REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of the public sector loan facility under the Just Transition Mechanism in 2023, as referred in Article 16 of Regulation (EU) 2021/1229
Date: 2023-11-21
Institutions: Directorate-General for Regional and Urban Policy, European Commission
Subjects: EU aid, EU environmental policy, EU loan, carbon neutrality, climate change, green economy, public sector, regional aid, regional development

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 21.11.2023  COM(2023) 713 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of the public sector loan facility under the Just Transition Mechanism in 2023, as referred in Article 16 of Regulation (EU) 2021/1229  
 
 
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 

THE COUNCIL 

on the implementation of the public sector loan facility under the Just Transition 

Mechanism in 2023, as referred to in Article 16 of Regulation (EU) 2021/1229 

1. 

INTRODUCTION AND PURPOSE OF THIS REPORT  

In December 2019, the European Commission adopted a European Green Deal for the European 
Union  and  its  citizens (1),  recalling  the  Commission’s  commitment  to  tackle  climate  and 
environmental-related  challenges  and  outlining  the  need  for  a  transition  conducted  in  a  fair  and 
inclusive way.  

The  Commission  detailed  in  January  2020  a  Just  Transition  Mechanism  (JTM)  as  part  of  the 
European Green Deal Investment Plan (2), to make sure that no one and no region is left behind in 
the  transition  to  a  climate-neutral  economy.  The  primary  goal  of  the  mechanism  is  to  provide 
support to the most affected regions and people and to help them alleviating the socio-economic 
costs of the transition.  The  Just Transition  Mechanism  consists of three  pillars:  the first  pillar is 
the  Just  Transition  Fund,  the  second  pillar  is  a  dedicated  Just  Transition  scheme  under  the 
InvestEU Programme, and the third pillar is the public sector loan facility (the Facility).  

This  annual report focuses on the third pillar and aims at  providing  information  on the progress 
made so far in the implementation of the Facility. The present report is cumulative from the start 
of the implementation of the Facility until 31 August 2023. 

1.1.  Legal and budgetary framework of the public sector loan facility under the Just 

Transition Mechanism 

The  Facility  was  established  by  Regulation  (EU)  2021/1229  on  14  July  2021  (the  PSLF 
Regulation) (3).   

The  general  objective  of  the  Facility  is  to  address  serious  social,  economic,  and  environmental 
challenges deriving from the transition towards the Union’s 2030 climate and energy targets and 
the objective of climate neutrality in the Union by 2050 at the  latest, set out in Regulation (EU) 
2021/1119 (4),  for  the  benefit  of  the  Union  territories  identified  in  the  territorial  just  transition 
plans (TJTP) (5).  

The specific objective of the  Facility is  to  leverage  public sector investments  which  address  the 
development needs of the territories identified in the territorial just transition plans. It does so by 
facilitating the financing  of projects  that do not generate sufficient  streams  of revenues to  cover 

(1)  Communication from the Commission – The European Green Deal – COM(2019) 640 final, 11.12.2019. 
(2)  Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  Economic  and 
Social Committee and the Committee of the Regions – Sustainable Europe Investment Plan-European Green Deal 
Investment Plan – COM(2020) 21 final, 14.1.2020. 

(3)   Regulation (EU) 2021/1229 of the European Parliament and of the  Council of 14 July 2021 on the public sector 

loan facility under the Just Transition Mechanism (OJ L 274, 30.7.2021). 

(4)  Regulation  (EU)  2021/1119  of  the  European  Parliament  and  of  the  Council  of  30  June  2021  establishing  the 
framework  for  achieving  climate  neutrality  and  amending  Regulations  (EC)  No  401/2009  and  (EU) 2018/1999 
(‘European Climate Law’) (OJ L 243, 9.7.2021). 

(5)  As defined in Article 11 of Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 

2021 establishing the Just Transition Fund (OJ L 231, 30.6.2021). 

1  

 
 
their  investment  costs,  thereby  avoiding  the  crowding  out  of  potential  support  and  investment 
from alternative resources. 

