|Author (Corporate)||Council of the European Union, European Parliament|
|Series Title||Official Journal of the European Union|
|Series Details||L 274, Pages 1-19|
|Content Type||Legislation, News, Policy-making|
Regulation (EU) 2021/1229 - formally adopted by the co-legislators on 14 July 2021 - setting up a Public Sector Loan Facility (PSLF) in the framework of the Just Transition Mechanism (JTM).
The creation of a Just Transition Mechanism was unveiled in the framework of the European Commission's Sustainable Europe Investment Plan (SEIP), the investment pillar of the European Green Deal. One of the elements of the Mechanism is a public sector loan facility for additional investments, leveraged by the European Investment Bank (EIB).
The facility is aimed at supporting public investments, through preferential lending conditions. These are to benefit the territories most negatively affected by the climate transition as identified in the territorial just transition plans for the purposes of the Just Transition Fund (JTF). This Regulation establishes the PSLF for the duration of the Multiannual Financial Framework (MFF) 2021-2027 in support of public sector entities by combining grants from the EU budget with loans granted by the finance partners. It also sets out the objectives of the Facility. It lays down rules for the grant component of the Facility, covering in particular its budget, the forms of EU support and the provisions on eligibility.
The legislative initiative was tabled by the European Commission on 28 May 2020. The European Parliament's negotiating position was adopted by the relevant committees on 16 October and announced in plenary on 19 October. The Council of the European Union also adopted its general approach on 16 October 2020. An informal agreement between the co-legislators on a compromise text was reached on 26 April 2021. Following formal endorsement, the Act was signed on 14 July 2021 and published in the Official Journal on 30 July 2021.
|Subject Categories||Economic and Financial Affairs, Environment, Internal Markets|
|Subject Tags||Climate Change, Cohesion Policy, Sustainable Development|
|International Organisations||European Investment Bank [EIB], European Union [EU]|