Understanding capital market dynamics for increased investment in New European Bauhaus projects in neighbourhoods

Small-scale NEB-aligned projects typically encounter large, short-term oriented, and highly risk-averse investment funds, which seek investment opportunities able to absorb large amounts of funding, driven by present legislation [4] . Place-based impact investing is an approach that can contribute to investments in NEB-aligned neighbourhood projects by providing risk-adjusted financial returns while creating local social, cultural, aesthetic [5] and environmental value and by helping to meet local needs in terms of community [1] well-being, social inclusion, local economic resilience, and sustainable development [7] . There is a need for research to understand the capital demand and supply-side aspects that influence and shape investments in NEB-aligned neighbourhood projects and to identify appropriate mechanisms to attract increased investment. Proposals are expected to address all of the following: Analyse the capital market dynamics that influence investments in NEB-aligned projects for the transformation of neighbourhoods. This includes analysing at least the following: The size, scale, and diversity as well as the barriers, risks, and drivers of capital market demand and supply for NEB-aligned projects. The context of NEB-aligned investment projects, including political, financial, economic, regulatory, and cultural dimensions. Based on the above, develop an innovative investment solution that addresses and leverages the analysed capital market dynamics towards increased investment in NEB-aligned projects. The investment solution is expected to: Leverage place-based impact investing approaches and is encouraged to combine them with other diverse and out-of-the-box investment approaches, frameworks, or funding schemes that contribute to social, environmental, aesthetic, and cultural impact in neighbourhoods. This may include the use of innovative digital financial instruments, platforms for community co-investment, or blockchain-enabled transparency mechanisms, among others. Determine the types of capital (including, but not limited to, impact funds, real estate investors, family and pension funds, philanthropists, donors, and insurance companies) that can be mobilised and validate how to mobilise them. Provide recommendations for decision-making on avenues to secure future funding and financing. Support investors to assess the investment potential and returns (including economic, social, cultural, aesthetic and environmental) of NEB-aligned neighbourhood projects. Conduct the above analysis and validate the developed solution in at least three different Member States and/or Associated Countries. Projects are expected to integrate and build upon the New European Bauhaus Investment Guidelines [8] . Proposals are expected to follow a participatory [1] and transdisciplinary [1] approach through the integration of different actors and disciplines. Proposals are expected to allocate at least 0.8% of their budget for engaging with the Horizon Europe-funded 'New European Bauhaus hub for results and impact' to share their intermediate and final results, findings and learnings, as well as to contribute to impact assessment. [1] See definition in the Glossary section of the NEB part of the HE WP26-27. [2] See definition in the Glossary section of the NEB part of the HE WP26-27. [3] See definition in the Glossary section of the NEB part of the HE WP26-27. [4] Examples include the EU Taxonomy, Fit for 55 package, and European Social Fund (ESF+). [5] See definition of ”beautiful” in the Glossary section of the NEB part of the HE WP26-27. [6] See definition in the Glossary section of the NEB part of the HE WP26-27. [7] Impact Investing Institute, ’Section 1: What is place-based impact investing?’, Impact Investing Institute website, accessed 29 September 2025, https://www.impactinvest.org.uk/learning-hub/place-based-impact-investing/what-is-place-based-impact-investing/. [8] European Commission, ’NEB Investment Guidelines’, New European Bauhaus , accessed 5 August 2025, https://new-european-bauhaus.europa.eu/tools-and-resources/neb-investment-guidelines_en . Sections of particular relevance for applicants to consider include: 1. Introduction; 2. Mapping the NEB; 4.4 Project risks; 5. Making the NEB case; and 6. Conclusions. [9] See definition in the Glossary section of the NEB part of the HE WP26-27. [10] See definition in the Glossary section of the NEB part of the HE WP26-27.

