BAKU, Azerbaijan, Sept.7. The European Investment Bank (EIB) will provide 10 billion euros to support the regions most affected by energy transition, Trend reports with reference to EIB.
The Bank has inked an agreement with the European Commission on the Public Sector Loan Facility, the third pillar of the Just Transition Mechanism. It will combine up to 10 billion euros in EIB loans with 1.5 billion euros in EU budget grants.
The agreement paves the way for the territories and regions most affected by Europe’s transition to a climate-neutral economy to benefit from grants and loans under a Public Sector Loan Facility.
The Public Sector Loan Facility offers public sector entities planning investment projects in affected regions a combination of EIB loans and EU grants, effectively reducing the financial burden for public coffers. To be eligible, projects must be located in or benefit territories that Member States have identified in their Commission-approved territorial just transition plans as facing the biggest challenges related to moving away from fossil fuels and carbon-intensive industries. In less developed regions (those with a GDP per capita of less than 75 percent of the EU average), the EU grant component can be up to 25 percent of the EIB loan amount for each project.
The agreement makes up to 10 billion euros in EIB financing available by 2027 to spur investment to reduce the socioeconomic costs of the transition, facilitating the creation of new businesses, jobs and infrastructure.
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