Leading MEP on Offaly visit says mistakes made in EU Just Transition fund

A LEADING member of the European Parliament has said mistakes were made in the first round of EU just transition funding.

Ms Ľubica Karvašová, MEP, was speaking in Kilcormac today where she led a delegation from the European Parliament’s Committee on Regional Development (REGI).

The European Union's Just Transition fund was established to assist communities most affected by decarbonisation and the adaptations necessary to combat climate change.

Though millions of euros have been dispersed through the fund, including grants to many projects in Offaly and the wider Midlands, the fund has been criticised for its bureaucracy and its failure to deliver significant job creation.

“The European Commission and all the institutions are now in the process of revising what has been done correctly and which mistakes have been made, including the Just Transition fund and its effects on the ground,” said Ms Karvašová, REGI vice chair.

Ms Karvašová, a Renew Europe member from Slovakia was addressing a briefing in Kilcormac community centre which was also attended by REGI members Ciaran Mullooly and Maria Walsh, plus Raul De La Hoz Quintano, Renew Europe, Portugal and Paulo Do Nascimento Cabral, European Peoples Party, Spain.

The REGI vice chair stressed what she called “the right to stay” whereby people should be able to work and live in their own region without having to leave because of economic necessity.

Ms Karvašová said Mr Mullooly is currently in charge of a group in the European Parliament which is assessing Just Transition across regions in the EU.

“Now is the time when we will come up with suggestions and recommendations for the European Commission on how to design the future Just Transition fund or an alternative to it so that we don't do the same mistakes that we've done,” said Ms Karvašová.

Above: Renew Europe MEPs Raul De La Hoz Quintano, Portugal, Maria Walsh, Ireland and Paulo Do Nascimento Cabral, Spain with Cllr Eleanor Clendennen (centre) and Cllr Hugh Egan (right)

Mr Mullooly said he had met European Commission president, Ursula von der Leyen and the secretariat administering the fund.

“Both of them have admitted that the fund is not doing what it is supposed to do at the speed they had hoped,” said the Independent Ireland MEP.

The absorption rate of grant-aid so far is just 6%, two-and-a-half years into the fund. “By the admission of the commission staff and the president this is evidence of the fact that the money is not being spent and drawn down.”

The current phase of the fund runs until the end of 2026 and a new programme will then be put in place.

“President von der Leyen has made it clear to me there has to be an improvement in terms of the engagement, and that means simplification.”

Both Mr Mullooly and the MEP from Offaly, Fianna Fail's Barry Cowen, who also attended the event, praised the Kilcormac Development Association and the community centre manager Linda Kelly, for being able to apply for, receive and invest funding of about one million euros from Just Transition.

But Mr Mullooly added: “She is an exception in this region. Many community groups do not have the professional support.”

Mr Cowen, a colleague of Ms Karvašová in the European Parliament's Renew Europe group, said the Kilcormac community had embraced change and seized opportunities arising from the transition away from peat.

“For over 40 years, Kilcormac Development Association (KDA) has been at the heart of community-led development, ensuring that European and national funds are used effectively to support sustainable progress,” said Mr Cowen

“Despite facing significant challenges, the KDA and others have succeeded in securing EU Just Transition funding and it is a testament to the strong collaboration between government, local authorities and community organisations. This funding is not just about replacing one industry with another; it is about empowering communities to shape their own economic future.”

Communities like those in Offaly which were once powered by peat now have the potential to lead in renewable energy, said the MEP, who added that “with the right investments” Ireland could be transformed into a major player in offshore wind.

“By developing a European supergrid, we can reduce energy costs and create new opportunities for industry and commerce in our regions,” said Mr Cowen.

The MEP for the Midlands North West region also spoke out about Bord na Mona, the state company which had built up the peat industry in the Midlands but had since transitioned away from peat production to renewable energy.

Mr Cowen said the Government should now instruct Bord na Mona to give back to communities by offering sustainable projects, potentially administered and delivered by local authorities.

Mr Cowen added that it is vital that EU State Aid rules are reviewed as part of the move towards simplification to speed up allocation of Just Transition funding and make it more accessible.

“It is incumbent on this committee to investigate the ability to reform state aid rules,” he said.

Ms Walsh, the Fine Gael representative who was re-elected to the European Parliament for a second term last year, said the EU would have to drive funding to regions that are in transition.

“We are falling back in comparison to many other regions across Europe. Statistically I think we rank 118th out of 237,” said Ms Walsh. “We are not drawing down enough funding.”

The MEP reflected on how much communities had achieved over the years: “We have a wonderful story to tell. We just need to get money to everybody in this area and across this region at a faster pace to do it.”

Mr Do Nascimento Cabral said the challenges faced by regions in Ireland were reflected across other EU nation states.

“We are struggling to create the conditions and the infrastructures necessary to promote the right to stay for the young people and we are facing these new priorities like demography, housing.”