Climate City Capital Hub

The Capital Hub is an  innovative initiative aimed at facilitating both public and private finance for sustainable urban development, to advance Europe’s transition to climate neutrality. It empowers cities to achieve their climate goals and drive impactful projects, through both technical assistance and capital facilitation. The Capital Hub works closely with Mission Cities to move from climate action planning to implementation, with a range of support services and tools. 

Through the EU Mission on Climate-Neutral and Smart Cities, cities are at the forefront of decarbonisation efforts across Europe – driving change as trailblazers for climate action. The challenge is huge, but one by one cities have led the way with the development of Climate Action Plans to achieve emission reductions. Alongside the development of ambitious projects and transitions is the realisation that cities cannot fund the process on their own. Climate Investment Plans have been developed to identify what is possible with municipal funding and where there are funding gaps that will need to be plugged with external support from grants, public funding and private capital.

The Capital Hub, as part of the Cities Mission Platform managed by NetZeroCities, aims to provide the technical and financial assistance to Mission Cities that have received the Cities Mission Label to facilitate capital flows to ensure the full implementation of Climate Action Plans. The Capital Hub also provides support in relation to actions aimed at climate adaptation, with support from the EU Mission on Adaptation to Climate Change and its Platform MIP4Adapt.

In collaboration with the European Investment Bank (EIB), the Capital Hub works with cities to prepare their projects for financing. Together, the EIB and 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 Hub. Our team of experts, in partnership with the EIB, will assist cities by providing them the support they needed 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.  

The Capital Hub plays a pivotal role in working with cities to identify the most appropriate financial structure for their projects, acknowledging there are many ways a single project can be financed.  The Capital Hub considers all available public and private financing options. By leveraging diverse sources of capital, including public, private, and philanthropic funding, we enhance the fundability of city climate initiatives. Our team collaborates closely with municipalities to create investment plans that align with their specific financial needs and gaps, and the overarching goals of the European Green Deal. Through strategic partnerships and innovative financing mechanisms, we facilitate access to the necessary funding to turn ambitious climate projects into reality. 

The Capital Hub Portal Group serves as a dedicated online, interactive space for cities participating in the Climate City Capital Hub. Designed to streamline communication, collaboration, and knowledge-sharing among the city transition team, the Capital Hub Portal Group provides access to a range of tools and resources to support cities in their journey towards sustainable urban development. An events calendar is also available in the community with live registration. 

This innovative tool integrates emission profiles, action planning, and investment planning to assess the economic viability and potential impact of climate projects. The tool provides cities with valuable insights into the financial implications of their climate initiatives, facilitating informed decision-making.