Content of the module
3.1 Requirements for raising and managing finances in a "green" vocational training organisation.
Characteristics of a financing modality within a strategy in line with the European Green Deal.
At European level, a taxonomy has been defined that lists a list of economic activities with technical criteria for quantifying their environmental impact.
These activities are characterised by their potential to contribute to six environmental objectives identified by the European Commission
- mitigation of the effects of climate change
- adaptation to climate change;
- the sustainable use and protection of water and marine resources;
- the transition to a circular economy,
- waste reduction and material recycling;
- the containment of pollution and the protection of ecosystems.
Each eco-friendly activity meets four criteria:
- Contribute positively to at least one of the 6 objectives
- Produce no negative impact on any other objective
- Meet minimum human rights safeguards (OECD Guidelines and UN Guiding Principles Art 18 EU Regulation 2020/852
- Comply with the technical criteria identified by the TEG responsible for developing the recommendations on mitigation and adaptation.
3.2 European Green Deal Investment Plan
Source: Freepick
The European Investment Plan for the Green Deal activates EU funding and provides a framework to help streamline and drive public and private investments aimed at promoting a transition to a climate-neutral, green, competitive and inclusive economy.
It is one of the initiatives under the Green Deal and is structured around three main dimensions
- financing
- enabling
- practical support.
It is expected that at least EUR 1 trillion of sustainable investments over the next decade will be facilitated by this plan for project developers in the planning, design and execution of sustainable projects.
3.3 Just Transition Mechanism (JTM)
One of the crucial goals of the transition to a climate-neutral economy is that no one is excluded or left behind.
To meet this goal, the Just Transition Mechanism (JTM) was created to ensure fairness.
The European Green Deal Investment Plan distributes funding to all regions, the Mechanism provides targeted support to help mobilise at least EUR 100 billion over the period 2021-2027 in the most affected regions to alleviate the socio-economic impact of the transition.
The Mechanism targets investments to support workers and communities whose economies are most dependent on fossil fuels.
The Just Transition Mechanism is structured in three main sources of funding:
- A Just Transition Fund, to which €7.5 billion of additional EU funds are allocated compared to the
Commission's proposal for the next long-term EU budget.
Member States wishing to access the funding in agreement with the Commission, identify eligible territories and commit themselves to augment the amount allocated from the Just Transition Fund with additional funds from the European Regional Development Fund and the European Social Fund Plus and additional national resources.
The Fund mainly provides grants to regions. For example, it supports workers in acquiring skills and competences for the labour market of the future and supports SMEs, start-ups and incubators in creating new business opportunities in these regions. It also supports investments in clean energy transition, e.g. by improving energy efficiency.
- A dedicated Just Transition programme under InvestEU investing up to EUR 45 billion. this programme aims to be attractive to private investors in the sustainable energy and transport sectors for these regions and to support their economies in finding new sources of growth.
- A public sector lending facility through the European Investment Bank, backed by the EU budget, providing investments of EUR 25-30 billion: these loans to the public sector are targeted at district heating networks and the efficient renovation of buildings.
The Just Transition Mechanism does not end with financing, but on the basis of a Just Transition Platform, the Commission offers technical assistance to Member States and investors and ensures the involvement of affected communities, local authorities, social partners and non-governmental organisations. The Just Transition Mechanism provides a governance framework focused on just transition plans in the territories concerned.
3.4 Changes in Green Human Resources Management
Source: Freepik
Sustainable Human Resources Management is seen as an extension of Strategic Human Resource and provides a new approach to personnel management.
The objective is to govern the activities of an organisation (even a VET institution) by simultaneously focusing on the quality of life and the health of the planet,
Sustainable HRM is a cross-functional discipline, linking environmental and social sustainability with business objectives.
This model considers influences external to the organisation (such as the ecosystem or market competitiveness) and internal factors (human resource optimisation), taking into account the company's green reputation.
Sustainable HRM wants to align itself with the logic behind economic investments in environmental and human capital management by considering this aspect as a key business driver.
Sustainable HRM falls into three types:
- Green HRM practices that have a significant impact on the adoption of sustainable approaches in the
company:
- green recruitment (e.g. recruiting employees for jobs that require green tasks);
- green training (e.g. offering courses that impart environmental knowledge);
- green compensation (e.g. providing bonuses for achieving environmental goals);
- Triple Bottom Line HRM: the focus here is on defining HR's economic, environmental and social goals related to sustainability;
- Common Good HRM: refers to the use of HRM skills, skiIIs, knowledge and attitudes.