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.
