Public sector loan facility under the Just Transition Mechanism
The public sector loan facility (PSLF) is the third pillar of the Just Transition Mechanism, along with the Just Transition Fund and just transition scheme under InvestEU. The PSLF consists of a grant and a loan component. With the contribution of €1.525 billion for the grant component from the Union budget and European Investment Bank lending of €10 billion from its own resources, the aim is to mobilise between €25 and 30 billion in public investment over the 2021-2027 period (in 2018 prices). Funding will be available to all Member States, while focusing on the regions with the biggest transition challenges. The provisional agreement on the proposal reached after trilogue negotiations with the Council now needs to be confirmed by the European Parliament, with a vote expected to take place during the June II 2021 plenary session.
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