Regulation (EU) 2021/1229 on the public sector loan facility under the Just Transition Mechanism

Summary:

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).

Further information:

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.

• Primary Source

Commentary and Analysis

EPRS: At a Glance, June 2021: Public sector loan facility under the Just Transition Mechanism https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2021)690673

EPRS: Briefing, November 2021: The public sector loan facility under the Just Transition Mechanism https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)659428

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Official

EUR-LEX: COM(2020)453: Proposal for a Regulation on the public sector loan facility under the Just Transition Mechanism https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:453:FIN

EUR-LEX: SWD(2020)92: Staff Working Document accompanying the Proposal - https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2020:92:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Public sector loan facility under the Just Transition Mechanism (2020/0100(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2020/0100(COD)

European Parliament: Legislative Train Schedule: Proposal for a Regulation on the Public Sector Loan Facility under the Joint Transition Mechanism (JTM) https://www.europarl.europa.eu/legislative-train/theme-a-european-green-deal/file-public-sector-loan-facility-under-the-just-transition-mechanism

European Commission: Press Release, 28/05/2020: Commission proposes a public loan facility to support green investments together with the European Investment Bank https://ec.europa.eu/commission/presscorner/detail/en/ip_20_930

European Investment Bank: Newsroom, 28/05/2020: Just Transition Mechanism: the EIB and the European Commission join forces in a proposed new public loan facility to finance green investments in the EU https://www.eib.org/en/press/all/2020-130-commission-proposes-a-public-loan-facility-to-support-green-investments-together-with-the-eib

European Commission: Press Release, 26/04/2021: Commission welcomes the political agreement on the proposal for a Public Sector Loan Facility of the Just Transition Mechanism https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1935

Renew Europe Group: Newsroom, 26/04/2021: A new EU fund will facilitate the green transition in the public sector https://reneweuropegroup.eu/en/news/1880-a-new-eu-fund-will-facilitate-the-green-transition-in-the-public-sector/

Council of the European Union: Press Release, 26/04/2021: Public sector loan facility to support just climate transition – provisional agreement reached https://www.consilium.europa.eu/en/press/press-releases/2021/04/26/public-sector-loan-facility-to-support-just-climate-transition-provisional-agreement-reached/

European Parliament: Press Release, 26/04/2021: Deal reached on programme to help regions most hit by transition to climate neutral EU https://www.europarl.europa.eu/news/en/press-room/20210426IPR02832/

Greens/EFA Group: Press Release, 24/06/2021: No Fossil Fuels or Nuclear Power in the Public Sector Loan Facility of the Just Transition Fund https://www.greens-efa.eu/en/article/press/no-fossil-fuels-or-nuclear-power-in-the-public-sector-loan-facility-of-the-just-transition-fund

European Parliament: Press Release, 24/06/2021: MEPs approve EU aid to help regions most hit by transition to climate neutral EU https://www.europarl.europa.eu/news/en/press-room/20210621IPR06641/

European Investment Bank: Newsroom, 13/07/2021: The EIB welcomes the adoption of the Regulation for a Public Sector Loan Facility under the Just Transition Mechanism https://www.eib.org/en/press/news/the-eib-welcomes-the-adoption-of-the-regulation-for-a-public-sector-loan-facility-under-the-just-transition-mechanism

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