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GRIFFON Axelle
In Energy, Energy, Impact community Climate, Impact community Climate, Press, Publications

Electricity market design reforms

Electricity Market - News 2023

Reforming the European Electricity Market: Priorities and Challenges

Read full position paper

In March, the European Commission proposed a regulation to improve the EU’s electricity market. The reform is important for local and regional governments, since they play a central role as suppliers, distributers and consumers of electricity. While the current internal market for electricity has brought positive effects and lower prices, reforms are needed to address decarbonization of the electricity sector and gas shortages caused by Russia’s energy weaponization in the Ukraine conflict.

The past winter has made it clear for all Europeans that ensuring the security of supply and lower prices of electricity were top priorities for the years to come. The EU and Member States must increase both the production of electricity and their capacity in terms of energy storage. They also need to take strong measures to decarbonize the electricity sector in order to achieve climate neutrality by 2050. In other words, the European electricity market is at a crossroads: to move forward, the EU needs to take strong actions and work together with local and regional governments.

Facilitate local and regional governments’ work driving investments in renewable energy

Local and regional governments have important roles to play in changing the electricity sector. They are responsible for finding suitable locations for production, distribution and transmission; they also must speed up permitting, manage spatial planning, invest in energy companies, and enable consumers and energy communities.

Furthermore, they possess valuable insights due to their direct engagement with local communities, and are therefore essential in ensuring citizens’ acceptance of the rollout of renewable energy. Considering all these factors, local and regional governments must be key partners in the reform of an efficient, sustainable European electricity market.

Make electricity prices less reliant on short-term fossil fuel costs

It is important to offer the option of long-term contracts, including to individuals and smaller consumers. This helps protect them from high and unpredictable prices, especially until more renewable energy production at lower generation prices is available.

Keep emergency measures as permanent features of the Electricity Market Design

During periods of excessively high electricity prices, it is advisable to maintain certain emergency measures. These measures can include price caps, taxes on windfall profits, and reimbursements for consumers. However, they should only target fossil fuel and other phased-out energy sources to encourage investment in renewable energy. These measures should not discourage energy savings or flexibility.

Encourage better consumer empowerment and protection

Efforts should be made to empower and protect consumers, particularly vulnerable ones, when implementing renewable energy sources and energy efficiency measures. Support schemes, loans, and technical assistance can help achieve this goal. Moreover, regional and municipal energy providers, acting as a “supplier of last resort,” should receive adequate financial compensation from national or European funding to support vulnerable households and enterprises.

Promote efficient multi-level governance solutions and financial support

Collaboration among different levels of governance, following the principles of subsidiarity and multilevel governance, is crucial for success. Platforms like the Covenant of Mayors facilitate cooperation, knowledge exchange, and the sharing of good practices at EU, national, and regional levels.

Finally, to successfully implement changes at local and regional levels, it is important to provide financial resources and supportive measures, while avoiding excessive regulations and administrative burdens.

In conclusion, the Commission’s proposed regulation offers an opportunity to address challenges in the European electricity market. To achieve climate neutrality and ensure a secure energy supply, increasing production and storage capacities, promoting renewable energy sources, and involving local and regional governments are crucial. Collaboration, financial support, and efficient governance will contribute to a sustainable European electricity market.

To learn more about the measures proposed by CEMR, read the full position paper.

For more information, contact:

GRIFFON Axelle
In Environment, Impact community Climate, Press

CEMR and Eurocities

CEMR & Eurocities - News 2023

In response to the European Commission’s proposed Nature Restoration Law, CEMR and Eurocities, issued a joint letter urging for amendments, in order to reach the aspired adoption by the European cities

The proposal aims to restore ecosystems, habitats and species across the EU’s land and sea areas in order to enable the long-term and sustained recovery of biodiverse and resilient nature, in addition to contribute to achieving the EU’s climate mitigation and climate adaptation objectives, and meet the international commitments. According to the proposal, these specific targets are set for 2030, 2040 and 2050 to be improved and expanded over time.
In the joint letter, CEMR and Eurocities, expressed the support for the proposal, yet they underlined the importance of a leaner, more inclusive, comprehensive targets, while taking into account the quality of the green spaces, not just the quantity.
Both organizations also proposed complementing the EU satellite data with local and national data for more accuracy in monitoring the progress of implementation of the targets . CEMR and Eurocities called for increase in the funding for the local authorities to perform the growing responsibilities.  

