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Sustainability agenda

Six programmes to drive innovation in European cities and regions

EU funding cities and regions

The year 2026 marks a turning point for European urban policies. Brussels is rolling out a set of calls that will bring together innovation, sustainability and urban transformation under programmes designed to strengthen local ecosystems, accelerate climate adaptation, and turn cities into climate-neutral, inclusive and attractive places to live. “It is also the last opportunity in the current financial period to take part in some of the most strategic programmes, such as the European Urban Initiative (EUI),” warns Aurora García, Head of the Regions and Cities Knowledge Area at Zabala Innovation.

For this reason, anticipating current opportunities and preparing an integrated funding strategy is essential to maximise both impact and eligibility. Engineers and urban planners, tech SMEs, universities, designers, and regional and local authorities find this year’s calls a chance to finance projects that connect science with everyday life: from energy-efficiency solutions to new urban models or sustainable housing.

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The six initiatives currently on the table outline the most complete map of European opportunities for those working towards a green transition with tangible impact. “These funding programmes do not compete with each other, and urban innovation projects can benefit from more than one at the same time, under certain conditions,” García notes. “The calls are strategically complementary within the European framework for urban transformation. For instance, cities already participating in a European Mission can turn to the EUI to develop concrete demonstration projects, and vice versa,” she adds.

European Urban Initiative (EUI)

Budget: €60 million.

Deadline: 15th June 2026. Final opportunity.

Target entities: all European cities with more than 25,000 inhabitants and local groupings.

Funding: up to €2 million from ERDF.

The European Urban Initiative (EUI) strengthens the capacity of EU cities to design and implement innovative, sustainable and integrated urban solutions. It promotes knowledge sharing, experimentation and territorial cooperation.

EUI is particularly relevant for local authorities, urban consortia and public or private organisations seeking to test new ideas in areas such as housing, mobility and social cohesion. It offers direct funding for pilot projects and methodological support to transfer solutions to other European urban contexts.

Interregional Innovation Investments (I3)

Budget: €47 million (€23 million for Strand 1 and €24 million for Strand 2a).

Deadline: 12th November 2026.

Target entities: consortia composed of SMEs, start-ups, public institutions, universities and research centres from different EU regions.

Funding: support for interregional investment projects in innovation aimed at market uptake and the development of European value chains.

Strand 1 targets consortia of regions with shared or complementary smart specialisation areas that are ready to invest in interregional innovation projects. Strand 2a supports investments designed to develop value chains in less developed regions and to strengthen the integration of their stakeholders into European value chains.

Both strands aim to bring mature, investment-ready ideas closer to the market and to reinforce sustainable European value chains through cooperation between regions at different levels of development.

Horizon Europe – European Innovation Ecosystems (EIE)

Budget: €5 million.

Deadline: 22nd September 2026.

Target entities: innovative companies, SMEs, clusters and innovation-ecosystem organisations.

Funding: Horizon Europe grants covering up to 100% of eligible costs.

The European Innovation Ecosystems (EIE) initiative aims to build stronger and better-connected innovation environments across Europe. It promotes collaboration between businesses, research centres, investors and public authorities to accelerate the development and scaling-up of new technologies and services. By strengthening cross-border networks, EIE enhances Europe’s ability to respond collectively to industrial and social challenges.

EIE offers opportunities for innovative SMEstechnology clusters and public bodies wishing to scale up solutions or join international consortia. It is particularly useful for those seeking funding for collaborative projects or greater visibility within the European innovation ecosystem.

Horizon Europe – EU Mission for Adaptation to climate change

Budget 2026-2027: €226 million.

Deadline: 23rd September 2026.

Target entities: more than 320 regions, cities and local authorities that have signed the Mission Charter.

Funding: Horizon Europe, complemented with MIP4Adapt technical assistance.

The EU Mission for Adaptation to Climate Change helps regions and communities to anticipate and adapt to the impacts of climate change through innovative and resilient solutions. It funds pilot projects and promotes knowledge exchange to develop strategies addressing floods, droughts and heatwaves.

This mission is crucial for regional and local authorities, research centres, engineering firms and environmental organisations working on climate resilience. It provides support to turn adaptation plans into concrete actions, demonstrating how innovation can reduce risks and protect communities.

Horizon Europe – EU Mission for Climate-neutral and smart cities

Budget 2026-2027: €220 million.

Deadline: 8th October 2026.

Target entities: cities selected among the 112 signatories of the Climate City Contract.

Funding: Horizon Europe (RIA, IA, CSA), complemented with technical support from NetZeroCities.

The EU Mission for Climate-Neutral and Smart Cities supports 100 European cities in their transition towards climate neutrality and digitalisation by 2030. It provides a framework for innovation, investment and citizen participation to transform urban systems in energy, mobility and digital services.

This mission offers a unique opportunity for municipalities, technology companies, energy operators and universities seeking to lead the urban decarbonisation process. It provides European visibility, access to innovation networks and technical support to develop integrated projects that can be replicated in other cities.

Horizon Europe – New European Bauhaus (NEB)

Budget 2025-2027: €360 million.

Deadline: 1st December 2026.

Target entities: public administrations (local and regional authorities, municipalities), local communities, citizens, private sector, civil-society organisations, architects, designers, urban planners, engineering firms, companies and social entities, among others.

Funding: Horizon Europe grants covering up to 100% of eligible costs for RIAs.

The New European Bauhaus (NEB) initiative combines sustainability, aesthetics and inclusion to transform European spaces and lifestyles, connecting science, art and culture with the green transition. It supports projects that bring together environmental innovation, social value and design excellence.

NEB targets architects, designers, local authorities, universities and cultural actors interested in projects linking sustainability with European identity. It offers visibility, cross-disciplinary collaboration and access to calls rewarding transformative solutions in urban development, construction, culture and community life.