During the two days of the Intelligent Cities Challenge (ICC) Strategy City Lab (23-24 November), an important focus was made on the Access to Finance in the context of the Green and Digital Transition. Across the discussions on the Access to Finance, the audience were able to learn about Szombathely's strategic planning, Chalkida's crisis-driven efforts with the support of ICC, the European Commission's Cohesion Policy, insights into the Recovery and Resilience Facility, the European Investment Bank's urban project support, and key takeaways from the Innovation Fund and city experiences.
Fireside chat: How cities can benefit from EU and national financial frameworks?
Adrienn Bokányi, Vice Mayor of Szombathely (Hungary), highlighted the municipality's significant achievements in strategic planning and programme development spanning four years. Underlining their commitment to the Twin Transition, Bokányi emphasised on projects ranging from senior care to smart room initiatives. Notably, she showcased the City’s evolution on its Green Transition, with a focus on a hydrogen flagship project. The City’s projects are part of their global strategy, Szombathely 2030, developed with the support of the ICC.
Pantelis Koukos, representing the City of Chalkida (Greece), discussed the complexity of their urban journey. Notably, Koukos underscored the pivotal role of the ICC in sustaining municipal efforts, especially during a crisis. He emphasised on the importance of networking, collaboration, and community communication as it is a key component of successful transitions toward Green and intelligent urban landscapes.
Financing the green and digital transition
The panel discussion on Financing the Green and Digital transition covered a range of topics, including the new European Bauhaus, greening cities, and sustainable tourism. Additionally, the conversation addressed the significance of mobilising private sector investment is crucial to facilitate faster growth in climate investment.
“The European Commission's Cohesion Policy prioritises competitiveness and green transition, allocating significant funding for cities”. Gergana Miladinova, Deputy Head of Unit on Inclusive growth, Directorate General for Regional and Urban Policy, European Commission, presented the Cohesion Policy 2021-2027 and its focus on competitiveness, green transition, and social inclusivity.
The Recovery and Resilience Facility, the centrepiece of NextGeneration EU, was presented by Emmanuel Buttin, Policy officer, Recovery and Resilience Task force, Secretariat-General, European Commission, as a crucial tool for cities to innovate and work on their Green and Digital transition. The programme is a great place to start to find interesting funding as it has a budget of €723.8 billion in grants and loans.
To support and finance Climate change, the European Investment Bank developed a Lending, Blending, Advising programme. Bianca Faragau, Policy Officer at the European Investment Bank, detailed the three parts of the programme and highlighted the need to mobilise private investment as well to ensure easier and quicker growth in climate investment.
The newly opened Innovation Fund calls were presented as a great opportunity for decarbonisation projects as they can cover up to 60% of relevant costs. It is a definite significant opportunity for cities. Philip Hawkins, Policy Officer, Directorate-General for Climate Action, European Commission, emphasised on the geographical balance and growing opportunities. More information about these opportunities can be found in our article on the topic.
Cities’ challenges and best practices regarding Funding opportunities
Following the panel discussion and the presentation of the currently available funding opportunities, cities gathered in a workshop setting to discuss their challenges and best practices regarding funding.
The cities of Mantova (Italy), Thessaloniki (Greece), Pescara (Italy), and the Sorigué Group, private company (Spain) shared their diverse challenges and strategies regarding funding. They specially highlighted the need of coordinated structures, and the importance of urban planning for carbon neutrality. The importance of public-private partnerships was also emphasised to address social needs and population growth.
The City Lab's discussions underscored the crucial role of finance in driving sustainable urban transitions. From navigating challenges to leveraging funding opportunities like the Innovation Fund, cities are actively shaping their futures. The emphasis on collaboration, communication, and long-term planning emerged as key takeaways.
Read more information and takeaways from the ICC Strategy City Lab in our Summary article.