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European Climate Infrastructure and Environment Executive Agency
News article27 April 2021European Climate, Infrastructure and Environment Executive Agency

Green light for the Just Transition Mechanism

Just Transition Mechanism
Just Transition Mechanism

The European Parliament and the Council reached an agreement on 26 April 2021 on the proposal for a new Public Sector Loan Facility (PSLF) of the Just Transition Mechanism (JTM). This is an important milestone, also for CINEA, who will be in charge of a portfolio of projects selected under PSLF, the third pillar of JTM.

The Public Sector Loan Facility Actions to be managed by CINEA will contribute to a smoother transition towards climate neutrality in line with the objectives of the Green Deal by addressing the underlying socio-economic challenges of transition. The funding from the PSLF will help to reduce the costs of the transition in regions most negatively impacted by it, as identified in the Territorial Just Transition Plans (TJTPs), bringing Europe one step closer towards the 2050 climate neutrality goals.

€1.5 billion from the EU budget will be available for the grant component together with €10 billion in loans from the European Investment Bank. First calls for proposals under PSLF are expected to be launched in the second half of 2021.