The public sector loan facility under the Just Transition Mechanism

Briefing 22-11-2021

The public sector loan facility (PSLF) is the third pillar of the Just Transition Mechanism (JTM), along with the Just Transition Fund and just transition scheme under Invest EU. The facility consists of a grant and a loan component. With the contribution of €1.525 billion for the grant component from the Union budget (including assigned revenues) and EIB lending of €10 billion from its own resources, the aim is for the public sector loan facility to mobilise between €25 and 30 billion in public investment over the 2021-2027 period. Funding will be available to all Member States, while focusing on the regions with the biggest transition challenges. In the European Parliament, the Committee on Budgets (BUDG) and the Committee on Economic and Monetary Affairs (ECON) had joint responsibility for this file. Their report was adopted at a joint sitting of the two committees on 16 October 2020. The provisional agreement on the proposal reached after trilogue negotiations with the Council was confirmed in plenary session of the Parliament on 24 June 2021. The Council adoption followed on 13 July, the Regulation was then signed on 14 July and published in the Official Journal on 30 July 2021. Second edition of a Briefing originally drafted by Christiaan Van Lierop and Sidonia Mazur. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.