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Just Transition Mechanism — Public Sector Loan Facility (PSLF)

JTM Public Sector Loan Facility — Grant Component

Provides public-sector entities in transition areas with grant-backed climate financing support.

Eligibility · EU member states

The Just Transition Mechanism Public Sector Loan Facility (JTM-PSLF) is the grant component of the EU's blended finance instrument designed to support public sector investments in territories undergoing the transition away from carbon-intensive industries. CINEA administers the grant element, which provides up to €1.31 billion in EU grants across the 2021–2027 programming period, paired with €6–8 billion in loans from the European Investment Bank. The facility covers 154 JTF-eligible transition territories across the EU. Eligible beneficiaries are public sector entities — including municipalities, regional authorities, public utilities, and other public bodies — as well as private entities with a public service mission operating in or serving eligible Just Transition Territorial Plans. Supported project categories include energy infrastructure, social services, education facilities, and broader sustainable development investments that address the social, economic, and environmental challenges arising from the transition. The first call results funded 18 projects across 9 just transition regions with approximately €210 million in grants. An Information Day was held 14 November 2025 for the 2025/2026 call cycle; 2026 call status should be verified against the EU Funding and Tenders Portal.

Blended EU grant and European Investment Bank loan financing for public sector investments — including energy infrastructure, social services, and education — in the 154 EU territories transitioning away from carbon-intensive industries.

CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Annual
Next deadlineiThe next date applications are due. Rolling means you can apply any time.
Decision timeiTypical time from the deadline to the funder's decision.
Project durationiHow long the funded work is expected to run.
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Grant + loan
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.€1.31B

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Last verified: 29 Jun 2026Source: cinea.ec.europa.eu