Eligibility and submission conditions

"> General conditions 1. Admissibility Conditions: Proposal page limit and layout described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes. Proposal page limits and layout: described in Part B of the Application Form available in the Submission System. 2. Eligible Countries described in Annex B of the Work Programme General Annexes. A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects. See the information in the Horizon Europe Programme Guide . 3. Other Eligible Conditions described in Annex B of the Work Programme General Annexes. 4. Financial and operational capacity and exclusion described in Annex C of the Work Programme General Annexes. 5a. Evaluation and award: Award criteria, scoring and thresholds are described in Annex D of the Work Programme General Annexes. 5b. Evaluation and award: Submission and evaluation processes are described in Annex F of the Work Programme General Annexes and the Online Manual . 5c. Evaluation and award: Indicative timeline for evaluation and grant agreement described in Annex F of the Work Programme General Annexes. 6. Legal and financial set-up of the grants Eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021 authorising the use of lump sum contributions under the Horizon Europe Programme – the Framework Programme for Research and Innovation (2021-2027) – and in actions under the Research and Training Programme of the European Atomic Energy Community (2021-2025) [This [decision is available on the Funding and Tenders Portal, in the reference documents section for Horizon Europe, under ‘Simplified costs decisions’ or through this link: https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/guidance/ls-decision_he_en.pdf ]]. described in Annex G of the Work Programme General Annexes. Specific conditions described in the [specific topic of the Work Programme] Application and evaluation forms and model grant agreement (MGA): Application form templates — the application form specific to this call is available in the Submission System Standard application form (HE RIA, IA) Evaluation form templates — will be used with the necessary adaptations Standard evaluation form (HE RIA, IA)   Guidance HE Programme Guide   Model Grant Agreements (MGA) Lump Sum MGA   Call-specific instructions   Detailed budget table (HE LS)   Guidance: "Lump sums - what do I need to know?" Additional documents: HE Main Work Programme 2026-2027 – 1. General Introduction HE Main Work Programme 2026-2027 – 13. New European Bauhaus Facility (NEB) HE Main Work Programme 2026-2027 – 15. General Annexes HE Programme Guide HE Framework Programme 2021/695 HE Specific Programme Decision 2021/764 EU Financial Regulation 2024/2509 Decision authorising the use of lump sum contributions under the Horizon Europe Programme Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment EU Grants AGA — Annotated Model Grant Agreement Funding & Tenders Portal Online Manual   Funding & Tenders Portal Terms and Conditions   Funding & Tenders Portal Privacy Statement

