This guidance document is designed to accompany the Investment Plan Template, providing Mission Cities with a reference point for developing 2030 Climate Neutrality Investment Plans (IP). These plans build upon actions outlined in the Climate Neutrality Action Plan and are intended to be iterative. The document emphasises that only non-confidential data should be shared, with clear indications for specific financial data that must be kept confidential.

Introduction

The IP introduction should summarise work carried out in the 2030 Climate Neutrality Action Plan and provide background on the development process. It highlights interconnections with other Climate City Contract components and addresses the city’s capacity for development and the resources used in its formation.

The investment plan

The IP is a systematic map of costs and capital required to reach climate neutrality by 2030. It helps cities structure their economic strategy and mobilise capital from national and international platforms. Key characteristics include alignment with the Action Plan, a city-wide approach encompassing public and private sectors, and the capture of all emitting sectors. These sectors include the built environment, waste, circular economy, energy systems, transport, and green infrastructure. It is a long-term planning exercise that maps capital deployment over time and identifies gaps in existing budgets.

Short guidance: recap of activities

This section outlines the structure of the IP, which is divided into three main parts. Part A assesses the current state of climate investment. Part B defines investment pathways towards 2030, and Part C establishes enabling conditions for climate neutrality.

Part A – current state of climate investment

Module IP-A1 involves evaluating previous and existing funding for climate activities. Cities are required to map the current landscape of sources and capacity across emission sectors, identifying both city-wide and project-based capital. Module IP-A2 provides a strategic evaluation of funding programmes and financial instruments, such as the EU Taxonomy and Task Force on Climate-related Financial Disclosures (TCFD). This assessment helps identify needs for capacity to receive and deploy capital, including procurement and municipal budgeting policies. Module IP-A3 focuses on identifying structural, policy, economic, and financial barriers, including internal capacity constraints, limited data availability, and regulatory hurdles such as debt ceilings.

Part B – investment pathways towards climate neutrality by 2030

Module IP-B1 focuses on estimating and analysing overall costs to achieve climate neutrality. Cities are encouraged to provide granular cost estimations for initiatives and conduct cost-benefit analyses including co-benefits like air quality and green job creation. Module IP-B2 covers capital planning, aiming to bridge funding gaps by combining public and private sources. It promotes innovative capital structures to optimise the use of public funds and mobilise investment at scale. Module IP-B3 establishes a Monitoring, Evaluation and Learning (MEL) system with economic and financial indicators to track progress and adjust strategies over time.

Part C – enabling conditions for climate neutrality

Module IP-C1 requires cities to reference climate-related policies that support capital formation, such as green tax incentives, green budgeting, and sustainable procurement. Module IP-C2 identifies risks that may affect implementation, including climate, operational, market, and reputational risks, and proposes mitigation measures. Module IP-C3 focuses on capacity building and stakeholder engagement, involving a self-assessment of internal expertise and the identification of necessary financial stakeholders to ensure successful plan implementation. This includes mapping stakeholders such as energy service providers, utility companies, and housing associations.