METHODOLOGICAL TOOLKIT to improve governance, coordination, planning, and implementation processes across jurisdictional boundaries co-founded by FUNCTIONAL AREAS IN THE EU 1 DISCLAIMER This report is a product of the International Bank for Reconstruction and Development/the World Bank. The findings, interpretations and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank or the governments METHODOLOGICAL TOOLKIT they represent. The World Bank does not guarantee the accuracy of the data included in this work. Contact information Functional Areas in the EU to improve governance, https://functionalareas.eu/ coordination, planning, and implementation processes across jurisdictional boundaries COPYRIGHT STATEMENT The reuse policy of the European Commission is implemented by the Commission Decision 2011/833/EU of 12 December 2011 on the reuse of Commission documents (OJ L 330, 14.12.2011, p. 39). Except otherwise noted, the reuse of this document is authorised under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence (https://creativecommons. org/licenses/by/4.0/). This means that reuse is allowed provided appropriate credit is given and any changes are indicated. For any use or reproduction of photos or other material that is not owned by the EU, permission must be sought directly from the copyright holders. How to cite this report: Functional Areas in the EU, Methodological Toolkit to improve governance, coordination, planning, and implementation processes across jurisdictional boundaries, 2024. 2 3 Table of Contents 6 Foreword 8 Acknowledgements 10 Executive summary 22 Introduction 30 CHAPTER 1. STRATEGIC FOCUS Challenge 1: How to formulate an integrated strategy at the functional area level Challenge 2: How to identify and prioritise projects at the functional area level Challenge 3: How to support participatory strategy implementation Recommendations 54 CHAPTER 2. TERRITORIAL FOCUS Challenge 1: How to identify the optimal territorial scale for a functional area approach? Challenge 2: How to strenghten urban-rural linkages at the functional area level? Recommendations 70 CHAPTER 3: GOVERNANCE AND ADMINISTRATIVE CAPACITY Challenge 1: How to establish a functional area governance body? Challenge 2: How to build and maintain partnerships at the functional area level? Challenge 3: How to foster knowledge development and administrative capacity building at the functional area level? Recommendations 98 CHAPTER 4: CROSS-SECTORAL INTEGRATION Challenge 1: How to support a cross-sectoral approach at functional area level? Challenge 2: How to enhance cross-sectoral integration in project design? Recommendations 132 CHAPTER 5: FUNDING AND FINANCE Challenge 1: How to optimise the use of EU funds at the functional area level and where to look for funding? Challenge 2: How to mobilise additional financial resources? Recommendations 164 CHAPTER 6: MONITORING AND EVALUATION Challenge 1: How to build data availability at the functional area level for monitoring and evaluation? Challenge 2: How to monitor and evaluate integrated strategies? Challenge 3: How to facilitate participatory monitoring and evaluation? Recommendations 184 Annex. Classification of functional areas 190 Glossary 4 5 Foreword Development dynamics rarely follow neat the EU. By promoting cooperation beyond This toolkit is the result of the ongoing As we move forward, the principles and administrative boundaries. We commute administrative boundaries, the project commitment of the European Commission practices outlined in this toolkit will be across localities for our everyday life as aims to reduce territorial disparities, boost and the World Bank to support territorial key to building a more resilient, inclusive, we often live elsewhere than where we economic growth, and ultimately enhance cohesion and sustainable development in the and prosperous Europe. By leveraging the work. We also use public services that the quality of life for citizens across the EU. It aims to inspire and equip policymakers, experiences and lessons learned from the are frequently organized for more than European Union. With this project, the administrators, and stakeholders at all levels Functional areas in the EU project, we can one local administration. Moreover, cities Commission encourages Member States to with the knowledge and tools needed create a stronger foundation for future and territories in the EU look for new and have a stronger focus on functional areas in tofoster cooperation and drive meaningful territorial development initiatives. innovative approaches to achieve a just, their programmes to better respond to the change across Europe’s diverse territories. green, and digital transition, while having needs and potentials of territories that may limited financial resources. not be defined by one clear administrative boundary. Functional areas, defined by their economic, social, cultural, or geographical The Methodological toolkit to improve interdependencies, play a critical role governance, coordination, planning in achieving cohesion and sustainable and implementation processes across development across the EU. By capturing jurisdictional boundaries emerges from this the socio-economic dynamics beyond collaborative effort. This toolkit builds on administrative borders, the functional area the outcomes of the Functional areas in approach allows for more effective and the EU project and is enriched by practical tailored policy interventions, and a more insights gained from hands-on work with efficient use of resources. This approach is twelve functional areas that received direct essential for addressing complex challenges technical support. It is designed to provide such as climate change, demographic shifts, comprehensive support to functional areas and economic development, which require at various stages of maturity, as well as to coordinated efforts across jurisdictions. The subnational and national administrations EU cohesion policy promotes functional and intermediary bodies. area approaches, in particular through The toolkit complements the Handbook of policy objective 5- `Europe closer to citizens` Territorial and Local Development Strategies Name Name which provides the necessary financial and the Handbook of Sustainable Urban resources to support integrated territorial Development Strategies developed by Role Role development and incentives for more the Joint Research Centre in collaboration effective governance, based on partnership, with DG REGIO. The three documents are multi-level governance and a place-based structured on a shared set of building blocks: approach. strategic focus, territorial focus, governance Starting from the understanding that and administrative capacity, cross-sectoral functional area approaches in the EU need integration, funding and finance, and to be strengthened and the advantages that monitoring and evaluation. Each chapter of they trigger can no longer remain untapped, the toolkit provides practical insights, tools, the European Commission’s Directorate- and recommendations tailored to address General for Regional and Urban Policy (DG the specific challenges faced by functional REGIO) and the World Bank launched a project areas. Signature Signature to improve functional area approaches in 6 7 Acknowledgements This Methodological toolkit has been The Methodological Toolkit has also delivered under the provisions of the benefitted from contributions from the Administration Agreement for a Single- following peer reviewers: Mark Roberts Donor Trust Fund on Functional Areas in (Lead Urban Economist, World Bank), Reena the European Union between the European Badiani-Magnusson (Senior Economist, Commission and the World Bank, and World Bank), Zintis Hermansons (Project prepared by the World Bank under the Expert, ESPON), and Andreea China guidance and supervision of Christoph (Research and Policy Manager, ESPON). Pusch (Practice Manager), Ellen Hamilton The team would like to express its gratitude (Lead Urban Specialist), Yondela Silimela for the excellent cooperation and valuable (Senior Urban Specialist), Marcel Ionescu- input provided by the representatives of Heroiu (Senior Development Specialist), the 12 functional areas who contributed Grzegorz Aleksander Wolszczak (Urban with knowledge, relevant materials and Development Specialist), and Anna Marta feedback: Brno Metropolitan Area (Czech Banaszczyk (Regional Development Expert). Republic), Zagreb Urban Agglomeration The Methodological Toolkit was developed (Croatia), West Athens (Greece), Lake by a team composed of Eva-Viorela Sfârlea Balaton Functional Region (Hungary), Kalisz- (Regional Development Expert), Florina- Ostrów Agglomeration (Poland), Krakow Adina Ciuchiță (Urban Development Expert), Metropolitan Area (Poland), Jiu Valley and and Oana Franț (Urban Development Jiu Conurbation Functional Area (Romania), Expert), with support from Alexandra- Caraș-Timiș Functional Area (Romania), Beatrice Nae, Alexandru Popescu, Corina Cluj Metropolitan Area (Romania), Oradea Dovăncescu, Codruța Nistor, Bianca-Cristina Metropolitan Area (Romania), West Ialomița Butacu, Ionuț Mărieș, Marius Cristea, Adina Functional Area (Romania) and Trenčín Vințan and Mihai Danciu. Functional Area (Slovakia). In addition, the The team would like to thank the colleagues team would especially like to thank the of the European Commission’s Directorate- Barcelona Metropolitan Area (Spain), which General for Regional and Urban Policy (DG shared their knowledge and extensive REGIO) for their contributions and support, experience in metropolitan development, in particular: Marek Teplansky (Head of Unit offering insights for other functional areas for Inclusive Growth, Urban and Territorial in the EU. FUNCTIONAL Development), Gabriel Onaca (Deputy Head of Unit), Janis Krainis, Justyna Podralska, Andreea Maier, and Peter Takacs. AREAS IN THE EU 8 9 Executive summary Achieving cohesion through What is a functional area? the functional approach ‘The functional area is the area or region that functions as a unitary system from a Reducing territorial disparities, boosting polical and / or social and / or economic point of view. In other words, the FA is defined economic growth, and ultimately improving by the internal system of interactions and relationships and covers, in whole or in part, the quality of life of citizens are at the core of the territory of several administrative-territorial units that cooperate and are linked / EU cohesion policy, the EU’s main investment united by economic, communications, transport activities.’ policy, accounting for about one third of the (Council of Europe Conference of Ministers Responsible for Spatial Planning - CEMAT). EU budget. A functional area may capture commuting flows and complex relationships between an urban Functional areas play a key role in achieving centre and adjacent territories of influence (functional urban area), or other flows related to cohesion across the EU. By strengthening accessing services, managing common challenges and capitalising on shared opportunities cooperation beyond jurisdictional boundaries, in non-urban areas. the functional area approach may accelerate Other types of functional areas may reflect ties between local economies (clusters and the process of reducing disparities. Moreover, FUNCTIONAL innovative regions, areas under industrial restructuring, free economic zones, tourist areas), it reflects the need for joint action in dealing common natural characteristics (areas with significant natural heritage, mountain areas, with the increasingly complex challenges AREAS IN THE EU island areas, coastal areas, delta areas, river catchment areas), cultural links (areas with (such as mobility, suburbanization, land use, significant cultural heritage, areas with complex cultural heritage) or may reflect shared climate change, economic development, A functional area is defined by one or more demographic challenges (depopulated areas). demographic decline and ageing) that territorial interdependencies related to Ongoing research by ESPON focuses on ‘non-standard geographies’, including water cannot be adequately addressed within a economic, social, cultural, or geographical management areas, biodiversity preservation areas, areas undergoing industrial or energy single administrative territorial unit. functions. transition, or areas focused on health and ageing. Advancing Cohesion Policy Objective 5 Why are functional area approaches needed? More specifically, functional areas contribute directly to achieving Policy Objective 5 - A Development dynamics rarely follow administrative borders. Therefore, finding the Europe closer to citizens (promoting integrated territorial development strategies), for optimal scale for territorial development is necessary to achieve cohesion, local ownership, several reasons: and respond to the growing interdependencies that can no longer be adequately addressed Functional areas reflect real territorial dynamics. Functional areas, by definition, within administrative boundaries. The EU 2021-2027 cohesion policy promotes integrated capture the actual socio-economic interactions and dynamics of a region, surpassing planning at the functional area level, offering territorial instruments to implement place- administrative boundaries. This means policies and interventions can be designed based, joint strategies, (such as ITI, CLLD, and other territorial tools), as well as a diversity of in harmony with genuine territorial needs and characteristics, making them more knowledge and capacity building opportunities. effective. Growing interdependencies require flexible joint planning. Many development challenges are interjurisdictional. For example, reducing GHG emissions in cities needs coordinated Functional area approaches require an integrated approach. PO5 emphasises efforts with neighbouring areas. A joint approach is crucial for managing many environmental an integrated development approach. Given the interconnectedness of challenges and socio-economic vulnerabilities in natural and urban areas . within functional areas and urban-rural linkages, adopting a functional area Functional area approaches can be more efficient and enable economies of scale. Integrated perspective can enhance a holistic and cross-sectoral nature of interventions. planning reduces duplication, fragmentation and can improve public service efficiency. Functional area scale can foster better use of funds. Functional areas allow for a Coordinated planning and economies of scale result in increased quality and reduced costs more coherent allocation of resources. By pooling resources across territories and for end users. In essence, when public investments are aligned with the territorial dynamics, sectors within a functional area, there is potential for more impactful and efficient they are more likely to drive sustainable development. investments. Functional urban areas are economic engines of the EU. They contribute significantly to Functional areas require stakeholder collaboration. The very nature of functional regional and national development, creating positive spill-overs. The Rethinking Lagging areas, often encompassing multiple jurisdictions, promotes collaboration among a Regions report (World Bank, 2019) shows that high-performing EU regions often have range of stakeholders – municipalities, regional authorities, the private sector, and dynamic metropolitan areas - in Romania, 74 % of the population lives in functional urban civil society. This collective effort is key for achieving integrated development. areas, generating 98 % of the national GDP. 10 11 Why this toolkit? How to use the toolkit Building on hands-on work with 12 functional areas under the Functional areas in the The methodological toolkit is structured around six building blocks: strategic focus, territorial EU project launched by Directorate-General for Regional and Urban Policy and the World focus, governance and administrative capacity, cross-sectoral integration, funding and Bank in 2022, the toolkit offers methodological support all functional areas in the EU (with finance, and monitoring and evaluation. Each chapter starts with an introduction, followed different maturity levels or yet-to-be established). The toolkit is primarily designed to support by the challenges identified and practical insights and tools to address them, followed by a representatives of functional area governance bodies in advancing or initiating cooperation set of recommendations. across jurisdictional boundaries, providing tools and practical insights from other functional The toolkit’s flexible design allows readers to navigate its contents in any order, based on areas in the EU, as well as relevant information on knowledge exchanges, capacity building their specific interests or needs, facilitated by cross-referencing throughout the document. It and funding opportunities. also contains a comprehensive Glossary and an Annex that offers an overview of the diversity The toolkit also aims to inspire, enhance coordination and provide guidance to local, regional of functional area typologies, enriching the understanding and application of the toolkit’s and national level policy-makers, managing authorities and intermediary bodies. contents. It provides practical insights and tools for applying the functional approach and showcases advancements in inter-jurisdictional cooperation that can serve as inspiration for other areas Strategic focus Governance and Funding and finance in the EU, with varying capacities and resources. The toolkit can support the development administrative capacity of integrated strategies, identifying flagship projects, improving participation, strengthening • Integrated strategic • Functional area • Mobilisation of EU funds urban-rural linkages, promoting cross-sectoral integration, mobilising funding and improving planning at governance bodies • Public-private partnerships at monitoring and evaluation processes at the functional area level. functional area level across the EU functional area level • Flagship projects • Multi-stakeholder • Attracting private investments About the project • Participatory governance • Financial instruments strategy • Knowledge and capacity • Economic development tools 06 The Functional Areas in the EU project, launched by DG REGIO and the World Bank in implemention building opportunities 2022, provided targeted support to functional areas in eight countries through hands-on assistance for 12 areas and technical work sessions for another 12 areas. Over the two-year project, a substantial directory of over 40 guides, analyses, methodologies, and reports was produced, along with more than 60 best practice examples addressing specific challenges. Recurrent newsletters shared information on funding opportunities, developed solutions, and upcoming events. Additionally, 20 interviews and video series were made available, showcasing lessons learned. The knowledge exchange activities organised during the project covered functional area governance, sustainable spatial development, resilience and climate neutrality, attracting 04 foreign direct investments, entrepreneurship support, capacity building, public-private partnerships, urban-rural linkages, competitiveness, identification of flagship projects, and 02 05 funding opportunities. The 24 functional areas also participated in knowledge-sharing events through TAIEX-REGIO 03 Peer2Peer exchanges, Interreg partnerships, the Just Transition Platform, and HORIZON partnerships. For more information: www.functionalareas.eu Territorial focus Cross-sectoral integration Monitoring and evaluation 01 • Delineation of • Cross-sectoral • Availability of data the functional integration through • Quantitative and area territory spatial, climate and qualitative indicators mobility planning • Urban-rural • Data collection and linkages • Designing integrated visualisation projects • Participatory M&E 12 13 Chapter 1: Strategic focus Chapter 2: Territorial focus The first chapter offers insights and tools for The chapter addresses two main topics - strategy formulation and mplementation. It determining the optimal territorial scale for starts by showcasing the role of integrated sustainable development and strengthening strategies as the basis for cooperation, followed urban-rural linkages. Identifying appropriate by approaches for project prioritization indicators for delineating the functional area, and identifying flagship projects, while whether internally or through partnerships highlighting the importance of partnership with academic institutions, supports an building between public authorities, citizens, evidence-based identification of territorial civil society, academia, the private sector needs. National legislation can institutionalise and other actors. The chapter also covers cooperation between administrative units, outlining the functional area territory, the various options for participatory strategy structure of governance bodies and their implementation to enhance stakeholder competencies. The chapter also provides ownership and develop a shared identity at guidance for establishing partnerships the functional area level. between urban and rural areas, promoting the exchange of best practices and building on each others’ strengths and resources. Practical insights and tools Practical insights and tools Challenge 1: How to formulate an integrated strategy at the functional area level Challenge 1: How to delineate the optimal territorial scale for functional approaches • Integrated strategic planning (Brno Metropolitan Area) Practical • Evidence-based approach to territorial cooperation (Brno Metropolitan Area) Practical • Participatory model for developing the Metropolitan Urban Master insights • National legislative framework for metropolitan areas (Romania) insights Plan (Barcelona Metropolitan Area) • Involving experts, civil society and citizens in the strategy formulation Tools • Process and indicators for delineating functional areas Tools process • Basic instruments to support a participatory strategy formulation process Challenge 2: How to harness urban-rural linkages at the functional area level Challenge 2: How to identify and prioritise projects at the functional area level • Rural-urban partnerships (Cluj Metropolitan Area) • Balancing rural and urban development (Lake Balaton Functional • Paromlin multifunctional cultural centre flagship project (Zagreb Urban Practical Region) Practical Agglomeration) insights • Short food supply chain model to harness urban-rural linkages at insights • Identification of flagship projects for initiating and sustaining functional area level (Tăuții Măgherăuș) cooperation (West Ialomița Functional Area) Tools • Approaches to project prioritisation Challenge 3: How to support participatory strategy implementation • Participatory implementation of integrated strategies at the functional Practical area level (Brno Metropolitan Area, Jiu Valley Functional Area, Zagreb insights Urban Agglomeration) 14 15 Chapter 3: Governance and administrative capacity Chapter 4: Cross-sectoral integration The chapter delves into governance models In the first part, the chapter focuses on of functional areas in the EU, ranging from spatial planning, climate change planning informal coordination to fully institutionalised and sustainable urban mobility planning bodies, showcasing relevant examples and and their potential to enhance cross- national contexts. It also offers a selection sectoral integration at the functional area of tools and practical insights on partnership level. The second parts offers guidance on building and stakeholder engagement, designing integrated projects, inspired by followed by information on knowledge the principles of the New European Bauhaus exchange networks and capacity-building initiative. Finally, the chapter offers insights programmes relevant for representatives of into integrated neighbourhood regeneration approaches, particularly useful for functional functional areas or local administrations. urban areas grappling with urban sprawl. Practical insights and tools Practical insights and tools Challenge 1: How to establish a functional area governance body Challenge 1: How to support a cross-approach at the functional area level • Soft coordination through shared metropolitan standards (Poland) • Integrated Spatial Development Strategy (Rzeszow Functional Urban • Voluntary cooperation for improved mobility across two counties Area) (Caraș-Timiș Functional Area) • GIS databases for integrated functional area planning (Zagreb Urban Practical • Leveraging ITI for promoting metropolitan governance (Brno Agglomeration; Cluj and Constanța Metropolitan Areas) insights Metropolitan Area) • Net Zero City Action Plan (Cluj Metropolitan Area) • Evolution and structure of the Barcelona Metropolitan Area Governance Practical • Plan of adaptation to climate change (Kalisz-Ostrów Agglomeration) Model insights • Analysis of Urban Heat Islands (West Athens, Lake Balaton Functional • Administrative reform to establish metropolitan cities (Italy) Areas) Challenge 2: How to build and maintain partnerships at the functional area level • Shifting the economy towards an ecological and equitable transition (Brussels Capital Region) • Enabling consultation, dialogue, and partnership building (Cluj • Sustainable urban mobility projects at the functional area level (Oradea Metropolitan Area) Metropolitan Area) Practical • Formalising collaborative governance arrangements to drive a Just insights Transition (Jiu Valley Functional Area) • GIS databases and platforms Tools • Partnering with the private sector for strengthening economic • Land Suitability Analysis development through vocational training (Slovakia, Poland) Challenge 2: How to enhance cross-sectoral integration in project design • Phases of civic participation and partnership building Tools • Involving citizens in mapping climate issues • Integrated cultural projects (Trenčín Functional Area) Challenge 3: How to foster knowledge and administrative Practical • Co-developing a low-traffic neighbourhood (Brussels) capacity building at the functional area level insights • Enhancing transport-oriented development in Trinita District (Brno Metropolitan Area) • Expertise sharing and technical support for strategic planning and EU- Practical funded projects (Oradea Metropolitan Area) • New European Bauhaus as an enabler of project level integration insights • Strengthening partnership and dialogue at the functional area level Tools • ‘Sustainable Regeneration of Apartment Block Neighbourhoods’ Guide (Jiu Valley Functional Area) • ‘Transforming Transit Spaces to Destination Places’ Guide Tools • Knowledge networks and capacity-building programmes 16 17 Chapter 5: Funding and finance Chapter 6: Monitoring and evaluation This chapter offers an overview of the EU Starting with practical guidance on tracking funding opportunities for financing functional progress towards the common objectives approaches and showcases examples of outlined in the integrated strategy, the mixing funding from different funds to finance chapter proceeds to illustrate a model for for integrated strategies. It also includes options developing a monitoring and evaluation (M&E) for mobilising additional funding through system of indicators and ensuring transparent financial instruments, local resources, public- access to data and project information for private partnerships, and attracting private citizens and other stakeholders. The final part investments. of the chapter explores the implementation of participatory M&E for integrated strategies and projects, aiming to foster a sense of ownership among stakeholders. Practical insights and tools Practical insights and tools Challenge 1: How to optimise the use of eu funds at the Challenge 1: How to support a cross-sectoral approach at the functional area level functional area level and where to look for funding • Dedicated multi-fund programmes for functional areas (ERDF, ESF+): Italy’s Metropolitan Programmes Practical • Data observatories to support monitoring and evaluation of supra- • Financing integrated territorial development (Kraków Metropolitan insights municipal strategies in Polish functional areas Practical Area and Walbrzych subregion) insights • Capacity building for just transition (Jiu Conurbation and Jiu Valley Tools • Geospatial and geo-statistical opendata monitoring resources Functional Area) • Establishing a revolving fund to support co-financing and project Challenge 2: How to enhance cross-sectoral integration in project design preparation needs (Oradea Metropolitan Area) • Monitoring the impact of strategies at the functional area level by • Integrated Territorial Development in the 2021-2027 programming period integrating quantitative indicators and qualitative instruments (Cluj • Just Transition Mechanism Practical Tools Metropolitan Area) • List of EU initiatives with direct application relevant for functional area insights • Supporting the monitoring and evaluation of the integrated strategy financing and database through data collection and visualisation (Brno Metropolitan Area) Challenge 2: How to mobilise additional financial resources Tools • Indicators for measuring the impact of integrated investments • Mobilising EIB funding for preparing energy efficiency investments (Upper Silesian and Zagłębie Metropolis) Challenge 3: How to facilitate participatory monitoring and evaluation • Bundling PPP projects in functional urban areas (Kraków Metropolitan Practical Area) • Digital tools for participatory monitoring of projects (Barcelona) insights Practical • Institutional response to attract, retain and expand private investments insights (Oradea Metropolitan Area) • Guidance for establishing a participatory monitoring and evaluation Tools • Competitive profiles and database of investments plots at the process metropolitan level (Kalisz-Ostrów Agglomeration) • Living Lab approach to support entrepreneurial development(Kalisz- Ostrów Agglomeration) • Public-Private Partnerships (PPP) • Financial instruments and advisory support to leverage EU funds Tools through the European Investment Bank • Sub-national sector scan methodology 18 19 Recommendations • Use spatial planning tools and analyses (e.g., GIS databases, Land Suitability Analysis) for a comprehensive understanding of the functional area’s dynamics and the cross-sectoral impact of • Build a strong foundation for supra-municipal strategic planning planned interventions. by identifying, focusing on and celebrating quick wins. • Promote the need for a supra-municipal, cross-sectoral • Explore opportunities to improve access to data and build Cross-sectoral Strategic focus approach to climate challenges and prepare climate planning capacity for evidence-based strategic planning. integration documents at the functional area scale, including diverse actors • Make sure that the strategy is an actionable document based on (public representatives, academia, civil society organisations, territorial needs. housing associations, the private sector). • Identify flagship (high priority) projects that can mobilise support • Develop integrated neighbourhood-level regeneration projects from a broad range of stakeholders across the functional area. to limit urban spraw , considering the impacts on various sectors • Engage the community in the design, implementation, and involving a transdisciplinary team. monitoring and evaluation. • Scale up successful neighbourhood-level projects to ensure that everyone enjoys similar standards of living across the functional area. • Identify a mix of funding sources for integrated investments at the functional area level. Territorial focus • Apply a data-informed/ evidence-based approach in delineating Funding and • Address disparities in the financial capacity of smaller the functional area to identify linkages, shared needs, and finance municipalities, preventing them from participating in joint development opportunities. projects. • Ensure representation of urban and rural areas in governance • Explore public-private partnership opportunities for bodies to promote the rural agenda for balanced growth. implementing projects at functional area level (including • Develop a form of partnership based on existing linkages and blended PPPs, leveraging EU funding). encourage the exchange and replication of best practices • Establish a one-stop-shop agency for attracting private between urban and rural areas. investments and develop a joint database of investment plots at the functional area level. • Develop an effective monitoring and evaluation system of the integrated strategy, based on output, results, and impact • Develop an integrated strategy for the functional area, gradually indicators, as well as qualitative indicators (e.g., political expanding the realm of competencies of the governance body to willingness to cooperate, quality of life). mobility, spatial planning, public service provision, or economic Monitoring and • Explore partnerships with research institutes or universities to Governance and development. evaluation support data collection and analysis at the functional area scale. administrative capacity • Establish stakeholder engagement frameworks that provide • Access technical guidance and capacity-building resources for a structured basis for cooperation with diverse stakeholders improved monitoring and evaluation. (citizens, civil society, academia, NGOs, and the private sector). • Ensure a transparent monitoring and evaluation process, • Access available knowledge and capacity-building instruments including, if possible, interactive digital dashboards and GIS and networks to strengthen functional approaches and optimise maps for visualising progress and prompting stakeholder the use of EU funds. engagement. • Explore opportunities for increasing technical and administrative • Engage diverse stakeholders in the design, monitoring and capacity of smaller member municipalities. evaluation of functional area level projects (using surveys, interactive mapping tools and participatory platforms to gather qualitative and quantitative data). 20 21 Introduction ‘Europe has many different types of places, such as capital regions, Who is this toolkit for? metropolitan areas, small and medium-sized towns, peri-urban areas, rural areas, inner peripheries, peripheral areas, northernmost areas, Building on the outcomes of the Functional areas in the EU project launched by Directorate- sparsely populated areas, islands, coastal areas, mountainous areas, General for Regional and Urban Policy (DG REGIO) and the World Bank in 2022, the toolkit outermost regions, cross-border regions, macro-regions, areas of offers methodological support to all functional areas in the EU (with different maturity levels demographic decline and areas in economic transformation and or yet-to-be-established). industrial transition. These have very different development potential The toolkit is primarily designed to support representatives of functional area governance and challenges.’ bodies in advancing or initiating cooperation across jurisidictional boundaries, providing tools (Territorial Agenda 2030 - A future for all places) and practical insights from other functional areas in the EU, as well as relevant information on knowledge exchanges, capacity building and funding opportunities. The toolkit also aims to inspire and provide guidance to policymakers at the local, regional, and national level, managing authorities and intermediary bodies. for enhancing coordination between administrative units. Reducing territorial disparities, boosting economic growth, and ultimately improving the quality of life of citizens are at the core of EU cohesion policy, the EU’s main investment How can the toolkit support you? policy, accounting for about one third of the EU budget. Functional areas, defined by one or The toolkit is based on hands-on work with functional areas selected for direct technical more territorial interdependencies related to economic, social, cultural, or geographical support as part of the Functional areas in the EU project, as well as other functional areas functions, play a key role in achieving cohesion across the EU. involved in the project and complements two other valuable resources developed by the By strengthening cooperation beyond jurisdictional boundaries, the functional area approach Joint Research Centre (JRC) in collaboration with the DG REGIO of the European Commission: may accelerate the process of reducing social, economic, and territorial disparities. Moreover, the Handbook of Sustainable Urban Development strategies and the Handbook of Territorial it reflects the need for joint action in dealing with the increasingly complex challenges that and Local Development Strategies. While the first handbook is focused on urban areas, the cannot be adequately addressed within a single administrative territorial unit (such as latter was designed to support integrated strategic planning where the focus is on areas mobility, suburbanisation, land use, climate change, economic development, demographic other than urban areas. decline and ageing, efficient service provision). Complementing the guidance offered in the handbooks, this methodological toolkit provides More specifically, functional areas contribute directly to achieving Policy Objective 5 - A practical insights and tools for applying the functional approach and showcases advancements Europe closer to citizens (promoting integrated territorial development strategies), for in inter-jurisdictional cooperation that can serve as inspiration for other areas in the EU, several reasons: with varying capacities and resources. The toolkit can support you in developing integrated strategies, identifying flagship projects, improving participation, strengthening urban-rural • Functional areas reflect real territorial dynamics. By definition, functional areas linkages, promoting cross-sectoral integration, mobilising funding, and improving monitoring capture the actual socio-economic interactions and dynamics of a region, beyond and evaluation processes at the functional area level. administrative boundaries. This means policies and interventions can be designed in alignment with genuine territorial needs and characteristics, making them The structure of the toolkit and how to use it more effective. The methodological toolkit is structured around six building blocks (in line with the two • Functional area approaches are based on integrated territorial development. handbooks), namely: strategic focus, territorial focus, governance and administrative Given the interconnectedness of challenges within functional areas and urban- capacity, cross-sectoral integration, funding and finance, and monitoring and evaluation. rural linkages, implementing the functional area approach can enhance a holistic Each chapter starts with an introduction, followed by the challenges identified and practical and cross-sectoral nature of interventions. insights and tools to address them, followed by a set of recommendations. • The functional area scale can foster better use of funds. By pooling resources Strategic focus: The first chapter offers insights and tools for strategy formulation and across territories and sectors within a functional area, there is potential for more implementation. It starts by showcasing the role of integrated strategies as the basis for impactful and efficient investments. cooperation, followed by approaches for project prioritization and identifying flagship • Functional area approaches require stakeholder collaboration. The very nature projects, while highlighting the importance of partnership building between public authorities, of functional areas, encompassing multiple jurisdictions, promotes collaboration citizens, civil society, academia, the private sector and other actors. The chapter also covers among a range of stakeholders – municipalities, regional authorities, the private various options for participatory strategy implementation to enhance stakeholder ownership sector, and civil society. and develop a shared identity at the functional area level. 22 23 1. Territorial focus: The chapter addresses two main topics- determining the optimal Policy context territorial scale for sustainable development and strengthening urban-rural linkages. Identifying appropriate indicators for delineating the functional area, According to the Treaty on the Functioning of the European Union (TFEU), the goal of the whether internally or through partnerships with academic institutions, supports European Union is to improve its economic, social, and territorial cohesion to promote an an evidence-based identification of territorial needs. National legislation can overall harmonious development. The functional area approach is aligned with this goal and institutionalise cooperation between administrative units, outlining the functional is supported through cohesion policy territorial instruments such as Integrated Territorial area territory, the structure of governance bodies and their competencies. The Investments (ITI), Community-Led Local Development (CLLD), or Other territorial tools (OTT), chapter also provides guidance for establishing partnerships between urban aimed to aligning interventions and resources with the suitable spatial scale and territorial and rural areas, promoting the exchange of best practices, and building on each context (development needs, challenges, and opportunities), and involvement of partnership. other’s strengths and resources. Several policy documents at EU level also support the functional area approach. The New Leipzig Charter is focused on supporting sustainable and integrated urban development for 2. Governance and administrative capacity: The chapter delves into governance creating just green and productive urban systems. Therefore, it addresses the importance of models of functional areas in the EU, ranging from informal coordination to fully functional linkages at the urban scale, conceptualising functional areas as ‘a metropolitan institutionalised bodies, showcasing relevant examples and national contexts. area or a combination of other territorial entities. Highlighting that ’citizens often interact at It also offers a selection of tools and practical insights on partnership building different spatial scales in their everyday life’, the New Leipzig Charter envisages the functional and stakeholder engagement, followed by information on knowledge exchange area level as the third level of intervention, after the neighbourhood and local levels, in the networks and capacity-building programmes relevant for representatives of effort to design measures at the appropriate spatial scale. functional areas or local administrations. However, the Charter does not limit its guidance to the concept of statistical functional urban areas, defined by Eurostat as cities and their commuting zones, but leaves space for a 3. Cross-sectoral integration: In the first part, the chapter focuses on spatial broader understanding of functional areas, with a reference to the Territorial Agenda 2030. planning, climate change planning and sustainable urban mobility planning and It aims to strengthen ‘cooperation on long-term place-based strategies for these areas and their potential to enhance cross-sectoral integration at the functional area level. address sustainable functional links between neighbouring areas’. Moreover, the New Leipzig The second part offer guidance on designing integrated projects, inspired by the Charter states that formal and informal instruments should cover ‘all spatial levels, from principles of the New European Bauhaus initiative. Finally, the chapter offers neighbourhoods to local authorities and wider functional areas, including the metropolitan insights into integrated neighbourhood regeneration approaches, particularly level’. useful for functional urban areas grappling with urban sprawl. The Territorial Agenda 2030 (A future for all places) highlights the importance of ‘functional 4. Funding and finance: This chapter offers an overview of the EU funding regions’ and of support to the development of functional approaches, including through opportunities for financing functional approaches and showcases examples spatial planning and instruments of EU cohesion policy (such as ITI or CLLD) as well as rural of mixing funding from different funds to finance integrated strategies. It also development policy, while emphasising the diversity of places in Europe (Art. 49 and 50). includes options for mobilising additional funding through financial instruments, Moreover, the European Regional Development Fund (ERDF) requires EU Member States local resources, public-private partnerships, and attracting private investments. to allocate at least 8 % of their ERDF resources to sustainable urban development (urban earmarking), with special attention to tackling environmental and climate challenges, digital 5. Monitoring and evaluation: Starting with practical guidance on tracking progress innovation, and supporting the development of functional urban areas. The ERDF pays towards the common objectives outlined in the integrated strategy, the chapter particular attention to disadvantaged regions and areas, and cooperation within functional proceeds to illustrate a model for developing a monitoring and evaluation system territories for sustainable tourism (Regulation (EU) 2021/1058 (ERDF/CF)). of indicators and ensuring transparent access to data and project information for citizens and other stakeholders. The final part of the chapter explores the With these key policy documents in mind, a stronger focus on developing place-based, implementation of participatory monitoring and evaluation for integrated functional area approaches to better respond to territorial needs has been emerging. strategies and projects, aiming to foster a sense of ownership among stakeholders. Functional areas are increasingly making their voice heard, as highlighted by the recent ‘Metropolitan Manifesto’ published by the Network of European Metropolitan Regions and The toolkit’s flexible design allows readers to navigate its contents in any order, based on Areas (METREX) in 2023, supported by EU research and exchange projects focused on their their specific interests or needs, facilitated by cross-referencing throughout the document. It governance (see ESPON, Territorial governance of non-standard geographies – Nostageo, also contains a comprehensive Glossary and an Annex that offers an overview of the diversity or Interreg Central Europe - Strengthening Metropolitan Cooperation and Management in of functional area typologies, enriching the understanding and application of the toolkit’s Central Europe - MECOG-CE). Whether we talk about ‘urban ecosystems’ linking the urban, contents. rural, and sub-urban scales (METREX), or the evolving concept of a study ‘non-standard 24 25 geographies’ (ESPON) aiming to improve the understanding of emerging functional territories case of Romania, where 74 % of the population currently lives in a functional urban area, in terms of their definitions, delimitations, development trends and ongoing cooperation generating 98 % of the national GDP. arrangements, the challenge of optimising the territorial scale for increased efficiency of In particular, metropolitan areas are significant contributors to national growth, as evidenced public investments and quality of life is increasingly important. by the Gross Domestic Product (GDP) figures at current market prices provided by Eurostat. Why are functional area approaches needed? Notably, non-metropolitan areas exhibit lower purchasing power per inhabitant compared to the national average, further underscoring the importance of metropolitan regions in driving Development dynamics rarely follow administrative borders. The question of identifying economic development. the most efficient scale for territorial development has increasingly preoccupied EU policymakers, researchers, and practitioners. This interest was fuelled by the quest for FUNCTIONAL URBAN AREAS ARE IMPORTANT GROWTH ENGINES innovative approaches to achieving cohesion and increasing local ownership, bringing The Eurostat data for metropolitan regions clearly reflects the economic power of planning and decision-making as close as possible to the needs on the ground, and finally, the functional areas. As statistical units, metropolitan regions are defined as functional growing interdependencies that could no longer be adequately addressed by development urban areas (understood as cities and their commuting zones) of 250 000 or more approaches defined by administrative boundaries. inhabitants (EU-OECD). The GDP produced by functional urban areas ranges from a The functional area approach focuses on identifying the appropriate scale for governance, staggering 78 % in Ireland (corresponding to a population share of only 57.5 %), to 40.4 coordination, planning and implementation processes, to generate the highest impact on % in Slovakia, corresponding to a 27 % share of the functional urban area population in the quality of life and to promote sustainability across all types of functional areas (with the total population. This trend is consistent across most countries listed, highlighting the disproportionate economic output generated by functional urban areas compared particular attention to the ecological vulnerability of natural functional areas). To this end, to functional non-urban areas. the EU 2021-2027 cohesion policy promotes integrated planning at the functional area level and offers territorial instruments to implement place-based, joint strategies, (such Figure 1. Population and GDP (functional urban area and functional non-urban area) as ITI, CLLD, and other territorial tools), as well as a diversity of knowledge and capacity building opportunities. Implementing functional approaches can also enhance ownership, partnership, participation, and cooperation, while strengthening urban-rural linkages. Challenges derived from growing interdependencies require a flexible framework for joint planning and action. Various challenges that administrative bodies must address are interjurisdictional by nature. The most evident examples are related to environmental issues, such as addressing air pollution, biodiversity loss or climate change adaptation and mitigation measures. Actions to reduce GHG emissions in a city, for instance, may not achieve expected results if urban sprawl is not tackled through coordinated measures with the neighbouring localities. A joint approach for addressing environmental vulnerability is also paramount in the case of functional natural areas. Functional area approaches are more efficient and enable economies of scale. Integrated planning at the functional area level can minimise duplication of efforts and fragmentation, by encouraging economies of scale and organising public services more efficiently. Service provision can benefit from improved efficiency if the conditions for higher densities and economies of scale are ensured, resulting in increased quality and reduced costs for end users. When public investments are aligned with the territorial dynamics, they are more Source: Eurostat likely to drive sustainable development. Such territorial characteristics can be identified in Similarly, in Spain, 75.53 % of the population lives in functional urban areas, which are both urban and rural settings, based on a wide range of variables, as highlighted earlier. responsible for 77.91 % of the GDP. Even in countries where the population is more Functional urban areas are the economic engines of the EU. As exemplified below, functional evenly distributed between functional urban areas and functional non-urban areas, such as Romania and Italy, functional urban areas still contribute significantly more to urban areas have an important role in economic development at the regional and national the GDP. level and have the potential to create positive spill-over effects for the surrounding area. For instance, the Rethinking Lagging Regions report (World Bank, 2019) shows that the highest This data shows that functional urban areas serve as economic engines within their performing regions in the EU are those that have at least one dynamic metropolitan area or respective countries, often outperforming their demographic weight. The importance urban agglomeration within or close to their boundary. A clear reflection of the importance of functional urban areas in economic terms cannot be underestimated and warrants of functional urban areas for the national growth and competitiveness of a country is the focused policy attention for sustainable development and growth. 26 27 Insights from the ‘Functional areas in the EU’ project Figure 2. Key challenges identified within the Functional areas in the EU project The Functional areas in the EU project started from the understanding that functional area approaches in the EU need to be strengthened. The main objective of the project was to enhance the capacity of participating functional areas to plan and finance investments and services for sustainable development across jurisdictional boundaries. Strategic Spatial Economic Demographic planning planning development decline and aging THE FUNCTIONAL AREAS IN THE EU PROJECT The Functional areas in the EU project, launched by DG REGIO and the World Bank in 2022, offered two types of support to functional areas from eight countries: targeted support through hands-on assistance developed around clear action plans for 12 functional areas, and short-term support in the form of technical work sessions covering Stakeholder pre-defined topics for other 12 functional areas. Green Cross-border Housing dialogue mobility cooperation Throughout the two-year project, a substantial directory covering over 40 guides, facilitation analyses, methodologies, and reports have been produced, as well as over 60 best practice examples collected from various functional areas on specific challenges, identified together with project applicants. Recurrent newsletters were circulated with information on funding opportunities, developed solutions, and relevant future events. 20 interviews and video series are available on the platform showcasing lessons learned from the participating functional areas. All interested representatives of functional Energy efficient Tourism, culture, Blue-green Digitalisation areas had the opportunity to join 12 knowledge exchange activities organised on the neighborhoods branding infrastructure and cloud following topics: integrated strategic planning, land suitability analysis, identification of flagship projects and financing, strengthening functional area governance, economic development planning, strengthening urban-rural linkages, climate neutrality, public- private partnerships, and functional area governance. The 24 functional areas have also been supported in applying and participating in various knowledge-sharing events through TAIEX-REGIO Peer2Peer exchanges, Culture and Urban Civic Cooperation Interreg partnerships, Just Transition Platform (JTP) Groundwork facility, and HORIZON creation regeneration engagement networks partnerships. industries All resources prepared under the project have been with over 700 functional areas in Europe and are available on the project website, developed as a platform for sharing results, communicating insights, and engaging functional areas. For more information Functional areas in the EU project page: https://functionalareas.eu Smart financing Carbon Circular of functional Governance neutral city economy areas The functional areas receiving targeted support within the project face a wide range of challenges. By aggregating all inputs and data provided by the representatives of the functional areas included in the project, a set of 20 challenges was outlined. The identified challenges informed the action plans developed with each functional area, and also guided the preparation of this toolkit (see Figure 2 below). 28 29 1 STRATEGIC CHAPTER 1. STRATEGIC FOCUS In a nutshell, a well-developed strategic document should include the following components: FOCUS • a substantial stakeholder engagement process • a clearly articulated shared vision of the functional area, for a specific time horizon • an assessment of the current situation (diagnosis), analysing the challenges and opportunities of the area • a set of strategic and specific objectives • a detailed description of the plans and actions that will be undertaken An integrated strategy offers a solid foundation for functional area level to achieve agreed objectives, along with clear timelines and interventions by proposing a joint development vision for a wider territory. responsibilities for implementation The defining element of strategic planning for functional areas is the supra- • a list of priority projects, including a set of flagship (high-priority) municipal territorial coverage of the strategy, which can be delineated projects that have a strong impact and the need for rallying wide based on the various types of functional relations (i.e., economic, social, support cultural, or geographical: see Annex 1 – Classification of functional areas). • a list of resources and funding required to support the implementation A distinctive advantage of a supra-municipal strategy lies in its capacity to of the plan offer greater value by focusing on the areas where the most benefits can • a clear description of the administrative bodies coordinating the be created through coordination. Joint planning and identifying synergies implementation of the strategy between individual projects, pooling of resources and expertise, may lead • a forecast of operation and maintenance requirements of investments to more effective solutions and contribute to achieving better results with • a monitoring and evaluation framework. greater impact. At the same time, supra-municipal integrated strategies can contribute to improved alignment with coexisting strategies at various scales (local, regional, and national strategies) and with European Union The continuity of functional area-level planning processes may be (EU) and global strategic frameworks (i.e., cohesion policy objectives, UN supported by establishing a governance structure that facilitates ongoing Sustainable Development Goals). collaboration, mechanisms for continuous stakeholder engagement to Integrated territorial development was supported during 2014-2020 and address evolving needs, and an adaptive approach that allows for flexibility strengthened further in the 2021-2027 programming period. Articles 28-34 in response to changing circumstances. Regular updates should be guided from the 2021-2027 Common Provisions Regulation (CPR), the ‘rulebook’ by a proactive assessment of emerging challenges, evolving priorities, and of EU funds whose delivery is shared with Member States and regions, the integration of new data and insights to support evidence-based and establishes the tools which are available to support integrated territorial transparent decision-making. development: Integrated Territorial Investments (ITI), Community-Led Local Functional area strategic planning requires comprehensive participatory Development (CLLD), and other territorial tools (OTT) designated to Member processes for engaging stakeholders across the functional territory and States. Moreover, the CPR 2021-2027 defines minimum requirements across all phases (formulation, implementation, monitoring, and evaluation). that enable cross-sectoral integration (see Chapter 4 of this toolkit) in the Participation is a key element of the broader concept of territorial preparation of strategies for integrated territorial development. governance, defined as ‘the formulation and implementation of public After defining the geographical scope of the area covered by the strategy, policies, programmes and projects for the development of a place/territory an analysis of the area’s needs and potential is required, considering by: coordinating actions of actors and institutions; integrating policy sectors; economic, social, and environmental interlinkages. Further, the CPR requires mobilising stakeholder participation; being adaptive to changing contexts; territorial strategies to describe the integrated approach that addresses the realising place-based/territorial specificities and impact’ (ESPON, 2014). development needs and potential of the area. The Handbook of Sustainable Participatory strategy formulation and implementation processes further Urban Development Strategies also provides a definition of cross-sectoral contribute to improved relations between different stakeholders, enabling integration of urban development strategies: ‘the cross-sectoral approach them to progressively tackle more complex challenges. Moreover, strategic to urban strategies refers to the need to overcome the ‘siloed’ structure planning is inherently linked with the partnership principle, understood of sectorally divided functions which characterises public organisations, as the close cooperation between public authorities, social partners, non- to tackle multi-dimensional challenges. The goal of the approach is to governmental organisations (NGOs), civil society organisations and citizens ensure coherence in policy-making principles and objectives across policy to support the effective delivery of European Structural and Investment areas, and to ensure actors relating to different sectors cooperate to create Funds (European Commission, 2022). Strong administrative capacity and policies’. the quality of governance mechanisms are a cornerstone for translating 30 31 territorial governance and the partnership principle into practice and does not stand in the way of cooperation and strategic planning at the level CHAPTER 1. STRATEGIC FOCUS ensuring meaningful outcomes (see Chapter 3 - Governance). of the functional area. The framework of integrated territorial investments (see Chapter 5 - Funding and finance) may incentivise cooperation, as Access to and use of appropriate data is another cross-cutting dimension shown by the example of Brno Metropolitan Area. As needs evolve and of strategic planning, starting from delineating the functional territory, cooperation practices mature, the lack of institutionalisation may hinder conducting the analysis of development needs and opportunities (see implementation, as the strategy lacks binding power for all involved Chapter 2 - Territorial Focus) and crafting strategies or defining actions, to municipalities. monitoring and evaluating the strategy. The starting point for joint planning is territorial delineation based on the Monitoring and evaluation (M&E) systems use available data to measure functional linkages, followed by a thorough diagnostic of shared challenges progress toward shared vision and objectives and adapt the course of and opportunities of the area. Based on this, a joint vision may be action. Monitoring ensures that necessary adjustments can be made along formulated. As detailed in Chapter 3 – Governance, to sustain commitment the way and requires a well-defined set of indicators that can be collected and ownership in delivering on this vision, this process should involve on a regular basis, while the evaluation process of the strategy is the first stakeholders such as economic and social partners, NGOs, academia, milestone in updating a strategic document at the end of the implementation and citizens, in exploring what the area would look like within a mid-term timeline. By applying participatory processes for the M&E of the strategic horizon (e.g., a decade, end of EU programming period), or long-term (e.g., document, the benefits of functional area level cooperation may be better 2050). communicated among citizens, business, civil society organisations and other actors (see Chapter 6 – Monitoring and evaluation). Cooperation may not be the easiest or most convenient answer, due to various reasons – among others, administrative inertia, lack of capacity Going from ad hoc cooperation on individual projects to long-term or resources, concerns about power imbalances. Overcoming reticence planning is often a gradual process. In the case of more developed towards cooperation demands a nuanced approach based on effective functional approaches, the planning process extends beyond immediate communication, stakeholder engagement, and a clear illustration of the concerns to enable a long-term perspective, often aligned with EU benefits generated by joint planning efforts. This is particularly relevant in programming periods. However, there is significant merit in adopting cases where territorial units may need to concede certain competencies incremental approaches, especially in the initial stages of cooperation. or agree to a new setup for the delivery of services to improve efficiency. Starting with smaller, manageable projects can prevent the risks associated Therefore, a shared understanding of development needs and opportunities with ambitious undertakings that may fail to deliver, which can lead to and formulating a common vision are key to building consensus. stakeholder demotivation. By focusing initially on areas where tangible results can be quickly achieved, it is possible to build a foundation of success The section below offers insights from the Brno and Barcelona metropolitan that can support the gradual expansion of cooperation. This progression areas on how to strengthen metropolitan cooperation through the strategy allows institutions to mature and their delivery mechanisms to become formulation process and how to effectively implement participatory more robust. approaches across the planning cycle. This chapter showcases practical insights and tools to support strategy formulation and implementation based on insights from areas participating in the Functional Areas in the EU project or involved in knowledge exchange activities organised in this context (See Introduction) with varying levels INTEGRATED STRATEGIC PLANNING of experience in applying the functional approach. However, they share a (BRNO METROPOLITAN AREA, CZECH REPUBLIC) focus on participatory practices that can strengthen long-term cooperation In the Czech Republic, metropolitan areas do not have a legal status and contribute to partnership building. Further insights into monitoring and decision-making powers in terms of territorial governance. This and evaluation are offered in the last chapter of this Toolkit. notwithstanding, the city of Brno is the most active urban government promoting the idea of metropolitan cooperation in the Czech Republic CHALLENGE 1 How to formulate an integrated strategy (ESPON, 2021). The first metropolitan development strategy was elaborated at the functional area level? and delivered through the Integrated Territorial Investment instrument in 2014-2020, with the implementation of the ITI entrusted to the city of Governance bodies of functional areas take various forms, ranging from Brno. A third of the total 125 projects were located outside the city of Brno, voluntary associative structures to entities created through national and priority was given to projects with an impact at the supra-local level. legislation (see Chapter 3 – Governance). Formalising collaboration may This approach continued into the 2021-2027 programming period with the involve establishing a legal entity and defining the competences of the new update of the strategy, which focuses on extending cooperation beyond ITI entity, and the degree of institutionalisation depends on the specific legal priorities and incentives. and governance contexts of Member States. However, lack of a legal status 32 33 CHAPTER 1. STRATEGIC FOCUS While drafting the Integrated Development Strategy 2021+, the Brno for the Brno Municipality, but lacks the legal instruments to also bind the 184 Metropolitan Area used the existing momentum to strengthen metropolitan local governments that are part of the metropolitan area. cooperation, by developing projects of strategic importance for the area. For more information This also helped increase the awareness of the benefits of long-term cooperation between municipalities of the metropolitan area and regional Brno Metropolitan Area. Integrated Development Strategy for the Brno representatives, going beyond the ITI framework. Projects are anticipated to Metropolitan Area 2021+. 