Support is provided to a wide range of investments in renewable energy and green and sustainable 
mobility,  including  the  promotion  of  green  hydrogen,  efficient  district  heating  networks,  public 
research, digitalisation, environmental infrastructure for smart waste and water management. The 
Facility can also support sustainable energy, energy efficiency and integration measures, including 
renovations  and  conversions  of  buildings,  urban  renewal  and  regeneration,  the  transition  to  a 
circular  economy,  land  and  ecosystem  restoration  and  decontamination,  taking  into  account  the 
‘polluter  pays’  principle,  biodiversity,  as  well  as  up-skilling  and  re-skilling,  training  and  social 
infrastructure, including care facilities and social housing (6).  

The PSLF Regulation provides a total maximum budget of €1.525 billion of Union support for the 
grant component of the Facility (including technical assistance and advisory support).  

Under  the  Facility,  loans  (provided  by  the  European  Investment  Bank  as  finance  partner)  are 
combined  with  grants  (provided  by  the  Union)  to  support  projects  submitted  by  public  sector 
entities  following  the  call  for  proposals  with  resources  to  meet  the  development  needs  in  the 
transition towards a climate neutral economy. The European Investment Bank (EIB) will provide 
€10 billion for the loan component of the Facility. The EIB offers three types of loans under the 
Facility: investment loans for  mature projects,  framework loans (also  called  Loan Schemes) and 
intermediated loans. 

The grant component takes the form of financing not linked to costs and its amount is determined 
as a percentage of the loan. This percentage amounts to 15 %, or 25 % if the project is located in a 
less  developed  region  (7).  Consequently,  the  awarding  of  a  grant  depends  on  the  approved 
financing by the EIB or its financial intermediaries (8).  

The  Commission  works  closely  with  the  EIB  and  the  Climate  Infrastructure  and  Environment 
Executive Agency (CINEA) on the implementation of the Facility. 

As  announced  in  the  previous  annual  report  on  the  implementation  of  the  public  sector  loan 
facility (9), the Administrative Agreement between the Commission and the EIB entered into force 
on  1  September  2022 (10).  The  EIB  carries  out  its  own  appraisal  of  projects  proposals,  in 
accordance  with  its  own  rules,  policies  and  procedures,  and  prepares,  negotiates,  signs,  and 
monitors the relevant financing agreements.  

The division of tasks between the Commission and CINEA was established in the Memorandum 
of Understanding  (MoU)  signed on 5 September 2022. CINEA is responsible for the budgetary, 
legal,  financial and operational  aspects  of the implementation  of the grants  under supervision  of 
the Commission (being responsible for the implementation of the PSLF), while the Commission 
remains fully responsible for all policy-related aspects.  

The very good cooperation between the Commission, CINEA and the EIB has allowed the smooth 
management of the applications received and has been key for raising awareness of the Facility, its 
goals, and its functioning. 

(6)  See Recital (6) of the PSLF Regulation. 
(7)  See Article 11 of the PSLF Regulation. 
(8)  Article 18 of the JTM Model Grant Agreement, available on portal Funding & tenders (europa.eu). 
(9)  Report  from  the  Commission  to  the  European  Parliament and  the  Council  on  the  implementation  of  the  public 
sector loan facility under the Just Transition Mechanism in 2022, as referred to in Article 16 of Regulation (EU) 
2021/1229 - COM(2023) 60 final, 7.2.2023. 

(10)  European  Commission  and  EIB  Group  sign  InvestEU  agreements  unlocking  billions  for  investment  across  the 

European Union 

2 

 
 
1.2. 

Scope of the 2023 Implementation Report 

According  to  Article  16(3)  of  the  PSLF  Regulation,  “by  31  October  of  each  calendar  year, 
starting  with  2022,  the  Commission  shall  issue  a  report  on  the  implementation  of  the  Facility. 
That report shall provide information on the level of implementation of the Facility with respect to 
its objectives, conditions and performance indicators.” 

The first implementation report was submitted to the European Parliament and the Council on 7 
February 2023, and mainly detailed the preparatory steps taken before the publication of the first 
PSLF call for proposals.  

The present report is the second implementation report. It provides information on (i) the results of 
the PSLF call for proposals for the first three submission deadlines, (ii) communication, awareness 
raising and list of potential projects proposals, (iii) challenges encountered, and (iv) the next steps 
for the Facility. 

2. 

