As Europe accelerates its transition to climate neutrality, cities are stepping up. But this green transition comes with a significant challenge: financing. The European Commission estimates that with limited public subsidies, traditional financing methods will only cover 20-30% of the 1T3T of investment needed to achieve the necessary scale of the climate and energy transition. As it says Sylwia Słomiak, Senior Advisor for Climate Finance at Eurocities : "Cities, public authorities and regions must start looking elsewhere."

This reality forms the backdrop to the European Commission’s work on the upcoming Clean Industry Deal, a framework that promises to strengthen Europe’s industrial competitiveness while meeting ambitious climate goals. Cities are testing innovative financing models that reduce subsidy dependency, lower energy costs and promote long-term sustainability. However, regulations and a lack of resources still pose barriers for many cities to adopt these models. (More on eurocities.eu)