Unlocking funding for climate-neutral cities
In The News
04 Sep 2024
NetZeroCities, led by EIT Climate-KIC, has launched the Climate City Capital Hub (The Capital Hub) with the European Commission to help cities unlock new funding sources on their path to climate neutrality. The Capital Hub is an innovative initiative that aims to facilitate public and private finance for sustainable urban development to drive Europe’s transition to climate neutrality. It empowers cities to achieve their climate targets and drive impactful projects through both technical assistance and capital facilitation.
Finance is a key aspect of cities achieving climate neutrality as it enables essential infrastructural, political and technological innovations that are necessary for sustainable development. It also supports the research and development of innovative solutions and the scaling up of successful pilot projects as well as facilitates the adoption of policies and incentives that encourage businesses and communities to adopt environmentally friendly practices. To meet these needs, the launch of the Capital Hub is one of the key milestones in NetZeroCities’ efforts to support Mission Cities on their journey towards financing the transition.
“With the launch of the Climate City Capital Hub and our deepening collaboration with the European Investment Bank, there’s hope that this effort is one we’ll look back on 20 years from now with a real sense of legacy, one in which cities found a way to mobilise and deploy capital for a climate-resilient, sustainable, and just transition,” said Thomas Osdoba, NetZeroCities Director at the launch in Valencia.
The Capital Hub, as part of the Cities Mission Platform managed by NetZeroCities, will provide cities access to financial advice and technical assistance to make climate projects ‘investment ready’ and connect them to public and private investors. The Capital Hub works closely with Mission Cities and the European Investment Bank (EIB) to move from climate action planning to implementation.
The initiative offers a suite of tools to assist cities in navigating the complex landscape of funding and financing options for sustainable urban development. These tools include a Finance Guidance Tool, Knowledge Repository, Climate Investment Tool and the Community. The Capital Hub aims to provide a platform to:
- Support cities through the project preparation process to ensure projects are investment-ready;
- Help cities identify and access the technical assistance required for project development using both in-house expertise and connections to existing technical assistance programmes;
- Provide financial assistance and structuring for funding projects and pools of projects;
- Provide access to a range of public and private capital providers (including lenders and investors) and support the process of deal closure.
Together, the EIB and the Capital Hub provide practical support and tools to help develop investment projects aimed at decarbonising cities. Mission Cities stakeholders, including local governments, can submit impactful projects to the Capital Hub. Dedicated experts will assist cities by providing them the support they need to get a project investment ready. This may include, among other services: support with design and project documentation; financial feasibility analysis and business model review, for instance.
“It is great to see the EU Missions on Cities and on Adaptation to Climate Change come together and join forces. 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,” said Iliana Ivanova, Commissioner for Innovation, Research, Culture, Education and Youth at the European Commission, when announcing the launch of the Capital Hub.
The Climate City Capital Hub represents a significant leap forward in the journey towards climate neutrality for Mission Cities. By providing a comprehensive suite of financial and technical resources, it empowers them to transform ambitious climate plans into actionable projects. This initiative strengthens the collaboration between public and private sectors and fosters innovation and resilience in urban development.
