The Commission is setting up a new Climate City Capital Hub, an international finance resource to further support cities participating in the EU Mission on Climate-Neutral and Smart Cities.
Thanks to the new hub, 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 (EIB);
- 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 of deal closure.
Complementing EIB services, the Climate City Capital Hub will be created with the support of both the EU Mission on Climate-Neutral and Smart Cities Mission and the EU Mission on Adaptation to Climate Change. Its particular focus will be 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, taking a holistic approach to tackling climate change.
The hub will be run by the Commission’s Cities Mission implementation platform, which is currently managed by the project NetZeroCities. The Commission announced its creation at the 2024 Cities Mission conference held in Valencia on 25 and 26 June.
In addition, the EIB has earmarked a lending envelope of €2 billion dedicated to cities with the Cities Mission Label 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 reinforces the EIB support to labeled cities and adds a dedicated finance facility to advisory services.