GRIFFON Axelle
In Energy, Impact community Climate, Press

EU Energy Performance

EU Energy Performance - News 2023

Buildings directive: a huge deal for local governments

When the European Commission published its proposal for a recast of the EU Energy Performance of Buildings Directive more than a year ago, few anticipated the scope and breadth of its revamp on citizens and local governments.

Now that the directive has been endorsed by the European Parliament, what can we expect from it? And what impact will it have on local governments? We’ve looked into these questions of major importance to municipalities, cities and regions.

The European Green Deal moving forward

The revision of the directive – also known as the EPBD – takes place in the context of the ‘European Green Deal’, which aims to put the EU firmly on the path towards climate neutrality by 2050.

To this end, in 2021, the von der Leyen Commission put on the table its so-called ‘Fit for 55’ package, a mammoth law package of energy and climate laws aimed at reducing net greenhouse gas emissions by at least 55% by 2030.

It is against this backdrop that the European Commission decided to revise upwards the Union’s energy performance of buildings targets. As stated by the Commission, buildings in the EU are responsible for 40% of our energy consumption and 36% of greenhouse gas emissions. And almost 75% of the building stock is energy inefficient… The renovation awaiting it is immense given the millions of old buildings across Europe.

The transition to zero-emissions buildings

The introduction of the ‘zero-emission building’ (ZEB) definition in the revised EPBD is of key importance, as it refers to the new ‘A’ energy performance class. From 2028 onwards, all new buildings will have to be zero emission. According to the adopted text, new buildings must achieve the highest level of energy performance, thanks to moderate consumption and heating powered by decarbonised energy.

CEMR believes that, while it is important to focus on the energy performance of buildings, reconfiguring the whole energy system is also needed for a net zero future.

Minimum energy performance standards

According to the text, public buildings will have to achieve at least energy performance class E by 2027, and D by 2030 (Commission proposed F and E). In addition, all new buildings occupied, operated or owned by public authorities should be zero-emission from 2026.

This is a big blow for local and regional governments who will now have to renovate in droves. CEMR considers these targets too ambitious and unrealistic, even for the most advanced municipalities and regions.

While increasing the rate of renovations of energy-inefficient buildings is essential, CEMR believes it is unlikely that all class “E”, “F” and “G” buildings will be renovated by 2030.

All measures needed to achieve these targets will be established by each Member State in national renovation plans. To take into account EU countries’ diverse building stocks, the letter G will correspond to the 15% worst-performing buildings in the national stock.

For CEMR, this proposal is questionable since the EU’s energy efficiency classification system is made regardless of the initial situation concerning the quality of the buildings. In the Nordic countries, for example, a large proportion of the building stock scores high on the EU’s energy efficiency scale due to the climatic conditions.

However, in light of the heated exchanges taking place in EU capitals, it is not clear whether the minimum energy performance standards will survive mounting opposition from the Member States.

The ‘neighbourhood’ approach

The ‘neighbourhood’ approach, as opposed to individual buildings, is only mentioned twice in the proposal and therefore falls far short of its potential. This novel approach to buildings sees them as part of a broader neighbourhood rather than isolated units. By doing so, substantial economies of scale can be generated.

In CEMR’s view, the ‘neighbourhood’ approach should be reinforced in the legislation. CEMR however welcomes the possibility for Member States to grant regional and local authorities the possibility to identify “neighbourhoods” for the implementation of integrated renovation programmes.

Next steps

While the Parliament adopted its position by 343 votes to 216, with 78 abstentions, MEPs will now enter into negotiations with the Council to agree on the final shape of the bill.

