EU annual report on the state of regions and cities

On October 7, 2024. The European Committee of the Regions published the EU’s annual State of the Regions and Cities report, which outlines the most pressing challenges facing regions and cities across Europe and solutions to help inform EU policy decisions. The prepared document shows how Europeans are seeking environmental solutions and thus shaping their future.

EU annual report on the state of regions and cities – 2024.

The report was prepared on the basis of original studies commissioned by the European Committee of the Regions, as well as academic research, comments from other European institutions and publicly available documentation, and contains facts and data intended for policymakers and other stakeholders. The main findings and recommendations were included in the annual State of the Regions and Cities in the European Union address by Vasco Alves Cordeiro, President of the European Committee of the Regions, on October 7, 2024.

This year’s report was published in the context of the 30th anniversary of the establishment of the European Committee of the Regions and focuses on solutions and ideas proposed for the future of Europe. It is a roadmap for creating a stronger, more cohesive and more ambitious Union. The report is forward-looking and provides guidance for the EU institutions beginning their terms of office.

EU annual report on the state of regions and cities – ecological transformation

According to the prepared report, the climate crisis is having an uneven impact on Europe: while some regions are experiencing extreme droughts, others are being inundated by unprecedented floods. Heat is intensifying, fires are breaking out, and many regions are plagued by excess or scarcity of water, with implications for energy and food security, water resources, economic and social stability and health. As outlined in the prepared report, the costs of adapting to climate change are rising rapidly, amounting to 80-200 billion euros a year, depending on the scenario of a 2°C or 3-4°C temperature increase. As the distribution of climate risks is asymmetric, policy solutions must address different local needs and ensure solidarity among communities.

Heat-related mortality has increased in almost all countries on the Old Continent. The WHO Regional Office for Europe estimates that by 2050 there could be up to 120,000 heat-related deaths each year. Last year, Europeans experienced a record number of days of extreme heat stress, with perceptible temperatures then exceeding 46°C. This new situation is also causing prolonged periods of drought and water scarcity.

At the same time, the frequency of thunderstorms, heavy rainfall and other extreme weather events is increasing. More than 53 million Europeans live in flood-prone areas. The risk of water-, food- and vector-borne diseases is also forecast to increase in the near term.

Green Deal aims to empower cities and regions

The EU needs to significantly increase the pace of change to achieve climate neutrality by 2050, as well as to counteract the loss of biodiversity. This will not succeed without cities and regions, which are responsible for implementing 70 percent of climate change mitigation policies and 90 percent of adaptation policies. Making the European Green Deal a reality is a challenge at the local and regional level due to numerous sets of regulations, a lack of financial resources and a shortage of qualified personnel.

Cities and regions must become a major partner of EU institutions in the renewed Green Deal program. It is estimated that some 350 billion euros are needed to achieve the target 55 percent reduction in greenhouse gas emissions each year, and 130 billion euros are needed to meet the environmental goals set in the European Green Deal.

By the end of the century, the cost of inaction to overcome the climate crisis is projected to amount to 10-12 percent of EU GDP. The Union’s actions to accelerate the environmental transition could increase the EU’s GDP by 440 billion euros a year and bring other significant benefits to the economy, citizens and the environment. Currently, 80 percent of environmental investments are made at the local level.

A fair transition for EU cities and regions

Providing cheaper and more sustainable energy sources is an essential element in maintaining the EU’s economic competitiveness. In 2023. The Union for the first time produced more electricity from wind and solar sources than from fossil fuels. Cities and regions will increasingly be the drivers of the transformation and will drive clean energy investments.

According to the prepared report, many regions face particular challenges in shifting to a climate-neutral economy. This is especially true for places far from urban centers and areas heavily dependent on energy-intensive and carbon-intensive industries. To ensure an equitable transition for all, their specificities must be taken into account. If the transition in the more challenging regions does not go well, it could lead to job losses, lower GDP, reduced well-being, worsening regional inequalities, and increased dissatisfaction with the EU and environmental policies. A true industrial strategy is needed, with cities and regions acting as key centers of innovation to accelerate the transition to clean energy.

The green transition must therefore take into account regional disparities and guard against a one-size-fits-all approach. The EU’s cohesion policy, as a core element of the single market, should ensure that investment is directed to the regions most affected by the socioeconomic impact of the transition to clean energy. This targeted funding will help diversify economic activity into cleaner industries and prepare workers for new job opportunities.