Guidance on EU support and finance
1. Introduction
This guideline aims to support cities and communities in supplementing their own funds with EU funding in the realisation of local digital twins (LDT). European assistance can be divided into two major categories: ‘non-financial or support’ and ‘financial’. The first ‘EU support’ consists of a diverse offering including: capacity building and training; networking; data and databases; knowledge platforms and toolkits; open-source building blocks; marketplaces; multi-country projects and services. The second ‘EU funding’ consists of funding provided directly by the European Commission and funding provided by the European Commission indirectly through Member States.
2. EU Support
The European Commission supports the digital transformation of communities through own investments and through subsidies. The investments contribute to creating EU initiatives which offer sustained support.
The following sections focus on mechanisms relevant for cities and communities to evolve towards a data platform, local digital twin and the citiverse.
2.1 Capacity Building and Training
Technical Support Instrument (TSI)
TSI offers cities and communities via their Member States a unique service to help them tackle reform challenges. The support can take the form of, for example, strategic and legal advice, studies, training and expert visits on the ground. It can cover any phase in the reform process.
TAIEX: Support for implementing environmental policy
TAIEX supports public administrations in the approximation, application and enforcement of EU legislation, as well as facilitating the sharing of EU best practices.
2.2 Networking
This section presents a list and descriptions of networking offerings.
European Digital Innovation Hubs
European Digital Innovation Hubs (EDIHs) are one-stop shops supporting companies and public sector organisations to respond to digital challenges and become more competitive. The map of all European Digital Innovations Hubs allows interested organisations to identify relevant hubs considering the desired focus and technological capability. The EDIH’s on AI and the public sector are especially relevant.
Living in EU
Living-in.EU is an EU initiative for local and regional leaders who believe that technology can help them make their town, city, or region a better place to live and who believe in European cooperation and values. It enables collaboration among cities and regions through knowledge sharing and five working groups. It is an initiative of 5 important EU-wide network organisations focussing on cities and communities, including:
- Eurocities
- The European Regions Research and Innovation Network (ERRIN)
- The Council of European Municipalities and Regions (CEMR)
- Open and Agile Smart Cities & Communities (OASC)
- The European Network Of Living Labs (ENOLL)
NetZeroCities
Service-oriented platform and network supported by world-class practitioners to help cities and communities achieve the ambition of climate neutrality.
Big Buyers Working Together
The BBWT project brings together key buyers, such as cities, central purchasing bodies and other important public buyers, to exchange best practices, implement them and improve the dialogue with market players and industry associations. Within this project, ten communities of practice (CoP), including a Digital COP, have been created on the Public Buyers Community platform.
Smart Communities Network
The Smart Communities Network is an EU wide community of organisations representing cities and municipalities, which can support local communities in their early stages of digital transformation. The purpose of the Smart Communities Network is to facilitate collaboration among organisations, associations, and initiatives throughout the EU, with a shared goal of enhancing digital capabilities within local public authorities.
2.3 Knowledge platforms and toolkits
This section presents initiatives that provide knowledge repositories, platforms and toolkits useful for cities and communities.
Knowledge Valorisation Platform
The Knowledge Valorisation Platform connects players in Europe with the ambition to turn research results into sustainable products and solutions for the public good, be it economic or environmental benefits, social progress or improved policy making. They are building a community where you can share your experiences, listen to lessons learnt or work with partners from all over Europe.
Intelligent Cities Challenge
Local Green Deals, a network of cities and library tools. This initiative highlights the benefits of strategic procurement processes in the digital transition of cities through the implementation of a Local Green Deal.
EAFIP Toolkit
The European Assistance for Innovation Procurement (EAFIP) initiative supports contracting authorities across Europe in developing and implementing innovation procurement.
2.4 Open-Source Building Blocks
This section presents the open-source building blocks available and under development by the EC, that can be reused and adopted by cities and communities for LDT implementation.
- eIDAS building blocs
- Local Digital Twins (LDT) toolbox for Advancing the transformation of Smart Communities (under development): the EC is developing an open-source toolbox of building blocks for EU cities and communities, which contains re-usable tools, reference architectures, open standards, and technical specifications for the implementation and adoption of AI-powered LDTs by European cities and communities.
2.5 Data Spaces
This section will present the EU data spaces that can be used.
Common European Data Spaces aim to make more data available for access and reuse in a trustworthy and secure environment. They cover various strategic fields such as health, agriculture, manufacturing, energy, mobility, public administration, and the European Open Science Cloud. In this context, the Data Spaces Support Centre contributes to the creation of common data spaces that collectively create a data sovereign, interoperable and trustworthy data-sharing environment to enable data reuse within and across sectors, fully respecting EU values and supporting the European economy and society. Funded by the European Commission as part of the Digital Europe Program, the Data Spaces Support Centre is aimed at the public sector and companies that want to create sovereign data spaces.
