Commission and European Investment Bank unlock up to €10 billion to support public investments in the territories in transition towards a climate-neutral economy

The Commission and the European Investment Bank (EIB) have signed an agreement on the Public Sector Loan Facility, the third pillar of the Just Transition Mechanism (JTM). The agreement paves the way for public sector entities in the EU territories and regions that need most support in Europe’s transition to a climate-neutral economy to benefit from €1.5 billion grants from the Commission and €10 billion of EIB loans. Commission for Cohesion and Reforms, Elisa Ferreira, said: “The European Green Deal is our strategy to achieve a climate-neutral economy and Cohesion Policy will help delivering our green objectives in a fair way. Thanks to this agreement with the EIB, the Public Sector Loan Facility will offer public authorities in the regions and territories that most need support preferential lending conditions for projects that do not generate sufficient revenue to be financially viable. The European Commission and the EIB will keep working together to support a fair transition that will leave no one behind.” The agreement is expected to mobilise between €18-20 billion of investments over the next seven years and it follows the launch of the call for proposals by the Commission worth €1.5 billion of EU grants. The Public Sector Loan Facility is one of the three pillars of the JTM, which is part of the European Green Deal to achieve EU climate neutrality by 2050. To be eligible, projects must be located in, or benefit, territories that Member States have identified in their Territorial Just Transition Plans as facing the biggest challenges to move away from fossil fuels and carbon-intensive industries. Public sector entities in just transition regions are invited to consult the relevant documentation and submit their proposals on the Commission’s Funding and Tenders portal. Potential beneficiaries can also request advisory support from the InvestEU Advisory Hub. More details here.