By Lynn L. Bergeson and Carla N. Hutton
 
On April 25, 2023, the Council of the European Union (EU) announced that it approved the conclusions on the opportunities of the bioeconomy in light of current challenges, with special emphasis on rural areas. Using biomass to produce food, materials, and energy can help boost rural communities, increase competitiveness, and combat many of the challenges facing the EU. According to the press release, in their conclusions, ministers “highlighted the key role that the bioeconomy could play in achieving the environmental and climate goals under the European Green Deal, while also making the EU more competitive, helping it transition away from fossil-fuel dependency, and strengthening food security in the wake of Russia’s war of aggression against Ukraine.” The ministers also stressed the importance of promoting research and innovation and improving alignment between scientific advances and industry policy. The press release states that the conclusions will provide political guidance for the European Commission (EC) and EU member states on developing the potential of the bioeconomy in Europe.
 
While the Council of the EU welcomed the EC’s progress report on the implementation of the EU Bioeconomy Strategy, ministers put forward a number of recommendations intended to help boost the potential of the bioeconomy in Europe. In particular, they called on the EC to:

• Better integrate bioeconomy into all policies and ensure policy coherence;
• Facilitate knowledge transfer toward less developed regions and rural areas; and
• Update the EU Bioeconomy Strategy and associated action plan and carry out an in-depth assessment of actions being taken at the EU level.

Ministers also noted that the bioeconomy was an integral aspect of the reformed Common Agricultural Policy (CAP) and invited the EC to follow up on how EU member states had incorporated it into their national strategic plans.

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By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On May 18, 2021, the European Parliament (EP) issued a press release announcing the Just Transition Fund (JTF) to assist European Union (EU) countries to address climate neutrality goals. The Just Transition Fund is composed of €7.5 billion from the European Commission’s (EC) long-term EU budget under the 2021-2027 Multiannual Financial Framework (MFF) and €10 billion from the EU recovery plan, NextGenerationEU. According to the press release, eligible projects must focus on economic diversification, reconversion, or job creation, or they must contribute to the transition into a sustainable and circular European economy. JTF will finance:

• Job seeking assistance, upskilling, and reskilling to help workers as Europe shifts to a climate-neutral economy;
• Micro-enterprises;
• Business incubators;
• Universities;
• Public research institutions; and
• Investments in new energy technologies, energy efficiency, and sustainable local mobility.

A “Green Rewarding Mechanism” could be introduced to the JTF for distribution of additional funding to member states if the EP decides to increase the fund’s resources after December 31, 2024. The goal is for the €7.5 billion JTF funds to generate between €30 and €50 billion from investments. Member states that succeed in reducing industrial greenhouse gas (GHG) emissions will receive additional funding.
 
Access to JTF for member states is conditional upon adoption of national-level commitments to achieve climate neutrality by 2050. Before adoption of such commitments, member states will be entitled to only 50 percent of their national allocations. The portion of the investments provided by EC is set at a maximum of 85 percent for less developed regions, 70 percent for transitional regions, and 50 percent for more developed regions.
 
JTF is part of the European Green Deal Just Transition Mechanism (JTM) initiative, which provides targeted support to regions and sectors in the EU that are most affected by the transition into a green economy. JTM aims to help EU member countries by also:

• Supporting the transition to low-carbon and climate-resilient activities;
• Creating new jobs in the green economy;
• Investing in public and sustainable transport;
• Providing technical assistance;
• Investing in renewable energy sources;
• Improving digital connectivity;
• Providing affordable loans to local public authorities; and
• Improving energy infrastructure, district heating, and transportation networks.

In support of JTM, Frans Timmermans, Executive Vice President of EC stated that “[w]e must show solidarity with the most affected regions in Europe, such as the coal mining regions and others, to make sure the [European] Green Deal gets everyone’s full support and has a chance to become a reality.”

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