The Just Transition Mechanism contributes to enabling regions and people to address the social, employment, economic and environmental impacts of the transition towards the Union’s 2030 targets for energy and climate and a climate-neutral economy of the Union by 2050, based on the Paris Agreement. The Fund is a key tool to support the territories most affected by the transition towards climate neutrality providing them with tailored support. The fund alleviates the socio-economic costs triggered by climate transition, supporting the economic diversification and reconversion of the territories concerned. This involves backing productive investments in small and medium-sized enterprises, the creation of new firms, research and innovation, environmental rehabilitation, clean energy, and the up- and reskilling of workers.