100 Climate-Neutral European Cities: Philanthropy’s Role in Ensuring a Just and Fair Transition through the EU Cities Mission

Overview

Through the co-design and delivery of a Climate City Contract (CCCs), an innovative governance tool endorsed by participating public authorities, enterprises, universities and civil society organisations, cities can formalise their commitment to ambitious targets they set themselves.

53 cities have delivered these CCCs and have been awarded the EU Mission Label, a certification that helps unlock synergies with other financial resources and players. The analysis of the 52 CCCs publicly available reveals that a total of 58 foundations are referenced across 22 cities in 11 EU Member States.

Europe is the continent with the largest number of registered public-benefit foundations, 175,203 foundations with €76 billion total annual expenditure and €519 billion total assets and endowments. This richness and diversity is reflected in the ways in which philanthropic support is provided to Mission Cities: they are formal signatories or appear as external partners, and can provide financial contributions across the philanthropic toolbox, as well as technical assistance and expertise, or the implementation of their own programmes and projects.

Considering that only 58 foundations are involved in one way or another in the Cities Mission, there is a long way to go in terms of philanthropic engagement. This publication analyses the current ways in which foundations are supporting cities’ transition to climate neutrality, identifies how foundations can further be involved and outlines key recommendations to the European Commission to shape a tailored pathway to onboard philanthropy and unlock its untapped potential.

Key takeaways

• Philanthropic support to Mission Cities comes in many shapes and forms: it is not only about funding and financial support, but also the ability to support community-based and vision-driven transformation that brings together environmental transition and social justice. Considered as key partners with lived experience rather than beneficiaries, citizens and communities lie at the heart of philanthropy’s work.
• It is not only about funding: philanthropy has a unique approach that can ensure that the journey towards climate neutrality is rooted in fairness, inclusivity and justice. Philanthropy can bring the environmental transition close to the hearts and lives of local and often neglected communities, those that are most often left behind.
• Foundations’ ability to provide expertise, financial support and strategic guidance makes them valuable partners in ensuring that ambitious climate targets translate into actionable and well-structured projects, programmes and approaches.
• Transformation happens in neighbourhoods, towns, cities and rural areas. It is place-based and driven by people. Many of the leading European foundations are deeply rooted in local contexts, functioning as key intermediaries and ‘local antennae’ that can effectively detect and respond to regional needs.
• Considering green, digital and social transitions; growing radicalisation and conflict; and the serious challenges to democratic ideals and freedoms in some parts of Europe, philanthropy has an important role to play in finding solutions that bridge the ambitions around climate neutrality with considerations around social equity in a context of increased polarisation of our societies.

Background

This report is a product of Philea’s and Fondazione Compagnia di San Paolo’s collaborative work around the EU Cities Mission, which brings together foundations who can provide a unique contribution to the journey of climate neutrality in cities through their capacity to engage stakeholders, take risks and think long-term, as well as to provide additional funds and investments.