The role of citizen finance in driving the energy transition is growing, and municipalities are increasingly exploring innovative ways to fund their climate and energy projects.  

During a PROSPECT+ Community of Practice meeting on 24 February 2025, Jean-François Maljean from Etterbeek (Belgium) and Sanela Mikulčić Šantić from Križevci (Croatia) shared their experiences with crowdlending, showcasing how municipalities can tap into local savings to accelerate their sustainability efforts. 

Watch HERE 

 

Crowdlending in Etterbeek: A Success Story in Citizen Investment 

Etterbeek, a municipality in the Brussels region, has embarked on an ambitious journey to reduce its carbon footprint. With buildings accounting for 68% of its direct greenhouse gas emissions, the municipality needed innovative financing solutions to complement traditional funding mechanisms. Enter crowdlending—a participatory approach that allows citizens to directly invest in local projects in exchange for a financial return. 

Jean-François Maljean, head of project development and financing in Etterbeek and PROSPECT+ Alumni, explained how the city launched a crowdlending campaign to help finance a new daycare center built with high energy performance standards.  

Through a partnership with a regulated financial intermediary, Etterbeek was able to offer residents the opportunity to invest in their city’s future.  

The response was overwhelming—the campaign, initially planned to run for over a month, reached its 1.2 million EUR target in just one day. 

Key elements of Etterbeek’s success included: 

• Strong municipal leadership and trust: The mayor’s long-standing reputation reassured residents that their investment was safe. 
• Clear and attractive financial conditions: Investors received a 4.5% interest rate for residents and 4% for external investors, with repayment over 18 months. 
• A well-structured public procurement process: The municipality worked within EU Regulation 2020/1503 to ensure compliance and secure a financial intermediary to manage the platform. 
• A strategic marketing campaign: Etterbeek prioritized local engagement, including information sessions and direct communication with potential investors. 

Jean-François highlighted that "having a well-structured framework and clear municipal commitment made this project a success", emphasizing that proper financial planning was key. 

Watch HERE 

 

Križevci’s Crowdlending Model: Pioneering Citizen Finance in Croatia 

Križevci, a small Croatian town of fewer than 10,000 residents, has also embraced citizen financing for its energy transition. Seven years ago, the town launched a groundbreaking crowdlending initiative to fund photovoltaic (PV) installations on municipal buildings. 

Sanela Mikulčić Šantić, an expert in innovative financing and PROSPECT+ mentor and Innovative Financing Ambassador, detailed how the city successfully implemented two crowdlending campaigns: 

- The Development Center & Technological Park: A 10-day campaign that raised 30,000 EUR from 53 investors. 

- The City Library: A 2-day campaign that raised 23,000 EUR from 40 investors. 

Both projects used an intermediary—an Energy Cooperative—to manage investments and ensure smooth operations. Investors received a return based on energy savings, demonstrating how municipalities can leverage local engagement to drive clean energy projects. 

Key takeaways from Križevci’s model: 

• Overcoming regulatory barriers: Without national crowdfunding legislation, the project relied on cooperatives as legal intermediaries. 
• Strong community engagement: The mayor and local institutions played an active role in promoting the campaign. 
• Inspiring local replication: The success of these projects spurred the creation of a local energy cooperative and increased demand for solar installations in private homes. 

Sanela emphasized that "trust and clear communication were crucial in convincing residents to participate", noting that many were initially skeptical of the model. 

Watch HERE 

 

Policy Developments and Regulatory Changes 

One of the major enablers of Etterbeek’s crowdlending initiative was the revised EU Regulation 2020/1503, which now allows municipalities to engage in crowdlending under specific conditions.  

Previously, public authorities were excluded from crowdfunding mechanisms, but the regulation now explicitly permits them to act as project owners, provided they work with licensed crowdfunding service providers. 

Jean-François noted, "This regulatory shift was a game-changer. Without it, this type of financing would not have been possible for municipalities like ours." 

However, he also pointed out that further simplifications to the regulation could make crowdlending even more accessible. Currently, municipalities are required to work through financial intermediaries, which adds extra administrative costs and complexity.  

He suggested that "allowing municipalities to operate their own crowdfunding platforms under strict financial governance could reduce costs and streamline the process."  

He emphasized that clearer national guidelines and capacity-building efforts could help local governments adopt these financing models more efficiently. 

 

Final Recommendations for Decision-Makers 

To encourage wider adoption of crowdlending in municipal finance, both speakers proposed: 

• Further regulatory clarity and simplification: While the EU regulation was a positive step, additional guidance at the national level is needed. Allowing municipalities to operate their own crowdfunding platforms under strict governance could reduce costs and improve efficiency. 
• Support from municipal leaders: Mayors play a crucial role in fostering public trust and confidence in crowdlending initiatives. Strong leadership and clear communication are essential for citizen engagement. 
• Stronger incentives for resident participation: Local and national governments should explore tax benefits for residents, such as tax exemptions, matched funding, or symbolic incentives like free municipal services to enhance citizen engagement. 
• Capacity building for municipalities: Many local authorities lack experience with crowdfunding and need dedicated resources and training to effectively manage such programs. 
• Encouraging private sector participation: Municipalities should explore hybrid models where local businesses co-invest in projects alongside residents. 
• Educational campaigns for residents: Changing the mindset of citizens is crucial for long-term success. Investing in public awareness campaigns on the benefits of crowdlending and community financing can help shift perceptions and increase participation. 

 

Both Etterbeek and Križevci have demonstrated that citizen finance is more than just a niche solution—it can be a practical, scalable tool for financing the local energy transition. As subsidies become scarcer, municipalities across Europe may increasingly turn to participatory financing to bridge investment gaps and engage their communities in sustainable urban development. 

Access the presentations HERE 

Contribute to the debate 

You have the final opportunity to share your city's or region's needs, postulates and recommendations. 

Fill in a short survey to contribute to the issues the speakers will highlight during the PROSPECT+ final event, which will take place on 11 March in Brussels: add your contribution. 

Read more about the final event and grab you seat: click here