On 23 July 2026, the EU Council published a Commission Staff Working Document presenting the 2025 full progress review on the implementation of the 2022 Council Recommendation on ensuring a fair transition towards climate neutrality. The review assesses Member States' progress in key areas including employment support, education, social protection, and access to essential services, based on self-assessments, consultations with social partners and civil society, and other inputs.
The document finds that progress is visible but uneven across Member States, with many measures still at early stages and important gaps in monitoring, governance, and stakeholder engagement. Vulnerable groups such as low-skilled workers, migrants, and low-income households remain disproportionately exposed to transition risks, requiring more targeted support. The lack of common definitions for green jobs and skills complicates monitoring and skills anticipation across countries. Social dialogue and civil society involvement need strengthening, especially in policy implementation and for vulnerable groups.
Energy and transport poverty persist, with 9.2% of the EU population unable to heat homes adequately, calling for more structured approaches. EU funds such as the Just Transition Fund (JTF), European Social Fund Plus (ESF+), and the Recovery and Resilience Facility (RRF) are crucial but require better coordination, simplified access, and increased awareness to reach SMEs and vulnerable communities. The European Fair Transition Observatory (EFTO) will enhance evidence-based policymaking and transparency, but its inclusive design and stakeholder engagement are essential.
Policy orientations and trade-offs The review highlights a tension between accelerating climate action and ensuring social fairness. While the EU's climate neutrality goal drives rapid transformation, the uneven progress risks leaving behind vulnerable groups and regions. Strengthening social protection and targeted support may require additional public spending, potentially conflicting with fiscal consolidation objectives in some Member States. The lack of common definitions for green jobs and skills also hampers effective policy design and cross-country comparability.
Impact on stakeholders - National authorities: Face pressure to improve monitoring, governance, and stakeholder engagement, but may struggle with administrative capacity and coordination across funds. - Vulnerable groups (low-skilled workers, migrants, low-income households): Remain at risk of being left behind without more targeted support, but could benefit from improved access to training, social protection, and affordable services. - SMEs: May face barriers in accessing EU funds due to complexity and lack of awareness, but simplified procedures could ease their transition. - Social partners and civil society: Need stronger involvement in policy implementation, which could enhance legitimacy and effectiveness but requires additional resources and commitment.
Expected institutional follow-up The review will inform future policy directions, including the work of the European Fair Transition Observatory. The Commission is expected to use the findings to refine its approach and may propose further measures to address identified gaps. The Council will likely discuss the review in relevant formations, and the European Parliament may hold debates or hearings on fair transition issues.