In view of the vital transition towards a climate neutral economy that is bound to create new inequalities, policymakers must do their best to guarantee that nobody is being left behind, Labour MEP Alfred Sant told the European Parliament.
Alfred Sant voted in favour of the final agreement reached between the Council, the Commission, and the European Parliament on the Public Sector Loan Facility and said that it is an essential pillar of the Just Transition
Mechanism.
“With this Regulation, public authorities are having an added instrument with which they can invest money in a socially just transition. The facility has a strong social dimension aiming at tackling the potential social inequalities that will result from this transition”, Alfred Sant told the plenary of the European Parliament.
Support under the facility will take the form of grants provided by the EU combined with loans provided by the European Investment Bank. The loan facility will support public investments by offering preferential lending
conditions, helping those territories most affected by the climate transition as set out in the territorial just transition plans under the Just Transition Fund, which are currently being prepared by Member States.
Examples of projects or investments that contribute to the development needs in the transition to a climate-neutral economy include energy and transport infrastructure, green mobility, smart waste management, clean energy and
energy efficiency measures including renovations and conversions of buildings, support to transition to a circular economy, land restoration as well as training and social infrastructure, including social housing.
Alfred Sant said no European region, no economic sector, and most importantly, no individual should be left alone to carry the burdens that will develop.
“Moreover, the funnelling of money should not only go towards those that are quickest at eying an investment opportunity arising from the transition”. “Rather, those responsible for disbursing the funding need to dig well, in order to target support towards the weaker sections of society, even those who are unaware of their changing circumstances due to the transition, so that they too can benefit from the new emerging economy”, stated Alfred Sant.