2022. Available at: https://metropolitni.brno.cz/en/ be financed from multiple sources, including individual calls from operational basic-information/integrovana-strategie-rozvoje-bmo-21/ programmes, the Recovery and Resilience Facility, the Connecting Europe Facility, and own resources. Set clear goals for strengthening interjurisdictional cooperation. The To be effective, a strategy needs to be based on participation and partnership. strategy includes the development and institutionalisation of cooperation The Common Provisions Regulation for 2021-2027 clearly specifies the in the Brno Metropolitan Area as a key priority and formulates the following involvement of partners in the preparation and implementation of territorial goals: strengthening of existing forms of cooperation; creation of an strategies (developed in the context of using ITI or other territorial tools). institution responsible for coordinated development; joint financing of The requirement is in line with the partnership principle, referring to the selected needs, and the creation of a common image and marketing of the involvement of regional, local, urban, and other public authorities, civil Brno Metropolitan Area. society, economic and social partners and, where appropriate, research Ensure meaningful engagement of municipalities and other stakeholders organisations and universities (Article 8 of the CPR). The partnership across the functional area. As an informal body, the Brno Metropolitan Area principle is further detailed under Chapter 3 - Governance, which also ITI Steering Committee is based on a voluntary partnership between the presents instruments for enabling meaningful participation based on the city of Brno, South Moravian Region and six other major municipalities in phases of decision-making. the hinterland. To ensure a wide and meaningful participation in identifying As shown by the Barcelona Metropolitan Area, a well-developed strategic priorities, the steering committee set-up thematic working groups. participatory framework can inform a thorough analysis and help identify The working groups (composed of experts, officials, and academia) are shared priorities. involved in the preparation and coordination of the individual integrated projects and the preparation of reference documents for the steering committee. Cooperation with mayors of other municipalities takes place on PARTICIPATORY MODEL FOR DEVELOPING THE METROPOLITAN URBAN an informal basis. MASTER PLAN Explore opportunities to develop synergies between projects. To tackle complex issues effectively, the Brno Metropolitan Area’s integrated (BARCELONA METROPOLITAN AREA, SPAIN) development strategy includes 65 ‘integrated solutions’, combining multiple Barcelona Metropolitan Area is one of the most mature functional areas projects into one. These fall into three categories: stand-alone metropolitan in the EU, comprising 36 municipalities and established as a public projects with ‘significant acceleration and multiplier effect’; sets of thematic administration in 2011. To tackle the area’s challenges and achieve common projects within a defined area, and network solutions addressing specific goals, such as becoming a sustainable, competitive, healthier, and inclusive problems through a series of interconnected projects. The integrated projects metropolitan area, the Barcelona Metropolitan Area developed the 2023 (or ‘solutions’) aim to generate synergies and added value compared to Urban Masterplan (Pla Director Urbanístic) of the Barcelona Metropolitan individual projects. Each integrated solution is presented in a table containing Area. Prior to this, the Barcelona General Metropolitan Plan, approved in a short presentation, the synergies it enables, followed by the projects it 1976, had served as the urban planning instrument designated to address brings together and the entities that will implement them. For example, one the challenges of the metropolitan area for over 4 decades. The new Urban of the integrated solutions regards the need to comprehensively address Masterplan is a strategic document that interconnects with other urban flood protection measures in the metropolitan area and it involves the water management authority, the South Moravian Region, and municipalities. The planning documents and is the result of an extensive participatory process. solution includes five projects in various municipalities, including a new A favourable technical, political, legal, and administrative environment was retention basin in Střelice, flood protection along the Litava River in Hrušky, a critical aspect of the development of the Metropolitan Urban Masterplan. and the creation of a Flood Park in Židlochovice, that stops the floods from Started in 2013, the draft of the Metropolitan Urban Masterplan was the Svratka River from reaching the city through the creation of a lake to approved in 2019, and the final document was adopted in 2023. hold back the water. Develop supra-municipal participation mechanisms to support strategy The Integrated Development Strategy for the Brno Metropolitan Area 2021+ formulation. From the very beginning, the plan was based on transparent mobilised collective action around a common development vision beyond and active communication, and a robust participatory framework. This the ITI framework. However, in the absence of a legislative framework for enabled the collection of input to inform the analytical part of the strategy, the institutionalisation of metropolitan cooperation, the strategy is binding while keeping stakeholders engaged throughout the planning process, in line 34 35 CHAPTER 1. STRATEGIC FOCUS with the urban planning regulations that include this requirement. To draft mobility, innovation, quality of life). Professional the Metropolitan Urban Masterplan, multiple participatory instruments associations, research institutes, urban services were used. The co-designing of the plan involved 305 participatory activities, providers, local entities, and citizens participated 105 lectures/presentations, 13 exhibitions, 21 publications, 500 experts and in these events. The technical workshops ensured 14 900 participants, while documenting the workshops through audio and that expert technical knowledge informed the video materials. analytical part of the strategy, while debates Assess and build capacity for implementing quality participatory involved a wider participation to discuss strategic practices. Drafting a comprehensive strategic document requires access directions. Debates were particularly useful for to data, data processing technology, and skilled professionals. Engaging presenting the draft version of the plan and making with diverse stakeholders in a meaningful way requires targeted capacity the necessary adjustments. building of administrative staff. To enable learning from tested solutions, a Compendium of Best Practices from Barcelona and Barcelona Metropolitan Thematic round tables. Following the technical Area was put together for the use of other functional areas, focusing on conferences, thematic round tables were organised, several topics, including the participatory component of metropolitan bringing together more than 330 experts informing strategic planning processes. the drafting of cross-disciplinary studies. For more information Barcelona Metropolitan Area. Barcelona Metropolitan Urban Masterplan Publications. A collection of booklets (Quaderns drafting process. Available at: https://urbanisme.amb.cat/es PDU metropolità) was developed for disseminating Barcelona Metropolitan Area. Metropolitan Urban Masterplan Notebooks knowledge from the technical conferences and (Quaderns PDU metropolità). Available at: https://urbanisme.amb.cat/ round tables that informed the drafting process of participar/publicacions the Metropolitan Urban Masterplan. The collection Functional Areas in the EU. Insights and practical solutions from Barcelona was started in 2012 with the first booklet titled and Barcelona Metropolitan Area. Compendium of Best Practices. ‘Toward the drafting of the Urbanistic Metropolitan Available at: https://functionalareas.eu/wp-content/uploads/2023/07/ Plan document’ and consists of 17 publications. Best-Practices-Barcelona-and-AMB_compressed.pdf Supra-municipal governance bodies may establish committees that bring Exhibitions. As a useful instrument to raise public together functional area representatives, elected officials, and other public interest, exhibitions organised by Barcelona servants from different sectors. Drawing inspiration from the Barcelona Metropolitan Area were focused on subjects Metropolitan Area, the committee may organise debates, specialised lectures, such as open spaces, green infrastructure, major and thematic round tables to ensure that experts, civil society, and citizens metropolitan areas, the history of the metropolitan are involved in the strategy formulation process. Moreover, a continuous area, metropolitan mobility, or the transformation process of communication is required to keep all stakeholders involved. of road infrastructure. INVOLVING EXPERTS, CIVIL SOCIETY, AND CITIZENS IN THE STRATEGY FORMULATION PROCESS A dedicated platform. A dedicated website ensures transparency and dialogue during the drafting This section provides an overview of the instruments used by the Barcelona process and afterwards. The Metropolitan Urban Metropolitan Area to disseminate information and promote participation Masterplan is hosted on a dedicated platform, during the formulation of the Metropolitan Urban Masterplan. These are which is both a communication and a co-design useful tools that can be replicated in other functional areas to support tool. The platform is structured in three sections strategy formulation. (Discover, Be Informed, and Participate) that offer user-friendly, interactive presentations in video and Public debates and technical conferences. text formats, including an interactive cartographic The Barcelona Metropolitan Area organised viewer allowing users to explore, understand and debates and technical workshops on various evaluate the proposals of the plan. In the Participate subjects, including participation itself, and thematic section, the platform provides a digital form for areas of the Metropolitan Urban Masterplan (e.g., submitting suggestions. land use, infrastructure, economy, sustainability, 36 37 CHAPTER 1. STRATEGIC FOCUS For more information Working groups. Working groups on different Barcelona Metropolitan Area. The dedicated website of the Metropolitan thematic areas may be established, entailing Urban Masterplan. Available at: https://urbanisme.amb.cat/home agreeing to a calendar of regular meetings, between relevant stakeholders. Working groups Barcelona Metropolitan Area. Cartographic viewer of the Metropolitan on different thematic areas may be established as Urban Masterplan. Available at: https://smartcity.amb.cat/portal-pdu/en/ part of strategy formulation and may continue to propostes be active throughout the implementation and M&E Barcelona Metropolitan Area. Participatory debates for the Urban phases. Such a working group may bring together Masterplan. Available at: https://urbanisme.amb.cat/participar/accions- representatives from different areas of expertise or participatives-previes/trobades-pdu sectors, fostering a trans-disciplinary, cross-sectoral Barcelona Metropolitan Area. Workshops for the Urban Masterplan. approach. Available at: https://urbanisme.amb.cat/participar/accions-participatives- Focus groups. A focus group is a qualitative research previes/workshops method involving a limited number of individuals in Barcelona Metropolitan Area. Thematic round tables. Available at: https:// a moderated environment. Characterised as a form urbanisme.amb.cat/participar/accions-participatives-previes/taules- of group interviewing, it may be employed in the tematiques context of development policies or interventions Barcelona Metropolitan Area. The ‘Quaderns PDU’ collection of notebooks. at the functional area level. Its primary objective Available at: https://urbanisme.amb.cat/es/participar/publicacions is to extract insights into participants’ opinions, behaviours, and expectations regarding the subject Incorporating a participatory framework into the strategy formulation policy or intervention, yielding valuable information process is the basis for creating plans that truly reflect the needs and in a short time. aspirations of a community. Engagement with local citizens, businesses, New European Bauhaus toolbox and compass. and other stakeholders ensures that the planning process is grounded The New European Bauhaus (NEB) Toolbox offers in the real-life experiences and options of those it aims to serve. The valuable guidance on participatory instruments following box introduces practical tools to support participatory processes. for NEB projects that are also relevant for strategic While specifically designed for the city or neighbourhood level, they can be planning. The guide provides a framework for effectively applied by functional area governance bodies. decision-makers and project developers to incorporate NEB values (beautiful, sustainable, BASIC INSTRUMENTS TO SUPPORT A PARTICIPATORY STRATEGY together) and tools into project design and FORMULATION PROCESS implementation, emphasising the importance of the participatory process. The toolbox is developed Opinion polls are an essential tool in participatory around three levels of interventions (identification, planning, helping decision-makers understand the exploration, and refinement), illustrating various public view on the development directions of the approaches and best practices. For each level, the area, identifying strengths, areas of improvement, toolbox offers various worksheets for participatory urgent issues, and the overall impact of a strategic activities, referenced below: organising a ‘senses document. This continuous feedback loop ensures walk’ for creative and inclusive place making, that the strategy remains aligned with community stakeholder mapping, the participation ladder, needs and expectations. the empathy map, SWOT meets NEB, sustainable business model canvas, risk assessment, and reflexive monitoring (pp. 65-73). The NEB Compass Thematic surveys provide insights on key is a complementary resource and source of development topics that directly impact citizens inspiration for projects that embody the NEB across the functional area (i.e., mobility, green values, including participation models. transition or urban regeneration and aesthetics). These surveys provide a straightforward channel For more information for residents and other stakeholders to voice their Functional areas in the EU. Guide on using opinion polls in strategic opinions on proposed projects. planning. 2022. Available at: https://functionalareas.eu/wp-content/ uploads/2022/12/Guide-on-Using-Opinion-Polls-in-Strategic-Planning.pdf 38 39 CHAPTER 1. STRATEGIC FOCUS Functional areas in the EU. Methodology for urban regeneration survey. 2022. APPROACHES TO PROJECT PRIORITISATION Available at: https://functionalareas.eu/wp-content/uploads/2022/10/the- Effective prioritisation ensures that planned investments accurately reflect methodology-for-urban-regeneration-survey.pdf the needs and aspirations of key stakeholders. These methodologies Functional areas in the EU. Methodology of Romanian first urban aesthetics should consider the financial, implementation, operation and maintenance survey. 2022. Available at: https://functionalareas.eu/wp-content/ feasibility of projects. uploads/2022/10/methodology-of-romanian-first-urban-aesthetics-survey.pdf New European Bauhaus Toolbox. Available at: https://new-european- Initial analysis and consultation. Base the project bauhaus.europa.eu/system/files/2024-01/NEB%20toolbox.pdf identification on the analysis of the existing New European Bauhaus Compass. Available at: https://new-european- situation, integrating the outcomes of consultations bauhaus.europa.eu/system/files/2023-01/NEB_Compass_V_4.pdf with civil society, entrepreneurs, citizens, and other stakeholders. Ensure inclusive participation CHALLENGE 2 How to identify and prioritise projects to identify relevant projects that cater to various stakeholders’ needs. at the functional area level? Identifying and prioritising joint projects or projects with supra-municipal Budget estimation and capital expenditures. A impact is a definitory element of long-term, impactful cooperation at methodology developed by the World Bank in 2013 the functional area level. Without shared agreement on a list of high- for the city of Alba-Iulia (Romania) starts from the priority projects (based on a prior assessment of development challenges premise that public authorities should not spend and opportunities), collaboration risks being confined to short-term more than 30 % of their non-earmarked revenues initiatives. While such short-term partnerships may have valuable results, on capital expenditures, including the operating they have limited potential of developing into an ongoing practice and and maintenance costs of the newly developed unlock the full benefits of functional approaches (i.e., cost optimisation infrastructures. Projects exceeding this budget through economies of scale and pooling of resources, as well as balancing should ideally seek external funding and aim to development across larger and smaller municipalities). The process of be revenue-generating or have minimal operating project prioritisation should involve extensive consultations with a diverse costs. range of stakeholders, involving citizens and representatives of civil society, Project shortlisting. Shortlisted projects must academia, and the private sector. This inclusive approach not only enriches be sufficiently matured, have a defined timeline, the decision-making process with multiple perspectives but also fosters a budget, and clear financing sources. Authorities sense of shared ownership and commitment to the chosen projects. should consider the availability of external funding The identification of priority projects with a cross-jurisdictional impact and the project’s revenue generation potential. should integrate agreed priorities and projects planned at the level of administrative units in existing strategic planning documents. At the same Mixed approaches for project ranking. For time, the supra-municipal strategy offers an opportunity to analyse how ranking the short list of selected projects, a local projects planned by municipalities contribute to the challenges and mixed quantitative and qualitative approach development opportunities at the larger scale, and which could benefit is recommended. A quantitative approach can from inter-jurisdictional collaboration. Coupled with an estimation of include criteria such as the extent to which the budgetary capacity of municipalities that are part of the functional area, this project responds to the needs of citizens, the analysis can reveal whether the supra-municipal strategy can encompass a private sector and tourists, as well as financial larger portfolio of projects. Moreover, the supra-municipal strategy allows sustainability and transversal aspects such as social for better coordination, enabling joint scheduling of acquisitions for works inclusion and environmental impact. Each criterion and services, leading to economies of scale. will have a different weight. For example, a weight of 35 % for impact on citizens, 25 % for impact on The following section presents tools and practical insights to support project the private sector, 5 % for impact on tourists, 15 % prioritisation and the identification of flagship projects, understood as for financial sustainability and 10 % for the impact high-priority projects that can coagulate stakeholders across the functional on social inclusion and climate change. A qualitative area. After reviewing tools for project prioritisation, this section also offers approach can be applied through questionnaires insights into flagship projects identified by two functional areas reflecting about the importance of the short-listed projects different stages of cooperation, namely the Zagreb Urban Agglomeration in the opinion of the citizens (World Bank, 2013). (Croatia) and the West Ialomița Functional Area (Romania). 40 41 CHAPTER 1. STRATEGIC FOCUS Cost-benefit analysis. When planning major functional area level. Examples of flagship projects developed by functional infrastructure investments, use cost-benefit areas receiving targeted support through the Functional areas in the EU analysis (CBA) to prioritise the projects that offer project range from projects with a strong ‘hard’ component such as urban the best value for money, while considering their regeneration and reconversion of brownfield sites (Zagreb Urban Area, Brno maturity. Key resources available to decision Metropolitan Area), transport and regeneration of railway assets (West makers are the Guide to Cost-Benefit Analysis of Ialomița, Caraș-Timiș, Oradea Metropolitan Area, West Athens), to ‘soft’ Investment Projects (2014) and the Economic projects such as metropolitan data observatories (Kraków Metropolitan Appraisal Vademecum 2021-2027 published by the Area) or centres for climate education (Balaton Functional Region). EU Commission. It is worth noting that successful integrated projects need to address both ‘hard’ and ‘soft’ components (see Chapter 4 - Cross-sectoral integration). Stakeholder engagement and selection. Involve For instance, the regeneration of a brownfield site into a cultural centre also a broad range of stakeholders in the project requires soft components such as establishing an efficient management prioritisation process and selection of flagship model, as well as an attractive and inclusive programme of activities. projects. Once selected, flagship projects should Similarly, major green mobility and transport infrastructure projects should not be replaced without objective justification. consider the need to promote their use and raise awareness on their Ensure these projects have the potential to drive benefits. In this light, the practical insight below focuses on the preparation cooperation and mobilise resources based on of a flagship project involving the regeneration of a brownfield site into a strong consensus regarding their utility. multifunctional cultural centre, implemented as part of the ITI mechanism in one of Croatia’s urban agglomerations. For more information World Bank. Alba Iulia: project prioritization for 2014-2020. 2013. Available at: https://documents.worldbank.org/en/publication/documents-reports/ documentdetail/527401468190739988/alba-iulia-project-prioritization- PAROMLIN MULTIFUNCTIONAL CULTURAL CENTRE FLAGSHIP PROJECT for-2014-2020 (ZAGREB URBAN AGGLOMERATION, CROATIA) European Commission. Guide to Cost-Benefit Analysis of Investment Projects.2014. Available at: https://ec.europa.eu/regional_policy/sources/ The Zagreb Urban Agglomeration consists of 30 local government units and studies/cba_guide.pdf was established by the decision of the minister responsible for regional development according to the proposal of the city of Zagreb in 2016 in the European Commission. Economic Appraisal Vademecum 2021-2027. context of applying the ITI instrument. Following a comprehensive mapping 2021. Available at: https://ec.europa.eu/regional_policy/en/information/ of brownfield sites in the fuWnctional area, the Zagreb Urban Agglomeration publications/guides/2021/economic-appraisal-vademecum-2021-2027- identified the Paromlin Multifunctional Centre as one of its flagship projects general-principles-and-sector-applications while updating its supra-municipal integrated urban development strategy. The project involves the regeneration of a brownfield site (a former steam mill) into a multifunctional cultural hub with metropolitan impact. The main result of prioritising projects is an agreed-upon list of flagship Initiate joint mapping of assets that can support the sustainable projects that can mobilise actors across different jurisdictions around a development of the area. In 2019, the City of Zagreb undertook an common objective. By offering tangible, ambitious goals, these projects ambitious project to map and analyse brownfield sites across the functional can inspire cooperation beyond administrative borders, and respond area, in a collaborative effort involving 29 municipalities within the Zagreb to economic, social, and environmental territorial dynamics. Flagship Urban Agglomeration. This initiative paved the way for understanding the projects in functional area planning are characterised not by their sheer potential of these sites for urban regeneration and sustainable development. size or financial magnitude but by their role in fostering collaboration The comprehensive data collection included geographical data, historical and addressing challenges that traverse administrative boundaries. These usage, interim and future use potentials, planned land use as per spatial projects, selected based on clearly defined criteria and aligned priorities, plans, ownership, any nature or heritage protection measures, spatial are instrumental for kickstarting cooperation. They often serve as practical planning procedures, and photographic documentation. The assessment examples of how collective action can address regional challenges also covered the level of physical deterioration, possible contamination, effectively. and existing studies or projects for the revitalization of these sites. The Flagship projects may vary in nature, ranging from hard infrastructure to data was published in the form of an Atlas of Brownfield Sites in the Zagreb softer measures like establishing a stakeholder participation platform at the Urban Agglomeration. The Atlas provided a rich, detailed overview of 84 42 43 CHAPTER 1. STRATEGIC FOCUS identified brownfield sites, spanning a total area of 529 hectares. The Atlas While the Zagreb Urban Agglomeration benefited from the experience of mapped both public and private sites (about 100 hectares are privately implementing a territorial tool (ITI) in the previous programming period, owned brownfield areas). the practical insight below aims to inspire actors who are in the process of Use available spatial data to design new projects across the functional initiating functional area cooperation. area. The mapping also served as the basis for the preparation of a flagship The West Ialomița functional area was recently established in the form project to be financed through the ITI mechanism. The Paromlin Centre of an association between municipalities in the proximity of Romania’s project is envisioned as a multifunctional cultural centre that combines capital city and does not have a dedicated supra-municipal strategy. the functions of a modern library, socio-cultural centre, and provider of However, the association provided a platform for bringing together public services. The project also requires strong cross-sectoral integration political representatives, civil society, residents, and experts in drafting a (involving brownfield redevelopment, cultural heritage, energy efficiency, development concept for the wider area and identifying flagship projects transport, security of public spaces). As highlighted by representatives of that can accelerate the development of the functional area. the Zagreb Urban Agglomeration, the project represents the beginning of the urban regeneration of the wider brownfield area of former industries located next to the railway line and represents the most potent area for IDENTIFICATION OF FLAGSHIP PROJECTS FOR future sustainable urban development. INITIATING AND SUSTAINING COOPERATION Analyse existing best practice models and engage in capacity building (WEST IALOMIȚA FUNCTIONAL AREA, ROMANIA) activities. As part of the project design process, the Zagreb Urban Agglomeration team identified two critical aspects for the future centre: The evolution of the West Ialomița Functional Area shows how an incipient financing and management. The first aspect regarded optimising the use collaborative approach, driven by strong local leadership, and supported by of EU funding (in particular, through the ITI mechanism, ERDF, CF, ESF+) external expertise, can result in a shared development vision and concrete and ensuring the financial sustainability of the project, while the second results. By prioritising projects that resonate with the area’s strengths and aspect consisted in developing an efficient management model for the challenges, and by identifying potential funding sources, West Ialomița laid future centre. A guide on management models of multifunctional centres a strong foundation for addressing shared challenges and opportunities of was developed as part of the Functional areas in the EU project, which municipalities in the proximity of Romania’s capital city. These challenges served as a key source of practical guidance in this phase. To ensure refer in particular to mitigating demographic decline by attracting new the project’s financial sustainability, commercial revenue sources were residents and boosting economic development. identified, based on the practices of other multifunctional cultural centres The West Ialomița inter-community development association comprising across the EU. Moreover, the Zagreb Urban Agglomeration team engaged eleven municipalities in the proximity to Bucharest was established in 2021. in direct knowledge exchange with the Centre de Cultura Contemporània The identification of flagship project ideas with cross-jurisdictional impact de Barcelona, representing a public consortium formed by the Barcelona was instrumental in initiating and sustaining cooperation. The process was Provincial Council and City Council. The main aim of the study visit, facilitated aligned with the local development strategy of the core city of Fierbinți-Târg as part of the Functional areas in the EU project through the TAIEX REGIO and other rural municipalities, as well as strategic documents developed at Peer2Peer instrument (see Chapter 3 - Governance), was to identify efficient the county level (spatial plan and territorial development strategy). financing and governance models for the planned cultural centre. Envision projects that can benefit the entire functional area. Key flagship For more information projects included the regeneration of railway assets to improve connectivity Zagreb Urban Agglomeration. Atlas of brownfield sites. 2017. Available with Bucharest, the development of an industrial park, the creation of an at: https://www.zagreb.hr/userdocsimages/gu%20za%20strategijsko%20 interconnected network of bike lanes, conceptualising integrated tourism, planiranje/Atlas%20brownfield%20površina.pdf and incorporating Fierbinți-Târg into the Bucharest-Ilfov Metropolitan Train Plan. These initiatives were selected not only for their individual merits but Functional Areas in the EU. Takeaways from the Knowledge Exchange on also for their potential to benefit the entire region. identification of flagship projects and funding opportunities. 2023. Available at: https://functionalareas.eu/knowledge-exchange-on-identification-of- For instance, considering that a significant percentage of the resident flagship-projects-and-funding-opportunities/ population commutes to the capital for employment and education, the integration into the Bucharest Metropolitan Train system is a priority for the Functional Areas in the EU. Management models for multifunctional municipalities nearby. cultural centres. 2023. Available at: https://functionalareas.eu/wp-content/ uploads/2023/05/Management-models-for-multifunctional-cultural- Moreover, conceptualising integrated tourism at the functional area level centres.pdf is expected to benefit both residents and those of the functional area of Bucharest. To this end, the West Ialomița functional area plans to market 44 45 CHAPTER 1. STRATEGIC FOCUS and develop itself as an ‘urban escape’ location, where residents from the PARTICIPATORY IMPLEMENTATION OF INTEGRATED STRATEGIES AT THE busy capital city can move to or that they can visit over the weekend. Lastly, FUNCTIONAL AREA LEVEL as the filming set for a major national sitcom, the city of Fierbinți-Târg aims (BRNO METROPOLITAN AREA, JIU VALLEY FUNCTIONAL AREA, ZAGREB to become a hotspot for producing other comedy series and movies or URBAN AGGLOMERATION) stand-up shows. Scale up or initiate participatory budgeting for bottom-up solutions aligned Identify potential funding sources from the project design phase. The with the strategic objectives of the functional area. Through participatory selection of projects considered their alignment with the area’s development budgeting, municipalities allocate funds and oversee implementation of the vision, as well as their potential to address local and regional needs (in solutions voted by the community. To support co-implementation practices, particular, economic development and infrastructure). Recognising that the model should encourage the active involvement of the proposer of the projects that are not linked to financing options from the planning phase solution in its execution (this should for example be an additional criterion have a lower chance of being implemented, the supra-local governance in the selection process). For instance, a citizen proposing a community body also identified viable funding sources, ranging from national ones garden might offer to mobilise volunteers or leverage personal expertise (national investment programmes, Administration of the Environmental for the success of the project. Practices developed at the city level can be Fund, National Rural Development Programme) to EU funds (National scaled to collect proposals with broader functional area impact. Recovery and Resilience Plan, Regional Operational Programme 2021-2027, Organise design contests to harness local, national, and international Horizon Europe 2021-2027 - Research and Innovation Clusters). To this end, expertise, ensuring the delivery of high-quality outcomes. Specifically, the working sessions were organised as part of the support provided through architecture design competition is defined by Architects’ Council of Europe the Functional areas in the EU project. as a ‘quality based and solution orientated selection procedure primarily For more information used in the fields of land use planning, architecture and engineering, or Functional Areas in the EU. Fierbinți could become an urban escape and data processing’. Design contests are defined in the EU legal framework on touristic brand. Available at: https://functionalareas.eu/7-fierbinti-could- public procurement (Directive 2014/24/EU), referring to the ‘procedures become-an-urban-escape-and-touristic-brand/ which enable the contracting authority to acquire (...) a plan or design selected by a jury after being put out to competition with or without the award of prizes’. Grounded in this legal framework, the Architects’ Council of Europe puts forward nine rules to be respected, including equality of opportunity, transparency of the procedure, independence of the jury and CHALLENGE 3 How to support participatory citizen participation in preparing the contests and voicing opinions. Such strategy implementation? a design competition was organised by the Office of the Architect of the After finalising the drafting of the strategic document, the next step is city of Brno for its new main railway station, including the integration with ensuring that the prepared documents and set objectives are translated public transport, parking, taxi, and cycling facilities, and ensuring pedestrian into a series of actions. To this end, strategy implementation should not be accessibility. placed solely under the responsibility of one municipality or a functional Involve residents in analysing options and expressing concerns about area level governance body but relies on the collaboration of diverse planned interventions. Whether organising design contests or not, citizens stakeholders for agenda setting and implementation. across the functional area can be involved in drafting the requirements and exploring potential alternatives and solutions, which has the added value of Participatory strategy implementation recognises the value of increasing awareness and ownership in projects with a cross-jurisdictional partnerships between public authorities, residents, civil society, academia, impact. Polls and surveys are useful tools that can be shared through social and the private sector. With regards to implementation, such partnerships media to ensure a wide reach, as in the case of the Brno Main Railway encompass both financial and non-financial contributions, such as sharing station project. Prior to the design contest, the Office of the Architect of the expertise, providing feedback, organising events, and implementing City of Brno conducted a public opinion survey regarding the modernisation projects that contribute to the achievement of the goals set out in the project. Moreover, the finalists of the jury of the architectural competition supra-municipal strategy. Therefore, integrated strategies should also were presented in a public exhibition. reflect and acknowledge the contributions of actors outside the public Partner with NGOs to enable co-investments and joint project realm to reaching strategic objectives. implementation. Strategy implementation capacity can be enhanced The practical insights offered below cover a wide variety of options for by supporting projects aligned with the strategic directions of the area participatory strategy implementation, leading to a stronger ownership of developed by non-governmental organisations. In the Jiu Valley functional the process among relevant stakeholders, and supporting the development area, a just transition region implementing the ITI mechanism, a coalition of of a shared identity at the functional area level. NGOs (‘Involved Jiu Valley’) developed street art projects to strengthen the 46 47 CHAPTER 1. STRATEGIC FOCUS area’s collective identity and initiate its rebranding process at the functional Investment Bank). This funding supports a large-scale renovation of 10 area level. These undertakings were aligned with the strategic objectives 000 homes in disadvantaged districts. Simultaneously, the implementation of transitioning from a coal-based to a sustainable, green economy. A key of proximity offices further contributes to increasing local capacity to success factor for the street art projects was the support provided by both achieve rehabilitation goals. These neighbourhood offices are situated near public and private sectors for accommodation, technical assistance, and rehabilitation areas and serve as hubs for accessing technical guidance and communication. After the realisation of the mural art works, the coalition support, empowering communities to navigate the complexities of energy also organised events centred on the area’s identity and transition process, refurbishments. which were also endorsed and promoted by the Association for Integrated Complementing large-scale