01 July 2024
by Jonathan Andrews
The European Commission has launched the Climate City Capital Hub, an international finance resource to further support cities participating in the EU Mission on Climate-Neutral and Smart Cities.
Those cities that have already received the EU Cities Mission Label will be able to:
- Access financial advice in cooperation with advisory services of the European Investment Bank;
- Structure their financial needs so they understand various ways of funding projects, including pooling of projects; and
- Introduce projects to a range of capital providers, including lenders and investors from the public and private sectors (such as philanthropic and corporate capital, as well as innovative financing like crowdfunding and sustainability-linked bonds), and support the process to deal closure.
“It is great to see the EU Missions on Cities and on Adaptation to Climate Change come together and join forces,” said Iliana Ivanova (pictured), European Commissioner for Innovation, Research, Culture, Education and Youth. “With the Climate City Capital Hub, we will enhance our support to trailblazing cities that chart the course to climate neutrality with their mitigation and adaptation plans.”
The hub will focus on engagement with private capital. For cities that signed both the Charter of the Mission on Climate Adaptation and have received the EU Cities Mission Label, the services will cover both mitigation and adaptation projects.
In addition, the European Investment Bank has earmarked €2 billion dedicated to cities to support their plans to invest in energy, efficient buildings, district heating systems, renewable energy, sustainable mobility, urban renewal and regeneration, water and social infrastructure. It adds a dedicated finance facility to advisory services.
So far, 33 cities have been awarded the Label of the EU Mission for Climate-Neutral and Smart Cities. The label acknowledges successful development of Climate City Contracts, which outline the cities’ overall vision for climate neutrality and contain an action plan as well as an investment plan.
From the 33 Investment Plans that have been submitted so far, approximately €114.1 billion have been budgeted for climate actions – on average €3.6 billion per city. Currently, the Commission is reviewing another 23 Climate City Contracts.
Image: Xavier Lejeune/EC
