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- New Climate City Capital Hub to support EU cities in achieving climate goals.
- €650 billion investment needed for 112 cities to reach net-zero by 2030.
- EIB earmarks €2 billion for cities’ climate projects.
The European Commission has launched the Climate City Capital Hub to provide financial support and advice to cities aiming for climate neutrality. With a €650 billion investment target, this initiative will leverage public and private capital, supported by the European Investment Bank (EIB). The Hub will help 112 EU and associated cities, including those part of the EU Mission on Climate-Neutral and Smart Cities, to develop and implement their climate action plans.
New Finance Hub to Drive Climate Mitigation and Adaptation
The European Commission has established the Climate City Capital Hub to support cities in the EU Mission on Climate-Neutral and Smart Cities. This international finance resource will provide financial advice, help structure financial needs, and introduce projects to a range of capital providers.
“Historically, cities have not been significant partners for the private sector, but progress can be much faster if private capital is more involved,“ said Allison Lobb, executive director of Bankers without Boundaries.
Investment and Support:
- The EIB has earmarked €2 billion for cities with the Cities Mission Label to invest in energy-efficient buildings, renewable energy, and sustainable infrastructure.
- 33 cities have received the EU Cities Mission Label, budgeting €114.1 billion for climate actions, averaging €3.6 billion per city.
- The Hub aims to engage private capital and innovative financing solutions like crowdfunding and sustainability-linked bonds.
“EIB provides over a quarter of our lending to cities, and as Europe’s climate bank we are keen to work with cities to help them implement their climate-neutrality investments,“ said EIB Vice President Teresa Czerwinska.
Ambitious Goals: The initiative targets 112 cities striving for net-zero emissions by 2030, requiring a combined investment of €650 billion. The cities, including Lyon, Seville, Malmo, Lisbon, and Florence, are developing climate plans with support from the EU and Bankers without Boundaries.
“Cities account for more than 70% of global CO₂ emissions and consume over 65% of the world’s energy. Urban action is crucial for climate mitigation,“ emphasized the European Commission.
Next Steps:
- The Climate City Capital Hub, managed by NetZeroCities, was announced at the 2024 Cities Mission conference in Valencia.
- The Hub will provide comprehensive services for both mitigation and adaptation projects, particularly focusing on private capital engagement.
The EU’s Climate-Neutral and Smart Cities Mission and the Climate City Capital Hub represent significant steps towards achieving climate neutrality, fostering innovation, and mobilizing substantial investments to support cities in their climate action efforts.
Background:
Cities account for more than 70% of global CO₂ emissions and consume over 65% of the world’s energy. Urban action is crucial for climate mitigation and can contribute significantly to accelerating the efforts to achieve the legally binding commitment to achieve climate-neutrality in the EU as a whole by 2050, as well as to the EU’s target of reducing greenhouse gas emissions by 55% by 2030 and more generally delivering the European Green Deal. The EU Cities Mission aims to help European cities become climate-neutral, offering cleaner air, safer transport and less congestion and noise to their citizens.
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In April 2022, 100 cities in the EU and 12 cities in countries associated to Horizon Europe, the EU research and innovation programme, were selected to participate in the Mission. They are testing innovative cross-sectoral approaches including for citizen engagement, stakeholder management and internal governance to accelerate their path to climate neutrality. This makes them experimentation and innovation hubs to enable all European cities to follow suit by 2050.