IMPLEMENTATION OF THE FACILITY 

2.1.  Results of the PSLF call for the first three submission deadlines 

A multi-annual call for proposals was launched on 19 July 2022. The call for proposals includes 
regular  submission  deadlines  (3  per  year)  with  the  last  submission  deadline  falling  in  the  last 
semester of 2025. 

By 31 August 2023, eight proposals have been submitted and three have been recommended for 
funding  by  the  evaluation  committee  (see  Table  1)  representing  a  maximum  amount  of 
€39,394,217 in grants by the Commission and an estimated amount of €185,886,184 of loans by 
the EIB. Four proposals that did not pass the eligibility/admissibility check were out of the scope 
of the call, and one proposal, which was eligible/admissible, did not pass the evaluation criteria. 

3 

 
Figure 1: National shares (reserved until 31 December 2025) and their consumption by grants awarded or 
under assessment (11) 

National shares (reserved until 31 December 2025) and 
their consumption

300
275
250
225
200
175
150
125
100
75
50
25
0

AT BE BG CY CZ DE DK EE ES FI FR EL HU HR IE IT LT LU LV MT NL PL PT RO SE SI SK

National Share

Under assesment

Table 1. Summary of the evaluation of proposals received under the PSLF call for proposals. 

Number of 
proposals 
submitted 

Number of 
eligible and 
admissible 
proposals 

Number of 
proposals 
recommended 
for funding by 
the Commission 

Number of 
proposals which 
have secured a 
loan with the 
EIB or its 
intermediaries 

19 October 
2022 
submission 
deadline 

19 January 
2023 
submission 
deadline 

19 April 
2023 
submission 
deadline 

3 

1 

4 

1 

(CZ) 

1 

(CZ) 

0 

3  

0 

2 

0 

0 

1 

(EL, NL, SE) 

(EL, SE) 

(EL) 

(11)  See also: Budget (europa.eu) 

4 

Comments 

One proposal 
recommended for 
funding by the 
Commission. The 
EIB is currently 
carrying out its due 
diligence. 

- 

EL proposal 
recommended for 
funding by the 
Commission, and 
EIB completed its 
due diligence. 
CINEA is preparing 

 
 
 
 
 
the Grant Agreement 
of the EL proposal 
recommended for 
funding. 

SE proposal 
recommended for 
funding by the 
Commission. The 
EIB is carrying out 
its due diligence. 

NL proposal did not 
pass evaluation 
criteria assessment.  

Table 2. Project proposals recommended for funding 

Region/Territory 

Title of the 
project 
proposal 

Sector 

Amount 
of grant 
requested 
(€) 

Amount of 
loan 
requested 
(€) 

Type of 
support 

CZ 

Moravian-
Silesian Region 

Ostrava 
Concert Hall 

Cultural 
facilities 

14,250,000   57,000,000  

Standalone 
project  

EL 

Western 
Macedonia 

Socioeconomic 
Transition of 
Western 
Macedonia 

Energy 
efficiency 
and 
integration 
measures, 
including 
renovations 
of buildings, 
street 
lighting 
facilities, 
urban 
renewal and 
regeneration, 
social 
infrastructure 

14,528,224   58,112,897 

Framework 
Loan 

SE 

Upper Norrland 

Sustainable 
and affordable 
Housing for 
the new green 
Industry and 
Society 

Social 
housing 

10,615,993 

70,773,287 

Framework 
Loan 

Total 

39,394,217  185,886,184 

5 

 
 
 
 
 
 
 
 
 
According to the available list of project proposals from public sector promoters, applications for 
projects located in five different Member States are under preparation to be submitted for PSLF 
support at the next submission deadlines in the sectors of renewable energy, green and sustainable 
mobility,  efficient  district  heating  networks,  environmental  infrastructure  for  smart  waste 
management,  energy  efficiency,  and  other  sectors  which  are  consistent  with  approved  territorial 
just transition plans. If all these project proposals were submitted to the PSLF call for proposals 
and  selected  for  funding,  the  Commission  estimates  that  they  would  represent  a  volume  of 
approximately €140 million in grants. 