interventions, smaller, targeted initiatives Development of the Jiu Valley (see Chapter 3 - Governance) and member for supporting bottom-up transformation can go a long way. A source of municipalities. inspiration is offered by the city of Antwerp, through a greening project that Endorse applications for funding elaborated by NGOs. Municipalities can easily be scaled up to the supra-local level. As one of the objectives or governance bodies of functional areas can encourage implementation identified in the urban development strategy of Antwerp is becoming of projects that align with the strategic objectives set out in the supra- greener and healthier, the city encourages residents and NGOs to become municipal strategy, by providing an official endorsement for applications for a partner in greening initiatives. To this end, the local government provides national or EU funding submitted by other actors. This endorsement can comprehensive tools and guidance for the community to create façade increase their chances of receiving funding by highlighting their contribution gardens (‘a narrow strip of greenery against a façade that connects directly to implementing the strategy. In some cases, a letter from a political to the footpath’, as defined within the project). The city’s website serves representative may be required as part of the application process. Even as a primary communication tool, informing about regulations, showcasing when it is not the case, the application can state the endorsement received good examples, offering landscaping guidance, and explaining how to reach from the public body and highlight its contribution to the objectives set out district-level representatives. While the process does not require an urban in the strategy. permit, community proposals must align with the established rules. The Collaborate with academia and research and development institutions to application process is fully digital, requesting a clear description, a photo of accelerate local innovation. Partnering with academia and R&D institutions the area, agreement from neighbours, and a commitment to maintaining is a crucial step to accelerate innovation at local level, leveraging the local the facade garden after its implementation. Once approved, the city supplies knowledge to develop tailored solutions aligned with the strategic directions. the requested plants, garlands, and trees, and even allocates a budget for Some of these local innovative solutions also have the potential to be scaled the residents interested in acquiring a rainwater collection barrel to water at EU or global level. For instance, the partnership between the Ministry their gardens. of Education, the government of Catalunya and the Universitat Politècnica A similar approach to strengthen the capacity of the local community de Catalunya resulted in the creation of a National Supercomputing Centre to contribute to climate goals is currently planned by the City of Zagreb, in Barcelona. The driving force behind this collaboration was the shared including a commitment to share learning and support replications across interest in science, innovation, and education. This partnership provided the the urban agglomeration and beyond. As part of the Functional areas in opportunity for the City Council to work with the Barcelona Supercomputing the EU project, Zagreb received technical support for conceptualising an Centre in advancing the city’s strategic goals to fight climate change, improve innovative project which was successfully selected for funding through the the quality of life and develop a city for children. The result of the partnership Net Zero Cities Call for Pilot Cities Cohort 2 (2023). The project is centred is a digital twin for testing project ideas and advancing data-based planning. on converting private and semi-public courtyards into carbon sinks, based A specific utilisation of the digital twin, aligned with the above-mentioned on a comprehensive analysis of potential interventions and landscaping strategic directions, was to assess if Barcelona is a 15-minute city, as well as guidelines. A major strength of the project is the establishment of a climate- improving decision-making processes for better urban planning. To enable neutral greening division - a novel governance model for climate neutrality, knowledge transfer, a digital twin tool that can be employed by other cities which will enable structured involvement of local stakeholders (citizens, will be developed. students, NGO and business leaders, representatives of local authorities, Offer financial and technical support to enhance residents’ capacity to and public institutions). Such participatory frameworks reinforce the contribute to achieving identified strategic goals. A relevant example understanding that achieving climate neutrality targets requires collective is offered by the Barcelona Metropolitan Area and its Metropolitan efforts across the whole of society, marking a shift away from traditional Housing Consortium, which developed a Metropolitan Plan for Housing top-down approaches. Rehabilitation, including financial and technical assistance to support Partner with private actors and promote opportunities for mobilising residents in implementing energy efficiency renovations. Property owners private finances. Governance bodies of functional areas can explore options can access loans for a period of 20 years, with favourable financing terms of implementing public-private partnerships for key strategic priorities (financed through a EUR 50 million loan secured from the European at the functional area level. For example, Kraków Metropolitan Area, is 48 49 CHAPTER 1. STRATEGIC FOCUS currently exploring bundling public-private partnerships projects at the functional area level to achieve economies of scale for constructing public RECOMMENDATIONS facilities and infrastructure, under the coordination of the supra-municipal 1. Build a strong foundation for supra-municipal strategic planning through governance body (see Chapter 6 - Funding and finance). Partnerships can be celebrating quick wins. Particularly in the initial phases of cooperation, established for a wide range of topics, including the regeneration of public focusing on quick wins establishes a foundation for success, preventing spaces, public lighting, smart city interventions, public parking or expanding stakeholder demotivation. This progressive approach allows governance green infrastructure and achieving climate goals. Businesses can also practices to mature, ensuring the robustness of delivery mechanisms over actively participate in the implementation of the strategy by conforming time. to regulations or adhering to promoting the supra-local brand, as well as organising large events that can strengthen the identity of the functional 2. Explore opportunities to improve access to data and build capacity area and promote long-term cooperation. Another possibility for involving for evidence-based strategic planning. Develop practical mechanisms private actors in the implementation of the strategy is related to projects and indicators for elaborating the strategy, monitoring progress, and that can be supported financially through corporate social responsibility transparently communicating the evaluation process and its outcomes. initiatives. Many such initiatives can be scaled up by reaching out to companies and offering opportunities for involvement at the supra-local 3. Make sure that the strategy is an actionable document based on territorial scale. For instance, a solution piloted at municipal level is the ‘adoption’ needs. This involves formulating a shared vision for the functional area, of green spaces by private companies (entailing that they provide for their conducting a thorough diagnosis of challenges and opportunities, and maintenance), which can be easily scaled up at the functional area level. defining strategic objectives. Ensure the document includes clear actions, timelines, responsibilities, and priority projects for achieving the objectives. For more information Brno City Chief Architect’s Office. Results of the public opinion survey on 4. Enable meaningful participation across the strategic planning cycle. the modernisation of the Brno Main Railway Station. Available at: https:// Engage citizens, academia and experts, civil society and the private sector in kambrno.cz/nove-nadrazi/vysledky-pruzkumu-verejneho-mineni-k- open debates and working groups. This continuous involvement aligns with prestavbe-zub/ the partnership principle outlined in the Common Provisions Regulation 2021-2027 and contributes to shared commitment and support for supra- Brno City Chief Architect’s Office. Exhibition of finalist solutions selected municipal projects. through the architectural design competition for the Brno Main Railway Station. Available at: https://kambrno.cz/aktuality/setkejte-se-s-finalisty- 5. Identify flagship (high priority) projects that can mobilise support from nejvetsi-architektonicke-souteze-u-nas-brno-nove-hlavni-nadrazi/ a broad range of stakeholders across the functional area. The power of flagship projects lies not only in their physical or financial magnitude but City of Antwerp. Guidance for community greening initiatives also in their role in fostering collaboration. By offering tangible, ambitious in Antwerp district. Available at: https://www.antwerpen.be/ goals, these projects serve as practical examples of how collective action can info/52d5051f39d8a6ec798b47e4/voorwaarden-om-een-geveltuin-aan- address supra-municipal challenges effectively. The identification of flagship te-leggen; https://www.antwerpen.be/nl/overzicht/district-antwerpen-1/ projects should be rooted in participatory processes and a transparent buurt-in-bloei/geveltuin-in-district-antwerpen prioritisation methodology. Functional Areas in the EU. Insights and practical solutions from Barcelona and Barcelona Metropolitan Area. Compendium of Best Practices. 2023. 6. Actively engage the community in the implementation process. Available at: https://functionalareas.eu/wp-content/uploads/2023/07/ Co-implementation may involve scaling up or initiating participatory Best-Practices-Barcelona-and-AMB_compressed.pdf budgeting aligned with the identified strategic objectives, organising design Functional Areas in the EU. Street Art in Public Spaces. 2022. Available at contests for high-quality solutions, partnering with NGOs and academia, or https://bit.ly/3yJ4mCs . endorsing their applications for funding, or exploring opportunities for public- Net Zero Cities. Pilot Cities Cohort 2. Available at: https://netzerocities.eu/ private partnerships and corporate social responsibility initiatives. Lastly, pilot-cities-cohort-2-2023/ identify ways to strengthen the community’s capacity for co-implementing the strategy, including programs for financial and technical support. 7. Use monitoring and evaluation as opportunities for communicating progress towards shared goals. Establishing a Monitoring and Evaluation system is a core part of strategy formulation, and it can serve as a tool for ensuring transparency, celebrating progress, and adapting the course of action, when necessary. M&E should not be confined to an administrative requirement but has the potential to become a powerful engagement tool through participatory practices. 50 51 REFERENCES 21. European Commission, Joint Research Centre. Handbook of Sustainable Urban Development CHAPTER 1. STRATEGIC FOCUS Strategies. 2020. Available at: https://publications.jrc.ec.europa.eu/repository/handle/JRC118841 1. Barcelona Metropolitan Area. Metropolitan Urban Masterplan Notebooks (Quaderns PDU 22. European Commission. 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Official Journal of the European Union, L 231/159. Available at: http://data.europa.eu/eli/ 37. Functional Areas in the EU. TAIEX-REGIO Study visit between Barcelona and Zagreb. 2023. Available at: reg/2021/1060/oj https://functionalareas.eu/taiex-regio-study-visit-between-barcelona-and-zagreb/ 14. Directive 2014/24/EU on public procurement. Available at: https://eur-lex.europa.eu/legal-content/ 38. Functional Areas in the EU. Takeaways from the Knowledge Exchange on identification of flagship projects EN/TXT/PDF/?uri=CELEX:02014L0024-20240101 and funding opportunities. 2023. Available at: https://functionalareas.eu/knowledge-exchange-on- 15. ESPON. Targeted Analysis. The role and future perspectives of cohesion policy in the planning of identification-of-flagship-projects-and-funding-opportunities/ Metropolitan Areas and Cities Annex VI // Brno Metropolitan Area case study (ESPON METRO project). 39. Net Zero Cities. Pilot Cities Cohort 2. Available at: https://netzerocities.eu/pilot-cities-cohort-2-2023/ 2021. Available at: https://www.espon.eu/sites/default/files/attachments/8%20ESPON%20METRO_ CS%20Brno%20Metropolitan%20Area.pdf 40. New European Bauhaus Toolbox. Available at: https://new-european-bauhaus.europa.eu/system/ files/2024-01/NEB%20toolbox.pdf 16. ESPON. Policy Brief: Governance, planning and financial tools in support of polycentric development. 2020. Available at: 41. New European Bauhaus Compass. Available at: https://new-european-bauhaus.europa.eu/system/ files/2023-01/NEB_Compass_V_4.pdf 17. https://www.espon.eu/sites/default/files/attachments/Policy%20Brief%20Polycentric%20 development%20tools.pdf 42. OECD. The OECD Metropolitan Governance Survey: A Quantitative Description of Governance Structures in large Urban Agglomerations. 2014. Available at: https://www.oecd-ilibrary.org/urban-rural-and- 18. ESPON. ESPON TANGO – Territorial approaches for new governance. 2013. Available at: https://www. regional-development/the-oecd-metropolitan-governance-survey_5jz43zldh08p-en espon.eu/sites/default/files/attachments/ESPON_TANGO_Interim_Report_final.pdf 43. World Bank. Alba Iulia: project prioritization for 2014-2020. 2013. Available at: https://documents. 19. ESPON. Towards better territorial governance in Europe. 2014. Available at: https://www.espon.eu/ worldbank.org/en/publication/documents-reports/documentdetail/527401468190739988/alba-iulia- sites/default/files/attachments/ESPON_Governance_Handbook.pdf project-prioritization-for-2014-2020 20. European Commission, Joint Research Centre. Handbook of Territorial and Local Development 44. Zagreb Urban Agglomeration. Atlas of brownfield sites. 2017. Available at: https://www.zagreb.hr/ Strategies. 2022. Available at: https://publications.jrc.ec.europa.eu/repository/handle/JRC130788 userdocsimages/gu%20za%20strategijsko%20planiranje/Atlas%20brownfield%20površina.pdf 52 53 2 TERRITORIAL CHAPTER 2. TERRITORIAL FOCUS as the third level of intervention, along with the neighbourhood and local levels, in efforts to design measures at the appropriate spatial scale, FOCUS while the Territorial Agenda 2030 highlights the ‘many different types of places’ across the EU and that they come with different challenges and development potential (see Introduction). The introduction of Policy Objective 5 (PO5) - A Europe closer to citizens in the 2021-2027 cohesion policy underscores the heightened significance of the functional area approach. Within this objective, addressing the Our everyday lives often take place beyond the administrative boundaries of interdependent relationships and challenges in both urban and non-urban a city, town, or village. We may work in a city, but live in another municipality areas is strongly recommended. In particular, support for sustainable nearby, and visit friends or relatives in the countryside over the weekend. urban development was reinforced in the 2021-2027 programming period People in the European Union travel, on average, 34.8 kilometres every with an increased share of European Regional Development Fund (ERDF) day (DG MOVE, 2022), frequently involving trips to nearby municipalities. resources targeting sustainable urban development (from 5 % to 8 %). Moreover, current day challenges are increasingly complex and intertwined, Notably, Member States exceeded this target, earmarking 12 % of their and often cannot be optimally addressed at the local, county, or regional ERDF allocation to ‘investment projects based on sustainable integrated level. These include climate change, the green and digital transition, strategies that are placed-based and have multilevel, participatory demographic decline, mobility, spatial planning, optimising the delivery of governance arrangements.’ (European Commission, 2023). public services to redirect resources towards investment needs. Across the EU, functional areas are highly diverse in terms of their To respond to this reality, the functional approach enables planning composition. For instance, the twelve functional areas involved in the development processes at geographic scales that are not artificially Functional areas in the EU project showcase a high variety in the number delineated by administrative boundaries but reflect the growing of municipalities that constitute a functional area: the Brno Metropolitan interconnections between places. More specifically, it ‘requires the Area consists of a high number of administrative units (184), while Oradea coordination of resources for cost-effective solutions (e.g., for transport, Metropolitan Area or Jiu Valley Functional Area are more compact, made service provision, green and blue infrastructure), and the avoidance of one up of twelve and six administrative units, respectively. The areas selected territory creating negative externalities for others and moving problems to participate in the project also vary in their degree of urbanisation. The around (e.g., congestion, pollution, retail, crime)’ (European Commission, percentage of population living in cities, towns or suburbs ranges from less 2023). than 20 % in the West Ialomița functional area, to about 70 % in the Trenčín A functional area is defined by one or more territorial interdependencies functional area and above 90 % (e.g., Kraków, Zagreb, or Cluj Metropolitan related to economic, social, cultural, or geographical functions, which Areas), according to 2022 Eurostat data. often overlap (CEMAT, 2020). It may capture how people move by looking While analysis of functional approaches has mostly focused on functional at commuting flows (functional urban area), or broader travel patterns to urban areas, namely cities and their commuting zones, OECD highlights access services such as schools, hospitals, shops, sport and cultural facilities, the need for more research in delineating functional areas in all types of friends, and family (functional non-urban area). While the definition of territories, including rural areas and areas remote from major cities, as ‘the functional urban areas was included in Eurostat regulation, additional types concept of functional areas is not exclusive to urban areas but can cover the of functional areas may reflect ties between local economies (clusters and entire inhabited territory of a country’ (OECD, 2020). Social and economic innovative regions, areas under industrial restructuring, free economic linkages may also be identified between villages, small towns or within a zones, tourist areas), common natural characteristics (areas with significant remote area, yielding more effective public policies. natural heritage, mountain areas, island areas, coastal areas, delta areas, The Territorial Agenda 2030 highlights the opportunities presented by river catchment areas), cultural links (areas with significant cultural functional areas in promoting harmonious and polycentric development heritage, areas with complex cultural heritage) or may reflect shared by harnessing linkages – such as urban-rural linkages: ‘cooperation and demographic challenges (depopulated areas). Another ongoing research networking within and between cities, towns and their surrounding areas in initiative by ESPON focuses on ‘non-standard geographies’, including water the same functional region create development perspectives for all places management areas, biodiversity preservation areas, areas undergoing taking into account the need to promote urban-rural linkages.’ The benefits industrial or energy transition, or areas focused on health and ageing. include ‘a healthy and affordable living environment, avoiding further At both the EU and international levels, it is increasingly acknowledged that urban sprawl and reducing land take’. As such, the functional approach is functional approaches are critical for sustainable territorial development. intrinsically connected to the concept of urban-rural linkages. The identified Highlighting that ‘citizens often interact at different spatial scales in their linkages are the foundation for partnerships for the mutual benefit of rural everyday life’, the New Leipzig Charter envisages the functional area level and urban areas. 54 55 CHAPTER 2. TERRITORIAL FOCUS This Chapter delves into two challenges: delineating the optimal territorial (e.g., Czech Republic, Hungary, Greece, Romania, Croatia), when there is a scale to drive and accelerate sustainable development and harnessing shared understanding at the national level that such territorial analysis can urban-rural linkages. Tools and practical insights are sourced from help with better targeting investments. This analysis is usually conducted functional areas participating in the Functional areas in the EU project, by the ministry working on regional development and may result in the aiming to bring these topics to the forefront of the agenda of national, creation of new tiers of government (i.e., Communautés d’Agglomération supra-municipal and local level decision-makers. in France or Città Metropolitane in Italy). Alternatively, the analysis may be undertaken for the application of territorial tools (i.e., Brno Metropolitan How to identify the optimal territorial scale for a Area, Zagreb Urban Agglomeration), or simply to understand the functional CHALLENGE 1 relations in the territory that may inform policy without creating a new tier functional area approach? of government. The delineation of a functional area entails analysing the functional The data analysis to delineate functional areas may inform the introduction relations between different areas. It aims to understand the patterns in of dedicated legislation. In some cases, this legislation may strengthen which people move and access services, and what are their implications existing interjurisdictional associative structures (e.g., Romanian Law on for planning and collaborative governance. The genesis of functional area Metropolitan Areas), while in others, it may kickstart formalised cooperation. delineation and collaborative approaches vary. Not all are informed by For instance, while collaborative practices have a long track record in data, as some may be the result of political will to collaborate, based on an the Lake Balaton Functional Region, the establishment of governance appreciation and understanding of common challenges and opportunities. structures (the Lake Balaton Development Council and the Lake Balaton However, the use of data can support evidence-based decision making in Coordination Agency) was decided through a national legislative act on all stages of the development of functional approaches. The analysis for Regional Development and Spatial Planning adopted in 1996, recognising delineating functional areas can be undertaken at both the national and that the region would benefit from more coordinated action. subnational levels. This may be undertaken by a city, national entity, or When a national-level delineation is lacking, such analysis may be proactively other institutions like universities or research centres. driven by municipal authorities, academic institutions, or research centres. A data-informed approach to delineation should ideally precede the Local administrations may partner with universities or other research formulation of an integrated strategy. This would ensure an informed institutions or use already existing data produced by them to highlight understanding of the key challenges to be tackled and the ideal spatial challenges or opportunities that are best responded to collaboratively extent necessary to effectively address those challenges. Data on existing and across jurisdictions, promote cooperation and establish governance functional relations can also be used to inform the formulation of strategies structures for the functional area. and associated development objectives. In this sense, the Common Whether undertaken at a national or local level, identifying appropriate Provisions Regulation specifically requires that territorial strategies indicators (either internally, or through partnerships with academic (developed pursuant to the use of ITI or other territorial tools) and institutions and research centres) supports evidence-based delineation community-led local development strategies include the geographical that reflects real territorial needs. Carefully selected indicators offer a area covered by the strategy (CPR, Art. 29, Art. 32). baseline and can be used to set clear targets and support the elaboration, Data analysis can also support the design of governance bodies and their monitoring, and evaluation of the integrated strategy. operation. Starting from the identification of municipalities that form a functional area, the founding act may include membership fees based on population or economic output. In the case of voluntary associations, PROCESS AND INDICATORS FOR DELINEATING FUNCTIONAL AREAS municipalities may choose to associate based on both objective indicators and subjective factors (such as political willingness to cooperate and A major step forward in advancing the functional approach was the historical relations). Therefore, a governance body may already exist before inclusion of a common definition of Functional Urban Areas in the Eurostat (or without) conducting data-based analysis of functional relations. At the territorial typologies, offering statistical data on these territories that can same time, the analysis of interlinkages provides a solid basis for initiating inform national and local policymaking. Criteria for defining a Functional joint projects and may boost motivation for new member municipalities Urban Area are commonly agreed at EU level (the EU-OECD methodology to join the association. When undertaken at national level, this analysis is based on commuting flows and sets a minimum threshold of 15 % of the may also lead to the creation of new tiers of government, entailing a legal population commuting to an urban centre). However, an analysis of existing functional urban areas shows that adapting the EU-OECD methodology by obligation to take part in the new governance body. adding indicators or adapting the minimum commuting threshold is not National level delineations aim to identify the municipalities part of a uncommon. functional area, based on studies covering the entire national territory 56 57 CHAPTER 2. TERRITORIAL FOCUS Moreover, other types of functional areas (based, for example, on natural Partner with academia / research centres or use existing studies to inform linkages or economic restructuring processes - see Annex. Classification of cooperation practices. In 2013, a study was conducted by a research team functional areas), require different layers of analysis, such as the population of the Brno Masaryk University, identifying linkages between the core city living within a certain distance from a coastline, or employment data and and the localities around it, and paving the way for cooperation. The factors composition of the local economy. Therefore, a variety of indicators can be analysed for delineating the metropolitan area included commuting to work, considered when delineating an urban or non-urban functional area. commuting to schools, migration flows and public transport accessibility. The data provided by the academic study backed the metropolitan agenda A selection of possible indicators, based on the delineation process of Polish and the necessity of integrated approaches created the basis for voluntary metropolitan areas is summarised below: cooperation between localities near the city of Brno. Cooperation was Labour dynamics: commuting to work, the percentage of non-agricultural stimulated by the implementation of the Integrated Territorial Investment occupations, the ratio of the number of enterprises to the population, instrument in 2014-2020, which continues into 2021-2027. Data deriving the share of all economic entities engaged in higher value services. from the research informed the integrated development strategy at the level Population and density: population density, migration (entailing a of the metropolitan area. For the implementation of the ITI in the 2021- change of the registered residence) out of a core city, ageing patterns. 2027 period, the Ministry for Regional Development of the Czech Republic Accessibility and education: labour and migration patterns, public developed a unitary methodology for the territorial delineation, based on transport accessibility, individual transport accessibility and commuting statistical and mobile operator data. The new delineation of the territory to school, infrastructure connectivity. of the Brno Metropolitan Area, points to a strengthened position of Brno Geographic indicators: in the case of natural functional areas, geographic within the South Moravian Region, resulting in an expansion from 167 to indicators such as proximity to a coastline or to a shore, overlapping with 184 localities. the watershed or delta area, topographic mountain area coverage (see Seek opportunities for ongoing partnerships with academia / research Annex 1. Classification of functional areas). centres to promote evidence-based policies. At the same time, the Other economic, cultural, or social indicators may also be used, keeping Brno Metropolitan Area continues to seek collaborations with academia in mind the wide range of functional areas that may be defined (see to address current limitations, in the absence of national legislation for Annex 1. Classification of functional areas). metropolitan cooperation. A noteworthy project is the TAČR METROSPOL (‘Institutionalization of Metropolitan Cooperation as a Factor of Increasing At the same time, it is key to understand that delineating functional areas the Motivation of Municipalities to Cooperate in Metropolitan Areas’) is not a fixed, one-time process, but is dynamic and continually evolving. project. The Brno Metropolitan Area has been actively engaged as one of Driven by factors such as economic shifts, political changes and social the application guarantors for the project, led by the Faculty of Economics transformations, the delineation of functional areas is subject to change, and Administration of Masaryk University. The project was implemented and requires robust, granular data. between 2020-2022 and financed by the Technology Agency of the Czech Republic. Starting from the observation that ‘although metropolitan areas Evidence-based approaches to delineating functional areas and improving and agglomerations occupy only 26 % of the territory of the Czech Republic, their development strongly benefit from the involvement of experts and they generate more than 70 % of the total GDP and that there is a legislative academia. As shown by the example below of Brno Metropolitan Area, vacuum around metropolitan planning as part of the public administration academic studies can support territorial delineations and inform dialogue system, the project’s outcomes include a comprehensive methodology and cooperation, while participation in research projects can further for the establishment of metropolitan unions. The methodology for strengthen advocacy efforts and the substantiation of supra-municipal institutionalising metropolitan cooperation provides procedural guidance challenges and opportunities. for both a long-term scenario (requiring legislative changes) and a short- term scenario that could be implemented without such requirements. Moreover, the city of Brno is currently the lead partner in implementing EVIDENCE-BASED APPROACH TO TERRITORIAL COOPERATION an Interreg project on ‘Strengthening metropolitan cooperation and (BRNO METROPOLITAN AREA, CZECH REPUBLIC) governance in Central Europe’, continuing to involve local universities in workshops to co-cooperate on the preparation of project activities and The Brno Metropolitan Area provides valuable insights into the importance policy recommendations. of leveraging strategic partnerships with academic institutions and using For more information available data to support the functional approach. An analysis for delineating the functional area was conducted in 2013, before the cooperation was Brno Metropolitan Area. Delimitation of the territory of the Brno formalised through a memorandum. In the first implementation of ITI (2014- Metropolitan Area. Available at: https://metropolitni.brno.cz/en/zakladni- informace/integrovana-strategie-rozvoje-bmo/vymezeni-bmo/ 2020), the Brno Metropolitan Area was delineated based on a research study of a local university, while a national-level delineation was conducted Brno Metropolitan Area. Delimitation of territory for ITI in the Czech for the current programming period. Republic. Available at: https://metropolitni.brno.cz/wp-content/2020/06/ PrF_200120_ZAVERECNY-DOKUMENT_FINAL_02042020.pdf 58 59 CHAPTER 2. TERRITORIAL FOCUS Brno Metropolitan Area. TAČR METROSPOL project. Available at: https:// Financial transfers. The law also entails a financial component: besides metropolitni.brno.cz/tacr-metrospol/ the contributions from member local administrations, the law introduces a Interreg. Strengthening metropolitan cooperation and governance in central share of 5 % of the income tax to be transferred by the Ministry of Finance Europe. Available at: https://www.interreg-central.eu/projects/mecog-ce/ to the metropolitan area entity. The amounts transferred can be used by the metropolitan area exclusively for investments and cannot cover operational As mentioned earlier, national legislation can institutionalise cooperation costs. between administrative units. Such dedicated legislation can establish criteria for the delineation of functional areas and outline their corresponding governance bodies, including their goal, functioning and How to strenghten urban-rural linkages CHALLENGE 2 competencies. They may also include provisions for financial support, and may confer planning, fiscal, regulatory, or service provision authority to the at the functional area level? governance body of the functional area. The functional area approach is a key instrument for harnessing urban-rural linkages that support polycentric development, pointing to the role of cities in making urbanisation sustainable (European Commission, 2023). Faced NATIONAL LEGISLATIVE FRAMEWORK FOR METROPOLITAN AREAS with the dual challenge of balancing concentration and depopulation, (ROMANIA) functional urban areas are ideally positioned to harness urban-rural While metropolitan intercommunity development associations have been linkages. DG REGIO notes that these linkages can be identified at the level of emerging since as early as 2005, the lack of dedicated legislation was a a core city and its adjacent rural area but can also connect ‘geographically limiting factor. Having the status of non-governmental organisations, they distant places through functional links (e.g., linking agricultural production required a clearer status to improve their financial and organisational areas to urban markets)’ (European Commission, 2023). sustainability. The recently adopted law on metropolitan areas in Romania While traditionally approached as separate areas of intervention with (Law 246/2022) details the operation, powers, and financing mechanisms clear conceptual boundaries, urban and rural areas are increasingly of existing intercommunity development associations. The metropolitan interconnected through various functional relations (See Introduction) and territory is defined as ‘the surface located around the municipalities, should be considered in an integrated manner. As highlighted by OECD, delimited by specific legislation, within which mutual relations of influence ‘territorial relations have changed profoundly in recent decades’, and it is are created in the field of communication, economic, social, cultural and becoming increasingly difficult to draw a clear line between urban and rural urban infrastructure.’ The law regulates the territorial scale at which territories. The functions and characteristics of cities and rural localities are localities can associate to form a metropolitan area, as follows: also changing: ‘cities no longer correspond to the simple notion of clusters of compact settlements with high densities of population and employment’, Delineation. According to the law on metropolitan areas adopted in 2022, while ‘agriculture is no longer the sole or the principal economic activity of potential associations of municipalities other than the capital based on rural areas’ (OECD, 2006). Therefore, overcoming the polarisation between the concept of urban crowns. The first crown refers to the territory of urban and rural areas and developing frameworks for collaboration is as administrative-territorial units in the immediate vicinity of a municipality, ‘policy imperative’ (Eurocities, 2023). with which it has at least one common boundary, while the second crown As a result of suburbanisation, rural localities in the proximity of dynamic cities is understood as the territory of the administrative-territorial units in the are growing in population, increasing the pressure on public infrastructure immediate vicinity of the first urban crown. The capital of Romania can and services. At the same time, depopulation and negative demographic associate with the localities of Ilfov county, county seat municipalities can trends affect remote rural localities, and new business models are required associate with neighbouring localities in the first and second urban crowns, to preserve cultural heritage and support rural producers. Residents often and municipalities that are not the seat of a county can only associate with migrate to cities in search of better job prospects and higher wages, while localities in the first urban ring. In all scenarios, associations cannot exceed urban areas may experience out-migration to rural areas due to factors like the limit of the county of which the municipality is part. retirement, lifestyle preferences, or access to affordable housing. Competencies. The administrative-territorial units can mandate the Urban areas serve as hubs for infrastructure, services, and facilities such metropolitan areas to exercise some attributions within their competence. as health and educational institutions, transportation networks, cultural The law therefore defines the duties that can fit within this mandate, including venues, government offices, and commercial centres that are often the elaboration, adoption, monitoring and evaluation of the integrated accessed by rural populations. As centres of knowledge, urban areas can metropolitan development strategy, the sustainable urban mobility plan of share technology and expertise with rural areas. Conversely, rural areas the metropolitan area and the general urban plan of the metropolitan area may provide urban centres with natural resources, including energy, and as well as other strategies and planning documents, providing technical food production, contributing to environmental conservation and the assistance to member localities, preparing projects financed from national, development of urban farming, short food supply chains, or nature-based EU or international funds, and the application of common fiscal policies. solutions. Moreover, challenges related to climate change require joint 60 61 action from urban and rural actors, and synergies may be identified in the CHAPTER 2. TERRITORIAL FOCUS area of circular economy. RURAL-URBAN PARTNERSHIPS As one of the territorial typologies included in Eurostat’s Methodology (CLUJ METROPOLITAN AREA, ROMANIA) manual on territorial typologies, the urban-rural typology was developed The Cluj Metropolitan Area is involved in two initiatives aimed to increasing building on previous work of OECD and identifies types of regions based quality of life in rural areas and developing synergies between rural and on the share of rural population (at NUTS level 3), namely predominantly urban actors. The key takeaways are distilled below: rural, intermediate, and predominantly urban regions. Develop a form of partnership bringing together urban and rural actors. A The urban-rural typology map identifies predominantly urban regions, form of a rural-urban partnership was piloted in the Cluj Metropolitan Area intermediate regions (close to a city), remote intermediate regions, through the Rural-Urban Hub initiative. In alignment with the Long-Term predominantly rural regions (close to a city), and remote predominantly Vision for Rural Areas and the Rural Pact, the Rural-Urban Hub initiative rural regions. It also includes the dimension of remoteness, ‘based on the aims to bridge the gap between rural and urban areas. It involves the city criterion that less than half of the local population can drive to the centre of of Cluj-Napoca, and two rural localities in the metropolitan area, as well a city with at least 50,000 inhabitants within 45 minutes’ (Eurostat). as the education cluster bringing together major educational institutions, the governance body of the metropolitan area (Cluj Metropolitan Area The classification offers insights into the importance of applying an urban- Association), the Babeș-Bolyai University, and the Romanian Business Leaders rural lens to development policies. With a large share of predominantly Association. This multi-stakeholder partnership focuses on addressing rural regions (close to a city), 87 % of Romania’s territory is rural and disparities in socio-economic development between urban and rural areas. home to approximately nine million people amounting to 46 % of the Identify potential areas of rural-urban cooperation. The research studies total population (ESPON, 2023). Similarly, Poland has various intermediate conducted as part of the Rural-Urban hub offered insights into the potential regions and predominantly rural regions that are close to a city. According areas of rural-urban cooperation, including economic collaboration, to the Eurostat degree of urbanisation (DEGURBA) methodology, 75 % of infrastructure and urban planning, education partnerships, community municipalities within a functional urban area in Poland are rural (OECD, cooperation, and cultural collaboration. For instance, creating a framework 2022). These examples are not isolated in the EU, therefore, there is a for economic collaboration between Cluj-Napoca business clusters and rural strong need to leverage urban-rural linkages for reducing socio-economic associations can lead to direct business partnerships, rural investments, disparities and improving the quality of life for both urban and rural local product promotion in urban areas, and technology transfer to rural populations. spaces. Moreover, the pilot project conclusions point that cooperation must be supported by real mechanisms, such as partnerships, formal structures, Building on existing linkages, rural-urban partnerships may take many and functional collective bodies, to translate ideas into concrete rural-urban forms and have ‘great variety in formal status, structures, composition, size, connectivity projects. spatial levels and scope’ (Armann et al., 2012). Both formulations ‘urban- rural’ and ‘rural-urban’ are used in the literature dedicated to the subject Endorse the replication of best practices to raise the quality of public of cooperation between the two types of areas. Semantically, the term infrastructure in rural areas. Well-designed, attractive, and cohesive public spaces can significantly improve quality of life in suburban areas, which often ‘rural-urban partnership’ aims to bring the focus to the rural dimension, as lack quality public spaces and services. A separate initiative for the transfer opposed to their representation of an ‘appendix being pulled by the cities’, of best practices in the regeneration of public spaces was developed in the and it may also secure a stronger buy-in of rural actors. Another clarification Cluj Metropolitan Area, based on a partnership between the representatives regards the use of the ‘rural-urban partnership’ term, which conceptually of the core city, the metropolitan area governance body, the county council overlaps with the terms ‘functional area’ or ‘functional approaches’. While and rural localities. The project involved a participatory co-design process it does not reflect the concept of inherent flows or linkages (‘functional for the development of the architectural concept studies through public area’ aligns better with the idea of interconnected spaces), it is, however, debates organised by the Cluj Metropolitan Area. The result was the preferred, as it has a more positive connotation, particularly outside the elaboration of regeneration concepts for public spaces in eight out of the fields of spatial planning (DG REGIO, 2012). 15 rural localities in the metropolitan area. The main criteria guiding the As centres of knowledge and education, urban areas can mobilise actors selection of the localities were the implementation capacity and replicability such as educational institutions and businesses to support the development of the proposed solutions. The functional area governance body plays an of rural areas, as well as the transfer of best practices. Leveraging an existing important part in the partnership, by providing support and guidance in the governance framework at the functional area level, rural-urban partnerships implementation of the concepts. can accelerate the transfer of best practices across member municipalities, Support rural localities in elaborating feasibility studies and technical particularly to address disparities in socio-economic development and projects and identifying funding sources for their implementation. public infrastructure, as seen in the example from Cluj Metropolitan Area. The initiative developed in the Cluj-Metropolitan Area aims to provide local governments with coherent concepts for the regeneration of public 62 63 CHAPTER 2. TERRITORIAL FOCUS spaces,aiming to improve quality of life, safety, and attractiveness. Other settlements range between 500 and 1 000 inhabitants (ESPON, 2021). From envisioned phases include the development of necessary documentation, these, less than a quarter are located on the shore of Lake Balaton. Together such as feasibility study and technical projects for each locality. Moreover, the with local actors, Lake Balaton Development Council aims to reduce the Cluj Metropolitan Area governance body will support local administrations pressure on the lakeshore area and develop sustainable tourism through in identifying funding sources for the implementation of the proposed diversification and reducing seasonality (i.e., cultural, gastronomic, health interventions. tourism). Achieving this requires developing and promoting the tourist offer in rural localities situated further away from the shore, along with economic For more information diversification measures. Stănică V., Rural–Urban Hub Cluj. Proiectul pilot de conectare rural– Establish a recurrent channel for amplifying rural voices and development urban în zona metropolitană Cluj-Napoca. Revista Transilvană de Ştiinţe needs. The Lake Balaton functional area’s governance body (Lake Balaton Administrative 2(51) / 2022. Available at: https://rtsa.ro/rtsa/index.php/ Development Council) enables the engagement of a variety of stakeholders rtsa/article/download/627/624 from both urban and rural areas, including local administrations, regional Functional areas in the EU. Transferring best practices for the regeneration organisations, non-governmental organisations, and businesses. Lake of public spaces in the Cluj Metropolitan Area. 2023. Available at: https:// Balaton has a long history of civil society organisations, with the Lake functionalareas.eu/urban-rural-linkages-regeneration-of-public-spaces-in- Balaton Association founded in 1904. These also include the Association of the-cluj-metropolitan-area/ Balaton Civil Organizations, with 34 member NGOs, Balaton Circle focusing Cluj Metropolitan Area. The regeneration concepts for rural localities in the on preserving regional values, and the Women for the Balaton Association, working on environmental and cultural conservation. (ESPON, 2021). Monthly Cluj Metropolitan Area. Available at: https://www.clujmet.ro/wp-content/ council meetings offer an opportunity for engagement with civil society uploads/2023/04/Centru-de-sat-ca-spatiu-public-brosura-a3-1.pdf and business organisations. Through these meetings, the governance body offers a platform to raise concerns related to the development of the area, As mentioned earlier, national legislation can institutionalise cooperation ensuring that urban and rural challenges are addressed in coordination. between administrative units. Such dedicated legislation can establish For more information criteria for the delineation of functional areas and outline their ESPON. Lake Balaton: Towards an integrated development? October corresponding governance bodies, including their goal, functioning and 2021. Available at: https://www.espon.eu/sites/default/files/attachments/ competencies. They may also include provisions for financial support, and LAKES%20Annex2a_Regional_report%20Balaton.pdf may confer planning, fiscal, regulatory, or service provision authority to the governance body of the functional area. Urban and rural areas rely on each other economically. Urban areas may BALANCING RURAL AND URBAN DEVELOPMENT serve as markets for rural agricultural products, providing farmers with (LAKE BALATON FUNCTIONAL REGION, HUNGARY) income and livelihood opportunities. In return, rural areas supply quality food, raw materials, and other resources to urban centres. Along with The Lake Balaton functional region is a predominantly rural natural functional strategic planning and service provision, a key area of intervention for area, spanning three counties around the lake. Delineated as a result of a top-down approach (through a national legislative act). The governance functional area governance bodies is the ‘production and distribution of structure of the area is ensured by the Lake Balaton Development Council, resources’ (Eurocities, 2023). This may involve measures to link local food composed of ministry representatives (with 60 % of voting rights, nine producers, other actors in the supply chain and consumers, while promoting representatives), and county representatives (six representatives from food security and resilience. the three counties around the lake). The eight ministries represented are responsible for regional development, the use of EU funds, supporting the SHORT FOOD SUPPLY CHAIN MODEL TO HARNESS URBAN-RURAL development of government strategies, town and country planning, the LINKAGES AT FUNCTIONAL AREA LEVEL environment, water management, tourism, and nature conservation. (TĂUȚII MĂGHERĂUȘ, ROMANIA) Develop an institutional mechanism for achieving balanced urban- The ‘Roade de Oraș’ (‘City Harvest’) is a grassroots initiative developed in the rural development. The Lake Balaton Development Council has various town of Tăuții Măgherăuș (Romania), bringing together local producers from responsibilities, including the preparation of development plans and twenty urban and rural municipalities across three counties (Maramureș, strategies, allocation of development funds, and coordination of Satu Mare, and Sălaj). Collectively, they provide an array of products, from development initiatives. Lake Balaton Development Council provides food to handmade items and craft beer. The initiative facilitates their access a platform for dialogue among stakeholders across the three counties, to local markets by providing a platform and offering support in creating aimed to supporting balanced urban-rural development, while protecting a unified branding and competitive edge. By enabling local producers to natural assets. The region is highly fragmented in terms of its administrative increase their revenues and capacity and connecting them to consumers, structure, with smaller towns and villages predominating. 84 out of 180 the initiative facilitates the integration of urban and rural agendas towards municipalities have less than 500 inhabitants, and an additional 34 common long-term development goals. 64 65 CHAPTER 2. TERRITORIAL FOCUS The ‘City Harvest’ initiative is based on a social media group providing a convenient channel for individuals to place orders for local products. Orders RECOMMENDATIONS are accepted weekly, from Monday to Thursday. Purchases can be collected every Friday during a specified one-hour time slot at one of two designated 1. Apply a data-based approach in delineating the functional area to identify locations. Detailed instructions are available in the group description section. shared needs, trends, and linkages. Evidence-based indicators are critical Additionally, in 2023, the team behind ‘City Harvest’ implemented a new not only for the delineation process but also for the subsequent elaboration, feature for group members, providing home delivery facilitated by bicycle monitoring, and evaluation of an integrated strategy. Collaborate closely couriers. This enhancement ensures that customers can receive their orders, with academia and research centres to develop and refine indicators that even if they cannot pick them up in person, while also alleviating local accurately capture the complex dynamics of the area, even when a national producers from the need to transport products back to their homes. With an delineation is already produced. By relying on empirical evidence, this data- active online community boasting over 11 000 members, this streamlined driven delineation ensures a comprehensive understanding of territorial system enables producers to assess demand accurately, ensuring they bring needs and facilitates strategic decision-making based on reliable insights. the right quantity of goods to the weekly meetups. This demonstrates how a community-driven platform can foster economic growth and a sense of unity, 2. Consult and ensure representation of urban and rural areas in governance serving as a model for harnessing urban-rural linkages at the functional area bodies to promote the rural agenda. Functional area governance bodies level with a focus on developing short food supply chains. may act as a platform for voicing rural concerns and promoting a balanced Create a supportive environment for existing initiatives in the realm of food territorial development. Focus on addressing shared challenges, capitalising distribution networks. Local or family businesses may receive assistance on synergies, and planning and implementing initiatives that promote through designated selling spaces, resources, or incentives to enhance and mutual benefits for both rural and urban areas. Through a joint decision- sustain the platform. Additionally, workshops can be organised to train local making structure and a joint strategy, urban and rural areas can overcome producers in marketing their products. Implement quality control measures polarities and collectively address their interests. and help them establish internal rules to avoid competition and price drops, encourage community participation, and promote the platform to ensure its success. 3. Develop a form of partnership based on existing linkages and encourage Ensure proper communication through a digital hub. Encourage the the exchange and replication of best practices between urban and rural development or create a dedicated online platform, like a social media group, areas. Leverage the role of cities as hubs of knowledge, research, and for local producers and consumers to connect, place orders, and promote innovation for the benefit of rural areas. This may involve conducting research products conveniently. This can involve promoting best practices, offering and connecting educational and business actors across the functional technical support, or a combination of both, tailored to the community’s area, as well as enabling the transfer of best practices. Simultaneously, requirements. acknowledge the valuable contributions of rural areas to resilience and Develop large-scale projects to create mutual benefits for urban and sustainable development, including natural resources, including energy and rural areas. Functional area governance bodies may strengthen existing food production, or nature-based solutions. initiatives and the development of a resilient food system by providing financial resources and visibility. At the same time, they may facilitate a partnership between public bodies, producers, regional actors, partners from civil society and research institutes. This is the case of Grenoble-Alpes Métropole (France), where the 49 municipalities of the metropolitan area were brought together in projects dedicated to building food distribution networks, financed through ERDF and Horizon 2020. A similar project was implemented by the Bordeaux Metropolitan Area (Eurocities, 2023). For more information Functional areas in the EU. Urban-rural linkages: Exploring urban-rural interdependencies for cohesion and economic growth. 2023. Available at: https://functionalareas.eu/wp-content/uploads/2023/09/Urban-Rural- Linkage-V2.pdf Eurocities. Connecting urban territories. 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Strengthening metropolitan cooperation and governance in central Europe. Available at: https://www.interreg-central.eu/projects/mecog-ce/ 21. Mulíček, O. (ed.), Delineation of the functional territory of the Brno metropolitan area and Jihlav residential agglomeration. 2013. Available at: https://metropolitni.brno.cz/wp-content/uploads/2017/09/BMO_ JSA_vymezeni_2013_web.pdf 68 69 3 GOVERNANCE AND Effective governance also requires the capacity to coordinate with various CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY stakeholders. A multi-stakeholder approach enables public authorities to leverage capacity and resources from a wider pool. To achieve this, the ADMINISTRATIVE conceptualisation, implementation, and monitoring of interventions needs to involve all relevant actors, including citizens, civil society organisations and private enterprises together in the planning, implementation and CAPACITY monitoring of integrated territorial and local development strategies (CPR, Art. 29). To effectively drive functional approaches, targeted capacity building is necessary for both technical staff and political representatives within governance bodies. The need for targeted capacity building is underscored An efficient governance model at functional area level may enhance by the specific technical expertise required for joint strategic and spatial integrated planning, financing, and implementation of projects with planning, identifying projects with functional area level impact, designing, supra-municipal impact. The key concepts addressed in this chapter are and implementing interjurisdictional projects, coordinating, and engaging governance - referring to the structures and processes by which decisions stakeholders across the functional area, designing the right financing mix, are made and implemented, encompassing both formal and informal or bundling packages of projects to achieve economies of scale. mechanisms - and administrative capacity, which reflects the ability of institutions and key stakeholders to efficiently carry out their functions and responsibilities. GOVERNANCE CHALLENGES SHARED BY FUNCTIONAL AREAS In the 2021-2027 programming period, the new Policy Objective 5 (‘A Even though the governance of functional areas in the EU takes a variety of Europe closer to citizens’) incentivises collaborative working and decision- forms, it is nonetheless faced with similar challenges. Several governance making. Integrated territorial development under Policy Objective 5 builds challenges were shared by the 50 functional areas participating in the call on three major principles: for application for targeted support under the Functional areas in the EU 1. multi-sectoral strategic approach, project. One of the most recurring challenges is the difficulty in gaining 2. multi-level governance approach, the buy-in of local administrations and lack of political support for joint 3. multi-stakeholder approach. project planning and implementation. This highlights the importance While Chapter 4 - Cross-sectoral integration of this Toolkit focuses on the of building 'coalitions of the willing' and strengthening and sustaining first principle, this chapter offers insights into applying the last two. These cooperation practices beyond impulsive responses to financial incentives principles are also stipulated in the New Leipzig Charter and the Territorial provided by EU funding frameworks. Other challenges cited by respondents Agenda 2030, adopted in 2020 (see Introduction chapter). are lack of tools and established approaches to enable reconciliation of political differences and facilitating reaching common ground and limited In a multi-level governance framework, management authorities, experience in developing partnerships. functional area governance bodies, and local administrations have well- Functional area representatives further pointed out limitations in the defined roles. As defined by the CPR, multi-level governance framework administrative or financial capacity to respond to supra-municipal needs. are arrangements between different levels of governance - local, regional, This is particularly relevant for recent or yet-to-be-established functional national, supranational: ‘interventions shall be coordinated and aligned area governance bodies, and smaller municipalities. between the different levels of governance concerned in the given territory, from programming to implementation and monitoring, with special attention Why set up a governance body for a functional area? to the involvement of relevant territorial authorities or bodies in project selection to ensure strategic consistency with local needs and challenges’ Having in place an efficient governance arrangement can support the (CPR, Art. 29). Management authorities set at national or regional level institutionalisation of territorial cooperation, the strengthening of joint the policy framework in which integrated strategies will be designed and strategic planning and the optimization of investment processes for the implemented, while functional area governance bodies are responsible for benefit of the entire functional area. A governance body can coordinate drafting, implementing, monitoring, and evaluating the joint strategy and integrated planning at the functional area level and serve as a robust reporting back to managing authorities on their progress. Moreover, the platform for collaboration among diverse stakeholders. involvement of relevant territorial authorities or bodies in project selection In the case of Functional Urban Areas, the benefits of establishing (CPR, Art. 29) ensures strategic consistency with local needs and challenges. governance bodies at the metropolitan level are well documented, This process also offers functional area governance bodies opportunities particularly regarding their role in promoting integrated and sustainable to provide recommendations for further policy improvements at the development and addressing negative externalities of urbanisation such as regional, national and EU level, to better align with territorial needs. 70 71 urban sprawl. The OECD Metropolitan Governance Survey: a quantitative responsibilities of these governance structures vary but would typically CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY description of governance structures in large urban agglomerations (2014) include preparing and approving the integrated supra-municipal strategy, highlights that ‘metropolitan areas with governance bodies perform deciding on project prioritisation, representing the functional area in better on several dimensions’. Most notably, positive correlations were interactions with other institutions, imposing membership fees, appointing identified between the existence of metropolitan governance structures committees, or expert groups, or concluding contracts on behalf of the and decreased urban sprawl (measured as the change in population functional area. density in built-up areas), lower air pollution (as a result of metropolitan The day-to-day operations of the functional area are managed by a team public transport), higher citizen satisfaction with services, as well as a of technical experts located either in the administration of the core city of higher per capita GDP (OECD, 2014). Ongoing research initiatives, such as the functional area (e.g., Brno Metropolitan Area), or a dedicated office the MECOG-CE Interreg project (Strengthening metropolitan cooperation established for this purpose. The technical teams are usually responsible and governance in central Europe), are actively identifying, testing, and for the operational tasks such as project management or monitoring the disseminating best practices in metropolitan governance. implementation of the integrated supra-municipal strategy and require While less documented, functional area governance and inter-jurisdictional targeted knowledge and capacity building. In addition to these, functional cooperation in rural areas (including remote rural areas) has the potential area governance bodies may also include representatives of civil society, to reduce vulnerabilities caused by geographical isolation, lower capacity, academia, or other stakeholders as in the case of Jiu Valley Functional Area, limited access to resources, and administrative fragmentation. Similarly, a Just Transition region in Romania. functional natural areas require cooperation to balance the pursuit of economic development and environmental sustainability. How to establish a functional area governance body? CHALLENGE 1 How can local leadership support supra-municipal governance? In exploring the diverse landscape of governance bodies of functional areas Political will often plays a critical role in establishing a supra-municipal in the EU, various models can be identified, ranging from informal and soft governance body. Local leadership can consolidate cross-jurisdictional coordination, primarily aimed to information exchange and consultation cooperation by bringing together different communities and stakeholders to more formal arrangements (OECD, 2014). Selecting the appropriate to establish a common vision and build consensus around shared goals. governance model involves assessing existing cooperation practices, Committed and entrepreneurial local leaders can help create ‘coalitions of the national administrative authorising environment and of course the the willing’ or ‘growth coalitions’ that bring together actors from different challenges that the governance body will be seized with. The spectrum sectors and jurisdictions to work towards shared objectives. of options ranges from informal, soft coordination mechanisms to fully institutionalised entities, such as supra-local authorities, or metropolitan To this end, both vertical and horizontal coordination is needed, with the cities established as recognised tiers of government often formed by participation of actors from different policy areas and departments (such merging multiple administrative units. The powers and functions of these as transport, land use, and waste management) and between different governance bodies also vary, with some having limited mandates while levels of government (local, regional, national, and supra-national). To others have a broad remit which may even include authority to impose ensure continuity and implementation orientation, these efforts should certain types of taxes. be channelled into long-term strategic planning (see Chapter 1 for more guidance on functional area strategic planning). Interjurisdictional governance bodies are not an end in and of themselves but exist to support collaborative practices and tackle challenges that cannot In addition to local leadership, neutral players such as international be adequately addressed by single authorities. Moreover, governance development organisations, academia or research institutes may also have models are not static but rather dynamic, evolving over time. They may a positive impact through their convening power. Convening power refers commence with informal coordination arrangements and gradually to the ability of an organisation or individuals to bring together stakeholders transform into more formalised and institutionalised structures based from different sectors, jurisdictions, and backgrounds to work towards a on the evolving needs of the constituting members or changing nature common goal. If convenors are perceived as impartial and unbiased, and of challenges to be addressed. While informal cooperation is often the proposals are backed by sound analysis and expertise, this can help build starting point for developing long-term cooperation models, a higher level trust among stakeholders who may have competing interests. of institutionalisation of cooperation offers the authority the requisite What is the typical composition of a supra-municipal governance body? authority and institutional stability to plan, regulate and implement measures that promote sustainable development across jurisdictions. Supra-municipal governance bodies may include elected representatives like mayors, as well as other political representatives (deputy mayors, and The OECD typologies of metropolitan governance offer an overview of representatives at the county, regional or federal, or even national level the functions and mandates of governance bodies, ranging from soft (e.g., ministries, in the case of the Lake Balaton Development Council). The coordination mechanisms to forming new tiers of administration through 72 73 consolidation of existing units. While they are informative for research and CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY policy purposes, it is worth highlighting that they should not be understood Metropolitan cities are consolidated local governments that incorporate as a rigid framework in which all governance models must fit, but rather administrative units into larger conformations. This requires changing as a tool for navigating the diversity of existing governance bodies at the Constitution of the state to accommodate the new consolidated local metropolitan level. governments, with broader competencies and a more significant role in governance and imposing regulations. It is worth noting that the decision to establish supra-municipal authorities or consolidate local administrative OECD: METROPOLITAN GOVERNANCE MODELS units into metropolitan cities is highly political, given their role in assuming strategic responsibilities in key areas of neighbouring municipalities (Council The OECD Metropolitan governance survey (2014) focused on gathering of Europe, 2010). data on governance structures in large urban agglomerations and is one of the most extensive studies on supra-municipal governance, covering 263 Figure 3. Metropolitan governance models metropolitan areas around the world. The typologies below offer a broad overview of their