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Mid-term evaluation of the public sector loan facility

Client

European Commission, Directorate-General for Regional and Urban Policy (DG REGIO)

Year

ongoing

Partner

t33 srl


The Public Sector Loan Facility (PSLF) is a European Union financing instrument introduced as part of the Just Transition Mechanism (JTM). The JTM is part of the European Green Deal and aims to ensure that the transition to a climate-neutral economy by 2050 is socially just and balanced.

The PSLF was specifically designed to support public investment in regions that are particularly affected by the social and economic impact of the transition. The aim is to help these regions diversify their economic base and create new jobs while reducing their dependence on fossil fuels.

Prognos and t33 srl were commissioned to conduct an interim evaluation of the PSLF.

How effective is the financing instrument?

The PSLF supports sustainable public sector investment projects in the European territories most affected by the transition to a climate-neutral economy. The financing comes from two sources:

  • Grants from the EU budget: These grants reduce the costs of the projects and make them more economically attractive.
  • Loans from the European Investment Bank (EIB): The EIB provides favourable loans to enable the investments.

This combination should enable projects to be realised that would not be financially viable without this support.

The PSLF is expected to unlock billions of euros of public investment in a wide range of sectors, including

  • renewable energies,
  • environmentally friendly and sustainable mobility,
  • efficient district heating networks,
  • social housing and
  • economic diversification.

The aim of this interim evaluation is to assess the current state of implementation of the PSLF, as well as its effectiveness, efficiency, coherence with other policy areas, relevance and EU added value.

These findings will be used to adjust and improve the instrument if necessary.

Our approach

Together with the Italian political consultancy t33 srl, Prognos assesses the PSLF on the basis of:

  • an analysis of programme documents, the ‘Territorial Just Transition Plans’ (TJTP) and academic literature;
  • an online survey and interviews with PSLF stakeholders, such as national, regional and local authorities of EU Member States involved in the design and implementation of the PSLF, beneficiaries, experts (e.g. from research and academia, associations and NGOs), the European Commission and the European Investment Bank, as well as
  • case studies on the implementation of the PSLF in France, Greece, Poland, Romania, Sweden and the Czech Republic.

The evaluation study also examines advisory services that Member States can request. These services raise awareness of the PSLF, help to develop a project pipeline and ensure that the PSLF complements other funding and financing opportunities.

Links and downloads

Further information on the PSLF (website EU commission)

Further information on the interim evaluation (website EU commission)

Project team: Dr Jan-Philipp Kramer, Vincent Vogelsang, Markus Zock

Last update: 12.12.2024

Do you have questions?

Your contact at Prognos

Dr Jan-Philipp Kramer

Partner, Head of EU Services

View profile

Markus Zock

Project Manager

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