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News
09 June 2026
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Building Decarbonisation

Building Decarbonisation Cities in campaign calls for stronger urban dimension in the next EU budget

A new position paper from the Building Decarbonisation Partnership outlines 10 recommendations to help cities accelerate building decarbonisation and deliver the EU's climate ambitions.

As discussions on the European Union's next Multiannual Financial Framework (MFF) for 2028–2034 take place, the Urban Agenda for the EU Building Decarbonisation Partnership has launched a new Position Paper calling for a stronger role for cities in the design and implementation of future EU funding programmes. 

The publication, Steering the Next MFF Towards Real Implementation, presents a set of ten recommendations aimed at ensuring that future EU investments better support local authorities in delivering portfolio-integrated and place-based decarbonisation initiatives, including building renovation, district heating and cooling transformation, and greening infrastructure. The recommendations build on the Partnership's work over the past years and draw on evidence gathered through technical studies, financial analyses, and city case studies from across Europe.

Why does the next MFF matter for cities? 

Europe stands at a pivotal moment. As the European Union defines the next Multiannual Financial Framework (MFF) for 2028–2034, decisions taken over this and next year will shape the continent’s ability to deliver on its climate and competitiveness goals for decades to come. However, neither subsidies nor loans alone will activate the market and deploy the capital required to achieve the scale and pace European cities need. For that to happen, a new way of combining different sources of public and private capital, asset classes, and governance structures. 

According to the Position Paper, current funding instruments have helped unlock important investments but have often remained fragmented across policy areas, funding streams, and governance levels. As a result, many municipalities continue to face barriers in accessing finance, preparing projects, and implementing integrated decarbonisation programmes. Although the EU Cities Agenda demonstrates the key role cities play within EU policies and objectives, the current proposal does not present specific or clear earmarked resources for them.  The Partnership argues that the next MFF presents a unique opportunity to address these challenges and move from climate ambition to implementation. 

Cities become reliable delivery partners when they have access to technical assistance and dedicated support structures for project preparation. Streamlining different technical assistance programmes and investment funds with each other in a ‘investment pipeline journey’ is key, to make sure cities and municipalities have access to this technical assistance and simultaneously increase the effectiveness that these result in actual investments. 

Ighor Van de Vyver, City of Mechelen, co-coordinator of the Building Decarbonisation Partnership 

Ten recommendations for a more effective EU budget 

Contributing to the debate on the future MFF 

The Position Paper comes at a critical moment in the negotiations on the future MFF. The Partnership shows that cities are not only beneficiaries of EU funding but essential delivery partners for achieving European climate, energy and competitiveness objectives. It therefore calls on EU institutions and Member States to ensure that future funding frameworks reflect local implementation realities and provide cities with the resources, flexibility and governance role needed to deliver results on the ground. 

Help us amplify this call 

The Building Decarbonisation Partnership invites cities, regions, financial institutions, civil society organisations, housing providers, researchers, and other stakeholders to engage with and support its recommendations for the next MFF. 

As negotiations within the European Parliament and Council continue over the coming months, the Partnership will work with policymakers and stakeholders across Europe to advocate for a future EU budget that enables integrated urban decarbonisation, strengthens multilevel governance, and empowers cities to accelerate the transition towards climate-neutral neighbourhoods. 

Stakeholders interested in contributing to this discussion are encouraged to connect with the Partnership and help amplify the call for a stronger urban dimension in the next generation of EU funding programmes.  

Get in touch with us: bd-coordinators@urbaninitiative.eu   

All across Europe, we have seen outstanding examples of how local, regional, and national governments, in true multi-level collaborations, can deploy European financial instruments and facilities in a catalytic and impactful way. Such public support is fundamental for local authorities of all sizes to strengthen their efforts towards the objectives of the European Green Deal and continue to fulfil the vision of the first EU Agenda for cities. 
We hope these recommendations, along with real-life examples, can help EU co-legislators create a clear path for civil servants and their citizens to create more sustainable and just cities.   

Franco Crudi, Green Finance Institute Spain, Local Mission Spain Lead