Just Transition Mechanism: European Commission publishes first calls for proposals for Public Sector Loan Facility

Today, the European Commission and the European Climate, Infrastructure and Environment Executive Agency (CINEA) have published the first call for proposals under the Public Sector Loan Facility. This means that public authorities can apply for grants for projects that will benefit just transition territories. The grants will be linked to EIB loans and increase the attractiveness of investments for a just transition. 

Commissioner for Cohesion and Reforms Elisa Ferreira said: “We have been working hard to support the regions and communities most affected by the transition to a climate-neutral economy. The opening of this first call for grants under the Public Sector Loan Facility marks the concrete deployment of a new instrument in our just transition toolbox, alongside the Just Transition Fund and the InvestEU just transition scheme. These are concrete steps to supporting investment that will facilitate the creation of new business and jobs in just transition regions and we will continue to work with local and regional authorities to make the most of all instruments available”.

CINEA Director Dirk Beckers reinforced her message by stating: “Transitioning to a climate-neutral economy is a challenge for all and particularly demanding for those that rely heavily on fossil fuels or greenhouse gas intensive industrial activities. We need to financially support these players in their transition towards climate neutrality and to phase out polluting technologies. The Public Sector Loan Facility, whose first call is published today, will complement public investment, through preferential lending conditions that will benefit the territories most negatively affected by the climate transition.”

In the less developed regions, grants can go up to 25% of the EIB loan, reducing substantially the financial burden for beneficiaries and increasing the attractiveness of the investments. The Public Sector Loan Facility is one of the three pillars of the Just Transition Mechanism (JTM), which is part of the European Green Deal's objective to achieve EU climate neutrality by 2050. Overall, the Facility is expected to mobilise between EUR 18 and EUR 20 billion of public investments over the next 7 years.

The governance framework of the JTM is centred on the Territorial Just Transition Plans that Member States are preparing to identify the territories most negatively impacted by the transition to climate neutrality and the investments that will help socio-economic change in the territories. 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.

An info day on the call for proposals will be organised by CINEA on 14 September. Grants under the Public Sector Loan Facility will be managed by CINEA, based on the project proposals selected under the various cut-off dates of the call.