governance models, from ‘purely consultative ones to those that have extensive legal powers. Informal/soft coordination. Platforms that facilitate informal or soft coordination are characterised by their ease of establishment and dissolution. They also tend to have narrow mandates, focusing mainly on sharing information and consultation. This corresponds to 52 % of Source: OECD (2015), Governing the City OECD metropolitan areas that have a metropolitan governance body (according to the Metropolitan governance survey). However, they usually lack enforcement mechanisms and have limited interactions Some functional area governance bodies may be defined as a hybrid between with citizens and other government levels. two or more categories (i.e., an area may not have an established authority, but may develop informal multi-purpose coordination for defining strategic Single/multi-purpose inter-municipal authorities. These inter- priorities). An institutional setup that is finetuned to the local and national municipal authorities do not require administrative reform but are context and can effectively drive cooperation is what defines successful primarily voluntary forms of association, created to tackle issues on a functional approaches. The practical insights below aim to show the variety larger territorial scale (24 % of metropolitan areas involved in the global of such bodies that may not fit perfectly into specific categories. study). As opposed to informal/soft coordination arrangements, such authorities go beyond information sharing and consultation to define For example, many functional area governance arrangements are developed strategic priorities and implement joint projects. According to OECD, because of applying integrated territorial investments. These associations inter-municipal authorities established for a single purpose aim to ‘share typically oversee the preparation of an ITI strategy and the implementation costs and responsibilities across member municipalities’, sometimes of projects from ITI allocations but are not delegated responsibilities from involving collaboration with other government tiers and sector-specific member municipalities (rather ITI associations deal with additional tasks). organisations concerned with the defined purposes. Multi-purpose On the continuum from the ‘lightest’ to the most ‘stringent’ governance authorities have the same goal, but cover more than one sector, dealing models described by the OECD typology, these ITI associations may be with key urban development issues like land use, transportation, and placed in the space between soft coordination approaches and inter- infrastructure. However, without strong leadership and the will to cooperate, these governance models often lack the ability to sustain municipal authorities. themselves in the long term. The role of the governance body is to provide a flexible space to create tailored approaches to meet identified needs and capitalise on coordination Supra-municipal authorities. They can take the form of a directly opportunities. Within the same functional area, diverse arrangements for elected or appointed metropolitan government and can be found in 16 cooperation may be established - while all local units may collaborate in % of metropolitan areas, according to OECD. Supra-municipal authorities can optimise the distribution of competencies, by adapting the rules of strategic planning, only select municipalities will work closely together the game without changing players in the public field (Eurocities, 2013). for specific projects (e.g., for public transport or flood risk mitigation). The specific delegated powers are usually outlined in the statute of the Regardless of their typology, the key elements of a functional area governance body. governance body are a political decision-making body that is responsible for the adoption of an integrated strategy, a team of technical staff, and a Special status of ‘metropolitan cities’. Cities surpassing a certain stakeholder engagement framework. population threshold may be granted a special status of ‘metropolitan The practical insights below demonstrate that governance of functional cities’, as observed by the OECD, and account for 8 % of surveyed metropolitan areas. areas may be carried out in many forms, from voluntary coordination that goes beyond information sharing and consultation (Polish functional urban 74 75 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY areas, Caraș-Timiș functional area in Romania), a local authority taking Szczecin functional urban area. Safe Road to School - standards for the the lead in the implementation of metropolitan cooperation (e.g., the city design of pedestrian and bicycle infrastructure. Available at: http://som. of Brno in the case of Brno Metropolitan Area), to full-scale, dedicated szczecin.pl/category/projekty/ supra-municipal structures, collecting their own taxes (e.g., Barcelona Metropolitan Area) or ‘metropolitan cities’ (Italy). These examples showcase the diversity of governance models, as well as the incremental development of cooperation practices. VOLUNTARY COOPERATION FOR IMPROVED MOBILITY ACROSS TWO COUNTIES (CARAȘ-TIMIȘ FUNCTIONAL AREA, ROMANIA) SOFT COORDINATION THROUGH SHARED METROPOLITAN STANDARDS The lack of a governance body does not impede the implementation of (POLAND) joint initiatives, including major infrastructure projects. In some cases, partnership agreements for specific purposes may be signed to provide Soft governance models rely on continual dialogue between municipalities the necessary legal basis for cooperation. The Caraș-Timiș functional area around development issues and the voluntary application of shared solutions. in Romania, one of the areas participating in the Functional areas in the In this sense, coordination between municipalities in a functional area may EU project, may be considered a mix between informal coordination and a take the form of voluntary adoption of shared standards to ensure coherent single-purpose authority, focused on mobility infrastructure development. development and reduced disparities. Such an approach was implemented The existing governance arrangements are centred on improving green by several functional areas in Poland, through the joint formulation and mobility between two county-capital municipalities. However, the functional application of common standards for the design of public infrastructure and area does not have a formal governance arrangement. It represents an spatial planning. The voluntary application of shared standards represents a informal cooperation structure based on partnership agreements between soft form of inter-municipal cooperation that can be further developed. two municipalities, two county councils, and the national railway authority, They take the form of recommendations and include the following: leveraging existing legislation to accelerate development projects for the Metropolitan Landscape Standards (Gdańsk-Gdynia-Sopot functional area. urban area), Metropolitan Bicycle Standards (Upper Silesian Metropolitan The case of the Caraș-Timiș functional area points to the importance Association), Metropolitan Minimum Standard for Persons with Disabilities of strong political leadership for initiating functional approaches. The (Gdańsk-Gdynia-Sopot functional urban area), Safe Road to School- standards cooperation for improving mobility at the supra-municipal level started in for the design of pedestrian and bicycle infrastructure (Szczecin functional 2020 on a voluntary basis, with the Mayor of Reșița Municipality playing a urban area). The decision to apply the developed metropolitan standards is leading role in the process of bringing together two municipalities and two fully voluntary. county councils, as well as national stakeholders. This approach has two main benefits: increasing the capacity of individual Functional approaches may also enable multi-level partnerships. To local governments to implement high-quality investments (in particular, for accelerate the development of green mobility, a partnership agreement was smaller municipalities), and developing the functional area as a ‘coherent signed between Reșița Municipality, Timișoara Municipality, Timiș County space’ that offers a comparable standard of living. The development Council, and Caraș-Severin County Council. The focus of the partnership and implementation of common standards for planning and investment was the modernization of the railway infrastructure between Reșița and processes can foster the achievement of the functional area development Timișoara, with a link to the international airport in Timișoara, and the goals through the joint development, promotion, and implementation of implementation of a ‘train-tram’. A subsequent agreement was signed to a certain quality of solutions by local governments and other stakeholders comply with legal requirements for the joint procurement of necessary within the framework of the existing legal conditions. documentation and accessing funding for the project. An additional For more information partnership agreement was signed with the Romanian Railway Company, Gdańsk-Gdynia-Sopot functional urban area. Metropolitan Landscape which provided support for the further development and implementation Standards. Available at: https://www.metropoliagdansk.pl/metropolitalne- of the project, as well as with the National Railway Reform Authority, to wiadomosci/koniec-reklamowych-smieci-w-metropolii/ carry out an investment assessment. Upper Silesian Metropolitan Association. Metropolitan Bicycle Standards. For more information Available at: https://bip.metropoliagzm.pl/artykul/34552/125426/ Functional areas in the EU. Partnership between Caraș Severin and Timiș standardy-i-wytyczne-ksztaltowania-infrastruktury-rowerow County Councils and Reșița and Timișoara Municipalities for investments in Gdańsk-Gdynia-Sopot functional urban area. Metropolitan Minimum railroad infrastructure in the region. Available at: https://functionalareas. Standard for Persons with Disabilities. Available at: https://www. eu/investments-in-railroad-infrastructure/ metropoliagdansk.pl/metropolitalne-wiadomosci/pierwsza-metropolia-w- Functional areas in the EU. Tram-Train network between Reșița – Timișoara. kraju-ze-standardem-dla-osob-z-niepelnosprawnosciami/ Available at: https://functionalareas.eu/tram-train-network/ 76 77 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY As highlighted earlier, functional area governance is highly diverse across For more information the EU, and shows that there is no ‘one-size-fits-all’ model for effective Brno Metropolitan Area. ITI Management Structure. Available at: https:// cooperation. Although there is no dedicated governance body with decision- metropolitni.brno.cz/en/zakladni-informace/ridici-struktura/ making powers and delegated responsibilities at the metropolitan level, Interreg. Strengthening metropolitan cooperation and governance in central the city of Brno has leveraged the use of integrated territorial investments Europe. Available at: https://www.interreg-central.eu/projects/mecog-ce/ to strengthen cooperation across the Brno Metropolitan Area. EVOLUTION AND STRUCTURE OF THE BARCELONA METROPOLITAN LEVERAGING ITI FOR PROMOTING METROPOLITAN GOVERNANCE AREA GOVERNANCE MODEL (BRNO METROPOLITAN AREA, CZECH REPUBLIC) (BARCELONA METROPOLITAN AREA, SPAIN) Cooperation efforts may take place outside of a dedicated legal governance The Barcelona Metropolitan Area is recognised as one of the most advanced body. Although the Brno Metropolitan Area lacks a legal status and decision- metropolitan governance models in the EU. The Barcelona Metropolitan making powers and competencies over the territory, it has a strong track Area comprises the city of Barcelona and 35 surrounding municipalities, record of joint project financing and implementation through the ITI with a population of over 3.2 million people. The key takeaways from the instrument. While the implementation of ITI was entrusted to the city of evolution of the governance of Barcelona Metropolitan Area are presented Brno, the governance of the metropolitan area focuses on the coordination briefly below. of activities in the delimited metropolitan territory based on a voluntary partnership between the city of Brno, municipalities in its hinterland and The current governance model of the Barcelona Metropolitan Area other stakeholders. evolved gradually based on an existing history of cooperation. Although the Barcelona Metropolitan Area was legally set up as a metropolitan Local governance structures may serve as an incubator for more authority in 2011, metropolitan cooperation has a longer track record, institutionalised metropolitan governance. Metropolitan governance with a regional urban development plan approved in 1953 by Barcelona’s is embedded within the Brno City Hall, through the Department of ITI Urban Planning Committee (the first metropolitan body, bringing together management and metropolitan cooperation, which coordinates the 27 municipalities), and a General Metropolitan Plan approved in 1976. implementation of the integrated strategy of Brno Metropolitan Area. This The current governance body consolidated three sectoral inter-municipal department is led by the ITI Manager, who works with his unit. The Steering metropolitan authorities created in 1987: the Union of Municipalities of Committee, which is an advisory political platform without legal rights over the Metropolitan Area of Barcelona, the Environmental Agency, and the the metropolitan territory, issues recommendations to the ITI Intermediate Metropolitan Transport Agency. Body (the city of Brno), local authorities, and statutory bodies of partners involved. The ITI management office plays an executive role in metropolitan The governance framework of Barcelona Metropolitan Area comprises cooperation and implementation of ITI. While cooperation was incentivised the Metropolitan Council, the Board of Governors, the Council of Mayors, through the ITI framework and priorities, the current objective of Brno and the Special Commission of Accounts. The Metropolitan Council is Metropolitan Area is to promote a metropolitan mindset in all development the highest governing body, with mayors and local councillors from each areas. municipality, acting as metropolitan councillors, representing citizens at the metropolitan-level governance structure. This Council oversees key functions The Brno Metropolitan Area has established working groups involving a like appointing the Barcelona Metropolitan Area president, approving the multi-stakeholder and multi-level approach, dedicated to themes such as Metropolitan Action Plan, passing ordinances and regulations, and setting sustainable mobility, environment, social issues, education, and horizontal rates for metropolitan services such as taxi or metropolitan transport. issues. These working groups analyse and design solutions for supra-local challenges. For example, the working group’s metropolitan approach The Board of Governors, comprising 13 metropolitan councillors along to mobility and transportation is materialised in the jointly developed with the president of Barcelona Metropolitan Area was created to facilitate Sustainable Urban Mobility Plan and the 2021+ Integrated Development efficient decision-making and its responsibilities are delegated by the Strategy and projects like transfer terminals, information systems or cycling Metropolitan Council and the president. This body convenes at least twice paths, as well as an integrated project including the modernisation of a bus a month and includes councillors appointed by the president upon proposal station, the construction of a tram lines and the replacement of underground by the Metropolitan Council. The Council of Mayors includes only the mayors utility infrastructure. from the 36 metropolitan municipalities, and the Special Commission of Accounts is responsible for overseeing the Barcelona Metropolitan Area’s Moreover, the Brno Metropolitan Area is the main promoter of metropolitan economic management. development in the Czech Republic and is currently the lead partner in implementing an Interreg project on strengthening metropolitan cooperation A functional area governance body may be established to coordinate and governance in Central Europe (MECOG-CE). integrated strategic planning and gradually expand its competencies. 78 79 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY In this sense, the mandate of the Barcelona Metropolitan Area has as ‘metropolitan cities’ aimed to institutionalise metropolitan cooperation. expanded over time from strategic and spatial planning to encompass water However, this led to complex territorial issues, particularly where provincial management, waste treatment, sustainability, mobility and transport, urban boundaries do not have a functional dimension, as in the case of functional planning, housing policies and development of public spaces, social policies, urban areas. Additionally, the failure of the 2016 constitutional referendum supporting economic growth and attracting investors, and international to abolish provinces, coupled with subsequent budget cuts, significantly relations and cooperation. The Barcelona Metropolitan Area has the legal impacted their institutional and financial structures. To address these authority to implement policies, plans, regulations, and projects across challenges, a new financial structure for provinces and metropolitan cities these domains, and its budget is composed of subsidies and transfers, fees, was established, enabling direct allocation from the state budget to finance and user charges, as well as its own taxes. fundamental functions, in a model like that applied to municipalities. For more information In terms of financing, Italy also implemented dedicated programmes Functional areas in the EU. Takeaways from the Knowledge Exchange on to support metropolitan cities, both in 2014-2020 (Multi-fund National Approaches to Strengthening Functional areas Governance. Available at: Operational Programme Metropolitan Cities) and 2021-2027 (Italian National https://functionalareas.eu/the-knowledge-exchange-on-approaches-to- Programme Metro Plus and Southern Medium-sized Cities 2021-2027, with strengthening-functional-area-governance/ a substantial budget of EUR 3 billion). For more information ADMINISTRATIVE REFORM TO ESTABLISH METROPOLITAN CITIES Italian Parliament. Metropolitan cities in Italy. Available at: https://temi. (ITALY) camera.it/leg19DIL/post/le-citt-metropolitane.html In Italy, metropolitan areas were institutionalised through the Law no. Italian Parliament. Tax policies of metropolitan cities and provinces. Available 56/2014, which established ten metropolitan cities: Turin, Milan, Venice, at: https://temi.camera.it/leg19DIL/temi/19_tl18_province-1.html Genoa, Bologna, Florence, Bari, Naples, Reggio Calabria, in addition to the Presidency of the Council of Ministers. Law no. 56/2014 - Provisions on metropolitan city of Rome. The area covered by the metropolitan city is the metropolitan cities, provinces, unions and mergers of municipalities. Available same as that of the corresponding province. According to OECD (2015), the at: https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:legge:2014;56 reform in Italy ‘must be seen in the context of a wider trend towards stronger OECD. Governing the Metropolitan City of Venice. 2015. Available at: https:// forms of metropolitan co-ordination’ identified globally. www.oecd-ilibrary.org/urban-rural-and-regional-development/governing- The law defined the metropolitan areas’ institutional purposes, including the-metropolitan-city-of-venice_9789264223592-en strategic development of their territory, integrated management of services and infrastructure, and fostering institutional relations at their level, including These diverse governance arrangements with differing degrees of with other European metropolitan areas. These metropolitan cities have formalisation demonstrate the importance of committed leadership in various functions, including those inherited from provinces, roles within building coalitions of the willing involving multiple stakeholders and levels the reorganisation process, and specific functions like strategic planning, of government, including municipalities, county councils and national territorial planning, public service management, mobility, economic and stakeholders for achieving common goals in the development of functional social development, and digitalization. Additional functions may be assigned areas. based on principles of subsidiarity, differentiation, and adequacy by the State or regions. How to build and maintain partnerships CHALLENGE 2 The metropolitan city governance body has three main organs: the at the functional area level? metropolitan mayor, the metropolitan council, and a metropolitan board (‘conferenza metropolitana’). The metropolitan mayor represents the entity Partnerships are the highest level of engagement between public and presides over the metropolitan council. The metropolitan council is representatives and various groups of stakeholders, building on the elected by the mayors and councillors of the municipalities forming part complementary processes of informing, consulting, and dialogue. Many EU- of ‘metropolitan city’, serving as the directing and supervisory body. The level documents and policies, including the Common Provisions Regulation board consists of the metropolitan mayor and mayors from constituent 2021-2027, the Pact of Amsterdam, the New Urban Agenda, the New municipalities and has powers related to the adoption of statutes and Leipzig Charter, and the ‘European code of conduct on partnership in the advisory functions regarding budget approval. framework of the European Structural and Investment Funds’ emphasise their value. The European code of conduct on partnership recognises that Understanding the limitations and challenges inherent in large-scale partnerships go beyond information, consultation and dialogue and involve administrative reforms is crucial for developing more adaptable and close cooperation with various stakeholders. The document also called for responsive governance models. The decision to designate certain provinces the formation of a European Community of Practice on Partnership with a 80 81 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY mission to enable exchanges of experience and stimulate capacity building, When applied at the functional area level, these tools contribute to which was launched in 2022. reducingthe risk of ‘democratic deficit’ of supra-municipal decisions and A well-designed participatory mechanism ensures the long-term increased awareness of the advantages of cooperation across administrative maintenance of partnerships with citizens, NGOs, academia, and the private boundaries among citizens, civil society, the private sector or academia. sector, for achieving shared objectives at the functional area level. This The Institute of International Sociology of Gorizia in Italy points out that a involves establishing a governance model that keeps public representatives partnership framework should include citizens’ representatives in permanent and other stakeholders regularly engaged. To ensure continuity of the committees or governance bodies and ensure adequate financing for partnerships, the model should ensure that different agendas and interests partnering with civil society in the different phases of decision making. are considered in decision making processes and inputs are followed up on. Figure 4. Partnership framework This section highlights tools for partnership building across the full cycle of decision making, as well as partnership models implemented at the functional area level. For instance, the city of Cluj-Napoca and the Cluj Metropolitan Area created an innovative stakeholder engagement platform and partnered with local universities, research institutes, NGOs, and various clusters to implement a Net Zero City Action Plan. The Jiu Valley Functional Area, established a partnership through a protocol of collaboration between all members of the area’s ITI association, including mayors, the County Council, the local university, the private sector and four local NGOs. An Interreg project piloted in several cities and functional areas in the EU created a model for partnering with citizens in mapping climate issues and planning joint actions. Lastly, the private sector is a key partner for improving quality of services, as highlighted by the pilot project for transforming secondary vocational training in several areas in Slovakia Source: Centre of Expertise for Good Governance, Institute of International and Poland. Sociology Gorizia For more information PHASES OF CIVIC PARTICIPATION AND PARTNERSHIP BUILDING Centre of Expertise for Good Governance, Institute of International Sociology Gorizia. Civil participation in decision-making toolkit. April 2020. Various actions can support stakeholder engagement across all phases Available at: https://rm.coe.int/civil-participation-in-decision-making- of decision making, from priority setting to policy tuning. The framework toolkit-/168075c1a5 below outlines these actions considering the four levels of civic participation (information, consultation, dialogue, and partnership). Functional areas in the EU. Beyond Governance. Towards partnership building. Available at: https://functionalareas.eu/wp-content/ In terms of information, a functional area body requires a uploads/2024/04/Beyond-Governance.-Towards-Building-Partnerships.pdf comprehensive communication plan for transparent and accessible communication at every stage of the decision-making process. Consultations involve methods for collecting feedback such as opinion ENABLING CONSULTATION, DIALOGUE, AND PARTNERSHIP BUILDING polls and focus groups for the purpose of gathering diverse perspectives (CLUJ METROPOLITAN AREA, ROMANIA) from key stakeholders, including experts. Follow-up meetings are essential to ensure ongoing communication, clarification of doubts, Cluj-Napoca and its metropolitan area established mechanisms to include and the exchange of ideas. To facilitate dialogue and involve citizens in stakeholders in the decision-making process for major projects and initiatives the design of solutions and project proposals at functional area level, aimed to meeting its climate ambitions. The city has been organising participatory budgeting since 2013 when citizens contributed ideas for various formats such as public hearings and events, and engaging revitalising and improving the quality of life in the largest neighbourhood citizens in public spending decisions through participatory budgeting, of the core city. In 2017, it established the Centre for Civic Innovation and working groups, participatory seminars, and co-creation methods are Imagination, a social innovation initiative that serves as the local lab for co- available. Partnerships, as the highest level of engagement, involve designing projects. The centre has no permanent location and is funded collaborative drafting of strategies and plans, joint decision making and by the municipal budget, costing the city EUR 10 000 - 15 000 in a month. implementation, as well as participatory monitoring and evaluation The centre enables citizens, civil society, experts, and representatives of the and policy adjustments. public administration to discuss solutions for the city and its metropolitan 82 83 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY area. The value of the initiative lies in going beyond ad-hoc consultations to Collaborative agreements between public representatives and stakeholders embed regular engagements with citizens, the private sector, academia, and from civil society, academia, NGOs, and the private sector can delineate experts into decision making, responsibilities and build trust. Similarly to establishing a coalition or a ‘civic innovation and imagination centre’, such agreements may ensure Stakeholder engagement initiatives established at the local level may continuity. be leveraged for the benefit of the functional area. The Centre for Civic Innovation and Imagination has evolved into an impactful metropolitan tool, serving to empower the civic community by providing a public space for sharing and debating ideas and large-scale projects within Cluj-Napoca and FORMALISING COLLABORATIVE GOVERNANCE ARRANGEMENTS TO the Cluj Metropolitan Area. For example, numerous NGOs in Cluj-Napoca DRIVE JUST TRANSITION and its metropolitan area have been advocating for the reintegration of the (JIU VALLEY FUNCTIONAL AREA, ROMANIA) Someș River into the urban fabric and creating a metropolitan blue-green The Association for Integrated Territorial Development of the Jiu Valley, a Just corridor through an independent initiative named Someș Delivery. Transition region in Romania is responsible for the implementation of the ITI Local authorities further developed the idea, turning it into a flagship project instrument and the Strategy for the Socio-Economic Development of the Jiu for the metropolitan area. In this context, the Centre for Civic Innovation Valley. A collaborative agreement was signed to establish the association, and Imagination organised five debates throughout the metropolitan area, including a wide range of stakeholders in the governance process. extending the centre’s impact and engagement beyond the boundaries of the Formalise partnerships to ensure continuity and strengthen a shared city. The investment, totalling EUR 35 million, aims to enhance citizens’ quality identity. The Association for Integrated Territorial Development of the Jiu of life along the Someș River through a shared space concept. This includes Valley was established by signing a formal protocol of collaboration between improving 16 km of pedestrian areas, expanding bike lanes by over 10 km, the mayors of six towns, the County Council, the local university, the private and increasing green spaces with the planting of over 2 000 trees (112 000 sector and four local NGOs, selected through a transparent process. This m2). The project also focuses on environmental sustainability, incorporating approach set the basis for strengthening the culture of partnership and 68 charging points for electric scooters and bicycles, eight charging stations building a shared identity centred on the area’s development directions as it for electric cars, intelligent lighting, and remote management. Most of the moves away from a coal-based economy. Civil society is continually involved funding comes from the 2014-2020 Regional Operational Programme. and supports the association’s work with feedback, ideas, and projects. Partnerships centred on climate change can be established to bring Support the community in implementing projects aligned with the positive change at the city and functional area levels. Building on the strong strategic objectives of the functional area. Aligned with the area’s legacy of consultation and dialogue, a partnership to implement the Net priorities identified in its integrated strategy, local civil society coordinated Zero City Action Plan at the functional area level was established in the form cultural events and street art interventions for the regeneration of former of a coalition, as part of the 100 Net Zero Cities Mission. As part of the Net coal mines and the rebranding of the area. Recurring events centred around Zero City planning process, local ecosystem actors such as representatives of street art interventions (‘Vibrant Jiu Valley’) were organised by a coalition of industrial clusters, universities, and NGOs signed a commitment document NGOs (‘Involved Jiu Valley’) in collaboration with three local administrations for the implementation of the action plan. In addition to its own projects or and the private sector (see Chapter 1 - Strategic focus). Street art provided investments, the coalition committed to support the climate objectives by a platform for exploratory discussions around the future of the Jiu Valley participating in projects in partnerships with the municipality. area and offered an opportunity for NGOs, citizens, businesses, and public officials to develop a stronger partnership. The projects also enabled the For more information community to take the first steps toward a new shared identity of the Functional areas in the EU. Someș Metropolitan Blue-Green Corridor – functional area and successfully transformed three neglected areas into Cluj Metropolitan Area. Available at: https://functionalareas.eu/somes- vibrant gathering spots and places of significance. Hence, they not only metropolitan-blue-green-corridor/ prevented the degradation and destruction of industrial heritage buildings, EBRD. Co-designing and co-creating urban solutions: Cluj-Napoca. Available but also promoted the broader strategic goals identified for the functional at: https://www.ebrdgreencities.com/policy-tool/co-designing-and-co- area. creating-urban-solutions-cluj-napoca-romania/#results-and-lessons- Develop coordinated actions to attract investors. Based on the protocol learned of collaboration and the active involvement of the local coalition of NGOs, Cluj-Napoca City Hall. Centre for Civic Innovation and Imagination. the area created a dedicated online platform to attract investors, providing Available at: https://primariaclujnapoca.ro/cetateni/centrul-de-inovare-si- practical information on available investment plots, local workforce, and imaginatie-civica/ other socio-economic data. In addition, local actors also facilitated business visits from potential investors represented by foreign commerce chambers. 