CINEA - European Climate Infrastructure and Environment Executive Agency
CINEA - European Climate Infrastructure and Environment Executive Agency
06/25/2026 | Press release | Distributed by Public on 06/25/2026 06:53
Boosting the just transition to a climate-neutral economy: 7 new projects selected under the Public Sector Loan Facility
Following the first cut-off under the second call for proposals of the Just Transition Mechanism's Public Sector Loan Facility (PSLF), the European Commission is pleased to announce the funding of 7 projects, which request a total grant amount of about €351 million.
A total of 21 eligible proposals were received from 7 countries (Cyprus, Czechia, France, Greece, Germany, Spain, Sweden), requesting about €783 million in grants. Following evaluation, 7 proposals were selected for funding, while further 11 high-quality proposals were also selected and placed on a reserve list. The grants for the proposals on the reserve list will be prepared if additional funding becomes available.
The 7 selected proposals span diverse sectors and territories across the EU's just transition regions:
| Cyprus | Construction and modernisation of public higher education infrastructure, including student accommodation, sports and administrative infrastructure as well as a photovoltaic park and digital solutions, implemented by Cyprus University of Technology (CUT). Requested grant: €16.2 million. |
| Czechia | Expansion and modernisation of regional hospital infrastructure in the Ústí nad Labem Region, including specialised facilities and energy efficiency investments. Requested grant: €45.2 million. |
| France |
Sustainable transport investments in Nantes, focused on modernising the public transport network, including the creation of two new tramlines, and the renewal of urban spaces to promote inclusive low-carbon mobility. Requested grant: €30 million. Two projects implemented by Grenoble-Alpes Métropole:
|
| Greece | Construction of a high-voltage direct current submarine electricity interconnector between the Dodecanese islands and the Greek mainland, supporting renewable energy capacity on the islands and market integration. Requested grant: €228.9 million. |
| Spain | Upgrade and extension of the regional water supply system in Asturias to increase climate resilience and water security. Requested grant: €10.05 million. |
The Public Sector Loan Facility (PSLF) was established by the European Union as one of the three pillars of the Just Transition Mechanism (JTM) to ensure that the transition towards climate neutrality leaves no region behind. By supporting investments in territories facing the most transition challenges, the PSLF contributes to a fair transition for all, while strengthening competitiveness.
The PSLF supports public and public-mandated entities in implementing investments that address the social, economic and environmental impacts of the climate transition in the most affected EU regions. It combines loans from the European Investment Bank (EIB) with grants from the European Commission, enabling projects aligned with the Territorial Just Transition Plans (TJTPs) prepared by EU Member States.
Each selected project will receive a PSLF grant, provided the project receives also a loan from the EIB. The PSLF grant is calculated as a share of the EIB loan amount (15%, or 25% if the project benefits a less developed region). This blended support is designed to leverage public investments in the EU regions most affected by the transition to climate-neutral economy.
The first call for proposals, organised around ten intermediate cut-off dates and implemented based on national allocations, was open from 19 July 2022 to 31 December 2025. Read about its results in the CINEA article on Advancing the Just Transition in Europe: Results of the first PSLF call for proposals - European Climate, Infrastructure and Environment Executive Agency
Building on the first call, a second call for proposals was launched on 23 October 2025. The call is open to all EU Member States on a competitive basis, without pre-allocated national shares.
The European Climate, Infrastructure and Environment Executive Agency (CINEA) is responsible for the implementation of the PSLF.
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