CEMR will keep on monitoring developments, exchanging with its members and engaging with the EU institutions to ensure a smooth implementation of the directive on the ground. While in the short term, considerable resources will be required, in the medium and long term, the energy performance of buildings will greatly reduce energy bills.

GRIFFON Axelle
In Energy, Impact community Climate, Press

​Renewable energy

Renewable Energy - News

Faster permitting of renewables: ‘Local governments must be fully involved at all stages!’

While the Council of the EU adopted a new regulation aiming at boosting the deployment of renewable energies through faster and easier permitting procedures, CEMR calls for the full involvement of municipalities and regions in this process.

CEMR values the adoption of emergency measures to speed up renewables permitting and considers local and regional governments as the driving force for achieving the objectives of the European Green Deal. It however expresses substantive reservations on a number of points.

Reacting to the EU Energy Ministers’ agreement, CEMR’s spokesperson on Climate and Energy, Belinda Gottardi highlighted the necessity to give sufficient time for the processes to find solutions that adequately balance legitimate local and national interests. 

“There is a need to fully take on board municipalities and regions in all steps of the permitting of renewable energies. In most EU Member States, local governments are the competent authorities for granting permits for many of the renewable energies and grid connections”, she pointed out. “They need to manage spatial conflicts to ensure balanced solutions with sufficient local acceptance.”

“Municipalities and regions have a wealth of valuable experience and expertise that act as a key asset in the energy transition. Bypassing them or giving inadequate time in this process could have counterproductive effects and lower citizens’ acceptance.”, she concluded. 

The regulation will now have to be interpreted within the various national contexts, with necessary alterations of the processes to respect the time limits. Clarifications will be needed, notably on how spatial planning and environmental assessments will be affected, and which power plants will be included. 

Background information

On 19 December, EU Member States agreed on the substance of a Council’s Regulation laying down a framework to accelerate the deployment of renewable energy. This regulation is part of a series of Council regulations under Art. 122 of the Treaty of the Functioning of the EU (TFEU). It addresses the “emergency nature to accelerate the permit-granting process”  for the generation of renewable energies in the ongoing energy crisis, provoked by Russia’s war against Ukraine.

The Regulation is of particular interest for CEMR given that in a lot of European countries, local and regional governments are the competent authorities for spatial planning and granting permits for the installation of solar-PV, heat pumps, wind power, other renewable power plants, and grid connections. 

Key contents of the legislation are the concept of the overriding public interest for the production of renewable energy, their grid connection, and shorter permit-granting within specified time periods. The overriding public interest enables new projects to benefit from a simplified environmental assessment under specific EU directives.

Generally, this also applies to the respective grid connections. Solar energy equipment should receive a permit no later than three months or be accepted after 1 month of “positive administrative silence” for capacity below 50 kW or 10,8 kW. Moreover, the regulation introduces a maximum of six months for the permit-granting process regarding the repowering of renewable energy power plants and their grid connection, and three months if the increase is less than 15%. Heat pumps below 50 MW benefit from a one-month deadline and from a maximum of three months for ground source heat pumps. 

Links to CEMR’s positions

GRIFFON Axelle
In Energy, Impact community Climate, Press

Training Academy

Enegy Transition - News

Discover the main findings

On 21 October 2022, the Council of European Municipalities and Regions (CEMR) organised a training event for elected political representatives working in climate adaptation and mitigation, with an emphasis on sustainable finance. The sessions included a keynote speech from a scientist, presentations of case studies, interactive exercises and discussions. The objective was to familiarise local and regional elected officials with the concept of sustainable finance from a scientific, regulatory and technical perspective.
 
A summary of the training work, including key concepts, speaker and panel content, and key findings, can be found here.
 
This edition of the training academy represents the seventh in the series organised by CEMR/PLATFORMA, which was initially inspired by the Urban Agenda for the EU. 

