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SPECIFIC GRANT AGREEMENT N°2 TO SCALE THE CITIES MISSION PLATFORM

Periodic Reporting for period 1 - SGA2-NZC (SPECIFIC GRANT AGREEMENT N°2 TO SCALE THE CITIES MISSION PLATFORM)

Reporting period: 2024-01-01 to 2025-06-30

This project provides support for the European Commission’s Climate-Neutral and Smart Cities Mission (“the Cities Mission”), for which the central tenet is to elevate and deepen the commitment to pursue systemic change through research and innovation, setting a 2030 climate-neutrality ambition for cities of unprecedented scope and scale. In order to achieve such effects, a demand-driven Mission Platform has been established to provide tailored assistance and services to participating cities and those learning from them. NetZeroCities was selected as part of the Horizon 2020 Work Programme to establish the Mission Platform, beginning work in October 2021. The scope of work presented herein comprises the second Specific Grant Agreement (SGA2-NZC) under the Framework Partnership Agreement (FPA-NZC) for the Mission Platform to scale and continue operations through 2027. Activities primarily focus on two areas: the first to develop basic Mission Platform services for other cities who are interested to reach to climate neutrality (Mission-minded cities), and the second to reinforce the support received by cities selected to participate in the Mission on financing their roadmap of activities towards climate neutrality.
In this first period, the foundations for the project areas were built. The project has launched the extension of Cities Mission’s services to cities beyond the initial 112 Mission Cities, ensuring that these Mission-minded cities are also supported in their pathways towards climate neutrality. Two needs assessment were delivered based on engagement with over 90 cities and national actors. Over 500 Mission-minded city representatives are now registered on the portal and the design of a new online Learning Hub and an Online learning programme were finalised, with 50 Mission-minded cities signed up for the first course scheduled for September 2025. The helpdesk was successfully launched and has become a key entry point for cities, providing onboarding guidance, one-to-one consultations, and targeted dissemination. Peer-to-peer learning programmes were also set up, including Online Discussion Groups (first cohort with 180 participants), Group Study Visits (first cohort prepared with 12 cities), and the Twinning Learning Programme (19 Mission Cities and an open call for Twin Cities launched). At national level, National platforms were activated to connect local authorities with ministries, energy agencies, and other key stakeholders, ensuring stronger policy coordination, collaboration between cities, and improved access to complementary funding streams. The project established a support strategy in over 30 countries, with the definition of a clustering model and the identification of subcontractors, where relevant. Five national events were held in this first phase and another 15 are in preparation to be hosted by the end of 2025.

As most Mission Cities received Mission Labels during the first period of the project for completing their Climate City Contracts, the consortium has been able to gradually shift the focus of support on implementation and enabling cities to obtain the capital necessary for delivering their planned actions. The Climate City Capital Hub was strengthened with additional resources across four key streams: City Finance Specialists (as key contacts for cities), Project Preparation (on technical assistance), Better Funding Dialogues (to address public funding challenges), and the Neutral Capital Centre (on financial assistance and investor engagement).

Operationally, the project has been well integrated into the suite of activities and governance structure of NetZeroCities, currently managing the Cities Mission platform. A key highlight has been the 2025 Cities Mission Conference in Vilnius, which served as a high-level platform for Mission Cities, NetZeroCities partners, EU institutions, and national and regional stakeholders to exchange knowledge and align strategies. As the biggest annual event to date, it showcased progress on Climate City Contracts, celebrated achievements, and helped define priorities for the next phase of the Mission’s implementation.
The work with Mission-minded cities aims to accelerate the achievement of climate-neutrality for all interested cities, whether for 2050 or even earlier such as 2030. The project aims to share and promote a mission-oriented approach, activating local ecosystems and implementing holistic planning frameworks, such as through a Climate City Contract. Key to this, is the distillation and connection to learnings from Mission Cities through their ongoing work, as well as a clear interest and motivation from Mission-minded cities, which can be facilitated and encouraged through strong commitments from national levels of government.

Through the work with Mission Cities on finance and investment, the project aims to provide the necessary support to bridge the climate financing gap in Mission Cities and enable their Climate City Contracts to become reality. While all cities and their climate projects are at different levels of development and maturity, continued engagement with cities to advance projects on one end and with investors to raise awareness of municipal projects on the other is necessary. Further work to create sector-based models for a head start to similar city projects, will also accelerate the targeted results. Finally, country-specific dialogues that are planned, may provide the key to further mobilising public finance in combination with private finance.
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