Source: European Investment Bank
- Most EU cities plan to invest more to fight global warming and expand public housing, schools and hospitals, new EIB survey shows.
- Of the EU municipalities surveyed, 56% report planning higher spending on cutting greenhouse gas emissions, and 53% on social infrastructure over next three years.
- Cities across Europe increasingly want to tap new sources of financing for development, on top of conventional 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 the new European Investment Bank (EIB) Municipalities Survey 2025. The survey shows that 56% of EU municipalities aim to increase investments to cut greenhouse gas emissions, and 53% intend to boost budgets for social infrastructure over the coming three years.
The EIB published a report on the survey 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 policy agenda for cities.
The survey sample includes 1 002 EU municipalities whose populations range in size from a few thousand to hundreds of thousands, for a total sample population of around 26 million (about 6% of the population of all 27 Member States). Every Member State is represented, with municipalities surveyed per country ranging from 131 in Germany and 107 in Italy, to five each in Cyprus and Luxembourg. Like the 2022 wave of the survey, the 2025 wave contains no country capitals, but does include some island and non-European territories. Municipalities’ responses were anonymised.
While national and EU grants remain the main sources of infrastructure funding for municipalities, more than half of them (61%) are interested in exploring other financing options, according to the survey report. This could, for example, include turning grants into guarantees that would then be used to attract higher levels of funding from institutions like banks.
“In a time of growing challenges, we must ensure that every euro invested delivers maximum impact,” EIB Vice-President Ioannis Tsakiris said. “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 Municipalities Survey 2025 provides a broad and detailed picture of development plans by municipal authorities, which account for about 54% of public investments in the European Union. In the area of climate action, this figure is about 60%.
In addition to finding that most EU cities plan to invest more in cutting emissions, the latest survey shows that around half also aim for greater spending on measures to adapt to climate change, including protection against threats like 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 EU cities is the shortage of experts needed to perform environmental assessments and of engineers to carry out projects, according to the 2025 wave of the 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 for project promoters, national, regional or local authorities and financial intermediaries.
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, high-impact investments outside the European Union, and the capital markets union.
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.
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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.
