EU launches €650 billion climate hub to help 112 cities achieve net zero by 2030.

• A new Climate City Capital Hub to support EU cities in achieving their climate goals.
• Investments worth €650 billion are needed for 112 cities to reach net zero by 2030.
• The EIB will allocate EUR 2 billion for urban climate projects.

The European Commission has launched the Climate City Capital Hub to provide financial support and advice to cities working towards climate neutrality. With an investment target of €650 billion, the initiative will leverage public and private capital, with the support of the European Investment Bank (EIB). The center will help 112 EU and associated cities, including those covered by the EU’s Climate Neutral and Smart Cities mission, to develop and implement climate action plans.

A new financial center supporting climate change mitigation and adaptation

The European Commission has created the Climate City Capital Hub to support cities as part of the EU Mission for Climate Neutral and Smart Cities. This international finance source will provide financial advice, help you determine your financing needs and present projects to various capital providers.

“Historically, cities have not been significant partners of the private sector, but progress can be much faster if private capital is more involved,“ said Allison Lobb, executive director of Bankers Without Boundaries.

Investments and support:

• The EIB has allocated EUR 2 billion for cities with the “Mission Cities” label to invest in energy-efficient buildings, renewable energy and sustainable infrastructure.
• 33 cities received the EU Cities Mission Label, committing €114.1 billion to climate action, an average of €3.6 billion per city.
• The Centre aims to engage private capital and innovative financial solutions such as crowdfunding and sustainability-linked bonds.

“The EIB provides over a quarter of our loans to cities, and as Europe’s climate bank, we are keen to work with cities to help them implement climate neutrality investments.“ said Teresa Czerwińska, Vice-President of the EIB.

Ambitious goals: The initiative targets 112 cities that are committed to net zero emissions by 2030, requiring a total investment of €650 billion. Cities including Lyon, Seville, Malmo, Lisbon and Florence are developing climate plans with the support of the EU and Bankers Without Borders.

“Cities account for over 70% of global CO₂ emissions and consume over 65% of the world’s energy. Urban action is key to mitigating climate change,“ – emphasized the European Commission.

Next steps:

• The Climate City Capital Hub, managed by NetZeroCities, was announced at the Cities Mission 2024 conference in Valencia.
• The center will provide comprehensive services in the field of both mitigation and adaptation projects, with particular emphasis on the involvement of private capital.

The EU’s Climate Neutral and Smart Cities mission and the Climate Capital Center represent significant steps towards achieving climate neutrality, supporting innovation and mobilizing significant investments to support cities in their climate efforts.

Background:

Cities account for over 70% of global CO₂ emissions and consume over 65% of the world’s energy. Action in urban areas is key to mitigating climate change and can make a significant contribution to accelerating efforts to achieve a legally binding commitment to climate neutrality across the EU by 2050, as well as meeting the EU’s target of reducing greenhouse gas emissions by 55%. by 2030 and, more generally, the implementation of the European Green Deal. The EU Cities mission aims to help European cities become climate neutral, offering their citizens cleaner air, safer transport and less congestion and noise.

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In April 2022, 100 cities in the EU and 12 cities in countries associated with the EU’s Horizon Europe research and innovation program were selected to participate in the mission. They are testing innovative cross-sectoral approaches, including citizen engagement, stakeholder management and internal governance, to accelerate their path to climate neutrality. This makes them centers of experimentation and innovation, thanks to which all European cities will be able to follow suit by 2050.