2.2.  Technical Assistance 

As referred to already in the first report, advisory support services under the InvestEU Advisory 
Hub are  available  for  the preparation,  development, and implementation  of eligible projects (12). 
Up  to  August  2023,  advisory  assistance  has  been  provided  to  several  potential  Facility’s 
beneficiaries by the EIB. The type of assistance ranged from the initial screening of project ideas, 
advice on potential eligibility of projects for the loan and grant components, to the development of 
comprehensive  advisory  assignments  in  support  of  intermediated  and  lending  operations. 
Examples  of  the  ongoing  and  envisaged  advisory  assignments  include  studies  of  demand  for 
municipal borrowing, support to end borrowers to prepare projects for financing and develop grant 
applications.  

Complementary to the services offered through the InvestEU Advisory Hub, consultancy services 
were  deployed  by  technical  assistance  provided  by  the  Commission  at  the  request  of  a  few 
Member States (Greece, Slovakia, Czechia) with the aim to raise awareness about the Facility and 
to develop lists of potential projects proposals. The technical assistance providers in Czechia and 
Slovakia are contracted by the Commission and provide a wide range of services, among others, 
awareness  raising,  and  mobilisation  of  potential  beneficiaries  in  the  TJTP  regions,  as  well  as 
publishing  handbooks  in  national  languages.  The  provider  in  Greece  is  contracted  by  the 
Commission for the implementation of all three JTM pillars.  The assistance provides support to 
promote interventions under the Facility and to develop a tool for monitoring interventions under 
it.  The  Commission  and  the  EIB  participate  in  monitoring  of  some  of  these  consultancy 
assignments to ensure complementarity with its advisory activities in beneficiary Member States. 

3. 

COMMUNICATION ACTIVITIES  

The  PSLF  is  a  new  instrument,  hence  raising  awareness  has  been  of  central  importance.  The 
Commission with the support of CINEA and the EIB is focusing on three objectives: 

➢  Ensure  that  the  PSLF’s  potential  beneficiaries:  (i)  are  aware  of  the  existence  of  the 
Facility, (ii) understand what it offers, including advisory support services and (iii) know 
how to apply for funding and advisory support under the Facility. 

➢  Ensure  that  internal  stakeholders  inside  the  European  Institutions  with  outreach 
capacities  towards  PSLF’s  potential  beneficiaries:  (i)  are  aware  of  the  existence  of  the 
Facility, (ii) understand what it offers, including advisory support services and (iii) know 
how  to  support  beneficiaries  in  applying  for  funding  and  advisory  support  under  the 
Facility. 

➢  Contribute to the visibility of the results of the implementation of the Facility. 

(12)  See more details in section 2.1.4 of the first PSLF implementation report. 

6 

 
 
Figure 2: Promotion activities undertaken 

Overall number of activities (until 31 Aug 2023)

60

50

40

30

20

10

0

The joint actions by the Commission, the EIB and CINEA have resulted in : 

- 

- 

- 

the  organisation  of  47  meetings  with  representatives  of  21  Member  States  at  national, 
regional  and/or  local  level.  Meetings  with  the  remaining  Member  States  are  under 
preparation. The Commission, in coordination with CINEA and the EIB, will continue its 
efforts  to  disseminate  information  on  the  PSLF  in  all  Member  States,  particularly  those 
where the uptake of the Facility appears to be slow;  

the organisation of 29 meetings internally in the EU institutions (Commission, Committee 
of  Regions)  and  with  external  stakeholders  (think-tanks,  civil  society  organisations, 
associations, national promotional banks and institutions); 

the presentation of the PSLF during 21 topic-related events (presentations, Q&A sessions, 
dedicated stands). Among others: Cities Forum (16-17 March 2023), CEE Bankwatch 
webinar on just transition (27 March 2023)13, Covenant of Mayors – Europe Forum (30 
March 2023), Dialogues with Regional Offices (30 March 2023), Just Transition Platform 
Conference (25 April 2023), C4E Forum (26 May 2023), Just Transition media trip to 
Poland (4-6 June 2023), CEMR training on Cohesion Policy (30 June 2023), EU Green 
Week (11 June 2023), European Sustainable Energy Week (20 June 2023);  

-  5  publications.  Among  others,  “Interplay  between  the  grant  and  loan  components  of  the 
public sector loan facility under the Just Transition Mechanism” (14), and a publication by 
CINEA of guidelines on how to prepare a project proposal (15); 

-  79 posts published in various topic-related newsletters and websites, and on social media; 

- 

- 

the publication of 60 FAQs on Funding&Tenders portal (16); 

the publication of 2 video messages recorded by the Commissioner in charge of Regional 
and Urban Policy promoting the Facility (17)(18); 

(13)  Navigating the just transition: moving forward with pillars two and three - YouTube 
(14)  Interplay  between  the  grant  and  loan  components  of  the  public  sector  loan  facility  under  the  Just  Transition 

Mechanism (europa.eu)  

(15)  20230823 PSLF application tips for the website.pdf (europa.eu)  
(16)  Funding & tenders (europa.eu) 

7 

 
 
 
 
 
-  2 Info Days organised by CINEA in coordination with the Commission and the EIB (19). 

Figure 3: Level of events 

Figure 4: Type of activity 

The Commission, together with the EIB and CINEA, will continue working on raising awareness 
about the Facility in order to ensure that potential applicants know the Facility, are aware how to 
apply for funds, and also how to benefit from advisory support available under the Facility.  

Figure 5: Events per Member State 

Number of events per Member State

7

6

5

4

3

2

1

0

a
i
r
t
s
u
A

i

m
u
g
e
B

l

a
i
r
a
g
u
B

l

a
i
t
a
o
r
C

s
u
r
p
y
C

i

a
h
c
e
z
C

k
r
a
m
n
e
D

i

a
n
o
t
s
E

d
n
a
n
i
F

l

e
c
n
a
r
F

y
n
a
m
r
e
G

e
c
e
e
r
G

y
r
a
g
n
u
H

d
n
a
e
r
I

l

y
l
a
t
I

a
i
v
t
a
L

i

a
n
a
u
h
t
i
L

g
r
u
o
b
m
e
x
u
L

a
t
l
a
M

s
d
n
a
l
r
e
h
t
e
N

d
n
a
o
P

l

l

a
g
u
t
r
o
P

i

a
n
a
m
o
R

a
i
k
a
v
o
l
S

i

a
n
e
v
o
l
S

i

n
a
p
S

n
e
d
e
w
S

(17)  https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_22_4621/ 
(18)  https://audiovisual.ec.europa.eu/en/preview/https:%2F%2Feuc-

vod.fl.freecaster.net%2F15%2F241315%2FLR_I241315EN1W.mp4 

(19)  JTM PSLF Info Days (europa.eu) 

8 

 
 
 
 
 
 
 
4. 

CHALLENGES AND THE WAY FORWARD 

4.1.  Challenges the Facility is facing 

By the time of preparation of this report, certain constraints to the effective implementation of the 
Facility, including the advisory support, became visible. 

As  mentioned  already  in  the  first  report (20),  the  publication  of  the  first  call  for  proposals  was 
subject  to  the  adoption  of  a  sufficient  number  of  (TJTPs).  The  majority  of  these  plans  was 
approved only in the second half of 2022, as part of the associated Cohesion policy programmes. 
As a consequence, proposals could only be submitted towards the end of 2022. 

Moreover,  considering  the  implementation  timeline  of  the  JTF (21),  the  first  pillar  of  the  JTM, 
most  of  the  authorities  have  focused  their  efforts  on  finalising  the  TJTPs  and  launching  the 
implementation  of  the  JTF.  In  addition,  other  instruments  (i.e.,  the  JTF,  the  European  Regional 
Development  Fund (22),  the  Cohesion  Fund (23)  or  the  Recovery  and  Resilience  Facility (24)) 
offering  higher  grant  rates  than  the  Facility  are  seen  by  potential  applicants  as  more  attractive. 
Furthermore, PSLF funding cannot  be combined with  other EU funding. Therefore,  for the time 
being, the PSLF may not be the first choice when it comes to mature projects in Member States 
which can potentially benefit from other funding sources. 

Additionally, the Facility is a demand driven instrument. Its intrinsic attractiveness and relevance 
vary  per  Member  State  and  is  affected  by  many  factors.  More  specific  challenges  have  been 
reported by potential beneficiaries: 

•  Limited  time  to  absorb  the  NextGenerationEU(25)  funding  and  more  favourable  funding 
conditions e.g., higher grant coverage, as explained above; hence the priority in Member 
States is given to use these sources of financing first (Poland, Romania). 

•  Availability  of  more  attractive  and  accessible  funding  from  national  resources  in  the 
Member  States  (Germany,  Denmark,  Luxemburg),  including  grants  or  debt-based 
instruments.  

•  National shares do not necessarily correspond to Member States’ demand (26). 

•  Despite  the  availability  of  coordinated  framework  loans  and  intermediated  loans,  aiming 
specifically to serve smaller projects, it appears still complex to reach smaller promoters. 
The minimum amount of intermediated loans to final beneficiaries (€3 million (27)) seemed 
still  too  high  for  small  municipalities  that  need  to  self-promote  projects  with  limited 

(20)  See point 1.2 of the first PSLF implementation report. 
(21)  The  budget  of  the  JTF  consists  of  resources  coming  from  the  Multi-Annual  Financial  Framework  (MFF)  and 
from the European Recovery Instrument or ‘NextGenerationEU’ (NGEU). Within the adopted JTF programmes, 
the NGEU resources are concentrated in the budget  commitments for 2022 and 2023, while the MFF resources 
are  spread between  2021 and 2027. As a result, 70 % of the  JTF budget is concentrated in the first two annual 
tranches. The Commission will decommit the amounts that have not been used for pre-financing or for which a 
payment application has not been submitted by 31 December of the third calendar year following the year of the 
budget commitments, the so-called ‘N+3’ rule; more information about the JTF: Inforegio - Just Transition Fund 
(europa.eu) 

(22)  European Regional Development Fund (ERDF) (europa.eu) 
(23)  Cohesion Fund (CF) (europa.eu) 
(24)  Recovery and Resilience Facility (europa.eu) 
(25)  NextGenerationEU (europa.eu) 
(26)  After 31 December 2025, a new call for proposals will be open without pre-allocated national shares. 
(27)  See  call  for  proposals  Public  Sector  Loan  Facility  JTM-2022-20250PSLF,  p.  14,  call-fiche_jtm-2022-2025-

pslf_en.pdf (europa.eu) 

9 

 
 
geographical impact. The above puts a category of potential beneficiaries, those outside of 
major urban areas or in less developed regions, into disadvantage. 

•  Blending, debt-based financial instruments are relatively complex for smaller beneficiaries 

compared to other forms of funding.   

•  The prohibition to combine support from the PSLF with other sources of Union funding.  

Furthermore, external  factors impeding  implementation  of the Facility were noted. According to 
the  survey  on  just  transition  communication  and  awareness-raising  performed  by  the  Just 
Transition  Platform (28),  only  half  of  the  respondents  are  aware  of  the  JTM  in  their  region.  In 
addition,  most  of  the  respondents  (64%)  seem  to  have  little  knowledge  about  the  existence  of 
technical assistance and capacity support to develop projects. It must be noted that this survey was 
launched before the communication campaign on PSLF became visible. 

Finally, the analysis of the submitted and evaluated proposals revealed that some proposals are of 
insufficient quality, indicating a potential lack of understanding of the requirements of the Facility 
and the corresponding call for proposals.  

4.2.  Next steps 

To  overcome  some  of  the  challenges,  the  Commission  has  launched  an  awareness-raising 
communication campaign, and dedicated advisory support available under the InvestEU Advisory 
Hub (see points 2.2 and 3). More will be done in the form of actions that will help to implement 
the Facility. The PSLF being a new instrument, still requires raising awareness of its existence and 
potential. 

To  ease  the  Facility’s  implementation,  the  first  planned  action  is  to  further  facilitate  the  use  of 
intermediated  lending  in  some  Member  States.  Intermediated  loans  are  a  product  offered  by  the 
EIB through its partner financial institutions in the Member States. It is already available under the 
Facility in some Member States but can be substantially expanded. Intermediated lending is often 
implemented  through  National  Promotional  Banks  and  Institutions  (NPBIs)  but  it  is  possible  to 
use  also  commercial  banks.  These  financial  intermediaries  have  established  client  networks  and 
can reach smaller municipalities and other local level actors more easily. Moreover, the minimum 
intermediated  loan  amount  will  be  decreased  to  €1 million  and  is  much  lower  compared  to  the 
minimum amount of direct loans for individual projects (€ 12.5 million) (29). 

Furthermore,  the  Commission  in  coordination  with  CINEA  and  the  EIB  will  keep  raising 
awareness about the Facility to ensure that potential applicants understand its offer and are able to 
apply  for  support.  This  will  be  done,  among  other  measures,  through  meetings  and  workshops 
with  national,  regional  and  local  authorities  in  regions  with  TJTPs,  preparing  dedicated 
presentations  for  relevant  monitoring  committees  set  up  by  Member  States  to  monitor  the 
implementation of cohesion policy programmes (30), and participating in relevant events. Overall, 
the Commission will seize opportunities to promote the Facility.  

(28)  REGIO - Share your views on just transition communication and awareness-raising (europa.eu) 
(29)  See  call  for  proposals  Public  Sector  Loan  Facility  JTM-2022-20250PSLF,  p.  14,  call-fiche_jtm-2022-2025-

pslf_en.pdf (europa.eu) 

(30)  In accordance with Article 38 of Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 
June 2021 laying down common provisions on the European Regional Development Fund, the European Social 
Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture 
Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund 
and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021). 

10 

 
 
Moreover, the Commission will aim to identify in which  Member States and for which types of 
beneficiaries there have been gaps in terms of awareness concerning the Facility. To address these 
gaps  the  Commission  will  explore  all  available  tools.  Furthermore,  the  Commission  will  pay 
specific  attention  to  how  the  combination  of  the  challenges  detailed  in  point  4.1  have  affected 
different  Member  States  and  how  these  challenges  can  be  addressed.  This  is  of  particular 
relevance  in  the  Member  States  benefitting  from  the  largest  national  shares  of  the  PSLF. 
Additionally, a series of informative videos will be released to explain the application process in a 
clear and accessible manner. 

The Commission has also started the preparatory works for the PSLF interim evaluation, required 
under Article 17 of the PSLF Regulation, and due by 30 June 2025. That interim  evaluation will 
cover the implementation of the Facility and its capacity to achieve its objectives in a sufficiently 
timely manner. The evaluation will constitute an additional step allowing to identify challenges to 
the implementation of the Facility and potential solutions. A report on that interim evaluation will 
be submitted to the European Parliament and to the Council.  

Under its InvestEU Advisory Hub mandate, the EIB will continue the implementation of the PSLF 
through identification and screening of potential projects, provision of advisory support to project 
promoters  and  relevant  authorities,  as  well  as  through  dedicated  meetings  and  events  at  EU, 
national and regional levels. 

5. 

CONCLUSIONS 

The public sector loan facility is an instrument that seeks to ensure that the transition to a climate-
neutral economy happens in a just and socially sustainable way, given the key role of the public 
sector in addressing market failures.  

Due  to,  among  other,  delay  in  the  approval  of  territorial  just  transition  plans  and  overlap  with 
other EU and national funding sources, a slow uptake of the Facility can be observed, including 
the advisory support. This was expected in the current context. However, there is demand for the 
support offered by the Facility as confirmed by potential beneficiaries during the communication 
activities and by the growing number of applications.  

By 31 August 2023, eight proposals have been submitted and three have been recommended for 
funding by the PSLF Evaluation Committee, representing a maximum amount of €39,394,217 in 
grants  by  the  Commission  and  an  estimated  amount  of  €185,886,184  of  loans  by  the  EIB.  In 
addition,  the  list  of  potential  projects  to  be  submitted  for  financial  support  under  the  Facility  is 
being developed, as explained under point 2.1, and more applications are expected to be received 
by the next submission’s deadlines. The currently identified potential projects represent a volume 
of approximately €140 million in grants. 

The  communication  efforts  to  raise  the  awareness  about  the  Facility,  as  well  as  technical 
assistance available under the InvestEU Advisory Hub have proven successful given the increased 
interest witnessed by the Commission concerning the Facility.  

Finally,  efforts  to  address  the  challenges,  such  as  continuing  PSLF  awareness  raising  efforts, 
expanding the possibility of intermediate lending by smaller beneficiaries, and further identifying 
existing gaps to  improve the effective implementation  of the Facility, are in  preparation and the 
Commission in cooperation with CINEA and the EIB will continue working towards reaching the 
full potential of the Facility.  

11