Three municipalities in the Ústí nad Labem and Moravia-Silesia regions of Czechia have received nearly €1.4 million from the Public Sector Loan Facility (PSLF) to support sustainable urban development projects. These initiatives aim to enhance public infrastructure, improve energy efficiency, and foster social inclusion, representing key steps toward a just transition and climate resilience in the country.
The PSLF is part of the Just Transition Mechanism (JTM), a pillar of the European Green Deal Investment Plan, which seeks to ensure that no region or community is left behind in the shift toward a climate-neutral economy. It combines loans from the European Investment Bank (EIB) with grants from the European Commission to mobilize additional investments for public sector entities in regions most affected by the green transition. These regions are identified through Territorial Just Transition Plans, which outline development needs and targets for 2030.
By combining EU grants with EIB loans, the PSLF helps finance projects that might not generate sufficient revenue to cover their costs on their own. This support is designed to ensure that essential public infrastructure and sustainable development initiatives can move forward even in financially constrained regions.
The facility is managed by the Directorate-General for Regional and Urban Policy (DG REGIO) of the European Commission and implemented by the European Climate, Infrastructure and Environment Executive Agency (CINEA). DG REGIO is responsible for policies that support regional and urban development across the EU, while CINEA implements EU funding programmes in areas such as transport, energy, climate action, and the environment to foster a sustainable and decarbonized Europe.
The European Investment Bank, whose shareholders are the 27 EU member states, provides the long-term loans that complement the EU grants, supporting high-quality investments that contribute to EU targets for climate, infrastructure, and social development. Together, these institutions enable municipalities in Czechia to implement projects that advance sustainable urban development, energy efficiency, and social inclusion.
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