On 12 February 2026, the PROSPECT Cube project hosted the webinar “The MFF & You: Shape the next EU Budget Proposal to finance local sustainable energy projects”, bringing together municipalities, regions and energy agencies to explore the implications of the European Commission’s proposal for the next Multiannual Financial Framework (MFF) 2028–2034.

The session focused on how the proposed EU budget architecture could affect planning, financing and implementation of local sustainable energy projects, while also providing space for discussion among local and regional authorities across Europe.

The webinar recording and presentation slides are available at this link and in the Communication section on our website.

Understanding the Next EU Budget Proposal

In July 2025, the European Commission presented its proposal for the next long-term EU budget (2028 - 2034), amounting to approximately €2 trillion. The Multiannual Financial Framework sets the financial and strategic priorities of the European Union for the next seven years, including the rules governing key EU programmes that local and regional governments rely on.

These programmes include:

• Cohesion Policy (ERDF)
• Just Transition Fund
• ESF+
• Erasmus+
• LIFE
• Horizon Europe
• INTERREG

The proposed framework introduces several structural changes that could significantly influence how local climate and energy projects are financed in the future.

Key Changes Proposed in the MFF

One of the central topics of the webinar was the introduction of National and Regional Partnership Plans (NRPPs). These plans would combine several policy areas - including cohesion policy, agriculture, home affairs and social policies - into a single strategic framework at national level.

While this approach aims to simplify access to EU funding and reduce fragmentation, participants discussed concerns that it could also lead to greater renationalisation of the EU budget, potentially reducing the direct influence of cities and regions in shaping investment priorities.

Another major element of the proposal is the creation of a European Competitiveness Fund, which places a strong emphasis on clean energy investment. During the webinar, speakers explored whether and how municipalities and regions might be able to access this new funding instrument, as well as the conditions needed to ensure it effectively supports local sustainable energy initiatives.

What It Means for Cities and Regions

The discussion highlighted both opportunities and uncertainties for local authorities.

Participants examined several key questions:

• Will cities and regions maintain meaningful access to EU funds under the new architecture?
• How will climate and social targets embedded across the EU budget translate into tangible local impact?
• What is the future of flagship programmes such as LIFE?
• What happens if funded actions do not reach their expected climate and social impacts?

These questions are particularly important for municipalities planning long-term investments in the energy transition, as the design of the next EU budget will shape funding opportunities for the coming decade.

Peer Exchange and Breakout Discussions

Following the presentations and Q&A session, participants joined breakout discussions in English and French to exchange experiences and discuss concrete challenges related to accessing EU funding.

These discussions allowed municipalities and regional actors to:

• Share common barriers in securing EU funds
• Highlight good practices and successful financing approaches
• Discuss the early stages of national consultations on the proposed NRPPs

While some Member States have already started informal discussions on the future partnership plans, others have yet to begin, creating an uneven landscape across Europe.

Supporting Cities with Financing Knowledge

The webinar reinforced the role of PROSPECT Cube in supporting cities and regions in identifying innovative financing mechanisms for local energy transition projects.

As part of this effort, the project has started collecting case studies from peer cities and regions across Europe, showcasing successful financing approaches that can inspire other local governments facing similar challenges.

The first set of PROSPECT Cube Stories is already available in an easy-to-download PDF format, including contact details for each featured case. You can access them here.

Cities and regions are encouraged to connect directly with the peer authorities featured in the stories to learn more about their experience and financing strategies.

Additional stories will be published in the coming months.

What’s Next?

A follow-up webinar will continue exploring the future of EU funding for local governments, focusing on territorial instruments already implemented in the current EU programming period and what lessons can inform the next EU budget cycle.

The session will be organised by Energy Cities and will provide further insights into how cities and regions can prepare for the upcoming MFF negotiations. Registration is available here.