BORDELOT Federica
In Climate, Climate, Energy, Energy, Housing, Housing, Impact community Climate, Impact community Climate, Press, Publications

Smarter building rules in Europe

Housing - News

EPBD revision: Local flexibility and long-term planning key to success, say CEMR and Housing Europe

Read position paper

EPBD revision: Local flexibility and long-term planning key to success, say CEMR and Housing Europe 

The Council of European Municipalities and Regions (CEMR) and Housing Europe have joined forces to publish a set of recommendations on the European Commission’s proposal to recast the Energy Performance of Buildings Directive (EPBD). While both organisations fully support the ambition to decarbonise buildings across the EU, they warn that the proposal must better reflect the realities on the ground. 

Local and regional governments, as well as providers of public, social, and cooperative housing, are critical actors in delivering the EU’s climate objectives. But a one-size-fits-all approach will not work. 

The joint position paper outlines three key recommendations: 

  1. Respect local differences through subsidiarity and adaptability 
    The EPBD must allow member states and local authorities to tailor building codes to their own context. Setting EU-level definitions for zero-emission buildings without a clear methodology risks creating uncertainty and undermining national efforts. Other areas, such as fire safety and asbestos removal, should remain the competence of national or local governments. 
  1. Provide a stable and realistic framework for renovations 
    Renovating buildings is a long-term process that requires careful planning. The proposed EPBD introduces tight deadlines and shifting labelling systems, making it nearly impossible for local authorities and property owners to comply effectively. CEMR and Housing Europe argue for a more predictable timeline that reflects labour shortages, market dynamics, and tenant affordability. 
  1. Support zero-emission construction with energy system flexibility 
    While new buildings must meet high standards, member states should retain the freedom to choose their energy sources. That includes not only on-site renewables, but also low-carbon energy from the grid, waste heat, and energy recovery, all in line with the EU waste hierarchy. 

Ultimately, the success of the EPBD will depend on how well it enables local and regional actors to deliver results. CEMR and Housing Europe are clear: the path to climate-neutral buildings must be ambitious but flexible, fair and grounded in local realities. 

Read the full policy paper here  

For more information, contact: 

GRIFFON Axelle
In Environment, Impact community Climate, Press

COP 27

Environment - News

Local and Regional Governments at the COP 27

COP27 in Sharm el-Sheikh, Egypt, ended with the cover decision, known as the Sharm el-Sheikh Implementation Plan. We, as part of “The Local Governments and Municipal Authorities (“LGMA”) United Nations constituency, welcome the outcomes of this COP as there are new aspects such as the fund on loss and damage in the text, referring to the concept of climate justice. However, the outcomes leave many questions open, notably regarding national governments’ commitments to maintain the 1.5-degree objective. 

CEMR/PLATFORMA and UCLG were present in Sharm el Sheik during COP27, as were many member associations (from the UK, France, Israel, Malta, Turkey, Germany…). CEMR is part of the LGMA United Nations constituency, whose focal point is ICLEI. More than 500+ delegates represented cities, regions and other subnational governments at COP27, more than most countries. Over 40000 participants worldwide came to this COP. 

GRIFFON Axelle
In Environment, Impact community Climate

COP 27

COP 27 - News 2022

COP 27: Subnational governments must be empowered to deliver on the Paris climate agreement

On the occasion of the Solutions Day at COP27, the European Committee of the Regions, ICLEI, Regions4, the United Cities and Local Governments (UCLG), EUROCITIES, the Under2Coalition, C40 and the Council of European Municipalities and Regions (CEMR), call on national governments, the Parties and international organisations to fully support local and regional authorities in delivering climate action on the ground ​

Cities and regions worldwide are taking over political leadership at COP27 climate talks as national governments are failing to reach any meaningful agreement. As echoed in the latest IPCC report, local and regional governments have a growing role in delivering climate action. However, subnational governments – unified under the Local Governments and Municipal Authorities (LGMA) Constituency to the United Nations – still lack a formal role in global climate negotiations and in the implementation of the Paris agreement. Reinforcing multi-level cooperation, direct funds and technical assistance for subnational governments and a global system to collect and monitor cities’ and regions’ carbon emission reductions are amongst the key claims subnational governments are fighting for at COP27. ​​

The President of the European Committee of the Regions, Vasco Alves Cordeiro, said: “The energy crisis and the geopolitical situation must not hinder the much-needed increase of global ambition at COP27. The top-down approach is showing its limitations when it comes to move from commitments to achievements. Cities and regions are willing to help filling the gap, but for this they need a consistent framework for place-based sustainable development strategies, bringing together climate action, nature protection and Sustainable Development Goals. A new UN framework based on local and regional action is needed, and the European Committee of the Regions is ready to work with the Parties, UN agencies and all partner organisations towards this objective.”

