The Lille Metropolitan area (Métropole européenne de Lille) has been awarded a green loan of €245 million by the European Investment Bank (EIB) to fund its public transport network and cycling paths. The loan is combined with a €31.5 million grant from the European Commission via the Public Sector Loan Facility (PSLF) set up under the European Green Deal’s Just Transition Mechanism (JTM). This will bring the total budget of the project to over €400 million.

The European Climate, Infrastructure and Environment Executive Agency (CINEA) is responsible for managing this grant and monitor the implementation of the project. This joint blended financing support from the EIB and the European Commission will unlock additional investment for public entities in the European regions most affected by the transition to achieve EU climate and energy targets.

The Green Mobility (GREENMO) project will target various parts of the Lille Metropolitan area public transport infrastructure. The project covers the modernisation of the tram network through the replacement of 30 trams, the roll out of 42 hydrogen-powered buses and the improvement of platforms, depots and other related transport facilities. It will also support the development of an ambitious cycling plan and related infrastructure to improve safety for cyclists.

On completion of the project, around 1.2 million people of the Lille Metropolitan area will benefit from a more efficient, affordable and environmentally friendly public transport service. This improved public transport offer will accelerate change in user behaviour, with an increase in the use of modes of transport alternative to the private car, and reduce its usage in Lille from 56% in 2023 to 40% by 2035. Furthermore, the project is anticipated to significantly transform the Lille Metropolitan area into a bicycle-friendly city. Consequently, greenhouse gas emissions will be reduced by around 90,000 tonnes-equivalent of CO2 annually and around 4,000 direct and indirect jobs will be created.

About PSLF

The Public Sector Loan Facility (PSLF) is the third pillar of the Just Transition Mechanism (JTM) – a key tool of the European Green Deal Investment Plan to make sure that no one and no region is left behind in the transition to a climate-neutral economy. 

The PSLF combines loans from the European Investment Bank (up to around. €6-8 billion) with grants from the European Commission (up to €1.3 billion). The combined support is designed to mobilise additional investments for public sector entities in the regions most affected by the climate and energy transition (like Hauts-de-France), as identified in the national Territorial Just Transition Plans, to meet their development needs in the transition towards a climate-neutral economy. These plans are drawn up by each EU Member State and outline the challenges to be addressed in each just transition region, together with the development needs and targets to be reached by 2030. 

The blending of the European Investment Bank loan and the Commission grant will facilitate the financing of projects that do not generate sufficient streams of revenues to cover their investment costs. PSLF implementation is managed by CINEA.

About the EIB

The European Investment Bank (EIB), whose shareholders are the 27 Member States of the European Union (EU), is the EU’s long-term financing institution. The EIB provides loans to the public and private sectors to support high-quality investments contributing to the achievement of the EU headline targets. In 2023, France was the first beneficiary of EIB financing in the energy and green transition, with an overall investment of EUR 6.9 billion in renewable energy, clean mobility and energy efficiency. As a partner of local and regional authorities, the EIB spent €2.3 billion in funding last year on public rail and urban transport and soft mobility, its first investment sector in France last year.

Read the EIB press release (in French)

About CINEA

The European Climate, Infrastructure and Environment Executive Agency (CINEA) is an Executive Agency established by the European Commission to implement parts of EU funding programmes for transport, energy, climate action, environment and maritime fisheries and aquaculture. CINEA aims to support its beneficiaries, establish strong partnerships, deliver high-quality programme and project management, foster effective knowledge sharing and create synergies between programmes - to support a sustainable, connected, and decarbonised Europe.