Government seeks to channel EU Just Transition funding into eight counties

The Government is continuing to insist that Just Transition funding from Europe be spread across a wide region - which will limit the amount available for Offaly.

Eight areas (counties or part of counties) including Offaly are being proposed by the Government for special European funding to assist the transition to a green economy.

This is despite two reports from the European Commission recommending that the area for investment under the fund be more targeted.

The European Commission's 2020 European Semester Country Report for Ireland recommended that the Just Transition Fund be concentrated on Laois, Longford, Offaly and Westmeath.

Analysis was also carried out by consultants through the European Commission’s Structural Reform Support Programme to assess the most impacted territory, building on the European Semester Country Report.

It examined the eight counties covered by the Government's just transition policy, together with Clare due to the expected closure of ESB’s coal fired power station, Moneypoint, later in this decade. The report identified the Laois, Longford, Offaly and Westmeath as well as Roscommon as the most negatively impacted territories.

However, despite the European Commission reports, the Government's draft territorial Just Transition Plan, which will be submitted to the European Commission, after public consultation, continues to propose eight counties.

The Government draft plan published today, said it “has had regard to the recommendations of the European Commission and is aligned with the territorial coverage of the national Just Transition Fund."

It provisionally identifies East Galway, North Tipperary, Longford, Laois, Offaly, Westmeath, West Kildare and Roscommon as the territories to be targeted for investment under the draft plan, known as a Territorial Just Transition Plan

The Minister for the Environment, Climate and Communication, Eamon Ryan, launched a public consultation on the draft plan on how to invest funding from Europe to support a just transition in the wider Midlands region today.

Up to €84.5 million has been allocated to Ireland under the EU Just Transition Fund over the period to 2027. The Government will complement this funding with Exchequer resources at a co-funding rate of between 30% to 50%.

The draft plan, in partnership with the Eastern and Midland Regional Assembly sets out how Ireland proposes to invest funding from the EU Just Transition Fund – to support a just transition in the wider Midlands region.

The Just Transition Fund is designed to assist communities across Europe to meet the challenges of the green transition, in line with the objective of achieving EU climate neutrality by 2050 in an effective and fair manner – ensuring that nobody is left behind.

This public consultation is asking for stakeholders’ views on the transition process and the draft plan which, when finalised, will be submitted to the European Commission for approval. The consultation invites stakeholders to complete an online survey and to attend online workshops.

Two online workshops (January 18 and 25) will allow for in-depth discussions on priorities for the EU Just Transition Fund. A third online workshop, for young people in the region, is being organised with national youth representative organisations to ensure that people impacted have the opportunity to shape the plan. There will also be specific information sessions for Oireachtas members, as well as relevant local authorities and their members.

The EU Just Transition Fund will support the goals of Ireland’s Climate Action Plan and its objectives, in relation to providing a just transition in the wider Midlands region. This is in response to the ending of peat extraction for electricity generation.

The report highlights that the closure of the two peat-fired power stations in the Midlands contributed to a 7.9% reduction in power generation emissions in 2020. It also estimated that the exit from peat from power generation is expected to avoid at least 1.25 million tonnes of carbon dioxide emissions each year.

The analysis for the draft Territorial Just Transition Plan identified a number of proposed key development needs for the wider Midlands region, based on the scope of support from the EU Just Transition Fund:

These include modernising the business environment and creating employment opportunities; enhancing the skills profile; promoting environmental sustainability and industrial heritage and enhancing the potential of region as a place to live and work.

Commenting on the publication, Minister Ryan, said: “This Government is committed to a just transition for the Midlands region and has dedicated significant funding to support workers, companies and communities following the early closure, in 2020, of the peat-fired power stations and the ending of peat extraction to supply these power stations.

“I am pleased to launch this public consultation on our draft Territorial Just Transition Plan, which is a significant step in helping to deliver further significant funding to the region, with support from the EU Just Transition Fund. I look forward to hearing peoples’ views on the draft plan. This will inform the final plan, which we will submit to the European Commission.

“I am also pleased to announce that I have decided to appoint the Eastern and Midland Regional Assembly (EMRA) as the Managing Authority to deliver this funding. The EMRA is the key statutory body representing the development needs of the region. It is extremely well placed, through its statutory functions and working in close cooperation with my Department and the other bodies administering EU funds in Ireland, to deliver EU just transition funding into the region.”

The consultation is open until February 14. The draft Territorial Just Transition Plan and consultation survey are available at gov.ie

A report summarising the responses received will be made available online after the consultation period.

The draft plan highlights direct job impacts on 68 ESB staff in the West Offaly and Lough Ree power stations who were impacted by the closure of the stations, comprising a mix of voluntary severance, voluntary early retirement and transfers to other parts of ESB, with no compulsory redundancies

Between January 2019 and May 2021, an estimated 1,000 employees were impacted in Bord na Móna, including seasonal workers, many of which were as a result of the closure of the two ESB power plants.

It is estimated that 560 staff took voluntary redundancy, almost 150 availed of early retirement, and the remaining 350 transferred to other parts of the business.

By July 2021, approximately 350 employees had transitioned from working in peat related activities to operating bog rehabilitation and restoration programmes – however, the draft plan notes that this programme will have a specific lifespan and will eventually conclude.

The draft territorial plan also warned of future employment issues with the continued winding down of peat-related activities in the region, including at the briquette factory at Derrinlough and potentially the power station at Edenderry may have further negative economic and employment impacts in the region.

It also cited a 2018 report, prepared for Bord na Móna, which estimated an indirect employment impact of the company’s activities of 800 indirect jobs created within the region.

The report estimated that on the basis of five jobs being created per €1m spent, the induced employment across the regional economy was approximately 400 jobs.