EU launches Climate City Capital Hub for smart cities funding

Green Forum
The European Commission has launched the Climate City Capital Hub, an international finance resource to support cities participating in the EU Mission on Climate-Neutral and Smart Cities.

With the new hub, cities that have received the EU Cities Mission Label will be able to:

Access financial advice in cooperation with the advisory services of the European Investment Bank (EIB)
Structure their financial needs and explore various funding options, including project pooling
Present projects to a range of capital providers, including public and private lenders and investors, as well as innovative financing sources like crowdfunding and sustainability-linked bonds, and support the process of dealing with closure

Complementing EIB services, the Climate City Capital Hub will be established with the backing of the EU Mission on Climate-Neutral and Smart Cities and the EU Mission on Adaptation to Climate Change, with a special focus on engaging private capital. For cities that have signed both the Charter of the Mission on Climate Adaptation and received the EU Cities Mission Label, services will cover both mitigation and adaptation projects, adopting a holistic approach to tackling climate change.

Managed by the Commission's Cities Mission implementation platform, currently led by the project NetZeroCities, the hub was announced at the 2024 Cities Mission conference in Valencia on June 25 and 26.

Additionally, the EIB has allocated a lending envelope of €2 billion for cities with the Cities Mission Label to support investments in energy-efficient buildings, district heating systems, renewable energy, sustainable mobility, urban renewal, water, and social infrastructure. This enhances EIB support for labeled cities, adding a dedicated finance facility to advisory services.

So far, 33 cities have been awarded the EU Mission for Climate-Neutral and Smart Cities Label: 10 in October 2023 and 23 in March 2024. This label marks a significant milestone, recognizing the successful development of Climate City Contracts, which outline the cities' vision for climate neutrality and include an action and investment plan. Cities co-create their Climate City Contracts with local stakeholders, including the private sector and citizens. The 33 submitted Investment Plans have budgeted approximately €114.1 billion for climate actions, averaging €3.6 billion per city. The Commission is currently reviewing an additional 23 Climate City Contracts.

Meanwhile, the EU Mission for Climate-Neutral and Smart Cities has compiled over 200 solutions to assist cities in achieving climate neutrality. These solutions, ranging from "Advanced Renovation Support" to "Zero Emission Buses," are available in the Knowledge Repository.

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Green Forum  |  15 July, 2024 at 11:00 AM
Green Forum  |  15 July, 2024 at 10:00 AM