The recent consultations conducted under the PROSPECT+ initiative have highlighted significant challenges faced by local authorities in transitioning from traditional subsidies to innovative financing instruments.

Despite the willingness of many cities and regions to explore options such as energy performance contracting, green bonds, and citizen finance, systemic barriers persist. These include restrictive national regulations, limited local capacity, and uncertainty about engaging private investors. The uneven adaptation of national legislation further exacerbates these challenges, creating discrepancies and slowing climate action across Europe.

Moreover, the consultations revealed a strong need for practical support and capacity building at the local level. Public authorities often lack the expertise and resources to navigate complex legal and financial frameworks, leading to hesitation and delays in project implementation. The report underscores the importance of clear legal frameworks, dedicated technical assistance, and stable support mechanisms to enable cities to act effectively.

Recommendations include accelerating legal adaptation, providing practical templates, and enhancing collaboration between EU and national institutions to unblock local action.