Source: European Investment Bank
The European Investment Bank (EIB) welcomes the adoption by the Council of the Regulation on the Public Sector Loan Facility on 12 July, which completes the Just Transition Mechanism. The latter is a key part of the European Green Deal, ensuring that no one will be left behind in the EU effort to achieve climate neutrality by 2050.
This allows Member States to finalise their plans and programmes of economic and social investment in the regions most challenged by climate transition. The adoption follows the political agreement reached by the co-legislators in April 2021 and it marks the final step of the legislative process. It will provide support to territories identified in Member States’ own Territorial Just Transition Plans. Overall, the European Commission expects that the Facility would mobilise between €18 and 20 billion of public investments over the next 7 years.
EIB Vice-President Ricardo Mourinho Félix, said: “The Just Transition Mechanism will play a crucial role in ensuring a fair green transition across the EU, in particular in those regions most dependent on fossil fuels and energy-intensive industries. The EIB, as the EU climate bank with a historic and statutory mission of fostering cohesion, will actively contribute to the Just Transition Mechanism. With today’s final adoption of the Regulation for the Public Sector Loan Facility, the EIB is ready to get to work with regional authorities to support their investments with shared social, economic and environmental benefits.”
Commissioner for Cohesion and Reforms, Elisa Ferreira said: “This Facility complements our toolbox for helping regions and communities most affected by the transition to a climate-neutral economy. It will foster public investments, create jobs and promote economic diversification, prioritising those that have less capacity to deal with the costs of the transition. As such, it will help the EU as a whole to meet its climate goals.”
The Facility specifically targets public entities, enhancing the affordability of projects that support a just transition but do not generate sufficient revenue. It consists of a combination of grants from the EU budget and loans provided by the EIB. The grant support will be added to the EIB loan and reduce the financial burden for beneficiaries and increase the attractiveness of the investments concerned. Advisory support will be provided to beneficiaries through the advisory hub set up under InvestEU. First calls for proposals under the Facility should be launched in the second half of 2021.