The European Data Space for Smart Communities (DS4SSCC) is an EU-wide action creating a cross-sectorial data space for governments on all levels and their providers to deliver the best possible services to their citizens by enabling interoperability to reach critical goals, including the Green Deal.
2.6 Marketplace
Smart Cities Marketplace is an initiative that connects cities, industry, investors, and stakeholders to support smart city transitions. More details can be found in the digital brochure on the Smart City Marketplace.
2.7 Multi-Country Projects
EDIC LDT towards the CitiVerse
The European Digital Infrastructure Consortium (EDIC) is a legal framework aiding Member States in setting up and implementing multi-country projects. Cities and communities are the focus of the Networked Local Digital Twins towards the CitiVERSE (LDT CitiVERSE EDIC) initiative which will sustain, develop further and offer a package of services. In particular, a CitiVerse is defined as a series of interconnected and distributed hybrid and virtual worlds representing, and synchronised with, their physical counterparts. It offers new (administrative, economic, social, policy-making, and cultural) virtual goods/services/capabilities to city and community actors such as citizens, represented as digital avatars.
2.8 Services
GPP Helpdesk
The service managed by ICLEI provides timely and accurate answers to stakeholders' enquiries and promotes and disseminates information on green public procurement.
Online Procurement Helpdesk for Smart Communities
The Online Procurement Helpdesk for Smart Communities is a support service which aims to advance the digital maturity of EU cities and communities in the early stages of their digital transformation. After identifying European communities’ procurement needs, a tailored digitalisation roadmap is provided to implement the initiatives towards the development of a Local Digital Platform and Twin. In doing so, a series of procurement support materials are made available, resulting in a set of procurement templates and guidelines to support the procurement process of cities and communities.
SPIN4EIC
The project provides opportunities to assist public buyers regarding innovation procurement and its implementation.
HSBooster
It offers a consultancy service to EU-funded projects seeking guidance on standardisation-related aspects of their research projects. Their aim is to assist projects in effectively navigating the standardisation landscape, ensuring their work aligns with relevant standards and maximising their impact in the market.
3. EU Funding
3.1 Direct
The following initiatives represents a selection of the vast programme of the EC's 2021-2027 multiannual financial framework, which can result relevant resources for cities and communities in relation to their planned implementation of LDTs.
European Urban Initiative
The European Urban Initiative is a tool to support cities of all sizes in building capacity and knowledge, supporting innovation, and developing transferable and scalable innovative solutions to urban challenges of EU relevance.
European Green Deal
The European Green Deal presents a roadmap for making the EU’s economy sustainable by turning climate and environmental challenges into opportunities across all policy areas and making the transition just and inclusive for all. The European Green Deal aims to boost the efficient use of resources by moving to a clean, circular economy, stopping climate change, reverting biodiversity loss and cutting pollution. It outlines investments needed and financing tools available and explains how to ensure a just and inclusive transition.
HORIZON Europe
Research and innovation funding programme until 2027: focus on green and digital transition, more resilient, competitive, inclusive, and democratic Europe.
Funding and Tenders portal:
Digital Europe
The Digital Europe Programme (DIGITAL) is an EU funding programme focused on bringing digital technology to businesses, citizens and public administrations.
Connecting Europe Facility (CEF Digital)
The Connecting Europe Facility (CEF) is a key EU funding instrument to promote growth, jobs and competitiveness through targeted infrastructure investment at the European level. It supports the development of high-performing, sustainable and efficiently interconnected trans-European networks in the fields of transport, energy and digital services. CEF investments fill the missing links in Europe's energy, transport and digital backbone.
CEF Digital supports and catalyses investments in digital connectivity infrastructures of common European interest.
STEP: Deep and digital technologies
The EU set up the Strategic Technologies for Europe Platform (STEP) to support the European industry and boost investment in critical technologies in Europe. STEP raises and steers funding across 11 EU programmes to three target investment areas:
- Digital technologies and deep-tech innovation
- Clean and resource-efficient technologies
- Biotechnologies
STEP also supports projects growing the skills necessary to develop those critical technologies. STEP introduces a new STEP Seal – an EU label for high-quality projects granting STEP projects visibility and facilitating access to other possible funding sources.
LIFE: Environment and Climate action
The LIFE Programme is the EU’s funding instrument for the environment and climate action.
