What is the Climate City Capital Hub? ​

The Climate City Capital Hub (Capital Hub) is a neutral, pan-European platform that catalyses climate-related financing activity. This innovative entity is part of NetZeroCities, the implementing platform for the EU Mission ‘100 Climate-Neutral and Smart Cities by 2030’. The Capital Hub aims to bridge the investment gap identified by cities participating in the Mission (Mission Cities) and to unlock financing for climate resilience infrastructure more broadly across Europe.
 

Why is the Capital Hub Needed?

Analysis by BwB estimates that a total of €307bn in incremental expenditure will be needed for all 100 EU-located Mission Cities to meet their ‘net zero by 2030’ target, and that 80% of this capital will have to come from private sources. The message is clear: without financial innovation, net zero will remain out of reach. 

 

What Does the Capital Hub Offer? 

The Capital Hub provides technical assistance and financial advisory and structuring expertise that helps cities shape climate mitigation and adaptation plans into bankable propositions. Its objective is to connect urban climate ambitions with investment capital by facilitating a robust and growing pipeline of financially viable projects across a range of size, return, sector, and geographic profiles.   

 

Who Operates the Capital Hub? 

The Capital Hub is operated by BwB and its NetZeroCities consortium partners. Collectively, these organisations provide deep expertise across a broad range of disciplines – from leading actors in the development and construction of climate mitigation and adaptation projects, to investment bankers and other financial specialists who can provide guidance on financial and investment aspects of projects and help cities engage successfully with the financial community.  

   

Framing the Problem, Providing the Solution 

The Capital Hub was developed as a solution to three key challenges that collectively span both sides of the climate finance equation:  

 

1. The large climate investment gap. As noted above, EU-located Mission Cities collectively require about €307bn in incremental financing to implement their ambitious decarbonisation plans through to 2030. This shortfall in urban climate finance is not unique to these cities – it reflects a wider challenge seen across Europe and beyond: existing public resources are insufficient to meet the scale and urgency of the investment that is required. 
    

2. Limited climate investment opportunities. Large pools of private sector capital are eyeing the decarbonisation space, but a shortage of well-structured, investment-ready climate projects, particularly in the infrastructure and energy sectors, is preventing deployment. 
    

3. A lack of capacity at the local level. City authorities seldom have the in-house technical expertise or staff resources required to transform their climate action plans into bankable projects across multiple areas and at scale. 

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Capital Hub DNA and Attributes 

To address these challenges, the Capital Hub works in close collaboration with cities, offering tailored, end-to-end guidance and support with the aim of getting projects financed and implemented. This includes support with structuring both sector-specific solutions (e.g., building thematic investment portfolios in areas such as renewable energy, mobility, and heating), and broader city-wide and regional portfolios that bring together projects from multiple sectors into single, bankable investment opportunities.  

 

The Capital Hub’s innovative approach reflects the three strands of its unique DNA – Transactional, Neutral, Climate-Aligned – which underpin its four operational attributes: 
 

• Technical Assistance: The Capital Hub and the European Investment Bank have resource capabilities to support the development of projects identified in cities’ Climate City Contracts. 

• City Finance Specialists: On-the-ground expertise to facilitate capital flows and support project development. 

• Neutral Capital Centre: A neutral financing unit enabling market access for projects developed through Technical Assistance. 

• Data and Analytics: Data collected and processed in project preparation to build the foundation for better city outcomes. 
   

​Opportunities for Investors and Financial Organisations  

The Capital Hub supports the development of an expanding pipeline of financially viable climate mitigation and adaptation projects with a range of size, return, sector, and geographic profiles. 

  

For investors that are interested in being part of ambitious urban decarbonisation projects in Mission Labelled Cities across the EU and in other participating countries, please reach out at CCCH@bwb.earth