The Commission and the European Investment Bank (EIB) signed an agreement on the Public Sector Lending Facility, the third pillar of the Just Transition Mechanism, to pave the way for public sector entities in the areas and regions of the EU that need the most support in Europe's transition to climate-neutral economy to benefit from the Commission's €1.5 billion in grants and €10 billion in EIB loans.

The European Green Plan is the EU's strategy for achieving a climate-neutral economy, and cohesion policy will help achieve green goals in a fair way. Thanks to this agreement with the EIB, the Public Sector Lending Facility will offer public authorities in the regions and areas most in need of assistance preferential lending conditions for projects that do not generate sufficient revenues to be financially sustainable. The European Commission and the EIB will continue to work together to support a just transition that leaves no one behind. The agreement is expected to mobilize between EUR 18 and EUR 20 billion of investment over the next 7 years, and comes after the Commission announced a call for proposals worth EUR 1.5 billion in EU grants.
The Public Sector Lending Instrument is one of the three pillars of the JTM, which is part of the European Green Plan to achieve climate neutrality of the EU by 2050. To be eligible, projects must be located in areas that are member states in their territorial plans for a just transition have identified or will benefit from them that they face the greatest challenges to transition away from fossil fuels and high-carbon industries. Public sector entities in regions of just transition are invited to review the relevant documentation and submit their proposals on the Commission's portal for financing and tenders. Potential beneficiaries can also request advisory support from the InvestEU Advisory Centre. More details here.