Deadline: 01-Dec-2026
The European Commission is funding research and innovation projects to improve capital market understanding and increase investment in New European Bauhaus (NEB)-aligned neighbourhood transformation. The programme focuses on sustainable, inclusive, and culturally rich urban development supported by innovative financing models.
The total budget is €7 million, with around €3.5 million per project under Horizon Europe.
Programme Overview
This Horizon Europe call supports research into how capital markets can better finance small-scale, place-based neighbourhood transformation projects under the New European Bauhaus (NEB) initiative.
It aims to bridge the gap between:
- Available investment capital in financial markets
- Funding needs of community-level sustainable development projects
The programme combines financial systems analysis with practical investment solution design.
Key Focus Areas
The initiative focuses on:
- Capital market dynamics and investment flows
- Demand and supply of finance for NEB projects
- Risk and return assessment frameworks
- Place-based impact investing models
- Sustainable neighbourhood transformation financing
- Social inclusion and community well-being investment
- Cultural and aesthetic value creation in urban spaces
- Environmental sustainability financing
- Local economic resilience strategies
- Regulatory and financial system analysis
- Innovative financing instruments and mechanisms
- Digital finance tools and platforms
- Community co-investment models
- Cross-border investment validation
Programme Objectives
The call aims to:
- Improve understanding of capital market behavior in NEB investments
- Identify barriers limiting investment in small-scale projects
- Develop new financing models for neighbourhood transformation
- Expand access to diverse capital sources
- Support sustainable, inclusive, and culturally rich urban development
- Strengthen alignment between finance and community needs
Capital Market Analysis Requirements
Applicants are expected to analyse:
- Size and structure of available capital
- Investment preferences and risk profiles
- Barriers to financing NEB projects
- Regulatory and policy constraints
- Cultural and economic factors influencing investment
- Role of institutional vs. private capital
Innovative Financing Solutions
Based on analysis, projects should design new tools such as:
- Place-based impact investing frameworks
- Digital financial instruments
- Community co-investment platforms
- Blockchain-based transparency systems
- Blended finance models
- New public-private investment structures
These tools should help unlock funding for small-scale, local development projects.
Target Investors and Capital Sources
The programme encourages analysis of diverse capital providers, including:
- Impact investment funds
- Real estate investors
- Pension funds
- Family offices
- Philanthropic foundations
- Donors and grant-makers
- Insurance companies
- Public financing institutions
Validation Requirements
Proposals must:
- Test and validate solutions in at least three Member States or Associated Countries
- Ensure applicability across different local contexts
- Demonstrate scalability and replicability
- Assess real-world investment feasibility
Expected Outcomes
Projects are expected to deliver:
- New investment models for NEB projects
- Policy recommendations for financing strategies
- Tools for improved investment decision-making
- Frameworks for measuring multidimensional returns
- Stronger alignment between finance and urban transformation goals
Multidimensional Value Assessment
Investment decisions should account for:
- Economic returns
- Social impact
- Cultural value
- Environmental benefits
- Aesthetic improvements
- Community well-being outcomes
This expands traditional financial evaluation beyond profit-only metrics.
Funding Details
- Total budget: €7,000,000
- Estimated contribution per project: ~€3,500,000
- Programme: Horizon Europe
Who Can Apply?
Eligible applicants include:
- Any legal entity under national, EU, or international law
- Research institutions, NGOs, companies, and public bodies
- Entities from non-associated third countries
- International organizations
All applicants must comply with Horizon Europe eligibility rules.
Evaluation Priorities
Projects will be assessed based on:
- Quality of financial systems analysis
- Innovation in investment models
- Potential to unlock new capital flows
- Practical applicability of solutions
- Strength of cross-country validation
- Contribution to NEB sustainability goals
- Integration of social and cultural value metrics
Why This Programme Matters
This initiative strengthens the financial foundation of sustainable urban transformation by improving how capital is mobilized for community-scale projects.
It helps:
- Unlock investment for neighbourhood regeneration
- Bridge finance gaps for small-scale projects
- Promote sustainable and inclusive urban development
- Integrate social, cultural, and environmental value into finance
- Improve policy and investment coordination across Europe
Conclusion
The European Commission’s NEB financing initiative provides around €3.5 million per project to develop new investment models for neighbourhood transformation. By combining capital market analysis with innovative financing tools, the programme aims to make sustainable, inclusive, and culturally rich urban development more financially accessible across Europe.
For more information, visit European Commission.
