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1. The JTF shall only support activities that are directly linked to its specific objective as set out in Article 2 and which contribute to the implementation of the territorial just transition plans established in accordance with Article 11.

2. In accordance with paragraph 1, the JTF shall exclusively support the following activities:

(a) productive investments in SMEs, including microenterprises and start-ups, leading to economic diversification, modernisation and reconversion;

(b) investments in the creation of new firms, including through business incubators and consulting services, leading to job creation;

(c) investments in research and innovation activities, including by universities and public research organisations, and fostering the transfer of advanced technologies;

(d) investments in the deployment of technology as well as in systems and infrastructures for affordable clean energy, including energy storage technologies, and in greenhouse gas emission reduction;

(e) investments in renewable energy in accordance with Directive (EU) 2018/2001 of the European Parliament and of the Council (), including the sustainability criteria set out therein, and in energy efficiency, including for the purposes of reducing energy poverty;

(f) investments in smart and sustainable local mobility, including decarbonisation of the local transport sector and its infrastructure;

(g) rehabilitation and upgrade of district heating networks with a view to improving energy efficiency of district heating systems and investments in heat production provided that the heat production installations are supplied exclusively by renewable energy sources;

(h) investments in digitalisation, digital innovation and digital connectivity;

(i) investments in regeneration and decontamination of brownfield sites, land restoration and including, where necessary, green infrastructure and repurposing projects, taking into account the ‘polluter pays’ principle;

(j) investments in enhancing the circular economy, including through waste prevention, reduction, resource efficiency, reuse, repair and recycling;

(k) upskilling and reskilling of workers and jobseekers;

(l) job-search assistance to jobseekers;

(m) active inclusion of jobseekers;

(n) technical assistance;

(o) other activities in the areas of education and social inclusion including, where duly justified, investments in infrastructure for the purposes of training centres, child- and elderly-care facilities as indicated in territorial just transition plans in accordance with Article 11.

Additionally, the JTF may support, in areas designated as assisted areas for the purposes of points (a) and (c) of Article 107(3) TFEU, productive investments in enterprises other than SMEs, provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (h) of Article 11(2) of this Regulation. Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan, where they contribute to the transition to a climate-neutral economy of the Union by 2050 and to achieving related environmental targets, where their support is necessary for job creation in the identified territory, and where they do not lead to relocation as defined in point (27) of Article 2 of Regulation (EU) 2021/1060.

The JTF may also support investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (i) of Article 11(2) of this Regulation. Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan.

The JTF may also support productive investments in enterprises other than SMEs, while preserving a focus on SMEs, contributing to the STEP objectives referred to in Article 2 of Regulation (EU) 2024/795. That support may be provided irrespective of whether the gap analysis was carried out in accordance with point (h) of Article 11(2) of this Regulation and irrespective of its outcome. Such investments shall only be eligible where they do not lead to relocation as defined in point (27) of Article 2 of Regulation (EU) 2021/1060. The provision of such support shall not require a revision of the territorial just transition plan where that revision would be exclusively linked to the gap analysis. Apprenticeships and jobs, education or training for new skills shall be considered in the selection process.