EU member states have proposed softening plans to allocate a fixed share of emissions penalty revenues to a just transition fund, citing uncertainty over how much money will be raised.
In a note to members of the European Parliament, the Council said that setting a fixed 50 per cent share could be impractical if revenues turn out to be low or zero. It suggested replacing it with a “substantial share” to be allocated once the final amount is known, while maintaining support for workforce reskilling, affected regions and investment in zero-emission technologies.
The change highlights broader concerns among member states over linking social spending to uncertain revenue streams, and points to a preference for flexibility over fixed funding commitments.
It also reflects a gap with the European Parliament, which has pushed for more clearly defined support for a just transition.
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