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Grant Analysis

Purpose & Target

Grant Purpose and Target

Objective: To address serious social, economic, and environmental challenges arising from the transition towards the EU’s 2030 climate and energy targets and 2050 climate neutrality.
Target: Public sector entities undertaking projects that do not generate sufficient revenue to cover their investment costs, benefiting EU territories identified in approved Territorial Just Transition Plans.
SECTOR-SPECIFIC: Focus on sustainable investments in areas like energy, transport, environment, and social infrastructure.
Geographic scope: EU Member States, specifically territories covered by an approved Territorial Just Transition Plan. Projects can be located anywhere but must benefit these specific territories.
Key filtering criteria: Applicant type (public or public service mission), project's consistency with Just Transition Plan, inability to self-finance, and eligibility for an EIB loan.
Grant frequency: Rolling call with multiple cut-off dates until late 2025. Program aims to support socio-economic costs of climate transition.

Financial Structure

Total Grant Budget: EUR 1,459,500,000 available for the entire grant component of the Public Sector Loan Facility until 2025.
Grant Type: Grants take the form of financing not linked to costs (lump sum).
Co-financing Requirement: Projects must receive financing from the European Investment Bank (EIB) in the form of a loan. The grant is combined with this loan.
Grant Amount Limitation:
- The grant amount for a project will not exceed 15% of the corresponding EIB loan amount.
- For projects in less developed regions, the grant amount will not exceed 25% of the corresponding EIB loan amount.
Payment Mechanism: Grant disbursement is conditional upon the signature of the corresponding financing agreements between the EIB and the successful applicants.
National Shares: Union support awarded to projects in a Member State is limited by pre-allocated national shares of the total available resources.

Eligibility Requirements

Organizational Eligibility

Legal status:
- Must be a legal entity established in an EU Member State.
- Must be a public law body OR a body governed by private law entrusted with a public service mission.
Financial Capacity:
- Applicants must have stable and sufficient resources to implement projects and contribute their share.
- Public sector bodies (regional/local authorities, bodies governed by public law, associations of such bodies) are exempt from financial capacity verification.
Operational Capacity:
- Applicants (including public sector bodies) must possess the necessary know-how, qualifications, and resources to successfully implement projects.
- Must demonstrate sufficient experience in projects of comparable size and nature.

Project Eligibility

Geographic Focus:
- Projects must benefit a territory covered by an approved Territorial Just Transition Plan.
- Projects must be consistent with the specific sectors and thematic areas outlined in the relevant Territorial Just Transition Plan.
Financial Nature:
- Projects must be those that do not generate a sufficient stream of revenues to cover their investment costs.
- Projects must also qualify for a loan by the European Investment Bank (EIB) or one of its financial intermediaries.
Exclusions:
- Activities related to the decommissioning or construction of nuclear power stations.
- Manufacturing, processing, and marketing of tobacco and tobacco products.
- Aid to undertakings in difficulty (as defined in EU law), unless authorized under specific temporary State aid rules or de minimis aid for energy cost reduction investments.
- Investments related to the production, processing, transport, distribution, storage, or combustion of fossil fuel.

Application Process

Submission Method: Applications must be submitted via the Electronic Submission Service on the Funding & Tenders Portal.
Application Form: A specific 'Standard application form (JTM)' is available, and a call-specific application form is in the Submission System.
Supporting Materials: Applicants will need to provide a 'Calculator (Financial information file)' and a 'Simplified business plan (JTM)'.

Timeline

Application Window: This is a rolling call for proposals launched in July 2022 and running until December 2025.
Submission Deadlines: There are multiple cut-off dates. The latest known deadline is 2025-09-11 00:00:00+0000.

Evaluation and Award Sequence

Step 1 (Commission Assessment): The Commission assesses proposals based on admissibility, eligibility, exclusion, selection, and award criteria.
Step 2 (EIB Assessment): Proposals selected by the Commission then undergo evaluation by the European Investment Bank (EIB) in accordance with its own rules for loan approval.
Step 3 (Grant Agreement): Following EIB loan approval, the Commission finalizes the grant agreement.

