11.06.2025
Climate Alliance calls for stronger local involvement in EU budget and policy-making processes
Over the past weeks, Climate Alliance has actively engaged in several recent EU consultations that shape policy direction in critical areas including the EU budget, renovation, urban governance, energy, and housing.
Cities Must Be Central in the Next EU Budget (MFF 2028–2034)
As the European Union prepares its next Multiannual Financial Framework (MFF) for 2028–2034, Climate Alliance is urging EU institutions to place cities and regions at the heart of the budgeting process. Climate Alliance argues that empowering local and regional authorities is not only crucial for implementing EU priorities such as the Green Deal, digital transformation, and social cohesion, but also key to sustaining democratic legitimacy within the Union. Local leaders across the continent echo Climate Alliance’s call, pointing to the proven role of municipalities in delivering innovative, community-focused solutions. The network stresses that failure to involve these actors meaningfully would weaken the EU’s ability to meet its strategic goals and disconnect citizens from Brussels.
In support of this position, Climate Alliance responded to three major EU public consultations related to the MFF:
- EU Funding for Competitiveness:
Climate Alliance expressed concern about fragmented and overlapping funding streams that hinder effectiveness. They called for better alignment across governance levels and financing that supports all stages of innovation. Importantly, Climate Alliance urged recognition of the unique role cities and regions play in driving competitiveness, particularly in areas like green tech and social enterprise. - Implementing EU Funding with Member States and Regions:
Climate Alliance highlighted burdensome procedures, inflexible frameworks, and lack of local involvement as key barriers. The organization advocated for mandatory participation of regional and local governments in fund design and implementation, alongside simplified rules and clearer accountability mechanisms. - Performance of the EU Budget:
While Climate Alliance acknowledged that the current budget has supported climate action and biodiversity, they found it only moderately effective. They recommend improved monitoring systems, simplified reporting, and enhanced transparency, ensuring that funding reaches those best placed to act—often local authorities.
Shaping the EU's Policy Landscape – Climate Alliance’s Input on Further Key Consultations
- Cost-Optimal Renovation Standards:
Climate Alliance’s response underscored the importance of defining “cost-optimal” in a way that reflects social, environmental, and long-term economic benefits. As this framework underpins renovation benchmarks across the EU, the organisation pushed for standards that encourage deep, impactful renovations aligned with zero-emission goals and equitable outcomes. - New Urban Agenda for Cities:
Addressing structural gaps in EU-local relations, Climate Alliance called for a transition from fragmented, project-based support to durable partnerships. They advocated for better access to data, long-term investment pipelines, and inclusion of cities in all stages of policymaking to realise the ambitions of the European Green Deal. - Evaluation of the Modernisation Fund:
Climate Alliance welcomed the fund’s contributions to energy system upgrades in lower-income Member States but highlighted key shortcomings, including vague decision-making processes and weak local involvement. Their recommendations included strengthening stakeholder engagement, enhancing coordination with other funding tools, and prioritising community-led energy solutions. - European Affordable Housing Plan:
In this crucial consultation, Climate Alliance urged the EU to empower municipalities with policy tools such as pre-emptive land rights and financing models rooted in social equity. They emphasised the need for long-term affordability, non-profit housing, and integration of energy efficiency and resilience standards, especially for vulnerable groups.
From fiscal frameworks to urban policy and climate action, Climate Alliance’s recent advocacy efforts converge on a consistent message: Europe’s future depends on the capacity of its cities and regions to act. But for that to happen, they must be empowered with the resources, autonomy, and voice they deserve.
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