Public Sector Loan Facility

The Public Sector Loan Facility (PSLF) is the third pillar of the Just Transition Mechanism (JTM), along with the Just Transition Fund and the just transition scheme under InvestEU.

The PSLF is an instrument designed to help regions mitigate the social and economic impacts of the transition by supporting communities reliant on carbon-intensive industries. It also funds projects that promote social, economic, and environmental development. Funding under this mechanism is available to all Member States.

With the contribution of €1.5 billion for the grant component from the Union budget (including assigned revenues) and European Investment Bank (EIB) lending of €10 billion from its own resources, the aim is for the PSLF to mobilise between €25-30 billion in public investment over the 2021-2027 period.

Projects submitted in response to calls for proposals are selected for funding by the European Commission. Several urban mobility projects across Member States have received support from the PSLF. Each of these projects plays an important role in contributing to sustainable mobility within the Member State. Some concrete examples of PSLF projects already completed or ongoing in the area of urban mobility include:

• extension of the tramway line in Marseille,
• greening transport infrastructure (Lille), incl. modernising the tram network through the replacement of 30 trams; rolling out 42 hydrogen-powered buses; improving platforms, depots and other related transport facilities and; developing cycling infrastructure to improve safety for cyclists,
• modernisation of railway infrastructure (Usti nad Labem),
• green mobility (Nantes), incl. upgrading and renovating 3 tram lines; renewing the tram fleet via the purchase and entry into service of 46 new tram vehicles; constructing a technical and operational centre, as well as multimodal relay/exchange hub (park & ride facility); developing 38 km of cycling paths.

The EIB provides advisory support in the preparation, development and implementation of investment projects eligible for grant funding and EIB lending from the Public Sector Loan Facility. To be eligible for PSLF funding, applicants must be legal entities (public bodies or private entities entrusted with a public service mission) established in an EU Member State. Projects may cover a wide range of sustainability topics, but proposals must include indicators demonstrating a measurable impact on social, economic, and environmental challenges.

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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