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

The EU Funding Opportunity HORIZON-MISS-2027-04-CIT-05 is designed as part of the Horizon Europe program with a focus on Pre-Commercial Procurement (PCP). Its primary aim is to support the transformation towards climate-neutral cities, contributing to a net-zero economy and promoting strategic autonomy. The call specifically targets local authorities as consortia of public procurers working together to develop and implement innovative solutions that will reduce greenhouse gas emissions and improve air quality in urban areas.

Eligible applicants must be consortia of local authorities and must include at least three cities from the 112 designated under the EU Mission on Climate-Neutral and Smart Cities. This collaborative framework is crucial, as the consortium must address shared needs and implement a unified procurement strategy. Companies, particularly SMEs and startups, can respond to tenders generated by these consortia but will not receive direct funding.

The funding type is classified as a grant under the HORIZON Pre-commercial Procurement action. The financial support amounts to between €7 million and €12 million per project, with an expected total budget of €26,823,812. The EU anticipates awarding three grants under this call.

The application process is single-stage, with submissions open from February 9, 2027, until October 7, 2027, requiring a complete proposal for evaluation. Applications must demonstrate the capability for substantial preliminary planning and the expected long-term sustainability of the proposed solutions beyond the duration of the funded project.

Co-funding is not explicitly mandated, but strong financial commitment from participating authorities is essential. The focus is on ensuring that the consortium mobilizes additional national resources for innovation procurement.

The specific sectors targeted include climate change mitigation, energy efficiency in buildings, and sustainable mobility solutions, with the overarching goal being to foster innovations that can dramatically impact climate policy objectives and EU sustainability goals.

This call represents a strategic push for public authorities to act as leaders in innovation procurement, which can also stimulate economic growth and enhance competitive advantages within the EU market, particularly in net-zero technology sectors. Participating projects should formalize collaboration with the Cities Mission Platform through a Memorandum of Understanding to ensure proper integration and support in achieving sustainable outcomes.

The EU Funding Opportunity HORIZON-MISS-2027-04-CIT-05 is a Horizon Europe Pre-Commercial Procurement (PCP) action aimed at boosting the transformation towards climate-neutral cities, the net-zero economy, and open strategic autonomy. The call falls under the "Supporting the implementation of the Climate-Neutral and Smart Cities Mission (HORIZON-MISS-2027-04)" program.

The primary goal is to stimulate the competitive development and market readiness of innovative solutions that reduce greenhouse gas and air pollutant emissions in cities, contributing to climate neutrality while strengthening EU open strategic autonomy. This involves public procurers leveraging PCP to bring innovative solutions to market in sectors like energy efficiency, renewable energy, sustainable mobility, and digitalization, implementing these solutions in participating cities. The initiative also aims to drive innovation and increase supply chain resilience by providing opportunities for EU and associated countries' companies, particularly SMEs and startups, to access the public procurement market.

Expected outcomes include:
Public procurers stimulating the development of market-ready innovative solutions.
Leveraging PCP to bring innovative climate change mitigation solutions to market.
Driving innovation and increasing resilience in the supply chain.
Increased market uptake and economies of scale for innovative solutions.
Quantifiable greenhouse gas emission reductions in participating cities by 2030 and 2050.

The scope of the funding opportunity includes:
Supporting public procurers, specifically local authorities, to collectively implement PCPs.
Driving innovation from the demand side and opening up commercialisation opportunities for companies in Europe.
Leveraging PCP to encourage the development and provide a first customer reference for piloting, installation, and validation of breakthrough innovations.
Implementing actions in compliance with the objectives and obligations under the Net Zero Industry Act.
Targeting consortia of procurers with similar needs that want to procure together.
Continuous dialogue between demand and supply side, involving end users and organizing open market consultations.
Demonstrating sustainability of the action beyond the project's life, anchored in a clear strategy for climate-neutral cities.
Involving procurement decision-makers to ensure the adoption of end solutions by local public buyers.
Including at least three cities of the 112 selected for the EU Mission on Climate-Neutral and Smart Cities, with the lead procurer being one of these cities.
Encouraging cooperation with follower cities and the ‘Climate-Neutral Smart cities’ Mission Platform.

Eligible applicants are consortia of public procurers, particularly local authorities, with similar needs who want to procure together. Note that direct funding to developers, industry, or research organizations for R&D is not provided under this call; they can respond to tenders launched by the procurer consortia.

Key eligibility conditions include adherence to Annex A and Annex E of the Horizon Europe Work Programme General Annexes for proposal page limits and layout, Annex B for eligible countries, and section H of the General Annexes for specific PCP/PPI procurement conditions.

The indicative budget for the HORIZON-MISS-2027-04-CIT-05 topic is EUR 26,823,812, with an expected EU contribution ranging from EUR 7,000,000 to EUR 12,000,000 per project. It is anticipated that three grants will be awarded under this topic.

The call follows a single-stage submission process. The planned opening date is 09 February 2027, and the deadline for submission is 07 October 2027, at 17:00:00 Brussels time.

Applicants are required to use the standard application form (HE PCP) available in the Submission System. Evaluation will be based on the standard evaluation form (HE PCP PPI) with necessary adaptations.

