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

The Horizon Europe grant opportunity, identified as HORIZON-NEB-2026-01-BUSINESS-02, is aimed at understanding capital market dynamics to promote increased investment in New European Bauhaus (NEB) projects focused on transforming neighborhoods. This opportunity falls under the broader initiative emphasizing beautiful, inclusive, and sustainable neighborhoods, with a total budget of 7,000,000 euros for 2026, expecting to fund two grants valued at 3,500,000 euros each.

Eligible applicants include a variety of organizations such as research institutions, universities, small and medium-sized enterprises (SMEs), large enterprises, public authorities, non-profit organizations, and consortia involving these diverse entities. The call emphasizes participatory and transdisciplinary approaches, encouraging collaboration among stakeholders from different fields.

The funding type is a lump sum grant, meaning beneficiaries receive a fixed amount rather than reimbursement for actual costs, streamlining administrative processes. Proposals must involve validation and conduct analyses across at least three Member States or Associated Countries, ensuring a geographic breadth that reflects real-world applicability.

The focus sector is primarily on finance and investment schemes connected to sustainable urban development, requiring projects to analyze capital market dynamics, develop innovative financing solutions, and produce policy recommendations that address the barriers to investment in NEB-aligned initiatives. The call is specifically designed to tackle the challenges of small-scale NEB projects and encourage investment through innovative solutions that blend financial returns with social and environmental impact.

The application process operates on a single-stage submission model, with a planned opening on May 5, 2026, and a deadline of December 1, 2026. Proposals must be submitted via the Funding & Tenders Portal, adhering to the required documentation and evaluation standards outlined in the Horizon Europe Work Programme.

Although no explicit co-funding requirement exists, applicants are encouraged to leverage additional funding sources to strengthen their proposals. This call represents a critical effort to enhance investment in projects that meet NEB values while addressing essential capital market dynamics, ultimately aiming to transform neighborhoods into more sustainable environments.

This is a Horizon Europe call focused on "Beautiful, inclusive and sustainable neighbourhoods for communities" (HORIZON-NEB-2026-01). The call aims to address the discrepancy between the demand and supply of capital for projects transforming neighbourhoods in line with the New European Bauhaus (NEB) initiative. The call is structured around several topics, each with its own budget, action type, and expected number of grants. The planned opening date for submissions is May 5, 2026, and the deadline for submissions is December 1, 2026, at 17:00:00 Brussels time. The funding is provided as a lump sum grant.

The expected outcomes of the projects funded under this call are:

 Project promoters, public authorities, and investors have a better understanding of the capital market demand and supply dynamics that underlie investments in projects fostering the transformation of neighbourhoods in line with the New European Bauhaus (NEB).
 Increased investments towards NEB-aligned projects for the sustainable and inclusive transformation of neighbourhoods.

The scope of the call emphasizes the 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 the following:

Analyze the capital market dynamics that influence investments in NEB-aligned projects for the transformation of neighbourhoods, including:
 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 analyzed 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.

The analysis and solution validation should be conducted 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. Proposals are expected to follow a participatory and transdisciplinary 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.

The general conditions for participation include admissibility conditions, eligible countries, financial and operational capacity, exclusion criteria, evaluation and award processes, and legal and financial setup, all detailed in the Horizon Europe Work Programme General Annexes. Specific conditions are described in the specific topic of the Work Programme.

Application forms, evaluation forms, and model grant agreements are available in the Submission System. Additional guidance and documents are provided, including the HE Programme Guide, Model Grant Agreements, call-specific instructions, detailed budget table, and various Horizon Europe work programmes, framework programmes, and regulations.

The budget overview for the call in 2026 includes the following topics:

