Artur PERCHEL
Public Sector Loan Facility
€1.3 billion (2021 – 2027)
The Public Sector Loan Facility (PSLF) is the third pillar of the Just Transition Mechanism. It combines EU grants with European Investment Bank (EIB) loans to support public-sector investments addressing the social, economic and environmental consequences of the transition to climate neutrality.
Projects must benefit territories covered by approved Territorial Just Transition Plans, be consistent with those plans and not generate sufficient revenues to cover their investment costs. Public bodies and private bodies entrusted with a public-service mission may apply.
Public transport investments may qualify where they meet these requirements. Supported projects have included tram infrastructure, fleet renewal and multimodal facilities.
The grant generally amounts to 15% of the loan component, rising to 25% for eligible projects in less-developed regions. These percentages apply to the loan, rather than to the total investment cost. The grant and loan require separate applications, and promoters are encouraged to contact the EIB before submitting their grant proposal.
The 2026–2027 call has an estimated total grant budget of €630 million and covers standalone projects and framework loans. Applicants should consult the Funding & Tenders Portal for the latest submission timetable and conditions.
Useful Resources
- Public Sector Loan Facility calls
- CINEA’S PSLF website
- Regulation (EU) 2021/1229 on the public sector loan facility
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