The primary theme of the webinar was the gradual shift from reliance on traditional public subsidies toward innovative financing mechanisms Cities are increasingly exploring financial tools that leverage private capital particularly as national and EU-level subsidies fall short of covering all the financial gaps in climate and energy initiatives The webinar underscored that diversifying funding sources is critical for cities to achieve their climate goals A significant takeaway was the need for cities to develop internal capacity to engage with innovative financing models effectively with 96.7% of public authority representatives emphasising the need for additional knowledge and resources to explore these new avenues including the complexity of regulatory frameworks and the difficulty in building partnerships with private investors as noted by 53.3% of respondents in the accompanying survey The role of EU-level programmes in supporting capacity building was also highlighted suggesting that cities must have the opportunity to actively engage in such programmes to drive progress One of the critical barriers identified was the misalignment between national regulations and local financing needs highlighted the need for collaboration between energy and finance ministries to create clearer guidelines for local authorities The lack of such frameworks is slowing progress especially for municipalities aiming to implement innovative projects like green bonds or crowdfunding The need for more support in capacity building both in terms of financial advisory services and peer learning including Alicia Villazan Cabero from Valladolid City Council emphasised the value of inter-city learning networks like Eurocities that share legal frameworks and strategies Such collaborative efforts across European cities can foster innovation by creating consortia for joint projects thereby enhancing access to grants and other financing opportunities A series of practical case studies presented during the webinar illustrated the potential of alternative financing mechanisms Miguel Ángel García of CARTIF Technology Centre discussed the success of blending public funds with private investments through Energy Service Companies A key takeaway from his presentation was the importance of early community engagement which helps build trust and ensures citizen buy-in for projects aimed at improving energy efficiency Sanela Mikulčić Šantić of the KLIK Cooperative in Croatia introduced an innovative crowd-investing project in Križevci which raised €54,000 for a photovoltaic installation demonstrates the potential of mobilising citizens’ investments in local renewable energy initiatives Her case exemplifies how even smaller municipalities can leverage crowdfunding to finance sustainable energy projects while offering residents attractive returns on their investments Sandrine Deternay from the City of Albertville shared the city’s strategy for financing energy-saving measures through an internal revolving fund This approach involves reinvesting the savings from energy efficiency projects into future initiatives thereby creating a self-sustaining cycle of funding that reduces reliance on external subsidies While cities are at the forefront of implementing climate and energy initiatives national-level support remains indispensable The webinar brought attention to the disconnect between local needs and national regulations Kraków has experimented with various financing models but the slow pace of national regulatory reform has hindered broader adoption of innovative instruments like energy performance contracting Director Andrzej Łazęcki of Kraków’s Municipal Economy and Climate Department stressed that managing renovation processes by external entities could help streamline complex urban renewal projects also highlighted the regulatory challenges in implementing energy-efficient home renovation projects which are often hampered by outdated consumer credit regulations The webinar concluded with a call to action for cities to engage more proactively with EU funding mechanisms Representatives from the European Commission outlined several key initiatives that cities can tap into These platforms not only provide access to funding but also offer critical technical assistance and frameworks for implementing large-scale energy efficiency projects Moreover, the discussion highlighted the growing importance of private capital in financing urban sustainability efforts.  Allison Lobb of Bankers Without Boundaries, stressed that for city projects to attract private investments, they must be ‘bankable,’ meaning they need clear financial viability and risk mitigation strategies Municipalities must work toward creating enforceable contracts and transparent financial models to ensure investor confidence We are a community of more than 200 European cities Your e-mail address is only used to send you our newsletter and information about the activities of Eurocities 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