1. Linking Smart Cities to Structural Funds
Horizon 2020
Smart Cities & Communities
Info Day
#H2020SCC1
Judit Torokne Rozsa, Head of Unit, Competence Centre: Inclusive Growth, Urban and Territorial Development, DG Regional and Urban Policy

2. Political Context Urban Agenda for the EU – Pact of Amsterdam
Acknowledging that urbanisation is the territorial trend in Europe (positive and negative urbanisation effects)
Capitalising on the large number of instruments, legislation and initiatives on urban at European level
Urban Agenda is the 'chapeau' of EU urban policies
Aims for "better funding", "better regulation" and "better knowledge"
Work on 12 urban priority themes, such as urban mobility, energy transition or digital transition, but also on the social side
In partnership: COM, MS, cities, stakeholders

3. Linking Smart Cities with European Structural and Investment Funds
3 key messages
Use European Structural and Investment Funds to complement your Smart City project
Key features of ESIF
Strong urban dimension in ESIF
No automatism: You need to be pro-active
Know how ESIF is managed
Get help from the guide
Consider additional networking and funding opportunities

4. ESIF 2014-2020 The investment arm for Europe 2020
GDP per head 2011
GDP growth per head
The investment arm for Europe 2020
EUR 351 billion for
Funds for all, focus on less developed regions
Thematic concentration on top EU priorities

5. Urban policy within ESIF
EUR 15 billion for sustainable and integrated urban development
700+ cities/ metropolitan areas
Territorial approach: the thematic focus depends on respective urban challenges
Cities focus on investments towards a low carbon economy, resource efficiency and social inclusion
Empowerment of urban authorities: City develops strategy, and selects the projects
Reinforced networking: Urban Development Network, URBACT III
Degree of urbanisation
Urbanisation is increasing. EU and global trend:
Metropolitan regions account for 59% of the EU population, 62% of EU employment and 67% of EU GDP (2011)
70% live in cities towns and suburbs –> Over 300 M Europeans
Currently at 50%, the OECD is expecting global urbanisation to reach its peak at 85% in Driving factors are population growth and agglomeration effects (particularly better matching at the labour market, specialised goods and services incl. stronger supply chains and economies of scale due to a larger market).
Furthermore, productivity increases with size of the city, even if you control for differences in education level.
Positive spill-over effects for cities in close proximity (important for EU where cities are closer to each other than in USA or Asia); Hence transport connections to metropolitan areas are important.
In metropolitan areas, administration is often fragmented (poor coordination), potentially reducing positive agglomeration effects. With good metropolitan governance OECD found less urban sprawl and better transport policies.
Smaller metropolitan regions grew more slowly than bigger ones
Crisis: Larger reduction in employment in cities than elsewhere
80% appreciate living in cities
60% of public investments is invested at sub-regional level
URBAN CHALLENGES
ENERGY
80% of energy consumption in Europe is linked to urban activity.
14% of buildings in the EU dating from pre-1919 (major retrofitting challenge).
Buildings account for 40% of total energy use and 36% of Europe’s CO2 emissions.
Reducing energy demand of the EU building stock by 80% by 2050 would boost economic activity in the construction sector by EUR 830 bn per year by 2020 and would secure up to 2 million direct and indirect jobs in the EU
MOBILITY
Urban areas account for 23% of all CO2 emissions from transport.
Congestion costs Europe about 1% of Gross Domestic Product (GDP) every year.
In London, 20% of commuters spend more than two hours a day travelling to and from work, which adds up to one working day a week. In Germany, 37% spend one hour a day commuting.
Public lighting accounts for 50% of the electrical consumption in cities and 60% of the energy bill of most European municipalities.
SOCIAL
In many cities, the percentage of migrant children and youth is up to 50 per cent or even higher.
Stuttgart: nearly 40 per cent of the population having a migration background
Sub-national government expenditure, 2013

6. Management of European Structural and Investment Funds
Operational strategies at national/ regional level for : "Operational Programmes"
205 country/ regional specific programmes ("Investment in Growth and Jobs")
Incl. 110 programmes with a focus on sustainable urban development
91 cross border/ transnational/ interregional programmes ("Interreg Programmes")
Principle of shared management:
Commission sets overall priorities
Operational programmes are proposed by Member States and regions
Commission negotiates and approves the programmes
Member States/ regions manages the programmes, selects projects, monitors and assesses implementation
MS/ region acts in partnership with relevant regional and local stakeholders

7. Links between Smart Cities projects and Urban Policy within the European Structural and Investment Funds
ESIF can provide
complementary financing
rollout financing
financing for follower cities
Guide on synergies
Seal of excellence (pilot phase)
Guide on synergies
Explanations by programme (ESIF, H2020, COSME, Erasmus+, etc)
Annex with scenarios and hands-on advice for policy implementers
Seal of excellence
Quality label awarded to project proposals submitted for funding under Horizon2020, which succeeded in passing the evaluation (above threshold) but cannot be funded due to lack of budget in H2020.
Proof of a high-quality project proposal.
Helps project holders to address other sources of funding, such as ESIF.
However, it is not a guarantee for funding.
Currently: Pilot phase -> for the "SME instrument" within Horizon 2020.
If successful, could be applied to other Horizon2020 calls.

8. Additional funding opportunities within ESIF
Urban Innovative Actions (EUR 370 M ERDF)
For cities/ metropolitan areas; single cities can apply (above citizens, groups of cities possible)
Max EUR 5 M per project
2nd call will open end 2016
topics
Circular Economy
Sustainable Urban Mobility
Integration of Migrants and Refugees
URBACT III (EUR 74 M ERDF) – specifically for cities
Interreg Europe (EUR 360 M ERDF) – cities and regions

9. Thank you for your attention
Judit Torokne Rozsa
Head of Unit
Directorate General for Regional and Urban Policy Competence Centre: Inclusive Growth, Urban and Territorial Development