The president of ICLEI – Local Governments for Sustainability, Frank Cownie, Mayor of Des Moines (United States), said: “I am proud of the leadership that the European Union and the United States continue to show for advancing the truth that collaboration across all levels of government is the recipe for success in achieving the Paris Agreement goals. In my country, the U.S. Infrastructure Bill and Inflation Reduction Act are good-practice examples for other nations to follow, precisely because they institute collaboration between cities, regions and the national government. I am further encouraged by the U.S. announcing a Subnational Climate Action Leadership Exchange (SCALE), which can be seen as complementary to the COP27 Presidency SURGe initiative. Together, we are ensuring the ICLEI and LGMA call is clear at COP27: The time for Multilevel Action has not only come—it is delivering.“

The Mayor of Warsaw, Rafał Trzaskowski (PL/EPP), chair of the ENVE commission and of the Green Deal Going Local working group and member of the Political Board of the Global Covenant of Mayors, said: “While we are working to secure energy supplies and protect our citizens from high energy prices, we cannot lose sight of the climate crisis. We look into the COP27 as an opportunity to further advance climate ambition and implementation,and are hopeful that the conclusions will reflect the urgent need for multilevel cooperation and will call on national governments and international organisations to involve local and regional authorities in delivering climate action on the ground. We need direct funds and technical assistance for subnational governments and a global system to collect and monitor cities’ and regions’ carbon emission reductions. Together we can bridge the emissions gap.“

The Mayor of London Sadiq Khan, chair of C40, said: “The climate crisis is the biggest challenge facing our world and it is clear that we cannot afford further delay. I have put tackling the triple threats of congestion, toxic air pollution and the climate emergency at the heart of my mayoralty. Cities are using every lever at our disposal to take meaningful climate action now by reducing pollution, investing in green public transport and sustainable energy sources – but we simply cannot avert a catastrophe of this magnitude alone. We can achieve net zero carbon by 2030 and keep the goal of 1.5 degrees within reach if city mayors and citizens are empowered to play a central role.”​​

The Mayor of Montevideo, Carolina Cosse, President of United Cities and Local Governments (UCLG), made it clear: “The solution to the ecological transformation of our planet and societies will go through our villages, towns, cities, metropolises, provinces and regions. At COP27 we will need to ensure that we continue to push for the inclusion of local and regional governments into the localization of Nationally Determined Contributions, as well as continue to advocate for the localization of climate finance, and capacity-building for all types of cities and particularly intermediary cities, specifically in Least Developed Countries and Small Island Developing States.”

The Mayor of Florence and president of Eurocities, Dario Nardella (IT/PES), said: “In the fight against climate change, cities are not only needed, but are the essential link between people and other layers of government. As a mayor, I am in constant dialogue with people in my city, and through initiatives such as the Mayors Alliance for the European Green Deal, I bring their voices, and realities to European and international leaders. But we need more coordinated action and global solidarity to keep the 1.5°C target alive. Acknowledging and acting on climate change must serve as the background of just about everything we do – the leaders assembled at COP27 all know this. For those that believe in really making a difference, the action needed in the conclusions is clear: think local.”

Nomusa Dube-Ncube, Premier of the KwaZulu-Natal province in South Africa and Africa Co-Chair of the Under2 Coalition said: “States and regions have always been at the forefront of climate change action but they, like other non-state players, need to have a seat at the table when decisions are being made. The time for pledges and failure to honour commitments is over. We need national governments and businesses to step up. We must have decisive and united action, bolstered by strong policies and financial resources to make change happen. Importantly, resources need to be directed to where they are needed most through using science and data driven-tools, as well as public-private collaboration, in order to mitigate the impact of climate change in our local communities.”

