European Environment Initiative (EURENI)

Project background

Across Europe, municipalities play a pivotal role in driving the sustainability transition to meet environmental goals. However, they face substantial financial hurdles. In Belgium, Germany, and the Czech Republic, national financing frameworks are insufficiently equipped to support municipalities in fulfilling the ambitious objectives set by the European Green Deal and the EU Mission for 100 Climate-Neutral and Smart Cities by 2030. This financing gap poses a critical challenge, as cities are directly responsible for implementing key actions that are aligned with these objectives. Without adequate funding and support, they struggle to implement systemic changes required by initiatives such as Local Green Deals (LGDs) and Climate City Contracts (CCCs).

Challenges in financing the sustainability transition affect not only municipalities but also public and private banks, as well as the private sector. Structural improvements are needed across all levels—local, regional, national, and EU – to establish a financial system that enables municipalities to attract and manage sustainable investments effectively.

Building on the preceding project, "Turnaround Money I: Proposals for Local Sustainable Finance Action Plans," this project expands on key insights and collaborations: A key finding from Turnaround Money I were critical structural and regulatory obstacles to involving local and private capital in municipal sustainability transitions. In response, Turnaround Money II engages key actors across governance levels to promote regulatory and structural solutions that enable municipalities to meet their environmental goals.

Turnaround Money II directly addresses the financing gap faced in Belgium, Germany, and the Czech Republic while also promoting solutions at the European level and to a broader network of European cities.

Project goals and measures

The project’s core objective is to enable cities to implement their environmental objectives through improved financial structures.To this end, the project organizes a series of workshops involving representatives from national and local governments, public and private banks, institutional investors, industry leaders, and municipalities.

Three workshops will be held in Germany, activating existing networks and processes to initiate cross-sector dialogue. Workshops in the Czech Republic and Belgium will integrate unique national perspectives and initiatives to advance the local sustainability transitions. Each workshop will address financing challenges specific to these national and sometimes regional context and explore viable solutions such as hybrid financing models and regulatory reforms. For instance, the first workshop in Germany will focus on how public-private funds can leverage equity of municipal utilities to support the transition towards a renewable energy-based heat supply in their cities.

The project culminates in a workshop in Brussels, bringing together stakeholders from EU cities, relevant EU Directorates, and local governments to share insights and develop concrete recommendations. This event supports the EU’s multi-level governance approach and aims to improve financing frameworks for municipalities to meet their climate and environmental objectives. Through these measures, the project fosters cross-sector partnerships, aligns priorities across governance levels, and lays the groundwork for sustainable municipal financing solutions.