF support following a dialogue between the Commission and local partners in the framework of the negotiations of the 2021-2027 Partnership Agreements. The Commission approved the Partnership Agreement with Lithuania in April 2022. The TJTPs also allow for financing under InvestEU (a just transition scheme) and the Public Sector Loan Facility for Just Transition (a new tool combining Commission grants with European Investment bank loans for transition regions).

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