Background information

The initiative aims to support Denmark's shift towards a sustainable and low-carbon economy. This funding is crucial for reducing greenhouse gas emissions and creating green jobs, particularly in regions most affected by the transition.

This initiative is part of the EU's Just Transition Fund, which supports regions facing significant socio-economic challenges due to the transition towards climate neutrality. The Danish government has established a committee to allocate these funds effectively, ensuring they support projects that reduce emissions and promote green growth while securing a just transition

Legal reference: The initiative is grounded in the EU's Just Transition Mechanism, which is part of the European Green Deal. This mechanism aims to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind.

Content of measure

The 'DKK 636 million (€ 48.7 million) for green transition' initiative targets regions in Denmark most affected by the shift to a low-carbon economy, specifically North and South Jutland, to be distributed until 2027. The funding is aimed at projects that reduce greenhouse gas emissions and create green jobs. Eligible recipients include local governments, businesses, and organizations involved in sustainable development and innovation. The allocation per project varies based on the project's scope and impact, but significant portions are earmarked for large-scale initiatives like the development of pyrolysis technology, which alone has received DKK 196 million (€ 22.7 million) within the measure.

Use of measure

The initiative is expected to benefit approximately 10,000 workers and numerous companies in North and South Jutland. The funding aims to support projects that create green jobs and secure a just transition and reduce emissions. As of now, specific uptake numbers are not fully available, but initial estimates suggest significant interest from local businesses and municipalities. Detailed information on the number of realized beneficiaries and the effectiveness of the initiative will be provided in future updates as projects progress.

Target groups

Workers	Businesses	Citizens
Particular professions	Sector specific set of companies SMEs Larger corporations Start-ups	Applies to all citizens

Actors and funding

Actors	Funding
National government Social partners jointly Trade unions Employers' organisations Company / Companies Other social actors (e.g. NGOs) Local / regional government EU (Council, EC, EP)	European Funds Local funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were consulted in the design, implementation, and monitoring of the '636 million for green transition' measure. Their involvement was requested by the institutional setting to ensure a fair and inclusive approach. Key organisations involved include trade unions and employers' organisations, while some smaller NGOs were not directly involved. Social partners contribute by providing insights on labor market impacts and ensuring that the transition supports both workers and businesses in affected regions.

Views and reactions

Social partners are generally supportive of the measure. Trade unions and employers' organisations have expressed positive reactions, highlighting the initiative's potential to create green jobs and support affected regions. They appreciate the focus on just transition, ensuring that workers are not left behind in the shift to a low-carbon economy. However, some concerns have been raised about the need for clear implementation strategies and continuous monitoring to ensure the funds are used effectively.

Sectors and occupations

This case is not occupation-specific.

Sources

• 25 April 2023: EM.DK (www.em.dk)