Radical overhaul of Just Transition to go before European Parliament

MEP Ciaran Mullooly has secured support from the European Parliament’s Regional Development Committee (REGI) for his reform report on the EU Just Transition Fund (JTF).

With this report now adopted by the EU Committee last week, it heads to a full parliament vote in September, setting the stage for what Mullooly described as “a more ambitious, accessible, and effective” ‘JTF 2.0’ with increased funding and slashed red tape to support communities facing the challenges of climate transition.

The Just Transition Fund (JTF) is the EU’s main tool to support regions and workers most affected by the shift to climate neutrality. In Ireland, €169m is allocated to the Midlands until 2027, matched by equal funds from the Irish Government, to help diversify local economies and reskill workers as peat extraction ends.

However, Mullooly believes complex applications, short timelines, and low awareness have limited the fund’s impact for transitioning communities.

“When the JTF came to Ireland it was already largely too late, we had no Just transition and I want to address the damage that this has caused right across the midlands,” he said.

The report approved by the regional development committee includes ten key proposals:

1. More Money Up Front:

Mullooly’s REGI adopted measures call for immediate pre-financing for community groups applying for JTF grants, easing the need for risky matched funding loans and making funding accessible from the start.

2. Boosted Investment in Training:

Major new investment in apprenticeships and training, especially in Offaly, Longford, Roscommon, and the worst-affected areas.

3. New Economic Zones:

Creation of special economic zones in Offaly and Longford, where jobs were lost, with greater targeted investment and tax incentives to attract new business and replace lost jobs.

4. Local Grant Managers:

Appointment of dedicated town and village grant managers to lead funding applications and provide hands-on support to local groups.

5. Faster Planning Decisions:

Accelerated planning for areas hit by ESB and Bord na Móna closures, ensuring regeneration projects can start without delay.

6. Social Protection for Older Workers:

New, tailored social protection for workers over 50 who lost jobs on the bogs, ensuring no one is left behind.

7. State Land for New Industry:

Unlocking state-owned land in the Midlands for new industries and job creation.

8. Targeted Tax Incentives:

Specific tax breaks for Longford, Westmeath, Offaly, Laois, Galway, and Kildare to drive investment and economic renewal.

9. Replace Lost Jobs:

Focused campaigns to directly replace jobs lost in Shannonbridge and Lanesborough since 2019.

10. Community Engagement Drive:

A renewed push to engage community groups and volunteers in driving the economic development of the Midlands.

Mullooly said having worked initially as a community volunteer applying to the JTF fund for local groups, he brings brings a long and personal insight to this work,

His frustration with its complexity led him to become a JTF activator, guiding others through the process, and now, as MEP, he leads as a legislator.

“This is not just policy for me—it’s personal!" Mullooly stated, "I have been involved in every side of the fund for several years and I know exactly what it is like from a community perspective."

“I personally know hundreds of people who were severely impacted through the rapid closure of E.S.B. power stations and Bord na Móna operations,” Mullooly said.

”When the JTF Fund came out originally, this was to be the support mechanism, but it failed to take off effectively. Now this will change because it simply has to. I never want to see anything like this happen to us again. With JTF 2.0 following these enhancements, we can finally deliver justice before transition, not after,” Mullooly said.

The report advances to a plenary vote in Strasbourg this September where it is expected to be adopted. It will set the Parliament’s position for negotiations, ensuring the new JTF 2.0 becomes a reality for Ireland and all EU transition regions