Periodic Reporting for period 3 - PROSPECTplus (Capacity building for cities and regions - from learning to action!)
Reporting period: 2024-01-01 to 2025-03-31
Across Europe, local and regional authorities (LRAs) are at the forefront of implementing climate and energy policies, yet they face persistent barriers that hinder their ability to invest in sustainable energy and climate actions. Despite their strategic position and legal responsibilities, many LRAs—especially smaller municipalities—struggle with limited financial resources, lack of in-house expertise, and insufficient access to practical guidance on the use of innovative financing mechanisms. These challenges impede their capacity to plan and deliver climate-resilient infrastructure and services, slowing down the achievement of the EU’s 2030 and 2050 climate goals.
Addressing these structural gaps is not only an environmental imperative but a social and economic necessity. Empowering LRAs to drive the clean energy transition contributes to climate mitigation, improved air quality, and job creation at the local level—benefits that directly impact citizens’ well-being. Moreover, shifting from traditional subsidies to innovative, blended finance models is essential for ensuring the long-term viability of local climate investments, especially in light of increasing investment needs estimated at €396 billion per year during 2021–2030.
To tackle these barriers, the PROSPECT+ project (2021–2025), funded under the Horizon 2020 programme, designed and delivered a comprehensive peer-to-peer Capacity Building Programme (CBP) aimed at building the skills and confidence of LRAs to plan, finance, and implement sustainable energy actions. Building on the success of the original PROSPECT project, PROSPECT+ expanded its reach to over 290 public authorities from 27 countries, forming 55 learning groups across four learning cycles. The programme centred on five thematic areas—public buildings, private buildings, transport, public lighting, and cross-sectoral projects—and covered 13 innovative financing schemes such as Energy Performance Contracting, citizen finance, revolving funds, and green bonds.
The main objectives of PROSPECT+ were to:
- Strengthen local institutional capacity through practical training and peer learning.
- Facilitate knowledge transfer and replication of good practices in sustainable finance.
- Develop and disseminate practical tools, such as SYNERGISE+ and the Finance Readiness Tool, to support informed decision-making and project development.
- Bridge the gap between local-level practice and EU-level policymaking through stakeholder dialogues and policy recommendations.
As the project concludes, PROSPECT+ has demonstrated that well-structured peer learning, complemented by accessible tools and targeted support, can unlock the potential of LRAs to lead the energy transition. The project's high satisfaction rate (99%), strong evidence of replication, and engagement of over 1,000 public officers affirm the effectiveness of its approach. Going forward the action will continue under the PROSPECT CUBE project (starting October 25) where the forthcoming Virtual Learning Environment (VLE) hosted by Energy Cities will ensure that this momentum is sustained and scaled across Europe, embedding capacity building as a cornerstone of local climate action.
Addressing these structural gaps is not only an environmental imperative but a social and economic necessity. Empowering LRAs to drive the clean energy transition contributes to climate mitigation, improved air quality, and job creation at the local level—benefits that directly impact citizens’ well-being. Moreover, shifting from traditional subsidies to innovative, blended finance models is essential for ensuring the long-term viability of local climate investments, especially in light of increasing investment needs estimated at €396 billion per year during 2021–2030.
To tackle these barriers, the PROSPECT+ project (2021–2025), funded under the Horizon 2020 programme, designed and delivered a comprehensive peer-to-peer Capacity Building Programme (CBP) aimed at building the skills and confidence of LRAs to plan, finance, and implement sustainable energy actions. Building on the success of the original PROSPECT project, PROSPECT+ expanded its reach to over 290 public authorities from 27 countries, forming 55 learning groups across four learning cycles. The programme centred on five thematic areas—public buildings, private buildings, transport, public lighting, and cross-sectoral projects—and covered 13 innovative financing schemes such as Energy Performance Contracting, citizen finance, revolving funds, and green bonds.
The main objectives of PROSPECT+ were to:
- Strengthen local institutional capacity through practical training and peer learning.
- Facilitate knowledge transfer and replication of good practices in sustainable finance.
- Develop and disseminate practical tools, such as SYNERGISE+ and the Finance Readiness Tool, to support informed decision-making and project development.
- Bridge the gap between local-level practice and EU-level policymaking through stakeholder dialogues and policy recommendations.
As the project concludes, PROSPECT+ has demonstrated that well-structured peer learning, complemented by accessible tools and targeted support, can unlock the potential of LRAs to lead the energy transition. The project's high satisfaction rate (99%), strong evidence of replication, and engagement of over 1,000 public officers affirm the effectiveness of its approach. Going forward the action will continue under the PROSPECT CUBE project (starting October 25) where the forthcoming Virtual Learning Environment (VLE) hosted by Energy Cities will ensure that this momentum is sustained and scaled across Europe, embedding capacity building as a cornerstone of local climate action.
From its launch in June 2021 to its conclusion in March 2025, the PROSPECT+ project has delivered a robust and impactful peer-to-peer capacity-building programme to help local and regional authorities (LRAs) finance and implement their sustainable energy and climate plans. The project addressed the lack of technical capacity and financing know-how among municipalities—particularly smaller and less experienced ones—by enabling them to learn directly from peers who had successfully implemented innovative financing schemes.
The core of the project was its four Learning Cycles (LC1–LC4), during which 290 public authorities from 27 European countries participated in 55 learning groups, facilitated by internal and external mentors. These groups addressed five thematic areas—public buildings, private buildings, transport, public lighting, and cross-sectoral projects—and explored 13 different innovative financing mechanisms including Energy Performance Contracting (EPC), citizen finance, guarantee funds, green bonds, and ELENA. Over 1,000 stakeholders were engaged, and 219 authorities completed the full learning cycle.
In addition to peer exchanges, PROSPECT+ developed a suite of practical tools and resources to support municipalities beyond the project duration. These include:
The Finance Readiness Tool, developed by adelphi, enabling authorities to self-assess the financial maturity of their energy projects.
SYNERGISE+, an Excel-based tool and accompanying guide developed by IEECP, helping cities prioritise SECAP actions and align them with strategic objectives.
The Decision Matrix Tool, assisting local governments in selecting the most appropriate financing instrument based on project and contextual characteristics.
Six thematic handbooks and a glossary of financial terms, offering actionable guidance, real-life case studies, and capacity-building materials.
Dissemination and outreach were central to PROSPECT+’s strategy. The project maintained a strong online presence through its website, social media channels, and YouTube videos. Two EU-level Masterclasses were held in Brussels to reinforce advanced learning and peer exchange. The project also hosted a session at the 2024 Smart City Expo World Congress and contributed to the European Week of Regions and Cities.
In terms of policy impact, PROSPECT+ organised two high-level Policy Dialogues and conducted extensive stakeholder consultations involving over 200 actors across 20 Member States. The findings informed a set of policy recommendations to improve local access to innovative finance, reduce administrative burdens, and support a shift away from grant dependency. These insights were shared with key EU institutions including DG ENER, DG REGIO, CINEA, and the Committee of the Regions.
The core of the project was its four Learning Cycles (LC1–LC4), during which 290 public authorities from 27 European countries participated in 55 learning groups, facilitated by internal and external mentors. These groups addressed five thematic areas—public buildings, private buildings, transport, public lighting, and cross-sectoral projects—and explored 13 different innovative financing mechanisms including Energy Performance Contracting (EPC), citizen finance, guarantee funds, green bonds, and ELENA. Over 1,000 stakeholders were engaged, and 219 authorities completed the full learning cycle.
In addition to peer exchanges, PROSPECT+ developed a suite of practical tools and resources to support municipalities beyond the project duration. These include:
The Finance Readiness Tool, developed by adelphi, enabling authorities to self-assess the financial maturity of their energy projects.
SYNERGISE+, an Excel-based tool and accompanying guide developed by IEECP, helping cities prioritise SECAP actions and align them with strategic objectives.
The Decision Matrix Tool, assisting local governments in selecting the most appropriate financing instrument based on project and contextual characteristics.
Six thematic handbooks and a glossary of financial terms, offering actionable guidance, real-life case studies, and capacity-building materials.
Dissemination and outreach were central to PROSPECT+’s strategy. The project maintained a strong online presence through its website, social media channels, and YouTube videos. Two EU-level Masterclasses were held in Brussels to reinforce advanced learning and peer exchange. The project also hosted a session at the 2024 Smart City Expo World Congress and contributed to the European Week of Regions and Cities.
In terms of policy impact, PROSPECT+ organised two high-level Policy Dialogues and conducted extensive stakeholder consultations involving over 200 actors across 20 Member States. The findings informed a set of policy recommendations to improve local access to innovative finance, reduce administrative burdens, and support a shift away from grant dependency. These insights were shared with key EU institutions including DG ENER, DG REGIO, CINEA, and the Committee of the Regions.
PROSPECT+ has strengthened the ability of local authorities to adopt innovative financing by embedding capacity-building in real-world decision-making. Beyond knowledge transfer, the project addressed systemic barriers such as low financial confidence and fragmented governance through tailored peer exchange and accessible, user-driven tools.
Its stakeholder consultations informed policy recommendations now circulating among EU institutions. The upcoming Virtual Learning Environment ensures continuity, scaling support beyond the project’s end.
The project’s societal impact is already visible: increased collaboration, greater confidence among municipalities, and enhanced readiness to deliver local projects with long-term social, economic and environmental value aligned with EU climate targets.
Its stakeholder consultations informed policy recommendations now circulating among EU institutions. The upcoming Virtual Learning Environment ensures continuity, scaling support beyond the project’s end.
The project’s societal impact is already visible: increased collaboration, greater confidence among municipalities, and enhanced readiness to deliver local projects with long-term social, economic and environmental value aligned with EU climate targets.