Most cities in Europe plan to invest more in combating climate change and spend more money on public housing, schools, and hospitals. This is the result of the European Investment Bank's (EIB) 2025 Municipalities Survey. According to this year's survey, 56 percent of municipalities plan to invest more in reducing greenhouse gas emissions over the next three years, and 53 percent plan to allocate more resources to social infrastructure.

The EIB published the survey results today at a conference of the European Committee of the Regions in Brussels. The discussions on the investment needs of European cities are intended to inform the EU's urban policy agenda.

The survey involved 1,002 municipalities, ranging in size from several thousand to several hundred thousand inhabitants, totaling approximately 26 million people (around 6 percent of the EU-27 population). Municipalities from all EU countries are represented, although their numbers vary by country: five municipalities each participated in Cyprus and Luxembourg, and 107 and 131 in Italy and Germany, respectively. As in the previous survey in 2022, no capital cities or territories outside Europe were surveyed, and participation was anonymous.

Municipalities continue to finance their infrastructure largely through national and EU grants. Nevertheless, more than half (61 percent) in the current survey expressed interest in other financing options, such as converting grants into guarantees. These could then be used to secure larger-scale financing from institutions such as banks.

EIB Vice-President Ioannis Tsakiris said: "In times of growing challenges, we must maximize the impact of every euro invested. Therefore, local authorities need new financing solutions to help them advance climate action and other priorities. The EIB remains at their side, working together to develop the tools they need for a more sustainable and resilient future."

The EIB survey paints a comprehensive and detailed picture of the development plans of public authorities, which account for around 54 percent of public investment in the EU. In the area of climate protection, local authorities account for around 60 percent of investments.

According to the survey, most cities in the EU plan to invest more in reducing emissions. About half of them also plan to invest more in climate change adaptation, for example, in measures to protect against floods or fires.

EIB Chief Economist Debora Revoltella: "Local authorities in Europe are fully committed to the green transition. For their efforts to produce tangible results, they need continued political and strategic support at all levels."

According to the survey, a problem for many cities in the EU remains the lack of experts for environmental assessments and engineers for project implementation. Up to 30 percent of municipalities reported that they lack technical expertise in these areas.

The EIB helps by providing cities with the necessary technical, financial, and strategic expertise. Every project financed by the EIB is reviewed by its engineers and economists. The Bank also offers advisory services to project promoters, national, regional, or local authorities, and financial partners.

Kata Tüttő, President of the Committee of the Regions, said: "This insightful EIB report comes at a timely pace. It confirms what has long been known at the local level: our cities are at the heart of Europe's biggest challenges, from the climate crisis to the housing crisis. The numbers speak for themselves, but behind them are the people of cities, the mayors and local councils, who strive for improvement every day. The partnership between the Committee of the Regions and the European Investment Bank is an important step in unlocking the potential of our cities: by supporting local initiatives and innovation, by making vital public investments, and by ensuring that no one is left behind as we adapt to rapid change."