The 2025 edition of the European Investment Bank (EIB) Survey reveals that 56% of surveyed European municipalities intend to increase spending on reducing greenhouse gas emissions.
Approximately half of the municipalities surveyed also plan to increase expenditure on measures for adapting to climate change, particularly in protection against threats such as floods and fires, as revealed by the survey.
The EIB noted that nearly 30% of municipalities reported a “lack of technical expertise,” including the absence of environmental assessment specialists and engineers needed to implement projects.
Meanwhile, 53% of respondents plan to boost the budget for social infrastructure within the next three years, aiming to enhance social housing, schools, and hospitals.
The EIB also emphasized that national and EU grants remain the primary funding sources for municipal infrastructure.
However, more than half (61%) of the municipalities expressed interest in exploring alternative funding options, such as converting grants into guarantees to attract higher levels of financing from institutions, particularly banks, the institution explained.
Municipal authorities account for about 54% of public investment in the European Union and approximately 60% of climate action investments, added the EIB.
The release of this report coincides with a European Committee of the Regions conference held today in Brussels, aimed at discussing urban investment needs and supporting the EU policy agenda for cities.
The survey covered 1,002 municipalities across the European Union, representing a total population of 26 million people (about 6% of the entire EU Member States’ population).
The sample is representative of all Member States, excluding national capitals and non-European territories.
Respondents from municipalities participated anonymously, with the number of municipalities surveyed per country ranging from 131 in Germany and 107 in Italy to five in Cyprus and Luxembourg. In Portugal, 28 municipalities were surveyed out of a total of 308.
The EIB serves as the long-term financing institution of the European Union, with capital owned by the Member States, and finances investments that contribute to achieving the EU’s strategic objectives.
The EIB Group, which includes the European Investment Fund, signed nearly 89 billion euros in new financings for over 900 projects in 2024.
Approximately 60% of the EIB Group’s annual financing supports projects directly contributing to mitigating climate change and adapting to its effects.
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