The Sustainable Mobility Infrastructures for Low Emissions and qualitative Service (SMILES) project, supported by EU funding via the Public Sector loan Facility (PSLF) under the Just Transition Mechanism (JTM), aims to green and diversify mobility in Nantes, a city in the Loire-Atlantique department of France.
Nantes Métropole, the entity responsible for the implementation of the project, is undertaking several key initiatives, including the upgrade of three tram lines, the replacement of the existing tram fleet with 46 new vehicles, the construction of a multimodal transport hub, the extension of a tramway line, and the development of a 38-kilometer network of cycling paths.
The project follows the sustainable mobility strategy of Nantes Métropole and aims to increase the modal share of public transport and encourage soft mobility. The upgrade of transport infrastructure is also in line with the Territorial Just Transition Plan of Loire-Atlantique region, which prioritises green mobility and CO2 reduction.
The project, which kicked off in early 2024, has already achieved notable successes.
A major milestone was reached on 18 May 2024, when residents of Nantes were invited to celebrate the launch of the first two brand-new tramways, set to replace the outdated models that had reached the end of their service life. The newly introduced tramways feature a modern design and larger trainsets with enhanced capacity, allowing for more frequent service that caters to the evolving needs of an expanding population. The first passengers to board the new trams were enthusiastic about the enhanced travel experience, highlighting the increased space, natural light, comfort, accessibility, and advanced digital technologies as major advantages over the previous fleet, and advanced digital technologies as major advantages over the previous fleet.
By the end of 2024, 14 new trams had already been deployed and additional 46 new trams funded by PSLF are expected to be deployed by the end of 2027.
During the summer of 2024, Nantes Métropole also carried out works for the optimisation of tram line 2, which involved the renovation of 1.5 kilometres of tramway platform, containing 2 tracks and 4 rails. The renovation work utilised an innovative, locally developed method known as “la nouvelle voie nantaise” which enables the removal of tracks without demolishing the platform surface. This approach significantly reduces the construction time and minimises disruptions to citizens. Same technique will be applied for the renovation of tram line 3, which started in February 2025, ensuring a similarly efficient construction process.
A more recent highlight was the inauguration of the extended tramway line 1 on 22 May 2025. This new 1.4-kilometre section crossing the river Erdre and the ring road now connects Nantes with neighbouring town of La Chapelle-sur-Erdre in the north. The extended tramway line 1 offers improved public transport access, fosters connectivity and supports daily mobility for over 110 trams while completing the connection to the Babinière hub.
Another major construction site of Nantes Métropole is for the new multimodal transport hub – Babinière – located at the North-West entrance to the city. Babinière is part of a broader project for connecting tram lines 1 and 2 and is set to become an important multimodal transport hub in 2025. It will also house a technical and operating centre for the maintenance of the new trams as well as a greenway for pedestrians and bicycles.
As part of its soft mobility strategy, Nantes Métropole also started the construction of three new major cycle routes. By 2026, the city will have increased its cyclable network by 50 kilometres of bidirectional lanes, thanks in part to funding from the PSLF, which will support 38 kilometres of the new cycling infrastructure.
The overall project is driving the shift towards more sustainable transport modes in the Nantes Métropole area, supporting a greener and more efficient public transport system that benefits the daily lives of its citizens. By improving the transport infrastructure, the project is expected to have a significant impact on reducing travel times and alleviating road congestion, thereby improving the overall efficiency of the transport network and creating a more liveable environment.
The development of alternative modes of transport is expected to change the commuting practices of Nantes residents by increasing the use of carbon-free transport modes while reducing the modal share of cars from 44% to 28% by 2030. The project will contribute to an annual reduction of greenhouse gas emissions by 21,000 CO2 tonnes.
The European Commission supports the SMILES project with a grant of €30 million awarded in early 2024 under the Public Sector Loan Facility. The project is also financed by a €200 million loan from the European Investment Bank (EIB), the Commission’s finance partner under the Facility. On top of the PSLF support, the project receives €130 millions of public investment from the metropolitan budget, Loire-Atlantique Department and French State, its total budget reaching over €400 million.
About the Public Sector Loan Facility (PSLF) and the Just Transition Mechanism (JTM)
The Public Sector Loan Facility is an instrument under the Just Transition Mechanism that aims at alleviating the social and economic effects of the transition towards climate neutrality in the EU regions. It is a blending facility that combines loans (up to around €6-8 billion) from the European Investment Bank (EIB) with grants (up to €1.3 billion) from the European Commission to help mainly public sector entities in the most affected EU regions (identified in the territorial just transition plans) to mobilise additional public investments and meet their development needs in the transition towards climate neutrality. 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 first PSLF call for proposals was launched on 19 July 2022 with 10 intermediate cut-offs until the end of 2025. On 11 September 2025 is the last cut-off date under the first call for proposals. The next call for proposals will be launched in the second half of 2025.
PSLF is managed by DG REGIO and implemented by CINEA.
About DG REGIO
The Directorate-General for Regional and Urban Policy (DG REGIO) is the department of the European Commission responsible for EU policies on regions and cities. It develops and carries out the Commission’s policies on regional and urban policy. It assists the economic and social development of the developed and less developed regions across the European Union.
About CINEA
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 to assist 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.
About EIB
The European Investment Bank (EIB), whose shareholders are the 27 Member States of the European Union, 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.
Visit the PSLF website to find out more about the Facility and the projects it funds.
