Highlights
- Most EU cities plan more investments to fight global warming and expand public housing, schools and hospitals, new EIB survey shows.
- Of EU municipalities surveyed, 56% to spend more on cutting greenhouse gas emissions and 53% to boost budgets for social infrastructure over next three years.
- Cities across Europe increasingly want to tap new sources of financing for development on top of traditional national and EU grants.
Most cities in Europe plan to spend more on fighting climate change and increasing public housing, schools and hospitals, according to a new European Investment Bank (EIB) survey. The EIB's "2025 Municipalities Survey" signals that 56% aim for greater investments to cut greenhouse gas emissions and 53% intend to boost budgets for social infrastructure over the coming three years.
The EIB published the report today to coincide with a conference in Brussels by the European Committee of the Regions to discuss urban investment needs in Europe and support the EU's policy agenda for cities.
The survey covers 1,002 EU municipalities whose populations range in size from several thousand to hundreds of thousands, with the combined total being around 26 million (about 6% of the total EU-27 population). Municipalities in every Member State are represented, with the numbers ranging from 131 in Germany and 107 in Italy to five each in Cyprus and Luxembourg. As with the previous survey in 2022, national capitals and territories outside of Europe are excluded and the cities that took part did so on an anonymous basis.
While national and EU grants remain the main sources of infrastructure funding for municipalities, more than half - 61% - of them are interested in exploring other financing options, according to the new report. This could, for example, include turning grants into guarantees that would then be used to attract funding at higher levels from organisations such as banks.
"In a time of growing challenges we must ensure that every euro invested delivers maximum impact," said EIB Vice-President Ioannis Tsakiris. "This means leveraging innovative financing solutions to support municipalities in accelerating climate action and other key priorities. The EIB remains committed to working alongside European cities to develop and implement the tools they need to build a more sustainable and resilient future."
The EIB's municipality survey provides a broad and detailed picture of development plans by authorities who account for about 54% of public investments in the EU. In the area of climate action, municipalities account for about 60% of investments.
In addition to finding that most cities in the EU plan to invest more to slash emissions, the latest survey shows that around half also aim for greater spending on measures to adapt to climate change. This type of activity includes protection against threats such as floods and fires.
"Municipalities across Europe are showing strong commitments to the green transition," said EIB Chief Economist Debora Revoltella. "Turning these commitments into tangible results will require continued political and policy support at all levels."
A persistent challenge for many cities in the EU is a shortage of experts to perform environmental assessments and of engineers to carry out projects, according to the latest survey. Up to 30% of municipalities reported a lack of technical expertise in these areas.
The EIB is helping meet this challenge by providing technical, financial and strategic expertise to cities. EIB engineers and economists appraise every project financed by the bank. This expertise is also available in the form of advisory support to project promoters, national, regional or local authorities and financial intermediaries
"This timely and insightful EIB report confirms what local leaders across Europe have long known: our towns and cities are at the heart of Europe's greatest challenges from the climate crisis to the housing emergency," said Kata Tüttő, President of the European Committee of the Regions. "The figures speak clearly, but behind them are mayors, councillors, and citizens striving every day to make lives better. The partnership between the European Committee of the Regions and the European Investment Bank is vital to unlocking the full potential of our cities by empowering local ambition, innovation, delivering high-quality public investment, and ensuring that no community is left behind or lost in the race to adapt to a fast-changing world."
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
The EIB Group, which also includes the European Investment Fund (EIF), signed nearly 89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe's competitiveness and security.
All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group's annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Fostering market integration and mobilising investment, the Group supported a record of over 100 billion in new investment for Europe's energy security in 2024 and mobilised 110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.
High-quality, up-to-date photos of our headquarters for media use are available here.
European Committee of the Regions
The European Committee of the Regions is the EU's assembly of regional and local representatives from all 27 Member States. Created in 1994 following the signing of the Maastricht Treaty, its mission is to involve regional and local authorities in the EU's decision-making process and to inform them about EU policies. The European Parliament, the Council and the European Commission consult the Committee in policy areas affecting regions and cities. To sit on the European Committee of the Regions, all of its 329 members and 329 alternates must either hold an electoral mandate or be politically accountable to an elected assembly in their home regions and cities.
