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 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 organizations 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 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,s 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, councilors, 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.”
