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Program

Financing urban transitions

In a series of projects, SEI studies funding needs for city sustainability transitions, exploring how to redirect resources towards these goals. This involves assessing associated risks, economic implications, necessary policies and the financial capacity of various stakeholders like municipal governments, citizens and industry, as well as the potential financial instruments these city actors can use.

Active project

2019–2030

“Cities are where the climate battle will largely be won or lost” said António Guterres, UN Secretary General, at the C40 World Mayors Summit in October 2019. Indeed, as the impacts of climate change continue to manifest globally, cities are at the forefront of the battle to mitigate and adapt to its effects. Recognizing the urgency and importance of acting, city governments are making political commitments, designing action plans, and embracing climate investment planning as a strategic approach to building sustainable, resilient, and low-carbon urban environments.

Climate investment planning involves the systematic identification, prioritization, and implementation of city-wide actions, aimed at reducing emissions and strengthening resilience within urban environments.

SEI has developed an approach for climate investment planning, showcasing how climate action, policy making and investment tie together (Figure 1). In a series of projects, the research team supports municipalities and other actors that work in cities, such as citizens, industry, financial institutions as well as superordinate government levels, to roll out this methodology. A dashboard was developed as well that showcases the link between climate action and investment planning, as well as the co-impacts of climate action. The team also carries out research to further the business case for climate investing.

 

Overview climate action and investment planning

Figure 1. Overview climate action and investment planning. Graphic: Vanhuyse, F. (2023).

Viable Cities Finance (2019–2022)

While sustainable investing is booming, unlocking the funding needed to achieve climate neutral cities is challenging.

To accelerate the transition to low carbon economies, several municipalities in Sweden have issued green bonds. However, this instrument will not be the only one cities need to use to fund whole city transitions.

This project aims to accelerate investments in sustainable cities by:

  • understanding the strategies that cities are taking to become more sustainable
  • assessing the financial consequences of targets set by the cities
  • assessing how much sustainable finance is currently geared towards sustainable cities
  • reviewing impact frameworks and metrics.

The project team is a collaboration between SEI, Cleantech Scandinavia and the Stockholm School of Economics supported by an advisory board consisting of representatives from municipal governments, academia and institutional investors.

Viable Cities (2022–2030)

Viable Cities’ mission is Climate Neutral Cities 2030 with a good life for all within planetary boundaries. Together with cities – municipalities, business, academia and civil society – and public authorities, we work to create ecologically, economically and socially sustainable cities. Cities that work well for the people who live in them, that are good for the economy of citizens, businesses and society – and – that are good for the climate and our planet.

Viable Cities is one of 17 Strategic Innovation Programmes. In 2022, SEI was voted into the programme board, and is now working alongside KTH, Rise and Lund University. More specifically, Fedra Vanhuyse was appointed as the finance and procurement strategist, and is leading on the design of the climate investment planning process.

Learn more about the Viable Cities programme here.

NetZeroCities (2022–2030)

NetZeroCities is part of the Horizon 2020 Research and Innovation Programme in support of  European Union’s Green Deal. NetZeroCities has been designed to help cities overcome the current structural, institutional and cultural barriers they face in order to achieve climate neutrality by 2030.

It supports in particular the EU Mission on Climate Neutral and Smart Cities, whereby 100 EU cities and 12 in neighbouring countries are aiming to achieve climate neutrality by 2030. SEI is involved in Net Zero Cities through its engagement in Viable Cities. It leads on climate investment planning, further developing the dashboard which showcases how climate action and investment planning connects in cities.

Learn more about NetZeroCities here.

AT LAST (2023–2026)

The AT LAST project aims to structurally speed up and scale up the implementation of Sustainable Energy and Climate Action Plans (SECAP) across Europe, by focusing on small and medium-sized cities.

Our approach is threefold:

  • AT LAST will systematically review and consolidate research related to climate action in cities into a consistent offering of capacity building, training and support related to sustainable energy and climate action planning at city level, bridging between mitigation and adaptation strategies and energy planning.
  • AT LAST puts the focus on the implementation of energy and climate action plans, working with twenty-two local authorities, grouped into four pilot networks in four countries (Belgium, Italy, the Netherlands, and Sweden). The pilots will focus on: financial innovation for cities in Sweden; governance in the Netherlands; cross-sectoral integration in Belgium and cross-sectoral integration, governance and financial innovation in Italy.
  • AT LAST will, through its networking and a community of practice, support an additional 100 authorities and reach and influence more than 1,000 municipalities active in energy and climate planning.
  • AT LAST is funded by EU-LIFE, and the partners in the consortium are AESS (Italy), Transition Heroes and VVSG (Belgium), Klimaatverbond (Netherlands) and REVOLVE (Spain).

2024

2023

2022

2021

2020

Creating Green Cities, 14-15 June 2023, Malmö

On 14 and 15 June, the Ministry of Rural Affairs and Infrastructure, Government Offices of Sweden, in collaboration with Boverket – National Board of Housing, Building and Planning, and SLU Movium Think Tank, and in alliance with governmental authorities in the Swedish Council of Sustainable Cities, is organizing the Creating Green Cities conference.

Fedra Vanhuyse will explain the approach to climate investment planning.

Tallinn European Green Capital 2023 Opening Conference, 20 January 2023

Fantastic creatures: Making European cities safe, inclusive, resilient and sustainable

Fedra Vanhuyse presented during the session Thriving like an oak: building eco-systems for green and healthy cities.

Key questions in this session were: How to help European cities to create well-designed, managed and connected green areas for healthy living environments? How to create synergies between different needs and functions for sustainable urban development?

She spoke alongside Mr. Eric Piolle, Mayor of Grenoble, France and Mrs. Madle Lippus, Deputy-Mayor of Tallinn, Estonia.

Events

Climate action and investment planning dashboard

Sweden aims to achieve net zero emissions by 2045, which equals to less than 1 tonne of greenhouse gas emissions per person (Swedish Climate Policy Framework, 2017). The purpose of this dashboard is to support Swedish municipalities with their climate action and investment planning. It provides 1) insight into the current emissions in the cities, from a territorial emissions perspective and a consumption-based perspective (household level data only); 2) some forecasts to 2030 using population growth and other socio-economic data; 3) a tool to see the effects of different climate actions, and their associated costs.

Try the dashboard

Fedra Vanhuyse
Fedra Vanhuyse

Head of Division: Societies, Climate and Policy Support

SEI Headquarters

Tommaso Piseddu
Tommaso Piseddu

Research Associate

SEI Headquarters

Julia Jokiaho
Julia Jokiaho

Research Associate

SEI Headquarters

Gowtham Muthukumaran

Expert (Climate Systems and Energy Policy Unit)

SEI Tallinn

Marcus Lindeberg Goñi
Marcus Lindeberg Goñi

Research Associate

SEI Headquarters

Ajitha Duvvuri
Ajitha Duvvuri

Research Associate

SEI Headquarters

Peter Robert Walke

Expert (Climate Systems and Energy Policy Unit)

SEI Tallinn

Ansel Cheng-Wei Yu

Junior Expert (Climate Systems and Energy Policy Unit)

SEI Tallinn

Melano Sirbiladze
Melano Sirbiladze

Research Fellow

SEI Headquarters

Design and development by Soapbox.