CERV: The Citizens, Equality, Rights and Values Programme
The CERV programme aims to protect and promote rights and values enshrined in the EU Treaties and the Charter of Fundamental Rights. In particular by supporting civil society organisations active at the local, regional, national and transnational levels.
Interreg
Interreg Europe is an interregional cooperation programme co-funded by the European Union. The European Union strives to reduce disparities in development, growth and quality of life in and across Europe’s regions. Our programme contributes to this objective and runs from 2021 to 2027.
For the 2021-2027 programming period, all funds have been committed. The Interreg programme is not planning any more open calls during the 2021-2027 programme.
Innovation Fund
The Innovation Fund is one of the world’s most extensive funding programmes for demonstrating innovative low-carbon technologies.
European Urban City Facility (EUCF)
The EUCF is a European initiative to support municipalities/local authorities, their groupings, and local public entities aggregating municipalities/local authorities across Europe to develop investment concepts to accelerate investments in sustainable energy.
European Institute of Innovation and Technology
The European Institute of Innovation and Technology (EIT) is an independent body of the EU established in 2008 intended to strengthen Europe's ability to innovate. The EIT’s three “core pillars” of activities are: entrepreneurial education programmes and courses across Europe that transform students into entrepreneurs; business creation and acceleration services that scale ideas and budding businesses; and innovation-driven research projects that turn ideas into products by connecting partners, investors, and expertise.
3.2 Indirect
The European Structural and Investment Funds (ESI Funds, ESIFs) are financial tools set up to implement the regional policy of the European Union, as well as the structural policy pillars of the agricultural and fisheries policy. They aim to reduce regional disparities in income, wealth and opportunities. Europe's poorer regions receive most of the support, but all European regions are eligible for funding under the policy's various funds and programmes. The current framework is set for a period of seven years, from 2021 to 2027. Relevant funds for LDTs:
European Regional Development Fund
The European Regional Development Fund (ERDF) is designed to strengthen the European Union's economic, social and territorial cohesion. It aims to do this by correcting imbalances between regions by enabling investments in a smarter, greener, more connected and more social Europe that is closer to its citizens.
Cohesion Fund
The Cohesion Fund supports Member States with a gross national income (GNI) per capita below 90% of the EU-27 average to strengthen the economic, social and territorial cohesion of the EU. The Cohesion Fund supports investments in the field of environment and trans-European networks in the area of transport infrastructure (TEN-T). For the 2021-2027 period, the Cohesion Fund concerns Bulgaria, Czechia, Estonia, Greece, Croatia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. 37% of the overall financial allocation of the Cohesion Fund is expected to contribute to climate objectives.
European Social Fund Plus (ESF+)
The ESF is Europe’s main instrument for supporting jobs, helping people get better jobs and ensuring fairer job opportunities for all EU citizens. It works by investing in Europe’s human capital – its workers, young people and all those seeking a job. ESF financing of EUR 10 billion annually improves job prospects for millions of Europeans, particularly those who find it challenging to get work.
REACT-EU (Recovery Assistance for Cohesion and the Territories of Europe)
Following the coronavirus pandemic, the European Commission launched a comprehensive and ambitious recovery plan. The Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU) programme provides additional funding for sectors crucial to laying the basis for a sound recovery. REACT-EU continues to expand the previous Coronavirus Response Investment Initiative.
Interregional Innovation Investment
In the 2021-27 programming period, driven by the internationalisation of innovation and building on the experience with the interregional pilots, the Commission proposed the Interregional Innovation Investments instrument under the ERDF.
Just Transition Fund
The Just Transition Fund (JTF) is the first pillar of the Just Transition Mechanism (JTM). It is a key tool to support the territories most affected by the transition towards climate neutrality, providing them with tailored support. It is implemented under shared management, under the overall framework of Cohesion policy, which is the main EU policy to reduce regional disparities and to address structural changes in the EU.
Funding: EU countries must identify the territories and sectors eligible for funding under the Just Transition Fund.
The National Contact point for Innovation and Research support is the ideal stepping stone for National support programs and co-finance instruments.
3.3 Loans
InvestEU Programme
The InvestEU Programme supports sustainable investment, innovation and job creation in Europe. With the EU budget guarantee provided to international and national promotional banks, the InvestEU programme aims to trigger more than €372 billion in private investments in high EU policy priority areas.
European Investment Bank
EIB offers technical and financial advice and financing for smart city projects.
European Fund for Strategic Investments (EFSI)
The EFSI aims to overcome current market failures by addressing market gaps and mobilising private investment. It supports investments in areas such as infrastructure, education, research and innovation, as well as risk finance for small businesses. The Financing of projects takes place via the European Investment Bank.
