European UnionPublic Institution, Private Business, Research Institution

Boosting the transformation towards climate-neutral cities, the net-zero economy and open strategic autonomy through Pre-Commercial Procurement (PCP)

HORIZON Pre-commercial Procurement under the Climate-Neutral and Smart Cities Mission

Funding Amount

€7.0M - €12.0M

Deadline

20/01/2026

Eligible Organization Types

Public Institution, Private Business, Research Institution

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What is the Boosting the transformation towards climate-neutral cities, the net-zero economy and open strategic autonomy through Pre-Commercial Procurement (PCP) Call?

Grant Description
This call supports consortia of public procurers (local authorities) to jointly implement pre-commercial procurement of research and development to bring innovative solutions to market that reduce greenhouse gas emissions in cities, addressing market fragmentation and fostering early adoption in energy efficiency, renewable energy, sustainable mobility and digitalisation to contribute to climate-neutral and smart cities.
Required Results for Successful Funding

Expected Outcomes

• Public procurers, through demand-side PCP, stimulate competitive development of market-ready innovations that reduce GHG emissions and advance local climate-neutrality while strengthening EU open strategic autonomy.
• Successful market introduction and implementation of solutions in sectors such as building energy efficiency, renewable energy, sustainable smart mobility, and digitalisation in participant cities.
• Increased innovation and supply-chain resilience by opening procurement markets to EU/Associated SMEs and startups, enabling them to scale up.
• Enhanced market uptake and economies of scale via aggregated public demand, wide dissemination of results, and contributions to standardisation, regulation or certification.
• Clear presentation of expected GHG emission reductions by 2030 and 2050 for each participating city against a project-baseline.
• (Mission impacts) Enhanced city capacity to implement Climate City Contracts, boost energy/resource efficiency, circular economy and urban regeneration, engage citizens inclusively, leverage data and digital technologies, adopt cross-sectoral governance models, and pool city demands to strengthen European industry competitiveness.
Funded areas

Scope Requirements

• Consortium composition: at least three of the 112 Mission cities, with the lead procurer one of those; optional engagement of additional follower cities.
• Focus on innovative GHG-reduction solutions in urban domains such as building energy efficiency, renewable energy production/use, sustainable and smart mobility, digitalisation, circular economy, water and waste management.
• PCP procurement must follow General Annex H: demand-side R&D procurement in iterative phases under EU open strategic autonomy conditions.
• Solutions must be market-ready, with first customer references via piloting and validation in the participant cities.
• Suppliers must be established in EU Member States or Associated Countries (unless insufficient).
• Proposals must include open market consultation before tender launch, effective end-user involvement, and wide supplier outreach.
• Demonstrate the project’s sustainability beyond its lifetime, anchored in a clear strategy for climate-neutral cities, including cooperation with policy makers to mobilise additional national budgets for innovation procurement.
• Procurers must declare deployment intent: 1) direct PCP purchase of at least one solution (budgeted), 2) follow-up procurement (with dedicated deliverable), 3) open-source/ free adoption, or 4) financial/regulatory incentives (via third-party grants up to €200k).
Additional Conditions for Applicants

Special Conditions

• Place of performance and commercialization conditions per General Annex H require majority of procured R&D and subsequent production in EU Member States or Associated Countries.
• Participation in the procurement may be restricted to suppliers established in EU or Associated Countries if sufficient capacity exists.
• Maximum €200,000 per third party for financial support grants to end-users.
• Projects targeting the upper budget range (€7–12 million) must demonstrate higher ambition in innovation level and/or deployment scope.
• Collaboration with the Cities Mission Platform is mandatory and must be formalized via MoU immediately after project start.
• Projects must allocate resources in the work plan for joint activities with the Mission Platform and other funded initiatives.
• Third-party selection requires external expert review.
• Eligibility and evaluation governed by Horizon Europe Work Programme General Annexes A–H, Annex B eligible countries, Annex D award criteria, Annex F processes, and model grant agreements HE-PCP and HE-AG.
Important dates

Open from: 06/05/2025

Deadline:20/01/2026

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