The Just Transition Fund is implemented through shared management rules, which implies close cooperation with national, regional and local authorities. In order to access support from the Just Transition Fund, Member States have to submit territorial just transition plans. These plans will indicate the specific areas of intervention, based on the economic and social repercussions derived from the transition. In particular, these plans have to take into account the expected job losses and the transformation of the production processes of the most greenhouse gas intensive industrial facilities.

The Just Transition Fund provides support to all Member States. Allocation criteria are based on industrial emissions in regions with higher carbon dioxide intensity, employment in industry and in coal and lignite mining, peat and oil shale production, and level of economic development. . Member States that have not yet committed to achieving the goal of becoming climate neutral by 2050 will only receive 50% of their planned allocation. The level of Union co-financing of the projects is set according to the category of the region in which these projects are located. For less developed regions, it is set at a maximum of 85%, for transition regions at 70% and for more developed regions at 50%.

The Just Transition Fund has a global budget of 17,500 million euros for the period 2021-2027. €7.5 billion will be financed under the multiannual financial framework and an additional €10 billion under NextGenerationEU. Member States can complement their allocation from the Just Transition Fund with the resources they receive under the European Regional Development Fund and the European Social Fund Plus.