The Climate City Capital Hub: A New Financial Platform for Cities 

Once a city is awarded the EU Mission Label, it gains access the financial instruments of the Cities Mission. One of these instruments is the Climate City Capital Hub (Capital Hub). The Capital Hub provides tailored financial advice to cities in cooperation with the EIB and the European Bank for Reconstruction and Development. It also connects cities with investors.   

The Capital Hub blends public and private finance, using risk-sharing instruments to increase the bankability of urban climate projects. It offers tailored hands-on support to cities, helping them to develop financial strategies and investment pipelines that are aligned with their climate action plans and broader strategic goals.  

Led by Bankers without Boundaries (BwB), one of the partners of the NetZeroCities consortium managing the Mission Platform, the Capital Hub is a central piece of Cities Mission.  

City Climate Funds in Action: Spotlight on Leuven and Bristol  

Across Europe, several Mission Cities are already leveraging support from the Capital Hub to develop city climate funds. These funds are dedicated financial vehicles that direct capital into clean energy projects, nature-based solutions, low-carbon businesses, sustainable infrastructure, and other climate-focused initiatives.  

Leuven, Belgium

In Leuven, the municipality and Leuven 2030 – a cross-sectoral local climate coalition – are advancing plans for a City Climate Fund that will invest across a portfolio of climate projects that range from district heating to clean mobility. Leuven has secured €600,000 in grant funding from the Enabling City Transformation (ECT) programme to help cover initial project development and fund structuring costs.  

In addition, the Capital Hub has been working with the Leuven 2030 team on the design of a guarantee structure that aims to reduce risk and attract investment.   

“Leuven’s Climate City Fund is bringing a version of a fund structure that is mainstream in private capital markets into the hands of the city as a powerful fundraising and investment tool for the benefit of all its citizens,” says Alvar Gener, BwB Associate and City Finance Specialist for Belgium, UK, and Ireland within NetZeroCities. “It’s an encouraging sign for what’s possible across Europe.”  

Bristol, United Kingdom  

In the United Kingdom, Bristol is leading the way with the Green Growth West Impact Fund, a EUR 117 million initiative that will invest in local low-carbon businesses and green infrastructure. The fund has already secured an initial £10 million commitment from the West of England Combined Authority and appointed a professional fund manager in April 2025.   

The Capital Hub is providing strategic support on the city’s fundraising efforts by expanding access to private investors, as well as helping the city council and other partners to develop a credible pipeline of projects. By strengthening local financial capabilities, the initiative is projected to drive green economic growth and improved environmental outcomes across the region.  

Why City Funds Matter  

These city-led models underscore the power of local climate funds to:  

• Mobilise private investment to achieve public climate goals.  

• Strengthen cities’ financial expertise and long-term planning and execution capabilities.  

• Maximise public funding by leveraging private capital and recycling returns.  

When designed well, these funds don’t just help cities finance individual projects, they enable a systemic shift in how local governments attract and manage climate finance.  

“City climate funds represent a new frontier for local climate finance in Europe,” comments Delphine Queniart, Director of the Capital Hub. “By blending public ambition with private capital and tailored financial structuring, climate funds give municipalities a powerful tool to scale action for climate neutrality.”  

Empowering Cities Through Specialist Support  

By working closely with Mission Cities, the Capital Hub and the wider NetZeroCities consortium are providing the technical assistance, strategic insights, and financial modelling support needed to make climate plans investable. This is key to ensuring cities transform ambition into measurable outcomes.  

The European Commission recognises that financing the green transition is not just about raising capital. It’s also about building local institutions that can absorb and manage this capital effectively. The Capital Hub is helping address this critical gap in municipal readiness.  

The green transition is not possible without bold action by cities – but cities can only deliver with the right financial instruments and supportive partnerships.  

As Europe advances toward its Mission goals and beyond, the examples of Leuven and Bristol show what is possible when local ambition meets specialist support and global capital. Such initiatives will not only reduce emissions but also deliver broader co-benefits – improving public health, creating jobs, and strengthening climate resilience.