84 85 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY For more information presence of fresh air. They also assessed the level of threat from the water Association for Integrated Territorial Development of the Jiu Valley. element, providing suggestions like natural reservoirs and watercourses, or Integrated Territorial Investments in the Jiului Valley. Available at: https:// devices/installations for collecting and storing water. The map covered areas www.valeajiului.eu/ with high risk of strong winds and those with good and bad air quality. For Invest in Jiu Valley. Jiu Valley Investor attraction platform. Available at: www. the latter category, suggestions included trees and green areas, presence of investinjiuvalley.com air pollution emitters, eliminating heavy transport beyond the city limits or inadequate policies and infrastructure restricting vehicular traffic. The Territorial Responsible Research and Innovation Fostering Innovative The challenges and proposed solutions, outlined on the map, are Climate Action (TeRRIFICA) tool presented below focuses on bringing in accessible as crowd mapping results (http://climatemapping.terrifica.eu/). the perspectives and experiences of citizens related to climate change and These outcomes were considered during both the diagnosis and solution building their competencies and interest in this topic. Specifically, this tool development phases to ensure comprehensive coverage of available and enables local authorities to collect citizens’ inputs on climate change issues pertinent inputs. and incorporate them into the decision-making process. For more information TeRRIFICA project. Available at: http://climatemapping.terrifica.eu/ INVOLVING CITIZENS IN MAPPING CLIMATE ISSUES (TERRIFICA PROJECT) The Territorial RRI Fostering Innovative Climate Action (TeRRIFICA) is a PARTNERING WITH THE PRIVATE SECTOR FOR STRENGTHENING crowd mapping tool to involve citizens in the process of identifying local ECONOMIC DEVELOPMENT THROUGH VOCATIONAL TRAINING climate issues and climate actions, which can be applied at the functional (KOŠICE, PREŠOV, AND BANSKÁ BYSTRICA SELF-GOVERNING REGIONS, scale. Citizens are invited to mark places on the map based on climate SLOVAKIA AND BIAŁYSTOK FUNCTIONAL AREA, POLAND) indicators (temperature, water, wind, air, and soil), designating positive Regional administrations in Slovakia partnered with municipalities, examples and areas affected by climate change. Recommendations for educational colleges, and private companies to enhance the performance improvement and optional comments/photos are encouraged. of Vocational Education and Training in the Košice, Prešov, and Banská Funded by Horizon 2020, the project focuses on bringing in the perspectives Bystrica self-governing regions in Slovakia. This resulted in the co-creation and experiences of people from various age groups related to climate change of comprehensive investment packages that addressed the needs of and building their competencies and interest in this area. The target public educational institutions and businesses. includes scientists, citizens, politicians, entrepreneurs, and teachers, with the Partnerships with the private sector should be informed by a sound aim to co-create solutions for the global issue of climate change. The project diagnosis of needs and challenges. The process started with an analysis of involved six pilot regions: 1) Barcelona Metropolitan Area, 2) Belgrade, 3) secondary vocational education across the regions. Based on the findings, Brittany, Normandy, and Pays de la Loire, 4) the Poznan Agglomeration, the partnership co-created solutions such as co-design of the curriculum, 5) Minsk and 6) Oldenburger Muensterland. The crowd mapping tool was placing equipment in Vocational Education and Training colleges that is like designed at a global scale and is open to inputs on an ongoing basis. The that used in workplaces and establishing open communication channels results of the crowd-mapping action within the project (mainly for the six between colleges, municipalities, the regional authorities, and employers. pilots) can be downloaded as a dataset from the project website. These measures were intended to enhance the quality of vocational This tool was applied by Kalisz-Ostrów Agglomeration (Poland) to support education. The project serves as a model of coordinated efforts among all the formulation of Climate Change Adaptation Plan for the Kalisz-Ostrów stakeholders at the functional area level, aimed to boosting local economic Agglomeration. A geo-survey was conducted using TeRRIFICA tool to identify development in regions that are falling behind. how the impact of climate change is perceived by the local community. It led Partnerships at the supra-local level are successful when involving all to better understanding of the public’s perception of the most significant relevant stakeholders in designing investments. In practice, the pilot problems related to climate change, opportunities for solving them, as well project in the Košice region started with the analysis phase, comprising as barriers. This tool was utilised during the diagnostic phase of the plan to surveys with employers and schools. The following activity was to select provide a thorough view on the region’s main challenges but also to receive the Vocational Education and Training schools based on readiness, potential solutions from the community. impact, and representativeness. Finally, the phase of developing the The users mapped the areas with and without thermal comfort during hot investment packages for each school was based on the strong collaboration weather, offering suggestions such as planting trees and expanding green between all stakeholders established at the beginning of the process, areas, natural water bodies, nature-based solutions or air flows and the which was followed by the approval phase. All three regions implemented 86 87 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY the same methodology of analysis, selection, development, and approval, How to foster knowledge development and resulting in 23 integrated investment packages, ranging from infrastructure administrative capacity building at the CHALLENGE 3 to increasing capacity within Vocational Education and Training schools. functional area level? Another example of successful partnership building to address the challenges of vocational education development at a functional area A wide range of EU knowledge and capacity-building opportunities are level is the Competence Centre project in Białystok Functional Area open to functional areas, and these are intended to contribute to improved (Poland). Implemented between 2017-2021 with ESF financing, this project supra-municipal governance and optimising the use of EU funds. In was conceived to coordinate the process of modernisation and adjustment particular, knowledge exchanges and peer learning facilitated at EU level of vocational education to the needs of the local labour market. During (e.g., European Urban Initiative - EUI or TAIEX REGIO Peer2Peer) have an project implementation, cyclical surveys of demand for competencies in 600 important role in transferring best practices and strengthening functional companies operating in the Białystok Functional Area were conducted to approaches. identify competency gaps that needed to be addressed through adequate In preparation for a knowledge exchange event dedicated to capacity changes in the educational offer of vocational schools in the area. 13 building tools and formats within the framework of the Functional areas vocational schools from across Białystok Functional Area were supported in the EU project, a survey was conducted in January 2024 by the World in preparing new educational programs corresponding to the diagnosed Bank team to better understand specific needs that functional areas competence gaps, including new curricula of specialised courses, internships, identify in this area. Based on responses submitted by 39 functional areas and apprenticeships. In collaboration with employers from the functional it was determined that all respondents unequivocally voiced the need for area, a novel system of validation and certification of professional skills was EU-level peer-to-peer networking between functional areas to exchange created and implemented. knowledge and design new solutions to be applied in functional area-level An additional outcome of the project is the development and application planning and implementation of development endeavours. of an innovative model of demand-oriented competence counselling. Specific topics where the functional areas’ representatives most evidently The model is integrated with the process of diagnosing the competence see the need for enhanced capacity include identification and application needs and gaps at company level. Roughly 3 000 students benefited from of financing options for functional areas, transport and mobility, climate the project, through participation in specialised vocational training or adaptation, accessibility and quality of public services, functional area qualifying vocational courses, competency-based internships at enterprises governance models and tools, as well as spatial planning. All these domains in the functional area, demand-oriented competence counselling. Teachers require a specific set of skills and competences to design and implement and vocational counsellors (ca. 130) took part in training in the field of successful initiatives at functional area-scale. Workshops, study visits competence counselling offered within the framework of the project. and thematic networks of practitioners and experts were identified as As a spin-off to the Competence Centre project, the ESF-financed Eco- preferred formats for effective capacity building. Competence Centre project (2021-2023) focused on diagnosing and At the same time, systemic capacity building efforts targeting functional addressing the competence needs of 200 companies operating in the areas are needed at the sub-national, national, and EU levels to equip functional area specifically in the area related to energy and resource functional areas with the necessary tools and knowledge for strategic management. Apart from designing and implementing a targeted counselling planning and the implementation of integrated investments. Even in system for students, introducing an eco-competence certification and new the absence of systemic approaches to supra-local capacity building, educational programs, strengthening eco-competence of teachers, the such efforts may be initiated at the municipal or functional area level in project was also instrumental in initiating collaboration with universities and partnership with local universities or research centres, as in the case of creating two Eco-Competence Laboratories. 14 vocational schools from the Polish functional areas. functional area took part in the project that benefitted ca. 500 students. Functional areas are also faced with major disparities in capacity between For more information larger and smaller municipalities of the functional area, which limit the World Bank. Slovakia Catching-up Regions Initiative. 2018. Available at: opportunity for joint investments and ensuring a balanced territorial https://www.worldbank.org/en/region/eca/publication/slovakia-catching- development. To respond to this stringent need, Oradea Metropolitan Area up-regions consistently supported smaller member municipalities in filling capacity gaps, by sharing existing expertise in EU funding or strategic planning. Moreover, networks focused on capacity building and peer learning may also strengthen the channels of communication that can enable functional areas to voice the needs, concerns, and insights to national and EU levels 88 89 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY of policymaking. Over the course of two years, the Functional areas in urban actors with knowledge, individuals, and initiatives aimed to the EU project also established an informal network of functional areas, achieving sustainable urban development in Europe. The platform is through regular knowledge exchange events, which also supported direct built on three pillars: Knowledge Hub, Urban Panorama and Community. engagement of functional area representatives with EU institutions. For more information: https://www.urban-initiative.eu/portico/. Building on the network created within the project, establishing a TAIEX-REGIO Peer2Peer (Technical Assistance and Information Peer2Peer Community of functional areas can significantly improve the Exchange) facilitates short-term knowledge exchanges between visibility and scale-up of functional approaches, allowing them to engage cohesion policy experts and administrations involved in the with EU institutions. Such a formalised community can support EU wide management of the European Regional Development Fund and networking and joint problem solving and ensure that diverse regional Cohesion Fund in all Member States. Managing authorities and needs and perspectives are effectively integrated into EU policymaking. intermediate bodies implementing territorial instruments and other The section below provides a selection of knowledge networks and relevant stakeholders may participate in TAIEX. The website also capacity-building programmes that are highly relevant for strengthening features a searchable database of past exchanges and their thematic functional approaches across the EU. Public representatives are encouraged focus. For more information: https://neighbourhood-enlargement. to access these opportunities to gain insights that can inform policy making, ec.europa.eu/funding-and-technical-assistance/taiex_en. transfer know-how, and showcase lessons learned and challenges with ESPON (European Spatial Planning Observation Network) was their peers across different functional areas. Functional area development established in 2002 and is an EU-funded program that provides may be a thematic focus chosen by participants when setting the agenda territorial analysis for policymaking. It has developed several targeted for the exchange opportunities below. analyses and tools dedicated to functional approaches. For more European Urban Initiative (EUI) aims to support cities by building information: https://www.espon.eu/. their capacity and knowledge, fostering innovation, and developing METREX (Network of European Metropolitan Regions and Areas) scalable and transferable solutions to urban challenges of EU connects 50 metropolitan regions in Europe and organises regular relevance. events, including bi-annual conferences. It emphasises the role of Peer-learning activities provide targeted, short-term support and metropolitan regions in addressing increasingly critical challenges facilitate the exchange of knowledge, good practices, and solutions. like climate change and migration. A Manifesto for Metropolitan Partnerships was launched in November 2023 calling for a greater say ◊ City2City Exchanges: arrangements between a ‘host city’ and on metropolitan areas in EU policy design, a dedicated ‘metropolitan a ‘requesting city’, where civil servants visit and learn on new programme’, as well as for capacity building for metropolitan working methods and innovative approaches on a specific topic governance. For more information: https://www.eurometrex.org/. linked to sustainable urban development. Eligibility criteria are detailed in the Guidance for Applicants: https://www.urban- METROPOLIS (World Association of the Major Metropolises) initiative.eu/capacity-building/pilot-call-c2c-exchanges is a global network that includes 141 local and metropolitan governments and focuses on strengthening metropolitan governance. ◊ Peer reviews: workshops in which cities will be peer reviewed The Metropolis Observatory tracks global data on metropolitan by other cities and relevant stakeholders. Workshops can be development, researching emerging concerns and best practices. For organised for cities if the content is specific to a local needs more information: https://www.metropolis.org/. and challenges of cities or can be transnational with cities from different member states). Eligibility criteria are detailed in the Policy Learning Platform of Interreg Europe provides access to Guidance for Applicants: https://www.urban-initiative.eu/ knowledge and expertise generated by Interreg projects, from capacity-building/call-peers-2 thematic publications, an online good practice database to an interactive community of peers and individualised expert services. It Capacity building events are a follow-up of the Urban Development offers peer review and matchmaking activities. For more information: Network, enable cities to improve their capacity to design and https://www.interregeurope.eu/peer-review/. implement sustainable urban development strategies. Just Transition Platform Groundwork provides tailored capacity For more information: https://www.urban-initiative.eu/capacity-building. building and advisory support to regions with approved Territorial Portico (European Urban Initiative knowledge platform) is a tool Just Transition Plans. For more information: https://ec.europa.eu/ launched in 2023, aiming to support better policy and strategy regional_policy/whats-new/newsroom/02-06-2023-apply-for-just- design, implementation, and mainstreaming of sustainable urban transition-platform-groundwork-new-technical-assistance-for-just- development. Serving as a gateway to urban learning, it connects transition-fund-regions_en. 90 91 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY Scalable Cities Peer-to-Peer Learning Programme is a network of effective and impactful interventions financed from the EU cohesion policy 120 cities that enables them to share knowledge, and experiences funds and beyond. Through this initiative, functional urban areas also and provide expert support to overcome barriers and challenges aim to strengthen the dialogue with central and regional administration related to the implementation of smart city solutions. It offers expert and enable mutual learning across levels of government. The provision of reviews, expert missions, and site visits. For more information: https:// expert advisory support within the defined thematic areas of key interest smart-cities-marketplace.ec.europa.eu/p2plearningprogramme/. to functional urban areas (e.g., energy efficiency, spatial planning, transport and mobility, management, and data collection) will allow for designing These platforms and programs offer a range of services from policy analysis and testing model solutions to be adopted by the broader community of to peer-to-peer learning and technical assistance, serving as vital resources functional urban areas. to improve functional area governance and administrative capacity. Awards and networks across the EU are another valuable opportunity to accelerate Local administrations with higher capacity may also provide direct support learning and acknowledge achievements across various policy areas. to other municipalities in the functional area. For instance, the city of Networks such as the Covenant of Mayors for Climate and Energy, Oradea and the governance body of the Oradea Metropolitan Area took Creative Cities, Eurocities, UNESCO Global Network of Learning Cities, or the role of sharing expertise and providing technical support to smaller the European Healthy Cities Network offer valuable opportunities for peer municipalities. Offering this type of technical support has become a learning. To acknowledge achievements and support continual learning, common practice within the metropolitan association, contributing to a variety of awards and titles are open to cities across the EU, including increased administrative efficiency. the European Capital of Culture, European Green Capital Award, European Youth Capital, European Capital of Smart Tourism or the European Capital SUPPORTING MUNICIPALITIES WITH CONSTRAINED of Innovation. For more information: https://functionalareas.eu/solutions- ADMINISTRATIVE AND TECHNICAL CAPACITY for-functional-areas/. (ORADEA METROPOLITAN AREA, ROMANIA) The Oradea Metropolitan Area has been proactive in extending its mandate SYSTEMIC CAPACITY BUILDING INITIATIVE FOR FUNCTIONAL URBAN AREAS even in the absence of dedicated legislation on metropolitan areas. The (POLAND) Association supports member localities in their planning, preparation, and Several initiatives for developing the capacity of functional area implementation efforts, showcasing the benefits of strong leadership and a governance bodies were launched in Poland. For instance, the Rzeszów metropolitan vision. functional area’s Academy of Spatial Planning aims to strengthen the Addressing disparities in administrative capacity across member competences of municipal administration in the domain of spatial planning. municipalities may benefit from expertise already formed within a larger It included one edition of post-graduate studies programme for spatial municipality (or core city, in the case of functional urban areas). The active planners from the municipalities of Rzeszów functional urban area offered involvement to share expertise derives from a common understanding that by the Warsaw University of Technology, as well as dedicated training on the development of Oradea is intrinsically linked with the development the QGIS GIS software to support spatial planning processes. Similarly, the of its metropolitan area, and vice versa. Therefore, the metropolitan area Kraków Metropolitan Area employs thematic forums supported by external addressed the lower administrative and technical capacity at the local level experts to enhance municipal knowledge. Another noteworthy example through various forms of partnerships and associations, with the aim of is the Kalisz-Ostrów Agglomeration, which, in partnership with Kalisz generating a visible impact and supporting the sustainable development of University, has launched an MBA program tailored to the needs of municipal the area. representatives, focusing on strategic planning and integrated investments The Oradea Metropolitan Area offered technical support to increase within the functional area. the capacity of smaller municipalities to prepare and implement EU- Recognising the need for targeted, systemic capacity building, several funded projects. Technical support provided to member localities covered functional urban areas in Poland partnered for designing a comprehensive needs analysis, funding identification, and project execution, significantly multi-annual capacity building program for a larger group of functional improving the success rate of European funding applications. areas. A group of functional urban areas of regional capitals in Poland Smaller municipalities often lack the resources and expertise needed to (Warsaw, Białystok, Wrocław, Kraków, Rzeszów, Lublin Functional Areas) navigate the complexities of EU funding applications. With technical support has been working on a proposal for a joint project to be financed from the national Technical Assistance programme 2021-2027. It aims to create from the metropolitan association, they gain access to professionals who a learning platform to support and stimulate the exchange of knowledge can provide guidance and assistance throughout the process. The Oradea and good practices among the functional urban areas in Poland, which will Metropolitan Area supports smaller municipalities with identifying their contribute to increasing their institutional capacity to plan and implement specific needs and prioritise projects that are most aligned with their development goals. This ensures that limited resources are allocated 92 93 CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY efficiently towards initiatives with the highest potential impact. The RECOMMENDATIONS metropolitan area is also encouraging member municipalities to apply for EU funding with ongoing and initiated projects rather than entirely new investment proposals, which has largely improved the success of the 1. Develop an integrated strategy for the functional area, gradually expanding applications. Member municipalities may sign partnership agreements with the governance body’s realm of competencies to areas such as mobility, the metropolitan association, through which municipalities may delegate spatial planning, public service provision, or economic development. project preparation responsibilities to the association. Besides the technical Functional area governance models range from informal coordination to expertise offered, the Oradea Metropolitan Area association periodically new tiers of government with legal powers. When establishing a governance organises trainings for employees of the 12 local administrations (mainly on body, the aim is to provide a working framework for continual cooperation project management and public procurement, as well as IT). that responds to specific needs and is fine tuned to the current stage of collaboration and national administrative context. 2. Establish stakeholder engagement frameworks that provide a structured basis for cooperation with diverse stakeholders (citizens, civil society, academia, NGOs, and the private sector). Strengthen the shared identity among functional area representatives and stakeholders through regular dialogue and joint initiatives. By institutionalising partnerships, you create a foundation for sustained collaboration, ensuring that diverse perspectives feed into decision-making processes. Engagement tools should be used across the decision-making and planning cycle - from identifying priorities and the formulation of the integrated strategy, to its implementation, monitoring, and evaluation. 3. Make use of available knowledge and capacity-building instruments and networks to strengthen functional approaches and optimise the use of EU funds, while also addressing disparities in administrative capacity and development levels of municipalities part of the functional area. Access programmes and initiatives that enable peer to peer learning and exchanges between municipalities or groupings of municipalities. Explore opportunities for increasing technical and administrative capacity of smaller municipalities of the functional area, setting up a framework for exchanging best practices and providing technical support. 94 REFERENCES 24. Functional areas in the EU. Partnership between Caraș Severin and Timiș County Councils and Reșița and CHAPTER 3. GOVERNANCE AND ADMINISTRATIVE CAPACITY Timișoara Municipalities for investments in railroad infrastructure in the region. Available at: https:// functionalareas.eu/investments-in-railroad-infrastructure/ 1. Ahrend, R., C. Gamper and A. Schumann. The OECD Metropolitan Governance Survey: A Quantitative Description of Governance Structures in large Urban Agglomerations. OECD Regional Development 25. Functional areas in the EU. 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This coordination is crucial for addressing multi-dimensional challenges that cut across multiple sectors (climate change or just energy transition). Cross-sectoral integration is grounded in the fact that analysing the broader The benefits of cross-sectoral integration include the coherence of picture and working together across different sectors can better address objectives, alignment in priorities and timeframes, fostering collaboration challenges than taking a unilateral approach. In the framework of cohesion among different departments and across various levels for the co-design and policy, integration is defined by three dimensions that contribute to higher implementation of policies (Handbook of Sustainable Urban Development efficiency, cooperation, and resource optimisation: integration between Strategies). policy areas, levels of government and stakeholders, and across territorial At the functional area scale, cross-sectoral integration is the driver for scales. solving multi-dimensional issues that span administrative boundaries in a This Chapter focuses on the first dimension of integration, aiming to break comprehensive manner, extending beyond the responsibility of a sectoral the silos between policy areas to ensure more effective and impactful department or the jurisdiction of a local authority. For instance, in the interventions. It provides tools and practical insights to inform integrated context of climate change, effective strategies and projects increasingly planning processes and the design of integrated projects. Moreover, several require coordination between departments such as urban planning, complementary tools, and insights into how to overcome fragmentation in mobility, public services, housing. Moreover, cross-sectoral integration decision-making and funding are showcased in Chapter 3 - Governance and serves as a proactive mechanism to anticipate and address potential impact administrative capacity and Chapter 5 - Funding and finance. of negative externalities caused by the development of one territory (e.g., a large city) over the others. DIMENSIONS OF INTEGRATION IN THE FRAMEWORK Integrated strategies supporting the functional approach should identify OF EU COHESION POLICY interlinkages that may not be evident or possible to address at the level Integration across different territorial scales and of single administrative territorial units (see Chapter 1 - Strategic focus). areas (territorial integration): Territorial integration While Chapter 1 - Strategic focus of this toolkit offers practical insights and ensures that policies are tailored to these specific tools for preparing an integrated strategy, including the identification of contexts, enabling them to effectively address synergies between projects, this chapter focuses on how cross-sectoral local needs while contributing to broader cross- integration can be further facilitated in specific policy areas, focusing on the jurisdictional goals. It ensures the complementarity of potential of spatial planning, and planning for climate change to mobilise actions of various administrative units and enhances actors across multiple sectors, in alignment with the integrated strategy of their effectiveness and efficiency (e.g. by identifying the functional area. synergies and eliminating duplicative investments). It then dives into the design of cross-sectoral, integrated projects, showcasing the values of the New European Bauhaus initiative, which Integration between different levels of government aims to combine the values of sustainability, aesthetics, and inclusion in and stakeholders (multi-level governance, also the context of the Green Deal. referred to as vertical integration, and multi- stakeholder governance): This refers to the alignment Finally, the chapter provides insights into integrated approaches at the and cooperation between different levels of neighbourhood scale, as regenerating apartment-block neighbourhoods is government (local, regional, national, and European). increasingly relevant in functional urban areas dealing with urban sprawl. Such integration ensures that policies are coherent and consistent across these levels, facilitating effective implementation and avoiding conflicts or duplication of efforts. 98 99 CHAPTER 4. CROSS-SECTORAL INTEGRATION CHALLENGE 1 How to support a cross-sectoral approach a dedicated study program on urban development and spatial planning, at functional area level? • establishment of a permanent body (expert team) made of all The consultation with the participants in the Functional areas in the EU Rzeszow functional urban area partners to implement the Spatial project identified three major opportunities of supporting cross-sectoral Development Strategy, and integration at the functional area level: spatial planning (aligned with • upgrading Rzeszow functional urban area municipalities’ IT integrated strategic planning), planning for climate change, and sustainable infrastructure related to spatial planning. urban mobility planning. The tools and practical insights detailed below As a result of a two-year project involving ESF financing provided under were selected for their relevance in enabling cross-sectoral integration the national operational Knowledge, Education, Development Programme and strengthening the functional area approach, and reflect the targeted 2014-2020, the Rzeszow Functional Urban Area trained more than 30 staff, support offered within the project. replaced outdated IT and printing equipment, created the most detailed GIS Spatial planning database of functional urban area that exists in Poland, conducted a number of plot-level analyses for the entire Rzeszow functional urban area, many of Spatial planning is one of the areas where the functional area approach which were prepared for the first time for the entire area. This led to the yields significant benefits. It enables functional areas to coordinate Spatial Development Strategy that was formally adopted by all municipal sectoral policies on land use beyond administrative boundaries, setting the councils and the regional parliament in early 2023. Even though the Spatial foundation for sustainable development and limiting urban sprawl (e.g., Development Strategy is not legally binding, it was the first step to develop improvement of metropolitan mobility and access to services, strategic the functional urban area-level collaboration in spatial planning. location of investments, development of green-blue infrastructure, identification of areas exposed to natural risks). The Spatial Development The Spatial Development Strategy formulates a joint vision and objectives Strategy prepared by the Rzeszow Functional Urban Area, Poland, is a good for the spatial development of the Rzeszow functional urban area, based on example in this sense. the following elements: • the Spatial Development Strategy identifies Rzeszow functional urban area’s strategic development areas agreed upon as the most important for the sustainable development of the area, INTEGRATED SPATIAL DEVELOPMENT STRATEGY AT THE FUNCTIONAL URBAN AREA LEVEL • it promotes key spatial development priorities, for instance the development of a blue-green axis along (RZESZOW FUNCTIONAL URBAN AREA, POLAND) the Wislok river that cuts across the Rzeszow functional In collaboration with the Rzeszow functional urban area association urban area or the protection of ecological corridors, established in the context of implementing the ITI strategy, 13 municipalities • it promotes sustainable and low-carbon spatial development that made up Rzeszow functional urban area in 2021 (almost 400 000 (densification, brownfield redevelopment, low-emission transport inhabitants, 1 000 km2, since then the Rzeszow functional urban area corridors, development along railroads), has grown by two more municipalities, and it is currently composed of 15 • it institutionalises the expert team that is responsible for the spatial municipalities), and under the lead of the Podkarpackie Region Marshal’s development process and final output. Office (regional authority) decided to prepare the first ever Spatial Development Strategy for the entire functional urban area. For more information Rzeszow Functional Urban Area. Spatial development strategy. Available The key premise of this endeavour was that a well-planned territory attracts at: https://rof.org.pl/wp-content/uploads/2024/01/SP-ROF-zasady- talent and investments through higher quality of life (affordable housing, uchwalona-na-zarz%C4%85dzie-WP-w-dniu-20-09-23._Optimized.pdf natural capital, social cohesion, quality of public services - transport, health, and education, leisure activities and local cultural offerings) and thus Presentation of the Rzeszow Functional Urban Area: https://www. contribute to socio-economic growth of the entire area. geoportalksk.sk/home/wp-content/uploads/2023/12/4_Spatial_ development_strategy_of_Rzeszow_FUA.pdf The Rzeszow Functional Urban Area partners approached the spatial planning effort in a comprehensive manner that rest on four pillars: Geographic information systems (GIS) databases can help visualise and • participatory process of Spatial Development Strategy preparation analyse complex spatial data and can support alignment between spatial based on detailed spatial analytics and municipal development and strategic planning. objectives, Based on available GIS data, Land Suitability Analysis is a practical tool to • capacity building of Rzeszow functional urban area staff through guide investment decisions. 