Back from Vilnius: Financing the Urban Transition - What Comes Next

The Cities Mission Conference 2025 in Vilnius last week brought together a record-breaking 900+ delegates committed to accelerating Europe’s net zero transformation. 

With 92 Mission Cities now officially labelled – congratulations to the most recent ones! – the focus must shift to what matters most: implementation and scaling.

A new report by BwB estimates that reaching net zero by 2030 across all EU Mission Cities will require €307 billion in incremental expenditure, with 80% of capital needing to come from private sources. This analysis makes it clear: financial innovation isn’t optional – it’s essential.

A few reflections we brought back from the conference:

Scaling is essential

Most cities can’t go it alone – we need replicable, investable solutions and aggregation strategies that build maturity and scale.

Financial innovation is as critical as tech innovation

Blended finance models, guarantees, and fit-for-purpose instruments are vital for mobilising private capital at speed.

Objectives must be clear

Impact, equity, return – investors and public funders must find common ground to co-invest in climate-resilient urban futures.

Right capital, right return, right project

Not every project needs to yield 10%. Cities must match initiatives with the right type of capital – whether commercial, concessional, or philanthropic.

Vilnius demonstrated what’s possible when systemic thinking meets bold leadership. The next crucial step is to replicate, finance, and scale with urgency.

We invite you to share this with a city leader or policymaker working on climate finance – it’s time to scale up solutions and accelerate change through collaboration, exchange, and collective effort. 

A shout-out of appreciation to all Climate City Capital Hub members, city officials, and our consortium partners at NetZeroCitiesEU for the fruitful plenary sessions and discussions. 

BwB’s Climate Investment Plans Analysis Report: https://lnkd.in/ewVngyTH