Cohesion Policy: The EU’s main investment policy

Cohesion Policy targets all regions and cities in the EU and aims to correct imbalances between countries and regions. It delivers on the EU's political priorities, especially the green and digital transition and supports:

• job creation
• business competitiveness
• economic growth
• sustainable development
• improvements to citizens’ quality of life

EUR 392 billion – almost a third of the total EU budget – has been set aside for Cohesion Policy for the period 2021-2027.

Cohesion Policy is delivered through specific funds:

• The European Regional Development Fund (ERDF), to invest in the social and economic development of all EU regions and cities. One pillar is a greener, low-carbon and resilient Europe.
• The Cohesion Fund (CF), to invest in environment and transport in the less prosperous EU countries.
• The Just Transition Fund (JTF) to alleviate the socio-economic costs triggered by the climate transition. One of its objectives is to invest in enhancing the circular economy, including through waste prevention, reduction, resource efficiency, reuse, repair and recycling.
• The European Social Fund Plus (ESF+), to support jobs and create a fair and socially inclusive society in EU countries.

A common priority for these funds, laid down in the Common Provisions Regulation, is a greener, low-carbon transition towards a net zero carbon economy and resilient Europe by promoting a clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility.