| Description | The Public Sector Loan Facility (PSLF) is a key financing instrument under the EU Just Transition Mechanism, combining long-term loans from the European Investment Bank with non-repayable EU grants to support regions most affected by the transition to climate neutrality. This blended finance mechanism reduces the financial burden on public authorities by improving project affordability and bankability, particularly for large-scale climate and infrastructure investments. The article explains the operational principles of the PSLF, including eligibility criteria, grant intensities, and the link to Territorial Just Transition Plans. It presents concrete examples of PSLF-supported projects across Europe, including urban infrastructure upgrades, low-emission transport, renewable energy installations, and energy storage systems. These cases illustrate how the combination of EU grants and EIB loans enables cities and regions to implement ambitious climate projects that would otherwise exceed local budgetary capacities. Overall, the PSLF demonstrates an effective approach to mobilising public investment while supporting social and economic cohesion during the climate transition. |
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