Publications Europe Local authorities

The climate transition and local public investment capacity

27 September 2024 - Foreword of the week - By : François THOMAZEAU

Europe’s local authorities have a crucial role to play in meeting the EU’s objective for climate neutrality in 2050 and the critical milestones for emission reductions in 2030. They manage important building stocks and transport networks, develop climate strategies, action and investment plans, while engaging stakeholders and citizens in the climate transition.

 

Turning climate policy ambition into reality, local authorities are responsible for implementing a lot of EU’s Green Deal legislative measures. The EU’s high-profile Mission for 100 Climate Neutral and Smart Cities by 2030 recognises this central role with a pledge for leading cities to trace a fast track towards a climate neutral urban future for others to follow. 

 

Climate transition at local level requires scaling up building renovations, reinforcing sustainable transport infrastructure and investing in energy efficiency. This requires significant investments, in a period where public budgets are squeezed across Europe. But what are the actual public investment needs and do local authorities have the necessary financial capacity to invest in the climate transition? Our recent I4CE study of the situation of local authorities in France makes three important conclusion: 1) local public climate investments have leaped forward with an 44% increase between 2017 and 2022;  2) investments must more than double until 2030 to align with the climate goals established at the national and EU level, and 3) local authorities will not be able to both step up the transition investments and reduce their budget deficit at the pace planned by the previous French government.  

 

The I4CE study focusses on France, but the methodological building blocks applied can be used in other European countries and at the EU level. Although the investment needs of local authorities will vary depending on geographical and socio-economic factors, local leaders across the EU face similar challenges of financing the climate transition through a mix of finance and policy measures. As part of an EU-scale project, I4CE is working with French cities to assess the costs of achieving climate objectives and to identify financial options to meet the investment demand. It will support a much better understanding of what a trajectory of local public finances compatible with the climate transition could look like across the EU as an investment-focused European Commission takes up its seat, and critical debates on the next long term EU budget are just around the corner. 

 

Read the newsletter

I4CE Contacts
François THOMAZEAU
François THOMAZEAU
Programme director - Local authorities and Adaptation to climate change Email
To learn more
  • 09/05/2025 Foreword of the week
    2030 and Beyond: Budgeting Europe’s Climate Transition

    The next long term EU budget will take us through the 2030 goal posts, by when GHG emissions should be down by 55%. It will also lay the groundwork for investing in a climate-neutral future for the continent towards the yet-to-be agreed objectives for 2040. So, when the European Commission presented its proposal for a €2 trillion multiannual financial framework (MFF) just before the summer break, there was good reason to carefully study the details from the perspective of closing the EU’s climate investment deficit.  

  • 09/03/2025
    State of EU progress to climate neutrality – ECNO 2025 Flagship report

    Europe is making progress on the clean transition, but the pace is too slow across several parametres. ECNO’s analysis is structured around 13 building blocks of the transition, tracking changes in the six-year trend for nearly 150 indicators and also the expected impact of policies – a new addition to this year’s report. In the 2025 edition, we also analysed the changes through the lens of broader EU objectives, namely competitiveness, resilience, and citizens’ well-being. 

  • 07/24/2025 Blog post
    Can the next EU budget point the way to an investment plan for climate transition?

    In July, Commission President von der Leyen announced a €2 trillion EU budget fit “for a new era,” set to launch for a seven-year period in 2028. As EU-watchers in Brussels and beyond scrambled to digest the reams of legislative proposals that followed this headline-grabbing announcement, much in the detail should give pause – especially from the perspective of closing the EU’s climate investment deficit.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer