Green Deal Funding Alert - May 2025

​This is the latest edition of the Green Deal Funding Alert – a monthly newsletter that keeps you informed about funding opportunities and initiatives that support sustainable development and the transition to climate neutrality. This month’s edition highlights four essential opportunities for urban sustainability: EUR 233.65 million for climate adaptation and water restoration, EUR 118.4 million for inclusive and green neighbourhoods through the New European Bauhaus initiative, new grants for local energy projects from the European Energy Communities Facility, and valuable insights from PROSPECT+ on unlocking innovative financing for local energy initiatives. Discover more and participate in the info day to bring your city’s green ideas to life!

1. Funding the Future: EUR 233.65 million for EU missions on climate adaptation and water restoration

The recently published Horizon Europe 2025 work programme has introduced two new mission calls, allocating EUR 233.65 million to help our cities, coasts, rivers and seas cope with the challenges posed by climate change and pollution. By 2030, these missions aim to achieve significant improvements in coastal resilience, water quality and ecosystem health. Whether you are a municipality testing permeable pavements, a small or medium-sized enterprise creating wave-energy solutions or a research consortium focused on restoring watersheds, there are opportunities for you!

Deadline: 24 September 2025

Discover your funding opportunities!

2. Design sustainable spaces with the New European Bauhaus grant

The European Union encourages innovative, inclusive and sustainable visions for our built environments. Under the 2025 Horizon Europe work programme, the New European Bauhaus call for proposals is open, with EUR 118.4 million available for projects on one of 11 topics across three areas: connecting the green transformation, social inclusion and local democracy; circular and regenerative approaches for the built environment; and innovative funding and business models for neighbourhood transformations.

Deadline: 12 November 2025

Learn more during the info day on 4 June 2025 (09:30–13:00 CEST). Find all calls, submission details and guidance!

3. Empowering Communities: Funding the energy transition

The European Energy Communities Facility will open its first call for proposals on 2 June 2025. This initiative offers hands-on support and grants to energy communities across 29 countries. Whether you are just starting or looking to expand your impact, this programme helps transform your local clean energy ideas into action through expert guidance, training and a strong commitment to developing fair and resilient energy systems.

Check your eligibility and apply!

4. Overcoming Financing Barriers: PROSPECT+ insights on energy transitions without subsidies

The PROSPECT+ study entitled 'Energy Transition Without Subsidies' reveals that cities eager to adopt innovative tools and methods, such as energy performance contracting and citizen finance, face significant obstacles. These challenges include restrictive laws, limited expertise and unclear guidance. Based on surveys and discussions with municipal officials, the study calls for faster legal clarity, dedicated support for energy agencies, streamlined technical assistance and practical local tools to help empower climate action.

Read the full report!

Any questions?

Please contact our Green Deal team at greendeal@cor.europa.eu. They will be happy to help.

If you missed the last edition of the Funding Alert, you can catch up here.

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