Netherlands: Eindhoven gets EU advisory support for green transition roadmap

• Municipality signs advisory agreement with European Investment Bank and European Commission to tackle the climate crisis and reduce its greenhouse gas emissions.
• The focus of the advisory support will be on Eindhoven Energie, which will allow the city to transition away from natural gas while heating homes efficiently by 2050.
• Eindhoven is the first Dutch city to receive EIB Advisory support under the Climate Neutral and smart Cities Mission

In light of Eindhoven’s “route towards climate neutrality”, the municipality has signed an advisory agreement with the European Investment Bank, funded by the European Commission. The city strives to be a healthy, liveable and future-proof place for its citizens, aiming to be fully circular by 2050. As part of this wider strategy, the city wants to use only sustainably generated energy as of 2045, which requires a transition from the current status quo. To break away from fossil fuels, notably natural gas, Eindhoven plans to develop a centralised district heating network and integrate suitable heat sources.

This advisory assignment, managed by the EIB and funded by the European Commission through the Climate Neutral and Smart Cities Mission, will help the municipality to develop and implement the financing strategy to support this district heating investment programme. In addition, the assignment will provide insight into which components of the associated financial scale-up still need to be developed, in consultation with the EIB and the financial market.

“In the framework of the energy transition, we need to ensure that people’s basic needs can be fulfilled in a sustainable manner.” stated EIB vice president Robert de Groot. “Large-scale energy infrastructure is indispensable to make headway on that road, and so we are pleased to support Eindhoven – the focal point of one of Europe’s most innovative areas – in this endeavour. The transition must be a just one for everyone and thanks to our experience across the whole European Union, our advisory services can support sustainability projects that can bring real benefit to citizens.”

More in detail, the advisory works will cover the development and review of the project investment plan and identification of the financing strategy with respect to setting up Eindhoven Energie. This includes a technical review of proposed interventions, a demand analysis, a strategic reflection concerning tariff structures, a risk strategy and an implementation timeline, as well as advice on organisational structure which will support the implementation of the investment plan. Eindhoven recently received the European Commission’s “Mission Label” and is now the first city in Netherlands to get dedicated EIB Advisory support under the programme funded by the Commission DG RTD.

"Our commitment is to create a more sustainable Eindhoven for every resident. The advisory support helps us turn ambition into action.” stated Alderman of the municipality of Eindhoven Rik Thijs. “Partnering with the EIB and the European Commission strengthens our ability to deliver on Eindhoven's climate-neutral roadmap by implementing sustainable heating solutions and improving financing strategies."

Eindhoven is the first Dutch city to receive EIB Advisory support under the European Commission’s Climate Neutral and Smart Cities Mission, which is part of its InvestEU initiative.

Background Information:

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. The Netherlands owns a 5,2% share of the EIB. It makes long-term finance available for sound investment in order to contribute towards EU policy goals and national priorities. More than 90% of its activity is in Europe. Over the last ten years, the EIB has made available more than €27 billion in financing for Dutch projects in various sectors, including research & development, sustainable mobility, drinking water, healthcare and SMEs. In 2024 the EIB Group, which also includes the EIB’s subsidiary, the European Investment Fund (EIF), made available more than €3 billion for Dutch projects.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Eindhoven stands as a hub for innovation, driven by strong collaboration between businesses, knowledge institutions, governments, and residents. Thanks to its economic success, the city is projected to surpass 300,000 inhabitants by 2040. The significant growth is primarily fuelled by the influx of international knowledge workers, accelerating both urban development and the internationalization of Eindhoven and the wider region.

Eindhoven Energie is a local publicly owned energy company, with one of its key responsibilities being the implementation of district heating systems in the city.

The EU Mission for Climate-Neutral and Smart Cities, under Horizon Europe, contributes to Europe’s clean and digital transition, aligning with the European Green Deal, the Policy Agenda for Cities, and the Clean Industrial Deal. 

The Cities Mission will involve local authorities, citizens, businesses, investors as well as regional and national authorities to

1. Deliver climate-neutral and smart cities by 2030 with over 100 having reached mission label milestone 
2. Ensure that these cities act as experimentation and innovation hubs to enable all European cities to follow suit by 2050 

Climate-neutral and smart cities - European Commission