EU’s local leaders plan digital and climate investment surge amid funding struggle

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Brussels Times or enjoy below:

🗞️ Driving the news: Cities and regions across Europe are preparing to significantly increase investment in digital transformation and climate transition projects, despite major funding and administrative challenges
• A joint consultation by the Organisation for Economic Co-operation and Development (OECD) and the European Committee of the Regions found that local governments expect rising investment in transport, environmental protection, housing and education over the coming years

🔭 The context: The survey shows that European local authorities see the twin digital and climate transitions as core investment priorities.
• Around 45% of respondents expect the strongest growth in digital transition investments, while 35% expect increased spending linked to climate transition
• Other priorities include adapting infrastructure to ageing populations and demographic change, as many municipalities face significant barriers
• Limited access to grants, difficulties raising revenues, challenges accessing external finance, administrative complexity and coordination problems between national and local governments are slowing investment

🌍 Why it matters for the planet: Local governments are responsible for many of the decisions that directly shape climate outcomes, from public transport and energy efficiency to urban planning and resilience infrastructure
• Scaling climate investment at the city and regional level will be essential to meeting European climate targets, particularly as communities face rising risks from extreme weather, heatwaves and resource pressures 

⏭️ What’s next: European regions are expected to continue pushing for stronger access to funding, simpler regulations and better coordination with national governments
• Improving public procurement, increasing transparency and strengthening local administrative capacity may become key priorities as cities seek to accelerate both digitalisation and climate action.

💬 One quote: “Funding constraints remained the most frequently reported obstacle to investment, with 77% citing mobilising grants and subsidies as a major or moderate challenge.” — The Brussels Times, summarising OECD and Committee of the Regions findings

📈 One stat: 35% of European local authorities expect climate transition investment to increase in the coming years

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