EIB to provide up to EUR 10 bn for shift away from fossil fuels
Coal - Photo by Arnold Paul cropped by Gralo
(LUXEMBOURG) - The European Investment Bank (EIB) and the Commission signed an agreement Wednesday paving the way for EUR 11.5 billion in loans and grants to support regions' transition to a climate-neutral economy.
"The European Green Deal is our strategy to achieve a climate-neutral economy and Cohesion Policy will help delivering our green objectives in a fair way," said Commissioner Elisa Ferreira: "Thanks to this agreement with the EIB, the Public Sector Loan Facility will offer public authorities in the regions and territories that most need support preferential lending conditions for projects that do not generate sufficient revenue to be financially viable."
The facility, which will finance public investments in the regions most affected by Europe's transition to a climate-neutral economy, will combine up to €10 billion in EIB loans with €1.5 billion in EU budget grants.
The agreement paves the way for the territories and regions most affected by Europe's transition to a climate-neutral economy to benefit from grants and loans under a Public Sector Loan Facility. This facility is part of the European Green Deal's Just Transition Mechanism, which supports a fair shift away from fossil fuels while leaving no one behind, including communities that have relied on coal mining and polluting industries.
The Public Sector Loan Facility offers public sector entities planning investment projects in affected regions a combination of EIB loans and EU grants, effectively reducing the financial burden for public coffers. To be eligible, projects must be located in or benefit territories that Member States have identified in their Commission-approved territorial just transition plans as facing the biggest challenges related to moving away from fossil fuels and carbon-intensive industries. In less developed regions (those with a GDP per capita of less than 75% of the EU average), the EU grant component can be up to 25% of the EIB loan amount for each project.
The agreement makes up to €10 billion in EIB financing available by 2027 to spur investment to reduce the socioeconomic costs of the transition, facilitating the creation of new businesses, jobs and infrastructure. It follows the call for proposals for the EU grants component under the facility launched by the European Commission in July. Potential beneficiaries can also request advisory support from the InvestEU Advisory Hub to prepare and implement projects.
To find out more about how to benefit from the EU grant and the EIB loan, public sector entities can join a virtual Info Day event on Wednesday, 14 September 2022 organised by the European Climate, Infrastructure and Environment Executive Agency (CINEA) with the participation of the European Commission's department for regional and urban policy (DG REGIO) and the EIB.
2022 JTM PSLF Call Info Day (europa.eu)
Map of potential and approved just transition territories
Public entities can request grant funding under the Public Sector Loan Facility here: Just Transition Mechanism (europa.eu)