HORIZON-NEB-2026-01-BUSINESS-01 - HORIZON-IA HORIZON Innovation Actions with a budget of 10,500,000 EUR and an indicative number of 3 grants.
HORIZON-NEB-2026-01-BUSINESS-02 - HORIZON-RIA HORIZON Research and Innovation Actions with a budget of 7,000,000 EUR and an indicative number of 2 grants.
HORIZON-NEB-2026-01-BUSINESS-03 - HORIZON-RIA HORIZON Research and Innovation Actions with a budget of 9,000,000 EUR and an indicative number of 2 grants.
HORIZON-NEB-2026-01-PARTICIPATION-01 - HORIZON-IA HORIZON Innovation Actions with a budget of 12,600,000 EUR and an indicative number of 2 grants.
HORIZON-NEB-2026-01-PARTICIPATION-02 - HORIZON-IA HORIZON Innovation Actions with a budget of 10,000,000 EUR and an indicative number of 2 grants.
HORIZON-NEB-2026-01-PARTICIPATION-03 - HORIZON-RIA HORIZON Research and Innovation Actions with a budget of 15,000,000 EUR and an indicative number of 3 grants.
HORIZON-NEB-2026-01-REGEN-01 - HORIZON-IA HORIZON Innovation Actions with a budget of 12,000,000 EUR and an indicative number of 3 grants.
HORIZON-NEB-2026-01-REGEN-02 - HORIZON-IA HORIZON Innovation Actions with a budget of 10,000,000 EUR and an indicative number of 2 grants.
HORIZON-NEB-2026-01-REGEN-03 - HORIZON-IA HORIZON Innovation Actions with a budget of 15,000,000 EUR and an indicative number of 3 grants.

Partner search announcements are available for those looking to collaborate on this topic, and the submission system will open on the date stated on the topic header.

In summary, this Horizon Europe call aims to stimulate investment in the transformation of European neighbourhoods by addressing the financial barriers hindering New European Bauhaus projects. It seeks research and innovation actions that analyze capital market dynamics, develop innovative investment solutions, and provide recommendations for securing future funding, all while adhering to participatory and transdisciplinary approaches and integrating New European Bauhaus Investment Guidelines. The call provides a lump sum grant and encourages collaboration among diverse actors across multiple Member States and Associated Countries.

Eligible Applicant Types: The eligible applicant types are not explicitly stated in the provided text. However, given the nature of Horizon Europe Research and Innovation Actions (RIA) and Innovation Actions (IA), eligible applicants typically include universities, research institutes, SMEs, large enterprises, and other organizations capable of conducting research and innovation activities. Public authorities and project promoters are also mentioned as relevant entities.

Funding Type: The primary financial mechanism is a grant, specifically a HORIZON Lump Sum Grant.

Consortium Requirement: The text does not explicitly state whether a consortium is required. However, the call encourages a participatory and transdisciplinary approach, implying that a consortium of multiple applicants is preferred to integrate different actors and disciplines.

Beneficiary Scope (Geographic Eligibility): The call is open to Member States and/or Associated Countries. The text also mentions that 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 program targets the following sectors: New European Bauhaus (NEB), sustainable development, impact investing, urban development, finance, social inclusion, environmental value, cultural value, and community well-being.

Mentioned Countries: The opportunity mentions Member States and Associated Countries. It also refers to non-EU/non-Associated Countries that have made specific provisions for funding participants in Horizon Europe projects.

Project Stage: The project stage is aimed at research, development, and validation, with a focus on developing and validating innovative investment solutions. The call is for both Research and Innovation Actions (RIA) and Innovation Actions (IA), indicating a range from development to demonstration.

Funding Amount: The funding amounts vary depending on the specific topic within the call, ranging from EUR 7,000,000 to EUR 15,000,000. The indicative number of grants per topic varies from 2 to 3, with contributions ranging from around EUR 3,500,000 to EUR 6,300,000 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 lump sum grant.

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

Success Rates: The success rates cannot be determined from the provided text.

Co-funding Requirement: The text does not explicitly mention a co-funding requirement. However, given the focus on leveraging private investment, it is possible that applicants will need to demonstrate the potential to attract additional funding.

Summary: This Horizon Europe call, part of the "Beautiful, inclusive and sustainable neighbourhoods for communities" initiative under the New European Bauhaus (NEB), aims to stimulate increased investment in the transformation of neighborhoods. The call addresses the discrepancy between the demand and supply of capital for small-scale NEB-aligned projects, which often struggle to attract large, risk-averse investment funds. The call encourages proposals that analyze capital market dynamics, develop innovative investment solutions leveraging place-based impact investing, and validate these solutions in multiple Member States or Associated Countries. Projects should integrate NEB Investment Guidelines, follow a participatory and transdisciplinary approach, and allocate a portion of their budget to engage with the Horizon Europe-funded NEB hub. The funding is provided as a lump sum grant, and the call is open to a variety of organizations capable of conducting research and innovation activities. The call has a single-stage submission process with a planned opening date of May 5, 2026, and a deadline of December 1, 2026. The overall goal is to foster a better understanding of capital market dynamics and to attract increased investment in NEB-aligned projects, ultimately leading to the sustainable and inclusive transformation of neighborhoods.