Post-Award Requirements

Grant Disbursement: Funds are disbursed only after the financing agreements between the EIB and the successful applicants are signed.
Project Implementation: Projects are expected to have a pre-defined objective and a set period for implementation and finalization.
Maintenance Strategy: Information on the maintenance strategy for completed projects may be assessed as part of quality.

Application Support

Email Support: For call-related questions, contact [email protected].
Online Resources: The Funding & Tenders Portal provides an FAQ (submission of proposals), an IT Helpdesk (for technical issues, access rights), and an Online Manual (step-by-step guide).

Evaluation Criteria

Selection Criteria

Financial Capacity:
- Assessed based on documents like profit/loss accounts, balance sheets, business plans, and audited financial reports.
- Analysis considers neutral financial indicators and other aspects like dependency on EU funding.
- Note: Public sector bodies are exempt from this check.
Operational Capacity:
- Assessed based on the applicant's know-how, qualifications, and resources to implement projects.
- Requires demonstration of sufficient experience in projects of comparable size and nature.

Award Criteria

Relevance and Impact:
- Extent to which the project matches the call's themes, priorities, and objectives.
- Contribution to EU strategic and legislative context (e.g., EU Green Deal, climate targets).
- Potential for results to be used in other countries.
- Contribution to the development needs and priorities outlined in the relevant Territorial Just Transition Plan.
- Significance of the grant component to the project.
- Contribution to regional and territorial convergence.
- Environmental impact, including adherence to the 'do no significant harm' principle.
Quality:
- Soundness of the project's implementation plan (technical and financial aspects).
- State of project preparation and readiness to start and complete by proposed dates.
- Status of contracting procedures and necessary permits.
- Availability of financial information to complement blended support (loan and grant).
- Architecture and design approach.
- Organizational structures for implementation.
- Risk analysis and mitigation strategies.
- Control procedures and quality management.
- Communication strategy of the applicant.
- Maintenance strategy for the completed project (where applicable).

Prioritization Criteria (if funds are insufficient within national share)

Location: Priority for projects located in less developed regions.
Climate Contribution: Priority for projects directly contributing to the achievement of the EU’s 2030 climate and energy targets and the objective of climate neutrality by 2050.
Decarbonisation Plans: Priority for projects promoted by applicants who have adopted decarbonisation plans.

Compliance & Special Requirements

Regulatory Compliance

Legal Basis: Projects must comply with Regulation (EU) 2021/1229 (Public Sector Loan Facility), Regulation (EU) 2021/1056 (Just Transition Fund), and Regulation (EU) 2021/1119 (European Climate Law).
Financial Regulations: Adherence to EU Financial Regulation 2018/1046 is required.
Permits: Applicants must demonstrate the status of necessary permits and authorizations for their project.

Ethical and Social Standards

Fundamental Rights: Respect for fundamental rights and compliance with the Charter of Fundamental Rights of the European Union, including gender equality, is mandatory.
Non-discrimination: Avoidance of any discrimination based on gender, racial or ethnic origin, religion or belief, disability, age, or sexual orientation.
Accessibility: Where relevant, accessibility for persons with disabilities must be taken into account during project preparation and implementation.

Environmental Standards

'Do No Significant Harm' Principle: All projects must adhere to this principle, ensuring they do not cause significant harm to environmental objectives.
'Polluter Pays' Principle: Applicable, particularly in relation to land and ecosystem restoration and decontamination.
Climate Alignment: Projects must contribute to the Union’s 2030 climate and energy targets and the objective of climate neutrality by 2050.

Risk Management

Risk Analysis: A comprehensive risk analysis is expected as part of the project quality assessment.

Unique Aspects

Blended Finance: This grant is unique in that it must be combined with a loan from the European Investment Bank (EIB) to cover investment costs for projects that do not generate sufficient revenue.
Territorial Just Transition Plans: Projects must align with and benefit territories defined by specific national/regional Territorial Just Transition Plans.
National Shares: Funding is subject to pre-allocated national shares for each EU Member State, which can influence competition.

Grant Details