Securing financing for climate solutions in cities

We know, we've done it too. Kausal's journey began with a financing story of our own, much like what we hear climate people struggle with today. In this blog, we share our experience and insights to help cities navigate the complex funding landscape.

Our Funding Journey

Kausal's first product was born from a climate solutions funding application for the city of Helsinki. Back in 2019 our CEO, who at the time belonged in the city's climate personnel and led the application, encountered the challenges firsthand: deciphering specific terminology, identifying the right contacts, and understanding the nuances of programs like Climate-KIC (funded by the European Commission). The lessons learned during this process have been woven into the very fabric of Kausal, shaping our approach to helping cities navigate similar challenges.

The Funding Landscape for Cities

Cities often face several challenges when seeking funding. Many grants operate on a co-funding model, where cities are expected to contribute a portion of their own resources. This can be a significant barrier, especially for smaller municipalities or those with tight budgets.

Beyond the financial commitment, funders are increasingly looking for projects with long-term viability. They want to see a clear commitment from city leadership, well-defined plans for project continuation beyond the initial funding period, and strategies for integrating the project into the city's broader climate action plans.

EU funding presents both opportunities and challenges for cities seeking climate solutions. While there are numerous funding options available, the landscape can be complex to navigate, and EU projects rarely allow for direct purchase of climate solution products. However, these funds often enable valuable pilots and collaborations. At Kausal, we've been involved in several EU projects that showcase different approaches to leveraging these funds. For instance, we joined the Climate-4-CASTproject as a partner, invited by the city of Tampere, to develop tools for project participants. In another case, the city of Athens utilized their Horizon funding to secure Kausal tools through a public tender process – a common requirement for EU-funded pilots. These experiences highlight how cities can creatively use EU funding to implement climate initiatives, often involving partners like Kausal through project participation or public procurement processes.

"Making sure you believe in the project and others do too is vital for its success." - Sonja-Maria Ignatius, CEO, Kausal

Funding can come from multiple avenues so it's often difficult for cities to get familiar with all the available options, prioritize and invest resources in the applications. Funding options include internal innovation or smart city funds, EU grants like EUCF (European City Facility), research collaborations (e.g., DUT projects - Driving Urban Transition), and in the US, organizations, foundations, and federal funding (e.g., Greenhouse Gas Reduction Fund).

Kausal can help your city

We've helped several cities in securing funding for climate action tools, such as Net Zero Cities mission cities Tampere, Lappeenranta and Espoo. In Tampere, Finland, we partnered with the city to co-write an EU funding application. The goal was to secure resources for developing a scenario tool for climate budgeting. This tool was designed to help the city evaluate and prioritize climate actions based on their potential impact and cost-effectiveness. Our role involved not just co-writing the application but also helping the city articulate its vision in a way that aligned with EU funding priorities.

Our engagement with Lappeenranta, Finland, showcases our proactive approach. We identified a relevant funding opportunity from the Ministry of Environment and brought to the city's attention a chance for collaboration. Following this, we conducted in-depth meetings with city officials to understand their specific needs and priorities. We then co-wrote the application forms, ensuring that the city's vision was effectively communicated. This collaboration resulted in securing funding for a health co-benefit module for a climate scenario tool.

For Viitasaari, Finland, our assistance was focused on helping the city secure funding specifically for Kausal tools. This involved analyzing the city's climate action needs, identifying the most suitable funding sources for their specific requirements, and guiding them through the application process, emphasizing how our tools could enhance their climate strategy.

Our collaboration with Espoo, Finland, exemplifies how we can integrate into city-consultant relationships. We helped the city to identify modeling needs, evaluate proposals from various consultants, and then implement the new data and actions produced by the selected consultant on Kausal's scenario tool. We demonstrated how this collaborative approach could yield more comprehensive climate action insights.

Tips for Successful Funding Applications

1. Be Prepared: study sample application forms online and practice writing proposals. Understanding and familiarizing your organization's internal processes is necessary when you want to take advantage of external funding in your project.
2. Define Your Needs: avoid redundancy by clearly outlining what tools and solutions you require.
3. Network and Collaborate: consult colleagues who have experience with funding applications, utilize climate manager networks or talk with regional organizations. City knowledge networks are also great sources of information. And speak directly with us!
4. Master the Language: use terminology that aligns with the funding source. Consider collaborating with a colleague or consultant for precise yet creative writing. And speak directly with us!
5. Build Relationships: connect with your city's EU or International cooperation project managers. Explore if your city has Brussels representation for EU projects and get in touch with the representative.
6. Understand the Funding: ensure you comprehend what the funding can and cannot be used for to avoid potential issues.
7. Leverage Internal Resources: identify individuals within your organization who track project funding opportunities.
8. Stay Informed: subscribe to newsletters from municipal unions or other such organizations about available funding options.
9. Set Clear Goals: establishing milestones throughout the project eases management and ensures success.
10. Commit: securing funding for a project can take from a few months up to a few years. Staying committed is important.

Remember, each city and case is unique. Be creative in your approach – many solutions can be adapted to fit various funding opportunities if framed correctly.

At Kausal, we're committed to assisting cities in their funding journeys, with a focus on projects where we would be directly involved as partners or subcontractors. We write applications for initiatives where we would play an active role, whether it's providing our tools and expertise, offering easily adaptable text, or sharing insights on successful strategies. This approach ensures that we're not just helping secure funding, but also actively contributing to the implementation and success of the projects we support. We are actively seeking involvement in the Driving Urban Transition initiative. We are also interested in participating in R&D projects since we specialize in working with open source code.