The European Parliament’s Committee on Budgets and the Committee on Economic and Monetary Affairs adopted on May 10 the provisional settlement ensuing from inter-institutional negotiations on the Public Sector Loan Facility underneath the Just Transition Mechanism (PSLF) which can assist the inexperienced transition in Europe to achieve the Union’s 2030 local weather targets and an EU local weather neutrality by 2050 on the newest.
The provisional settlement was adopted by 84 votes in favour, 6 votes in opposition to und 5 abstentions. The Plenary vote is scheduled for July 2021.
“The Public Sector Loan Facility will support the green transition in Europe to achieve the Union’s 2030 climate targets and a EU climate neutrality by 2050 at the latest,” German MEP Henrike Hahn, rapporteur on the Public Sector Loan Facility (PSLF) underneath the Just Transition Mechanism within the European Parliamentary Committee on Economic and Monetary Affairs, stated after the vote.
“This Public Sector Loan Facility is very important to us as the third pillar of the Just Transition Mechanism. It is a key tool of the Green Deal to ensure that the transition towards a climate neutral economy takes place in a fair way, leaving no one behind,” Hahn stated, including that it addresses the social and financial results of the transition specializing in the areas, industries and employees who will face the best challenges.
The public sector mortgage facility particularly targets public entities to implement initiatives to assist to achieve the simply transition offering assist with the assistance of grants mixed with European Investment Bank (EIB) loans.
“Our priorities for this file were met and I am particularly happy that we have succeeded to emphasise the need to integrate a gender perspective in the just transition process,” the Greens MEP stated. “We ensured priority support to less developed regions and local municipalities to implement high standard projects for new jobs and new businesses. Priority will be given to projects located in less developed regions, to projects contributing to climate objectives and those being promoted by public entities that have adopted a decarbonisation plan. In the facility, we pay special attention to most vulnerable regions, with clear prioritisation criteria for projects and a co-financing rate for less developed regions with 25%,” Hahn added.
“I am also very happy that we managed to introduce an additional article with stringent criteria to avoid loopholes in case the facility will be opened to finance partners other than EIB, i.e., national promotional banks,” Hahn stated, including that sooner or later their lending coverage will likely be in keeping with EU environmental and social requirements, good tax governance and transparency of initiatives financed will likely be ensured.
“We have also ensured that Taxonomy will be included as a tracking tool in the interim Commission evaluation,” the MEP stated, including that the Facility shall adjust to a set of horizontal rules, together with the Do No Significant Harm Principle.