Additional documents to consult include:
HE Main Work Programme 2026-2027 (General Introduction and Missions sections)
HE Programme Guide
HE Framework Programme 2021/695
EU Financial Regulation 2024/2509
Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment
EU Grants AGA Annotated Model Grant Agreement
Funding & Tenders Portal Online Manual

Collaboration with the Cities Mission Platform is essential, and projects must formalize this collaboration through a Memorandum of Understanding. The Cities Mission Platform will support cities with preparatory work and facilitate the upscaling and replicability of developed solutions.

Beneficiaries may provide financial support to third parties, up to EUR 200,000 per third party, in the form of grants to provide financial incentives to final end-users to adopt the solutions. PCP/PPI procurement costs are eligible.

This funding opportunity aims to drive demand-driven innovation in climate change mitigation and air quality improvement within European cities. It encourages public procurers to collaborate and procure innovative solutions from companies, particularly SMEs and startups, thereby boosting the EU's economy, competitiveness, and strategic autonomy in net-zero technologies. The focus is on implementing these solutions in cities to achieve measurable reductions in greenhouse gas emissions by 2030 and 2050, aligning with the EU's climate neutrality goals. The call emphasizes the importance of sustainability, policy framework reinforcement, and collaboration with the Climate-Neutral Smart Cities Mission Platform to ensure the wide uptake and replicability of successful solutions.

Eligible Applicant Types: The eligible applicant types are consortia of public procurers, specifically local authorities, with similar needs that want to procure together. The lead procurer from the buyers group should be one of the 112 cities selected for the EU Mission on Climate-Neutral and Smart Cities. Companies established in the European Union's Member States and Horizon Europe Associated Countries, in particular SMEs and Startups, can respond to the call for tenders launched by consortia of procurers funded under this call.

Funding Type: The funding type is a grant, specifically a HORIZON Pre-commercial Procurement (PCP) action.

Consortium Requirement: A consortium of multiple applicants is required. PCP actions target consortia of procurers with similar needs that want to procure together. The consortium should include at least three cities of the 112 selected ones for the EU Mission on Climate-Neutral and Smart Cities.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes the European Union's Member States and Horizon Europe Associated Countries. The majority of the procured R&D activities and later commercialisation/production of developed solutions should take place in the European Union's Member States and Associated Countries. Participation in the PCP procurement can be limited to economic operators established in the European Union's Member States and Associated Countries if there are sufficient economic operators in these territories that can develop the requested solutions. 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.

Target Sector: The target sectors are climate, energy, environment, and innovation, specifically focusing on net-zero technologies, energy efficiency in buildings, production and use of renewable energy, sustainable and smart mobility, and digitalisation. The program targets solutions to reduce greenhouse gas and air pollutants emissions.

Mentioned Countries: European Union Member States, Horizon Europe Associated Countries.

Project Stage: The project stage is pre-commercial procurement, focusing on research and development to bring market-ready innovative solutions to the market. The aim is to leverage PCP to encourage the development and to provide a first customer reference for the piloting, installation and validation of breakthrough innovations.

Funding Amount: The budget for the topic HORIZON-MISS-2027-04-CIT-05 is EUR 26,823,812. The contributions are expected to be between EUR 7,000,000 and EUR 12,000,000 per grant.

Application Type: The application type is an open call with a single-stage submission process.

Nature of Support: Beneficiaries will receive money in the form of a grant to fund pre-commercial procurement activities. The beneficiaries may provide financial support to third parties to provide financial incentives to final end-users to adopt the solutions. The support to third parties can only be provided in the form of grants. The maximum amount to be granted to each third party is EUR 200 000.

Application Stages: The application process consists of a single stage.

Success Rates: The indicative number of grants is 3.

Co-funding Requirement: The information provided does not explicitly state a co-funding requirement from the applicant.

This Horizon Europe call, HORIZON-MISS-2027-04-CIT-05, aims to boost the transformation towards climate-neutral cities, the net-zero economy, and EU open strategic autonomy through pre-commercial procurement (PCP). The call targets consortia of public procurers, particularly local authorities, to drive demand-driven innovation for solutions that reduce greenhouse gas and air pollutant emissions in cities. The goal is to support the development, piloting, installation, and validation of breakthrough innovations in areas like energy efficiency, renewable energy, sustainable mobility, and digitalisation.

The call encourages public procurers to lead by example and procure innovative solutions that enhance Europe’s resilience to climate challenges. It emphasizes the importance of involving end-users and engaging in continuous dialogue between the demand and supply sides. Proposals should demonstrate the sustainability of the action beyond the project's life, showing how the project is anchored in a clear strategy for climate-neutral cities and a sustainable economy.

Projects must include at least three cities from the 112 selected for the EU Mission on Climate-Neutral and Smart Cities, with the lead procurer being one of these cities. Collaboration with the Cities Mission Platform is essential, and projects should formalize this collaboration through a Memorandum of Understanding.

The call does not directly fund developers, industry, or research organizations, but they can respond to the call for tenders launched by the procurer consortia. The funding supports the procurers in implementing PCPs and can also be used to provide financial incentives to final end-users to adopt the solutions, up to EUR 200,000 per third party. The budget for this call is EUR 26,823,812, with individual grants ranging from EUR 7,000,000 to EUR 12,000,000. The call follows a single-stage submission process with a deadline of October 7, 2027.