The Minister for Economic Development, Sustainability and Environment of the Basque Government and president of Regions 4 – The Network of Regional Governments for Sustainable Development, AncreArantxa Tapia, stressed that: “The voice of the regions must sound loud and clear at this COP27, since regions apply 90% of the adaptation measures to climate change. We are natural leaders of some of the transformations necessary for adaptation due to our direct connection with citizens and our capacity to mobilise territorial commitments connecting all stakeholders. From ‘Regions4’, we are going to launch in this COP27 the ‘Declaration of regional governments’ that highlights our main recommendations and commitments towards a resilient future. I believe that support to regions for the effective implementation of climate actions at multiple levels is key, especially in the development of capacities, financing and technical support.”

The Mayor of Utrecht and ICLEI-LGMA Special Envoy for COP27 Ministerials , Sharon Dijksma, said “ In the past years, important steps have been taken to involve cities more in the UNFCCC agenda. With the adoption of the COP26 Glasgow Climate Pact, multilevel action is recognised as an important pillar in reaching the international climate goals. I welcome the first-ever Ministerial on Urbanisation and Climate during COP27, which puts multilevel collaboration at the heart of the debate. But I reiterate that COP27 should be the last climate conference where cities and regions are only on the informal agenda of the UNFCCC. From next year onwards, multilevel action must be an integral part of the official COP process. I am thrilled to see hundreds of mayors and other local and subnational leaders as well as other non-state actors so enthusiastically joining me in this call. I look forward to engaging these parties during COP27 and the years to come. Together we will work on accelerating climate finance to cities and regions across the world, including loss and damage.”

The Mayor of Chefchaouen (Morocco), Mohamed Sefiani, member of ARLEM and ICLEI COP27 Special Envoy, said: “ Cities and regions in Africa, as the world´s fastest-urbanising continent, call for COP27 to deliver concrete outcomes for sustainable urbanisation, multilevel action and localisation of climate finance. I am happy to hear that in the first week of COP27, the new climate finance mechanisms are starting to be delivered, including local development facilities such as LoCAL. COP27 focus is on implementation but it can only succeed if the necessary climate finance for sustainable urbanisation can be secured through multilevel action. It is therefore essential that COP27 kicks off initiatives like SURGe and ensures continuity of Urbanisation and Climate Ministerials at COPs as a legacy of the African COP27.”

Stefano Bonaccini, president of the region of Emilia-Romagna and president of the Council of European Municipalities and Regions (CEMR), said : “The implementation of the Paris Agreement is lagging behind, and it is essential to act now to achieve the goals at all levels of government: mitigation, adaptation, energy transition and safeguarding biodiversity. To do this, we need adequate resources, a supportive regulatory and governance framework, localisation and territorialisation of sustainable development goals, decentralised cooperation and exchange of experience between municipalities and regions around the world. This is a global challenge that can best be met if we all act locally and in an accountable, inclusive, fair, equitable and partnered manner.“

Additional information:

Contribution to the LGMA COP28 Roadmap: Declaration “EU Green Deal: from local to global”.

There is growing international awareness that the climate battle will be won or lost in cities. By 2050, towns and cities are expected to grow by 2.5 billion people raising the urban share to 68% of the global population. Growing urbanisation and population growth, coupled with economic development and rising prosperity are expected to contribute to rising emissions in cities. New estimates from Global Covenant of Mayors for Climate & Energy show that this collective action has the potential to reduce global emissions by at least 1.4 gigatons annually by 2030.

More than 90% of the world’s urban areas are located along coastlines, where rising sea levels and storms threaten inhabitants and infrastructure with flooding and strong winds. More than 10% of the world’s physical assets and population are located in urban centers and clusters in low elevation coastal zones (less than 10 meters above sea level). Sea-level rise is already affecting more than 25 megacities severely. The more than 1 billion people who live in urban slums and informal settlements are particularly vulnerable to climate impacts, as many live along waterfronts and riverbanks that are prone to flooding.

