How can cities and national platforms shape the next EU budget to fund urban climate transitions?

On 13 October, CapaCITIES and NetZeroCities, initiatives supporting the implementation of the EU Mission of 100 Climate Neutral and Smart Cities by 2030, brought together more than 100 participants to explore how cities and national platforms can influence the National and Regional Partnership Plans (NRPPs) and help secure funding for urban climate transitions.

The next Multiannual Financial Framework (2028-2034) could significantly reshape how EU funding reaches cities and regions. Under the Commission’s proposal, €865 billion would be channeled through NRPPs, bringing together funding for a broad range of EU policies, including cohesion, agriculture and fisheries, within a more integrated framework.

With a stronger role for national planning, cities will need to ensure that their priorities are reflected in funding decisions alongside a broad range of competing needs. As discussions on the next EU budget progress, one message from our webinar was clear: cities need to engage now to help shape the plans and safeguard investment in their priorities.

Goksen Sahin (ICLEI Europe) opened the webinar with an overview of the European Commission’s proposal for the next EU budget and the state of negotiations. The Council Presidency’s latest negotiating box proposes a smaller overall budget than the Commission originally put forward, with no dedicated urban funding earmark identified in the proposal. Meanwhile, the European Parliament is calling for cohesion policy to remain distinct, with a dedicated, ring-fenced budget.

With negotiations ongoing and the new MFF due to begin on 1 January 2028, the coming months will be crucial in determining how EU funding supports cities and territorial development.

Poland: Leveraging Climate City Contracts and Mission Cities’ experience to inform the NRPP process  

Katarzyna Rędzińska (Warsaw University of Technology; CapaCITIES) and Justyna Wieczorkiewicz-Molendo (Climate KIC; NetZeroCities) presented how the Mission helped shape the process to amplify the voices of Poland’s five Mission Cities – Kraków, Łódź, Rzeszów, Warszawa and Wrocław – and create opportunities for their climate priorities to inform the NRPP. The process began in 2025 with a series of NetZeroCities Better Funding Dialogues and continued in early 2026 with CapaCITIES city – region – UFA workshops, National Dialogue Platform meetings, and activities led by the NetZeroCities City Advisors in Poland, Justyna Wieczorkiewicz-Molendo and Anna Sokołowska (Eurocities). These efforts fostered collaboration with regional governments, the Union of Polish Metropolises, and the Ministry of Funds and Regional Policy, which is responsible for drafting the NRPP. Engagement also continued through the NRPP Working Group, where the Ministry shared updates on the planning process, the City Advisors explained the role of the EU Cities Mission, and Mission Cities presented their climate priorities and Climate City Contracts. Most recently, cities’ perspectives and investment needs were brought into the national discussion through the submission of a benchmarking analysis and a list of concrete projects to the NRPP Subgroup on Energy Transition, Security and Resilience. The process was coordinated by the City Advisors, helping connect local climate ambitions with the development of national funding priorities.

Portugal: Connecting national climate goals with local action

Maria João Rodrigues (Cidades pelo Clima; CapaCITIES) and Francisco Gonçalves (Energy Cities; NetZeroCities) shared the Portuguese experience. In a country where EU cohesion funds equaled about 88% of public investment in 2014-2020, cities heavily rely on the MFF to continue funding their climate action. To help bring local priorities into discussions on the proposed NRPP, Portuguese partners organised two NetZeroCities Better Funding Dialogues, in April and September 2026. The sessions brought together stakeholders from different levels of government, including representatives of Portugal’s three Mission Cities – Lisbon, Porto and Guimarães – and other Cidades pelo Clima cities committed to advancing climate action. The discussions highlighted the need to involve municipalities from the earliest stages of plan development, rather than relying on consultation once key decisions have already been made. Participants also identified administrative complexity and limited staff capacity as barriers to implementation. Cities need to develop clear project pipelines, linking their climate objectives to concrete investment needs and priorities. The next steps include preparing a joint position paper setting out shared priorities and proposals, and using it to advocate for a task force working closely with the Portuguese Government. 

The European Commission: Cities must be involved in preparing the plans

Philippe Froissard (European Commission’s Directorate-General for Research and Innovation) highlighted the importance of the proposed NRPPs for cities’ climate-neutrality strategies. He stressed that the plans should be co-created with local authorities, as set out in the EU Agenda for Cities, and that cities’ involvement in their preparation alongside national authorities is critical. It was noted that each country would develop its own approach to the NRPP, meaning cities would need to adapt their engagement to their national and local context. The Commission also encouraged participants to share experiences from more countries to help cities learn from different approaches. Beyond the NRPPs, other potential sources of support under the proposed EU budget were pointed out. These include opportunities through the European Competitiveness Fund for companies supplying innovative solutions that municipalities can deploy, support from Horizon Europe for the EU Missions’ activities until at least 2030, and the proposed EU Facility to help address capacity gaps in municipalities. These opportunities will depend on the arrangements established under the next EU budget.

The discussions underscored that cities and national platforms have an important role to play in shaping how the next EU budget supports climate-neutral urban transitions. By working together, engaging early with national authorities and translating climate ambitions into concrete investment priorities, they can help ensure that local needs are reflected in the NRPPs. As negotiations on the 2028-2034 EU budget continue, sustained dialogue between cities, national governments and European institutions will be essential to turn climate commitments into funded action.

The webinar recording and presentations are available on the CapaCITIES website and on the Mission portal.