Policy Objective 2: A greener, low-carbon Europe transitioning towards a net- zero carbon economy and resilient Europe by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation and risk prevention and management, and sustainable urban mobility The European Green Deal has set ambitious targets for the transformation of the EU economy towards a sustainable future, and established a framework to shape the pathway towards a climate-neutral, circular economy no later than by 2050. In this context, Slovenia undertakes, using Partnership Agreement resources, to secure the greatest impact on: the supply of clean, accessible and secure energy; acceleration of the transition towards sustainable and smart mobility; the mobilisation of industry for a clean and circular economy; renovation initiatives involving construction and renovation that complies with energy and materials efficiency principles; ambitions to achieve zero pollution for an environment free of toxic substances; the preservation and restoration of ecosystems and biodiversity and the mitigation of climate change; the construction of regions and cities that are resilient to the impacts of climate change and in other areas, in line with specific initiatives under the European Green Deal. Slovenia will also use funds to mobilise and strengthen research into sustainability. Slovenia also undertakes to respect the ‘do no significant harm’ principle when making investments under all policy objectives. Bearing in mind that the European Green Deal also highlights the fact that the objectives can only be achieved if no one is left behind and if they are carried out in a fair and inclusive way, Slovenia will support those who are most vulnerable and most exposed to the social and economic consequences of the transition, for example through reskilling and upskilling. We will dedicate resources from the ERDF, CF and EMFAF, in addition to national resources, to support investments in this area, including the blue economy sectors. The EMFAF will contribute to the green transition and ensure the resilience of the marine commercial fishing, aquaculture and processing sectors. In the context of the implementation of the Common Fisheries Policy and investments in aquaculture and processing, the EMFAF will also contribute to the digital transition. Within the framework of the relevant specific objectives/measures, the use of financial instruments is envisaged insofar as the results of the analysis of the preliminary assessments of market needs and the funding gaps on the market for the implementation of financial instruments in the 2021–2027 programming period demonstrate the need to use financial instruments. In the field of reducing greenhouse gas emissions, we will use ERDF and CF funds to invest in the energy renovation of buildings as a matter of priority, in line with the NECP and the policies set out in S5. The investment priorities are set out in the Long-Term Strategy for the Energy Renovation of Buildings by 2050. In the economy, support will be given to horizontal measures to increase the efficient use of energy and the use of renewables in SMEs. In the field of renewables, we will support district heating and cooling systems by deploying the technologies identified in the NECP, thereby achieving synergies between climate and air protection policies. As geothermal energy is one of the underexploited potentials of renewable sources, Slovenia will increase investment in its exploitation. Using EMFAF resources, we will support investments in a greener and more energy efficient fleet, in more selective fishing gear and in increasing the environmental performance of the fisheries, aquaculture and processing sectors (e.g. by building closed recirculating aquaculture systems (RAS), combined with investments in energy efficiency, the modernisation of water ventilation equipment using modern