Putting cities at the heart of energy transition
Endeavouring to become the first climate-neutral continent by 2050, Europe has set ambitious targets as outlined in the European Green Deal, which aims to mobilise at least EUR 1 trillion for sustainable investment over the next decade. Complementary initiatives such as NextGenerationEU also contribute to fostering environmentally friendly technologies. However, public funds alone will not suffice to propel Europe entirely towards an energy transition, necessitating the mobilisation of private sources.
Placing energy transition in local hands
Anke Möllers, coordinator of the EU-funded EUCF project, highlighted the challenges faced – particularly by smaller municipalities – in accessing funding for energy efficiency projects due to lack of capacity and the knowledge on financing opportunities. The EUCF initiative steps in to address this gap by empowering local leaders to develop investment concepts that translate project ideas into financial language, facilitating the mobilisation of public and private finance. Since its beginning in August 2019, the EUCF has supported more than 280 municipalities in identifying sustainable energy projects and preparing their roadmap towards finance and implementation. The ongoing and forthcoming calls for applications under the EUCF provide further opportunities for local authorities to benefit from financial and technical support. The extension of the initiative until 2027 reflects its significance in aiding municipalities in mobilising investment starting from their energy and climate plans. By the end of the initiative, at least 422 local authorities across eligible countries will have received support from the EUCF. Energy efficiency measures in public and residential buildings, along with building-integrated renewables, constitute the primary sectors supported by the EUCF projects – representing over 50 % of the financed investment concepts. Additionally, sectors such as district heating, innovative energy infrastructure and sustainable urban mobility also receive attention.
The road ahead
“The importance of the EUCF is evident in its role as a catalyst for municipalities, enabling them to initiate studies, identify investment potentials and prioritise respective measures for sustainable energy investments. The activities funded by the EUCF grant foster the development of credible and scalable investment projects that attract both public and private investment,” says Möllers. The collaboration between the EUCF and other EU initiatives, such as Covenant of Mayors, NetZeroCities, Smart Cities Marketplace and ManagEnergy underscores the collective effort toward city transformation and sustainable development. By bridging the gap between local energy and climate plans and their implementation, the EUCF accelerates investments and jump-starts sustainable energy projects, contributing to the EU's broader climate objectives. The EUCF initiative, which continues under the EU-funded LIFE Programme, plays a pivotal role in facilitating the transition to a climate-neutral economy for municipalities. Through its comprehensive approach to financing and technical assistance, the EUCF empowers local authorities to drive impactful change and contribute to Europe's journey toward a greener future.
Keywords
EUCF, cities, energy transition, investment concepts, renewable energy, calls for applications