Programme context

Revitalising neighbourhoods for communities to come together is about ensuring the right conditions. Innovative funding and new business models can provide the necessary framework and incentives to rethink how solutions and projects are designed, planned, executed, and invested in for the structural and systemic transformation of neighbourhoods [1] in line with New European Bauhaus (NEB) values [1] and working principles [1] . Demonstrating the socioeconomic, environmental, financial, aesthetic [4] and cultural value creation of NEB-aligned solutions and projects can incentivise stakeholders in the built environment [1] and its related ecosystems (e.g. construction [1] , banking, insurance, social economy, and real estate) to invest and participate in the circular [1] , inclusive [1] , affordable, accessible, sustainable [1] and culturally significant revitalisation of neighbourhoods. New business and innovative funding models are thus crucial to encourage long-term and life-cycle thinking in the built environment while enhancing its long-term, sustainable competitiveness. This Destination will address three of the Commission political guidelines 2024-2029, namely: A new plan for Europe’s sustainable prosperity and competitiveness Supporting people, strengthening our societies and our social model Sustaining our quality of life: Food security, water and nature This Destination supports the NEB Facility’s overarching aim to drive the implementation of the European Green Deal on the ground. Its focus on circular economy principles, biodiversity, responsible and sufficient use of natural resources, and sustainable competitiveness contributes to the Clean Industrial Deal [10] , EU Circular Economy Action Plan [11] , new Circular Economy Act [12] , Zero Pollution Action Plan [13] , EU Biodiversity Strategy [14] , and European Climate Adaptation Plan [15] . This Destination also seeks to engage local stakeholders and the local social economy in neighbourhood transformation while addressing community [1] challenges and needs as well as better understanding and leveraging appropriate market dynamics. It thereby offers potential contributions to the EU Startup and Scaleup Strategy [17] . By focusing on the reuse of the existing building stock, the provision of key social infrastructures [1] and services, and addressing homelessness [1] at neighbourhood level, it also contributes to the EU Renovation Wave [20] and potentially contributes to the European Affordable Housing Plan [21] . In work programme 2026-2027, this Destination contributes to the following overarching expected impacts set out in the Horizon Europe strategic plan 2025-2027: 8. Realising the full potential of cultural heritage, arts, and cultural and creative sectors 9. Strengthening social and economic resilience and sustainability 15. Achieving global leadership in climate-neutral, circular and digitized industrial and digital value chains In addition, proposals for topics under this Destination should set out a credible pathway to contributing to the development of innovative funding and new business models for the transformation of neighbourhoods, and more specifically to one or several of the following impacts: Better understanding of the contextual local conditions that drive or hinder sustainable neighbourhood developments and the uptake of NEB-aligned solutions and projects, such as capital and real estate market dynamics and socioeconomic, cultural, demographic, and climatic changes. Anticipation and consideration of future needs, functions and inhabitants (including more-than-human [1] perspectives) of neighbourhoods and their developments towards the future. Demonstrated socioeconomic, financial, environmental, cultural, and aesthetic value of NEB-aligned solutions and projects driving the revitalisation of the built environment in neighbourhoods. Increased investment in the transformation of neighbourhoods in line with NEB through alternative, innovative, and community-based investment and ownership approaches [23] . Community and place-based approaches that adopt a systemic perspective and use co-creation [1] approaches with diverse local stakeholders, including marginalised or underrepresented groups or those in a vulnerable situation, and contribute to addressing pressing community challenges and needs such as homelessness and housing. ⁠Circular manufacturing, renovation, and reuse approaches in the built environment contribute to the sufficient use of resources and space. When possible and relevant, actions are strongly recommended to collaborate with and build on the results of past and ongoing research projects, including regional, national or European funded projects, to ensure consistency and continuity in research. [1] See definition in the Glossary section of the NEB part of the HE WP26-27. [2] See definition in the Glossary section of the NEB part of the HE WP26-27. [3] See definition in the Glossary section of the NEB part of the HE WP26-27. [4] See definition of "beautiful” in the Glossary section of the NEB part of the HE WP26-27. [5] See definition in the Glossary section of the NEB part of the HE WP26-27. [6] See definition in the Glossary section of the NEB part of the HE WP26-27. [7] See definition in the Glossary section of the NEB part of the HE WP26-27. [8] See definition in the Glossary section of the NEB part of the HE WP26-27. [9] See definition in the Glossary section of the NEB part of the HE WP26-27. [10] European Commission, ’Clean Industrial Deal’, accessed 5 August 2025, https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en [11] European Commission, ’Circular Economy Action Plan’, accessed 5 August 2025, https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en [12] Under development and with expected adoption by the end of 2025. [13] European Commission, ’Zero Pollution Action Plan’, accessed 5 August 2025, https://environment.ec.europa.eu/strategy/zero-pollution-action-plan_en [14] European Commission, ’Biodiversity Strategy 2030’, accessed 5 August 2025, https://environment.ec.europa.eu/strategy/biodiversity-strategy-2030_en [15] European Commission, ’EU Adaptation Strategy’, accessed 5 August 2025, https://climate.ec.europa.eu/eu-action/adaptation-climate-change/eu-adaptation-strategy_en [16] See definition in the Glossary section of the NEB part of the HE WP26-27. [17] European Commission, ’EU Startup and Scaleup Strategy’, accessed 5 August 2025, https://research-and-innovation.ec.europa.eu/strategy/strategy-research-and-innovation/jobs-and-economy/eu-startup-and-scaleup-strategy_en [18] See definition in the Glossary section of the NEB part of the HE WP26-27. [19] See definition in the Glossary section of the NEB part of the HE WP26-27. [20] European Commission, ’Renovation Wave’, accessed 5 August 2025, https://energy.ec.europa.eu/topics/energy-efficiency/energy-performance-buildings/renovation-wave_en [21] European Commission, ’European Affordable Housing Plan’, accessed 5 August 2025, https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14670-European-Affordable-Housing-Plan_en [22] See definition in the Glossary section of the NEB part of the HE WP26-27. [23] See the NEB Investment Guidelines for more information. European Commission, ’NEB Investment Guidelines’, New European Bauhaus , accessed 5 August 2025, https://new-european-bauhaus.europa.eu/tools-and-resources/neb-investment-guidelines_en . Sections of particular relevance for applicants to consider include: 1. Introduction; 2. Mapping the NEB; 4.4 Project risks; 5. Making the NEB case; and 6. Conclusions. [24] See definition in the Glossary section of the NEB part of the HE WP26-27.

Hivatkozott dokumentumok

Annex A Horizon Europe Programme Guide Online Manual [This [decision Standard application form (HE RIA, IA) Standard evaluation form (HE RIA, IA) Lump Sum MGA Detailed budget table (HE LS) Guidance: "Lump sums - what do I need to know?" HE Main Work Programme 2026-2027 – 1. General Introduction HE Main Work Programme 2026-2027 – 13. New European Bauhaus Facility (NEB) Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment EU Grants AGA — Annotated Model Grant Agreement Funding & Tenders Portal Terms and Conditions