Never before has the IPCC highlighted the role of cities for climate change mitigation and adaptation to the extent done in its two most recent reports: IPCC (2022a): Climate Change 2022: Impacts, Adaptation and Vulnerability and IPCC (2022b): Climate Change 2022: Mitigation of Climate Change.

On 17 November 2022, the Egyptian COP27 Presidency convened the first-ever Ministerial Meeting on Urbanization and Climate Change at a UN Climate Change Conference of Parties, focusing on housing, urban development, multilevel action in relation to climate change. The Ministerial Meeting reinforces the commitment of the Paris Agreement for multi-level climate action and will commit to accelerated climate change mitigation, adaptation action and local climate finance. The Ministerial meeting has launched the COP27 Presidential Sustainable Urban Resilience for the Next Generation (SURGe).

Contacts:
David Crous
Tel. +32470881037
david.crous@cor.europa.eu

Yunus Arikan
Tel. +4915150750004
yunus.arikan@iclei.org

GAUDRON Marine
In Energy, Local finances, Local finances, Press, Publications

Sustainable local finances in Europe

Sustainable local finances - News 2022

CEMR releases landmark study on local finances in European countries

Discover the online tool

People depend on quality local public services and infrastructure every day. Reliable buses, insulated public housing, good schools or clean energy: all of these and more depend on healthy and sustainable local public finances to be developed and maintained.

That’s why the Council of European Municipalities and Regions (CEMR) is releasing a fully-fledged online report and tool entitled Local Finances and the Green Transition in Europe. This one-of-a-kind study provides data and analysis on the trends in local and regional finances in 40 European countries over the past 10 years. The study offers a bird’s eye view of both changes in subnational finances and the remarkable diversity of national situations.

“This report is essential reading for policymakers, politicians and academics. Only by understanding local public finances and unlocking futher investments can we achieve the sustainable and resilient societies our people and planet need”, said CEMR Secretary General, Fabrizio Rossi, who added: “If this report shows one thing, it is that well-funded municipalities, counties and regions are essential to taking care of our people and realising the environmental transition“. 

Revealing figures and trends as observed over the last decade

The study reveals for instance that despite making up 25% of all public spending, local and regional governments finance 54% of all public investment. This reflects the leading role of municipalities and regions in investing in areas such as energy efficient housing, smarter public transport and local environmental protection. The climate and energy transition will only happen by working with local and regional governments.

Also noteworthy is that subnational government debt is at a manageable level in the 36 countries where comparative data was available. In fact, local debt is low and stable, a mere 4.8% of GDP on average. By way of comparison, general government debt increased by the middle of the decade to 67% of GDP (and to 81% in 2020).

While browsing through the online study, you will also come across a special section on the impact of the EU’s €720-billion post-COVID recovery plan on local and regional governments. This chapter looks in particular at the implications for the green transition and territorial cohesion.

The data shows clearly that the share of green transition among the main RRF spending areas is higher in the decentralised countries. Stronger local and regional governments can support more recovery and resilience programmes and actions.

A dynamic and interactive online tool

“Local Finances and the Green Transition in Europe” is available as an interactive online tool  as well as in PDF  format. The online tool contains:

The study is currently only available in English. The French version is under development.

The study was launched on 10 November 2022 at the occasion of a seminar bringing together representatives of many of CEMR’s member associations, the OECD, KDZ and the study’s co-author Gábor Péteri.

For more information:

GRIFFON Axelle
In Call, Environment, Impact community Climate, Press

Call for Proposals EUI

BoT Expertise - News 2023

First Call for Proposals EUI – Innovative Actions

Eligible authorities are invited to submit project proposals in the framework of the first EUI – Innovative Actions (EUI-IA) Call for Proposals. For this Call for Proposals, an indicative budget of EUR 50 million ERDF is allocated.

Each project can receive up to a maximum of EUR 5 million ERDF co-financing and project implementation should take place within a maximum period of 3,5 years.

For more information and to apply don’t hesitate to check out the website and the seminars that will take place until the end of the year.

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