The European Parliament's Committee on Budgets (BUDG) and Committee on Economic and Monetary Affairs (ECON) adopted by a large majority (75 votes in favour, 10 against and 12 abstentions) on Thursday 15 October the draft report by Henrike Hahn (Greens/EFA, Germany) and Johan Van Overtveldt (ECR, Belgium) on the establishment of the Public Sector Loan Facility, the third pillar of the Just Transition Mechanism.
This report provides for several significant amendments to the initial proposal from the European Commission (see EUROPE 12495/6).
In particular, it reinforces the conditions for receiving funds under this facility, especially as regards the environment.
Specifically, the report states that, in order to be eligible for funding, projects must not undermine the environmental objectives set by the EU taxonomy and must not lead to a lock-in of carbon assets or compromise the EU's climate and environmental objectives.
“I am particularly happy that we managed to include stringent eligibility conditions to ensure that the projects to be financed comply with minimum sustainability requirements”, Ms Hahn said after the vote.
The report also states that beneficiaries and projects under the facility must respect the fundamental values of the EU.
In addition, MEPs call for increased funding for the facility from the EU budget and to allow financial support for the preparation phase of an investment project as well.
According to the Commission's proposal, the facility would comprise a ‘grant’ component of around €1.525 billion from the EU budget and a ‘loan’ component of €10 billion from the EIB. Objective: to mobilise between 25 and 30 billion euros of public investment between 2021 and 2027 to support the transition of European regions heavily dependent on fossil fuels. (Original version in French by Damien Genicot)