Statement by Commissioner Hahn at the press conference on the European Green Deal Investment Plan and Just Transition Mechanism

Source: European Commission (EC) i, published on Tuesday, January 14 2020.

Ladies and Gentlemen,

The Green Deal is Europe's transition to the future - a transition, which can and will benefit everyone: the citizens, the economy and the regions. With today's communication, we are presenting concrete actions and financial means to make this transformation happen. Because it is high time for action - just look at Australia - there is an urgency to act.

At the heart of the Green Deal and this transition to the future, is the Just Transition Mechanism.

Mobilising at least 100 billion euro of investment, it will help cities and regions with less capacities to catch up, turning environmental, economic and social challenges into opportunities and creating new, sustainable and future-oriented jobs. It is about ensuring that no one is left behind.

To do this, the Just Transition Mechanism has three pillars.

The first one, is the Just Transition Fund, which Elisa will elaborate further. It will provide grants to mobilise 30 to 50 billion euro of public funds. This could be for reskilling people and supporting start-ups and existing companies to upgrade to lees polluting production modes.

The instrument will rely on a 7.5 billion euro of fresh funds from the EU budget. Let me be clear that this is on top of our MFF proposal.

The second pillar enables investments in a wider range of bankable projects under a dedicated scheme in the InvestEU, mobilising 45 billion euro of investments. This could be, for example, investments in renewables, for solar and windmills, or supporting business to develop innovative products and processes.

The third pillar provides subsidised loans to the public sector for non- bankable projects. The public sector loan facility with the European Investment Bank will seek to mobilise between 25 and 30 billion euro. It will for example finance energy efficiency measures, including the renovation of affordable housing, hospitals and schools. This will help reduce the regions CO2 footprint, as well as its energy bill.

The Just Transition Mechanism is European solidarity at its best.

The Green Deal is more than just a strategy. It is, to quote our President von der Leyen, the DNA of this Commission. It is about European values and taking responsible decisions to protect our economy and climate for the sake of future generations. And we can be proud about leading the way on the global stage.

As EU Budget Commissioner let me also say some words about the link to the MFF. The EU budget works to finance EU's political priorities. Today it must serve the commitment to become the first climate neutral continent by 2050. An ambitious, but realistic goal, if we are all on board.

The Just Transition Mechanism is also an important step toward an agreement on the Multiannual Financial Framework. Because it helps Member States, which still depend on coal, while at the same time uniting all Member States behind our common ambitious climate goals. Let us not forget that both pollution and economic activity have no borders. Now, all the elements are on the table and it's time to conclude the MFF. We have no time to waste, if we want to deliver results for the citizens. Our ambition should be for Climate cash instead of climate crash!

Thank you!