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EUROCITIES Working Group« Developing a New Mobility

Culture »

Background information on

EU funding streams

Mobility Forum meeting

Copenhagen, 21 June 2010

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2 questions for today’s discussion:

I. What is the share of transport in the total EU budget?

II. What is the EU funding available for urban transport?

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Question I.

I. What is the share of transport in the total EU budget?

• Total EU budget in 2010: €141.5 billion (in commitment appropriation)

=> + 3.6 % compared to 2009=> 1.20 % of the Community GNI (Growth

National Income)

• In 2010, the transport budget represents 0.95%

(= € 1.355.857.249) of the total EU budget

• In 2011, transport will represent 1.05% of the total EU budget

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Budget 2007

Budget 2008

Budget 2009

Budget 2010

Budget 2011

Heading « Transport »

in €

1.114.970.100

1.272.909.200

1.233.532.000

1.355.857.249

1.505.401.970

Support expenditure for operations of Mobility and

Transport policy area

21.842.000 24.884.600 24.209.000 25.819.735 25.120.000

Inland, air and maritime transport

161.745.100 172.622.000 171.635.000 188.529.360 190.521.970

Trans-European networks

817.383.000 955.852.600 921.738.000 1.048.846.000

1.228.200.000

Research related to transport

114.000.000 119.550.000 115.950.000 92.662.154 61.560.000

• Overview of the transport budget from 2007 to 2011:

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• In a comparative perspective, the EU transport budget has increased: Within the multi-annual financial framework 2007- 2013, annual budgets dedicated to transport have increased from €1.1 bn to €1.5 bn between 2007 and 2011

• The biggest share of the transport budget is used to finance TEN-T projects

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EU budget structure

Transport is included in this section

• How is the budget structured?

Shares for the 2010 EU budget:

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More in details on the transport share:

• Shares within the “Cohesion & competitiveness for growth and employment” segment:

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• €2 billion available for «Sustainable EU networks for transport and energy»:

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Question II.

II. What is the EU funding available for urban

transport?

No specific funding for urban mobility so far

• Funding for urban mobility comes from various sources (not only 1 specific heading in the transport budget)

• Most urban transport projects are funded through the so called « Structural funds » and through EIB loans

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1. Urban transport funding is available under 3 headings of the EU total budget:

A. Structural and cohesion funds ( €49.4 bn /2010)

B. Competitiveness (€14.9 bn /2010)C. Environment funds

2. Funds also available through EIB:

A. EIB loansB. EIB technical assistance

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1. From EU budget

1. A. Structural and cohesion funds (€49.4 bn /2010):

• Cities are eligible to receive funding from:− The European Regional Development Fund− The Cohesion Fund

• In total for 2007-2013, all funds combined, around €8 billion is available for urban transport and the promotion of clean urban transport (indicative amounts for EU 27 + cross-border)

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1. From EU budget

Category Code

Category Transport Amount

Shares of the total structural funds

dedicated to transport

24 Cycle tracks 603 869 290 0,7%

25 Urban transport 1 660 210 940 2,0%

52 Promotion of clean urban transport

6 126 664 580 7,5%

• Amount available for urban mobility within the Structural funds (2007-2013):

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1. From EU budget

1. B. Funds available under the « Competitiveness » heading:

• CIVITAS Initiative:

− Commission contribution: € 180 million out of €250 million for the 3rd phase of the Initiative (as from 2008)

• FP7:

− No specific fund for urban transport, but many research funds linked directly or indirectly to it

− Transport theme which includes aeronautics and sustainable surface transport: €4.16 bn for 2007-2013 (As a comparison, for the FP6: € 670 million were dedicated to sustainable surface transport)

− and a theme for Energy research, e.g. : €2.35 bn

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1. From EU budget

• CIP (Competitiveness & Innovation Framework Programme):

=> IEE: Intelligent Energy Europe Programme:− In total, €730 million for 2007-2013− Finance several programmes as:

− STEER programme: €10 million for 2010 (Indicative amount)

• Energy efficient transport• ‘Capacity building and learning’ objective

− ELENA technical assistance facility: €15 million for the first year of operation

• Jointly financed by the EIB: make cities ready for EIB funding

=> ICT- PSP: Information and Communication Technologies Policy Support Programme− In total, €730 million for 2007-2013

− €19 million for the « ICT for energy efficiency and smart mobility » theme (includes €4 million for transport management systems)

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1. From EU budget

• Smart Cities & Regions initiative:

– € 11 bn for the initiative until 2020. 50% financed by EU funding, the rest will come from PPPs funding

– Bulk of the funding will be available during the next

EU financial framework from 2014 onwards

– Aims to:

• Demonstrate the feasibility of rapid progress towards energy and climate objectives at a local level

• Support cities and regions in taking ambitious and pioneering measures to progress by 2020 towards a 40% reduction of greenhouse gas emission

• Implement measures in measures on buildings, local energy networks and transport

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1. From EU budget

1. C. Environmental funds: Examples:

• LIFE:− EU financial instrument supporting environmental and nature

conservation projects throughout the EU

− In 2010: up to €243 million within the fourth LIFE+ call for proposals with co-financing of projects under three headings:

• nature and biodiversity• environment policy and governance• information and communication

− Under the “Environment policy and governance”, 3 objectives that cities can use:

• Climate change: to stabilise greenhouse gas concentration at a level that prevents global warming above 2 °C

• Urban environment: to contribute to improving the environmental performance of Europe's urban areas

• Noise: to contribute to policy development and implementation on environmental noise

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2. From EIB funding

2.A EIB loans:

• The institution that finances the most urban mobility: just for 2009, the EIB provided € 3.399 bn within the EU to urban transport projects

• Urban projects can be traditionally financed by the EIB through different types of finance contracts:

- Direct loan (one single component), either agreed with a public authority or a concessionaire/operator

- Forming part of a framework loan (multiple components)- Forming part of a regional development program

(complementing EU grants) - Forming part of a loan given to a private investment fund - PPP - Using the Jessica facility (urban development funds)

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2. From EIB funding

2.B. EIB technical assistance:

• Often linked to specific cases (new Member States, etc.), but there are some examples of general technical assistance instruments:

– JASPERS (Joint Assistance to Support Projects in European Regions):=> For Central and Eastern EU Member States

=> Aims to: − improve the quality of technical advice available to project promoters within the

Cohesion policy− enhance economic growth and job creation

=> JASPERS is − Managed by the EIB− Co-sponsored by the EC, the European Bank for Reconstruction and Development

(EBRD) and Kreditanstalt für Wiederaufbau (KfW) − Free of charge

=> Includes assistance to large projects:− The transport sector outside of TENs, including road, rail, river, air and sea transport − Clean urban and public transport

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2. From EIB funding

– ELENA (European Locan ENergy Assistance): For cities and regions

Aims to:

− covers a share of the cost for technical support that is necessary to prepare, implement and finance the investment programme, such as feasibility and market studies, structuring of programmes, business plans, energy audits, preparation for tendering procedures - in short, everything necessary to make cities' and regions' sustainable energy projects ready for EIB funding.

− Develop a broader utilisation of innovative technologies and techniques, processes, products or practices.

ELENA is:− Managed by the EIB, but financed the EU programme Intelligent Energy

Europe− €15 million for the first year