Another just transition project has started in the Czech Republic! 

The energy upgrade project in Usti nad Labem is supported by the European Union under the Public Sector Loan Facility, with a grant of EUR 427,905 which complements a EUR 1.7 million loan from the National Development Bank of the Czech Republic, acting as an intermediary of the European Investment Bank and bringing the total budget of the project to EUR 3.4 million. 

The project aims to accelerate the energy transition of the Usti region (a less developed Czech region) towards a low-carbon economy and increased use of renewable energy sources. Key measures include: 

The project is expected to benefit around 90,000 users of the public transport and road network of Usti nad Labem, as well as the employees of the transport company. In addition, it will reduce the annual energy consumption of public lighting to approximately 436 MWh/year, helping lower emissions and operation costs. 

The Public Sector Loan Facility (PSLF) is the third pillar of the Just Transition Mechanism (JTM) – a key tool of the European Green Deal Investment Plan to make sure that no one and no region is left behind in the transition to a climate-neutral economy. 

The PSLF combines loans from the European Investment Bank (up to around. EUR 6-8 billion) with grants from the European Commission (up to EUR 1.3 billion). The combined support is designed to mobilise additional investments for public sector entities in the regions most affected by the climate and energy transition (such as the Usti Region) as identified in the Territorial Just Transition Plans, to meet their development needs in the transition towards a climate-neutral economy. These plans are drawn up by each EU Member State and outline the challenges to be addressed in each just transition region, together with the development needs and targets to be reached by 2030. 

The blending of the European Investment Bank loan and the Commission grant will facilitate the financing of projects that do not generate sufficient streams of revenues to cover their investment costs. PSLF implementation is managed by CINEA.

The European Investment Bank (EIB), whose shareholders are the 27 Member States of the European Union (EU), is the EU’s long-term financing institution. The EIB provides loans to the public and private sectors to support high-quality investments contributing to the achievement of the EU headline targets. The National Development Bank is one of EIB’s financial intermediaries and a valuable partner of the EIB in the Czech Republic.

The European Climate, Infrastructure and Environment Executive Agency (CINEA), is an Executive Agency established by the European Commission to implement parts of EU funding programmes for transport, energy, climate action, environment and maritime fisheries and aquaculture. CINEA aims is to support its beneficiaries, establish strong partnerships, deliver high-quality programme and project management, foster effective knowledge sharing and create synergies between programmes - to support a sustainable, connected, and decarbonised Europe.