100 101 CHAPTER 4. CROSS-SECTORAL INTEGRATION Figure 5. Integrated spatial analysis framework: from data collection to GIS databases can also support sustainable development by providing decision making data and tools for analysing environmental factors such as water quality, air pollution, and habitat fragmentation to identify areas that require protection and conservation through cross-sectoral cooperation. For example, a natural area, such as Lake Balaton is highly exposed to environmental risks, demographic decline and ageing, and tourism seasonality. Therefore, such areas require coordinated action across several sectors such as waste Decision making management, shoreline regulation, economic development, and tourism to and planning Address community needs promote a high quality of life and preservation of biodiversity. and environmental challenges based on data Finally, GIS can enhance stakeholder engagement in the planning process Integration of Findings (citizens and all actors involved in urban and regional planning) by offering Identify opportunities and challenges a common platform for accessing, analysing, and visualising data and based on LSA and GIS data � providing feedback. For instance, users of the map can identify where the metro route intersects with the metropolitan beltway or check if their rural Land Suitability Analysis property is situated within a protected area or not. Examples of possible analysis based on GIS data include land use, land cover, industrial and logistics areas, as well as commercial and retail sectors, land value or demographic studies For more information GIS Mapping Amsterdam City. City data. Available at: https://www.iamsterdam.com/en/ Exemples of possible data categories include: Environment, Social Accesibility, Infrastructure, Demography, Economy, Entertainment, Geography, Administrative, business/startupamsterdam/insights-interviews/city-data Built Area, Population, Cadaster, Natural risks, Transport Infrastructure, or Cycling and Pedestrian. This list was made based on the Cluj Metropolitan GIS Database Barcelona Metropolitan Area. Cartography geoportal. Available at: https://geoportalcartografia.amb.cat/AppGeoportalCartografia2/index. Data Collection html?locale=en Data on land use, environmental factors, infrastructure and socioeconomic indicators Berlin City. Geoportal. Available at: https://www.berlin.de/sen/sbw/ stadtdaten/geoportal/ Helsinki City. City maps and GIS. Available at: https://www.hel.fi/en/ GIS DATABASES AND PLATFORMS decision-making/information-on-helsinki/city-maps-and-gis GIS can help streamline the planning process by integrating data from Prague City. Geographical data and maps of the city of Prague. Available at: different sources and thematic areas thus supporting cross-sectoral https://www.geoportalpraha.cz/en decisions-making. It enables layering and visualisation of data that cover Torino City. Geoportal Maps for the territory. Available at: http:// social, environmental, economic, or territorial issues. A GIS database geoportale.comune.torino.it/web/ allows planners and decision-makers to access and analyse extensive Vienna City. Geographical Information System (ViennaGIS). Available at: spatial data, which can help understand how different trends impact on https://www.wien.gv.at/english/viennagis/ each other, such as population density, land use, and environmental factors (e.g., areas prone to flooding or landslides). For example, overlapping the layer of school accessibility with the layer of public transport catchment areas can help identify the areas where new public transport stops are needed. Similarly, overlapping the network of GIS DATABASES FOR INTEGRATED FUNCTIONAL AREA PLANNING supermarkets or health care centres with the network of public transport (ZAGREB URBAN AGGLOMERATION, CROATIA; CLUJ METROPOLITAN infrastructure can help identify areas with limited access to affordable and AREA, ROMANIA; CONSTANȚA METROPOLITAN AREA, ROMANIA) nutritious food or areas with poor accessibility to health services. During the Functional areas in the EU project, two GIS databases were created Most major cities in the EU (e.g., Vienna, Prague, Amsterdam, Berlin, to support functional area approaches, allowing planners from Zagreb Urban Torino, Helsinki, etc.) have developed GIS databases to inform strategic and Agglomeration and Cluj Metropolitan Area to visualise and analyse complex spatial planning, with increasing examples of such databases at functional spatial data. The example from Constanța Metropolitan Area showcases area scale. The Barcelona Metropolitan Area developed a Cartography how having a GIS database supported planning and investments attraction. Geoportal with various layers, including land use delimitations, street maps and territorial 3D models that can be accessed by all interested users. In the case of the Zagreb Urban Agglomeration, established in 2016 in the framework of ITI, the GIS database and platform allowed for informed 102 103 CHAPTER 4. CROSS-SECTORAL INTEGRATION decision-making during the preparation of the new Zagreb Urban • land suitability analysis (e.g., development Agglomeration Development Strategy for the period up to 2027. potential for industrial and logistics activities, commercial and retail spaces) The metropolitan GIS database includes several standardised analytical maps that cover: • transport (e.g., rail infrastructure, bypass belts, traffic forecast for 2030), cycling & • environment (e.g., protected areas, surface pedestrian infrastructure. temperature, forest cover) These categories are then subdivided into more specific subdomains and • social accessibility (e.g., walking distance to the GIS database includes both existing and proposed infrastructure. The education, health, or social amnesties) launch of the platform triggered a high interest from users, with over • infrastructure (e.g., public transport and 100 000 maps generated within 48 hours. Moreover, local universities have population density, road network, walkability) provided additional layers of data to be integrated into the platform. • demography and economy (e.g., population Figure 6. Proposed green spaces, built up areas and educational units density, retail and commercial amenities) (Cluj Metropolitan Area) • entertainment (e.g., cultural amenities) • geography (e.g., elevation, slope). Cross-sectoral integration was enabled through the analysis of several layers concerning different sectors, feeding directly into the planning process. For example, the Zagreb Urban Agglomeration was able to analyse needs related to public transport by overlaying public transport accessibility with population density as well as the location of educational and health services. The GIS platform also informed the dialogue with member municipalities on investment projects of metropolitan significance. The GIS database and platform developed for the Cluj Metropolitan Area allows decision makers to visualise and analyse complex spatial data, structured in the following categories: • environment (e.g., protected areas, surface temperature, forest cover, cropland) • social accessibility (e.g., walking distance to education, health, or social amnesties) • infrastructure (e.g., public transport and population density, road network, walkability, Source: Cluj Metropolitan Area electric charging stations) • demography & economy (e.g., population The GIS database was used to facilitate the dialogue initiated by the density, retail and commercial amenities, metropolitan area governance body with the Cluj County Council, the city urban marginalised areas) of Cluj-Napoca and the member municipalities, to advance the works for developing a metropolitan green belt. In this case, the database offered a • entertainment (e.g., cultural amenities, sports, visual basis for meaningful discussions with municipalities impacted by the and leisure) project. The spatial representation of this metropolitan project informed, • geography (e.g., elevation, slope) on the one hand, the preparation of General Urban Plans for the peri-urban • administrative (e.g., local administrative units, localities impacted by the project (two of the localities have the General metropolitan area boundary) Urban Plans under preparation), and they also inspired complementary • built area & population (e.g., population public interventions in individual localities (e.g., new parks, new bike paths, density scenarios), cadastre (e.g., built/ new areas proposed for urban regeneration). The GIS platform goes beyond buildable areas) generic discussions and is also used to guide metropolitan development, • natural risks (e.g., landslides, significant flood showing all major projects proposed, from a blue-green corridor to the potential) metropolitan train and subway. 104 105 CHAPTER 4. CROSS-SECTORAL INTEGRATION Constanța Metropolitan Area developed its metropolitan GIS database LAND SUITABILITY ANALYSIS METHODOLOGY and its metropolitan integrated urban development strategy in parallel. This has allowed the team in the Constanța City Hall to identify the strategic The Land Suitability Analysis is a practical tool for informed strategic development areas in the metropolitan area, as well as needed public and spatial planning decisions, enabling a cross-sectoral approach to infrastructure and utilities to make these areas attractive for potential development needs and potential of a functional area. A methodology for investors. With this information at hand, the team in Constanța was much Land Suitability Analysis developed by the World Bank and scaled up as more efficient in prioritising public infrastructure investments (including part of the Functional areas in the EU project. those from EU funds), and it provided a basis for concrete discussions on The methodology requires access to comprehensive cadastre data, potential projects by the private sector. This approach allowed the city hall knowledge of geographic information system tools, basic programming skills to attract a large retailer in Constanța during its participation at ExpoReal in and computing power to analyse large volumes of data. The methodology Munich (the largest trade fair for real estate and investment in Europe) and relies on several layers of data, such as: it has recently finalised negotiations with a large developer for a massive • cadastre data, which provides information on delineation of land brownfield redevelopment project, located close to the city centre. The plots, including developable areas. Therefore, having a complete and redevelopment project is estimated to mobilise around EUR 850 million. up-to-date cadastre database is necessary for accurate analysis. The database has been used internally and is not yet transposed into an • data on public land plots (areas owned by local or regional public interactive model, due to its complexity. administrations). This information helps identify strategic investment For more information opportunities. Cluj Metropolitan Area. GIS database. Available at: https://beta.getlayer. • undevelopable plots or plots with development restrictions, such as xyz/cluj flood-prone areas, natural preserves, or agricultural lands. This data is Zagreb Urban Agglomeration. GIS database. Available at: https://beta. essential for considering constraints and limitations in development getlayer.xyz/zagreb/ planning. Further important datasets may also include transport infrastructure (road, railway, airport), utilities (water, wastewater, electricity, gas, district heating GIS databases may be used for more advanced analytical processes, such networks), social and health care facilities. The richer and more exact the as the Land Suitability Analysis. The following section provides practical dataset is, the more specific the results of Land Suitability Analysis will be. insights for functional areas interested in applying this analysis to inform Parameters for analysis can include factors like proximity to existing roads or cross-sectoral decisions related to land use (e.g., retail, logistics, industrial, urban centres, plot size, and shape. These parameters can be refined based office, housing). on specific development types, such as industrial, retail, office, housing, The Land Suitability Analysis is a tool that supports the alignment between environmental, tourism, and recreation. Additional filters can be introduced spatial and strategic planning, by identifying areas that are suitable for to further customise the analysis. As more data becomes available or more particular types of development and enables cross-sectoral integration by detailed analyses are required, additional parameters can be introduced or offering data-based insights for development needs that impact several adjusted. sectors. A key benefit of applying Land Suitability Analysis resides in As part of the Functional areas in the EU project, a Land Suitability Analysis the identification of strategic development areas that can enhance the was applied in the Brno Metropolitan Area, to identify strategically located competitiveness and sustainability of a functional area. It also facilitates the land and match this to appropriate land uses to support the objectives of visualisation of spatial data encompassing multiple variables, which is critical the integrated development strategy for 2021+. Several GIS data layers for informed strategic planning decisions. For example, a land suitability were required to perform the analysis, including cadastre data, building analysis might identify areas that are fit for commercial development based footprints, land use and land cover (existing and proposed), protected on factors such as proximity to transportation infrastructure, population and risk areas, general urban spatial plan, existing and proposed transport density, and access to resources like water and energy. Moreover, the Land infrastructure, technical infrastructure (water, wastewater, electricity, Suitability Analysis helps identify floodable areas or areas with landslides, gas), public facilities (education, healthcare, public transportation), as which are not suitable for residential or certain economic uses. well as geolocated data of main economic actors. As a result, the analysis summarised and visualised all the data collected, processed, and integrated in a centralised geodatabase. It is important to note that access to granular data is a key requirement for Land Suitability Analysis, and cooperation with regional and national authorities and statistical offices, as well as local universities and research centres is needed. 106 107 CHAPTER 4. CROSS-SECTORAL INTEGRATION Land Suitability Analysis was also performed for the Zagreb Urban NET ZERO CITY ACTION PLAN Agglomeration. The Zagreb City Hall was particularly interested in identifying (CLUJ METROPOLITAN AREA, ROMANIA) additional land parcels that could be used to develop social housing within the Zagreb Urban Agglomeration. Moreover, an analysis was undertaken Developed as part of the ‘100 Climate Neutral Cities by 2030’ Mission, the to determine the potential population that could be accommodated by Net Zero City Action Plan for Cluj-Napoca and the wider Cluj Metropolitan the land parcels with the highest suitability for residential development. Area exemplifies a forward-thinking approach to climate change, particularly Following the analysis, it was determined that between 4.8 million to 19.2 through its metropolitan focus. It underscores the necessity for integrated, data-driven approaches that transcend administrative boundaries to million additional people could potentially be accommodated in the areas accelerate the transition to climate neutrality. with the highest suitability. Apply the functional area scale for planning efficient climate actions. Figure 7. Land Suitability Analysis for residential developments Benefitting from support from the Functional areas in the EU project, Cluj- (Zagreb Urban Agglomeration) Napoca developed its Climate Neutrality Action Plan with a metropolitan focus, including soft measures (such as compact metropolitan planning and improved regulations and fiscal improvement initiatives related to climate neutrality), and large infrastructure projects (a metropolitan green belt, a blue-green corridor along the Someș river, sustainable transportation including metropolitan train and metro line, integrated urban regeneration of apartment block neighbourhoods, and the development of a network of electric car charging stations across the metropolitan area). The 2030 Climate Neutrality Action Plan is accompanied by an Investment Plan and the formal commitments of local stakeholders to implement it. Build on the integrated development strategy and existing plans at the functional area level. The Action Plan was drafted starting from the existing Integrated Urban Development Strategy of the Cluj-Napoca and Cluj Metropolitan Area for 2021-2030 and the Sustainable Energy and Climate Action Plan for 2030. Aligning joint climate action with already established goals and planned investments contributes to accelerated implementation and can ensure continuity, resource efficiency, and a stronger foundation for climate commitments. The Net Zero City Action Plan preparation process Source: Zagreb Urban Agglomeration also involved collating and analysing comprehensive datasets to understand For more information emission sources better and to identify the most impactful interventions. Functional areas in the EU. Methodology on land suitability analysis. Existing estimations in the Sustainable Energy and Climate Action Plan were Available at: https://functionalareas.eu/wp-content/uploads/2023/01/ complemented by open-source data such as Google Environmental Insights Methodology-on-Land-Suitability-Analysis.pdf and the NASA Earth Data Platform. Integrating emission data across different sectors, namely Buildings, Transport, Waste, Industrial Process and Product Use and Agriculture, Planning for climate change Forestry, and Land Use, the plan pulls together the key relevant interventions Cross-sectoral integration is a prerequisite of climate related planning. for reducing emissions by at least 80 % until 2030. It includes measures, Addressing climate change requires environmental, social, and economic across the following fields of action: energy systems; mobility & transport; integration, emphasising the importance of coordinated action across waste & circular economy; green infrastructure & nature-based solutions; various sectors and administrative boundaries. The challenges posed built environment; organisational and governance innovation; social and by climate change, from urban heat island effect and extreme weather other innovation. Cross-sectoral coordination of the climate agenda was events, to implementing strategies for a just energy transition among achieved through the Net Zero City Coalition. others, require a supra-municipal approach to maximise the efficiency Integrate climate action across sectors and stakeholders towards a of operations and optimise resource allocation. The following insights common goal. The Municipality of Cluj-Napoca established a ‘Net Zero gathered from the Cluj Metropolitan Area, Kalisz-Ostrów Agglomeration, City Coalition’, composed of relevant local and metropolitan stakeholders West Athens functional area, Lake Balaton functional region, and Brussels that will further be responsible for implementing and monitoring the Capital Region are focused on various aspects of climate planning and interventions included in the action plan. The coalition includes public highlight the importance of cross-sectoral approaches. 108 109 CHAPTER 4. CROSS-SECTORAL INTEGRATION institutions, representatives of the academia, industrial clusters, various renewable energy sources, as well as education. organisations of civil society and the Cluj Metropolitan Area Intercommunity Apply a multi-stakeholder approach, bringing together different sectors. Development Association. The added-value of the coalition resides in The implementation of the Plan involves the engagement of a wide range a cross-sectoral working framework, through regular meetings, and shared ownership, as all stakeholders assume responsibility for planned of stakeholders (municipal administration, Kalisz-Ostrów Agglomeration interventions. Association and Office, regional authorities, relevant executive agencies, NGOs, private sector, academia), working together to strengthen the Along with interventions implemented by the local administration, the effectiveness of their actions. A participatory tool was applied to gather plan includes interventions to be undertaken by other stakeholders such as housing associations responsible for energy efficiency rehabilitation. As such, feedback and insights from residents on their perceptions of climate change the Cluj Net Zero Coalition acts as a strategic task force, co-designing and in their local environment. co-producing local climate neutrality solutions. The coalition’s collaborative Identify projects with supra-local impact and access technical leadership model involves stakeholders across different sectors and areas assistance. Kalisz-Ostrów Agglomeration sought support from the Mission of expertise in decision-making and implementation. Implementation Platform (MIP4Adapt) financed from Horizon 2020 to Engage citizens in meaningful dialogue and partnership building strengthen the process of operationalizing the Kalisz-Ostrów Agglomeration activities. The Action Plan also includes behavioural studies to support Climate Adaptation Plan, including the identification of integrated, cross- citizen engagement and awareness measures across the metropolitan area, sectoral projects with supra-local impact, adequate funding, and activities leading to the development of a strong culture of partnership in achieving of an educational nature. MIP4Adapt supports regional and local authorities climate goals. The Centre for Civic Innovation and Imagination Centre in Cluj in the EU to prepare and plan their adaptation pathways to climate served as a valuable platform to debate climate-related projects spanning resilience. The implementation of the plan will enhance the safety of Kalisz- multiple jurisdictions and encouraged meaningful citizen participation (see Ostrów Agglomeration residents and provide greater protection against the Chapter 3 - Governance and administrative capacity). impacts of climate-related phenomena across various sectors. Based on the Action Plan, Cluj-Napoca already mobilised funding as one of Based on the comprehensive diagnosis, the following actions were the Pilot Cities within the Net Zero City initiative through the first Net Zero formulated for Kalisz-Ostrów Agglomeration with regard to climate City call for applications, for a project focused on net-zero apartment-block adaptation: improvement of the quality of existing green areas by applying neighbourhoods. nature-based solutions and establishing new ones; protection of habitats For more information of native species of animals, plants and fungi; protection and development Cluj-Napoca City Hall. Climate Neutrality Action Plan of Cluj-Napoca and of blue-green infrastructure; support of investments in the development Cluj Metropolitan Area. Available at: https://files.primariaclujnapoca. of renewable energy; thermal modernization of buildings; construction of ro/2023/07/26/Cluj-Napoca_NZC-ACTION-PLAN.pdf water retention facilities; development and integration of a low-carbon transport system; launch of a geoportal of the agglomeration; development of supra-local urban planning standards; environmental education for residents. PLAN OF ADAPTATION TO CLIMATE CHANGE For more information (KALISZ-OSTRÓW AGGLOMERATION, POLAND) Functional areas in the EU. Plan of Adaptation to Climate Change of Kalisz- The 2022 Climate Change Adaptation Plan for the Kalisz-Ostrów Ostrów Agglomeration. Available at: https://functionalareas.eu/plan-of- Agglomeration is a strategic document, determining, among other things, adaptation-to-climate-change/ the vulnerability and threat levels of individual climate phenomena for each Mission Implementation Platform (MIP4Adapt): https://climate-adapt.eea. municipality in the Kalisz-Ostrów Agglomeration and the agglomeration as europa.eu/en/mission/the-mission/about-mip4adapt a whole, potential consequences associated with them, and risk levels in various sectors. The document helps shape local development policies that consider possible The Urban Heat Island effect represents a growing climate change concern, climate risks and identifies joint cross-sectoral actions to address climate particularly impacting vulnerable populations. This reality underscores the risks. Specific climate change adaptation and mitigation measures are importance of understanding and addressing Urban Heat Islands as part of proposed for several sectors, including agriculture, transport and mobility, integrated, cross-sectoral approaches in urban planning and environmental environmental protection, water management, energy efficiency and management. 110 111 CHAPTER 4. CROSS-SECTORAL INTEGRATION ANALYSIS OF URBAN HEAT ISLANDS one sector unilaterally, so it requires coordinated action. Even in the milder scenarios, the Urban Heat Island had a severe impact on the socio-economic The Urban Heat Island effect refers to the phenomenon where urban performance of the region, on livelihoods, water balance, and the natural areas experience higher temperatures than their rural surroundings hinterland. For example, the increased evaporation of water in Lake Balaton due to human activities and modifications in land surfaces. This effect can affect the tourism sector and the marine environment (e.g., the fish is increasingly concerning as it disproportionately affects vulnerable and algae population), which will in turn have a cascading effect on other populations (marginalised groups, elderly, children, outdoor workers) and businesses (e.g., supermarkets, restaurants, bike rental shops). small enterprises (farms, businesses that depend on tourism revenue) and has negative effects on urban economies more broadly. Understanding and analysing the Urban Heat Island effect is crucial for The transition towards climate-neutrality requires an economy that aligns urban planning and climate change adaptation strategies. It helps identify with climate goals while ensuring a high quality of life, employment areas where the Urban Heat Island effect is significant and mitigate the opportunities and social inclusion. The Brussels-Capital Region developed adverse effects of heat stress on urban populations. Cross-sectoral a comprehensive plan for supporting the transition of its economy towards coordination through collaborative, multi-disciplinary approaches support a model that prioritises environmental protection and social equity. the development of plans that address both the immediate and long-term impacts of Urban Heat Islands and consider their environmental, social, SHIFTING THE ECONOMY TOWARDS AN ECOLOGICAL AND and economic implications. EQUITABLE TRANSITION (BRUSSELS CAPITAL REGION, BELGIUM) As part of the Functional areas in the EU project, two comprehensive The Brussels-Capital Region prepared a Regional Strategy for Economic analyses of Urban Heat Islands were conducted for West Athens and Lake Transition (2022-2030), also referred to as the Shifting economy strategy. Balaton functional areas. In both analyses, advanced spatial tools were The document draws inspiration from the renowned ‘doughnut model’, used to map Urban Heat Islands (e.g. Landsat imagery, GIS databases, devised by British economist Kate Raworth. This model illustrates sustainable and Google Earth Engine), highlighting the critical role of green spaces in development by delineating a ‘safe and just space for humanity’, which reducing surface temperatures. This allowed for the creation of detailed aims to provide guidance to policymakers and communities in their pursuit Land Surface Temperature maps, providing insights into temperature of ecological sustainability and social equity. The strategy establishes disparities within these regions. The studies identified key urban areas objectives to develop opportunities for entrepreneurs, protect natural affected by the Urban Heat Island effect and helped formulate targeted resources, encourage fair economic distribution, and foster quality local interventions, such as green infrastructure development, climate shelters employment opportunities. To this end, the Shifting economy strategy (urban infrastructures where people can seek shelter during periods of identifies four transversal policies, namely access to warehouses, local extreme temperatures) and urban planning adjustments. production and logistics, trade, digitalisation, and international trade. The study on ‘Extreme heat in West Athens: impacts and mitigation options’ Establish an ‘exemplary business model’ that prioritises social and developed as part of the Functional areas in the EU project presents the environmental considerations to raise awareness and encourage the disparities in temperature across different urban areas, especially between adoption of sustainable practices within the private sector. In 2023, industrial zones and green spaces. This highlights the urgency for urban the regional government implemented laws that outlined specific criteria redevelopment prioritising the integration of green spaces not only for businesses must meet to qualify for government assistance, such as environmental and aesthetic purposes but also as a critical public health financing, support services, and business accommodations. These criteria measure. The study on West Athens underscores the consequences of are based on two main principles: environmental excellence and social extreme heat, particularly the impact of very hot nights on vulnerable responsibility. To support this transition, the Brussels-Capital Region populations such as the elderly, children, and those with pre-existing has developed the Shifting economy strategy with a clear goal: by 2030, health conditions. The projected doubling in the number of nights with economic support measures will only be accessible to businesses that temperatures above 25°C under a high climate change scenario, calls for adhere to these high standards of excellence. action. Engage relevant entities from different sectors that can support a fair In the Lake Balaton functional region, the urban heat island analysis and green economic transition. The Brussels-Capital Region’s strategy emphasised the importance of regulations across the functional area and is driven by four regional public agencies (Bruxelles Environnement, shared understanding and management of the Urban Heat Island effect. Bruxelles Economie Emploi, Hub.brussels, Innoviris), in collaboration with The analysis identified the areas most affected by heat islands (including municipalities and other public actors in the fields of investment promotion fallow agricultural lands) and developed climate projection scenarios based and attraction, mobility, real estate development, and the administration of on historical data. The analysis highlights that the Urban Heat Island effect the Port of Brussels. 112 113 CHAPTER 4. CROSS-SECTORAL INTEGRATION Back up the transition strategy with adequate financial support from energy consumption, to improving the efficiency and cost-effectiveness both public and private sources. In the case of the Brussels Region, the of the transport of people and goods. Moreover, Sustainable Urban strategy envisages the expansion and redirection of regional financial Mobility Plans should be designed to closely align with land-use planning. resources to support all economic actors in their transition. A wide range This approach ensures that new land developments are accompanied by of financial instruments were employed, such as research and innovation adequate transport solutions, thus promoting urban sustainability. grants for economic purposes, grants awarded through thematic calls Sustainable urban mobility planning and implementation also involves a for economic projects, loans, and equity investments, guarantees, and multi-stakeholder approach and should balance immediate needs with economic development assistance for businesses. These instruments sum future scenarios. This ensures that urban mobility systems are adaptable up approximately EUR 200 million and assist 7 000 businesses annually. and resilient, capable of meeting evolving demands and circumstances. The The aim is for regional financing instruments to amplify or supplement example below from Oradea Metropolitan Area showcases how functional private investment, especially by addressing sectors that currently lack or area level coordination can support sustainable mobility, while promoting have inadequate private funding. cross-sectoral and vertical integration. For more information Shifting Economy Brussels. Executive Summary of the Regional Strategy SUSTAINABLE URBAN MOBILITY PROJECTS AT THE FUNCTIONAL for Economic Transition 2022 - 2030. Available at: https://shiftingeconomy. AREA LEVEL b r u s s e l s / w p - c o n t e n t / u p l o a d s / 2 0 2 2 / 1 0 / E xe c u t i v e S u m m a r y _ ShiftingEconomy_EN.pdf (ORADEA METROPOLITAN AREA, ROMANIA) European Commission. The Brussels Donut: Shifting the economy towards The Oradea Metropolitan Area inter-community development association an ecological and fair transition. Available at: https://eu-mayors.ec.europa. was established voluntarily in 2005 and is one of the most advanced eu/en/The-Brussels-Donut-Shifting-the-economy-towards-an-ecological- metropolitan areas in Romania, with a strong track record of joint investments, transition including metropolitan connective infrastructure. As the metropolitan area hosts approximately 68 % of the total employees at the county level and more than 15 % of the employed population of the 11 surrounding localities To support climate planning efforts, two practical resources were developed commute to Oradea, there is a growing pressure on the main access roads as part of the Functional areas in the EU project. The ‘GRIDLab’ document around the core city. Therefore, a joint approach is needed to ensure high- offers a comprehensive collection of innovative solutions for green, resilient, quality public transport services (including railway transport), minimise and inclusive development at a functional scale, and relevant funding commuting times, reduce pollution and promote alternative mobility. opportunities at EU level. The ‘Resilient Functional areas’ guide aims to To this end, a metropolitan association for public transport services was inspire the development of resilience plans at the functional area level, established, and the Sustainable Urban Mobility Plan includes major mainly with regard to the resilience of urban governance, environmental interventions undertaken at metropolitan level, such as the development resilience, infrastructure resilience, societal resilience, and economic of a new metropolitan train-tram line, ring roads and cycling lanes. resilience. Establish joint public transport services at the level of the functional Sustainable urban mobility planning area. The association of metropolitan municipalities spearheaded the As one of the main areas of interjurisdictional cooperation (OECD, 2014), development of an association for public transport services. Six of the twelve mobility is also a key enabler for adopting the cross-sectoral approach. associated municipalities are part of the TRANSREGIO Intercommunity Sustainable Urban Mobility Plans are an effective instrument to address Development Association, created in 2012. The public transport service mobility in an integrated manner at the functional area level. The European in the six municipalities is ensured by the Oradea Local Transport regional Commission defines the Sustainable Urban Mobility Plan as ‘a strategic operator, on the basis of delegation contracts. The amount of compensation plan designed to satisfy the mobility needs of people and businesses in paid by each local administration to the operator is proportional to the cities and their surroundings for a better quality of life.’ By integrating number of kilometres travelled, and routes, stations, transport schedule multiple transport modes and considering the needs of all urban dwellers, and fares are approved by their local councils. EU funds have supported the Sustainable Urban Mobility Plans work towards developing safer, more modernisation of the public transport fleet, with over 100 electric, hybrid accessible, and more sustainable urban transport systems. and hydrogen buses to be financed in the 2021-2027 programming period. As highlighted by the European Platform on Sustainable Urban Mobility Develop railway transport infrastructure and prioritise the urban Plans, they are designed to tackle urban mobility challenges in a cross- regeneration of railway assets. A new train-tram project included in sectoral way, from enhancing accessibility to services and jobs, improving the Sustainable Urban Mobility Plans is expected to promote a significant safety and security, reducing air and noise pollution, greenhouse gases, and shift to sustainable mobility for a large proportion of the population 114 115 How to enhance cross-sectoral integration CHAPTER 4. CROSS-SECTORAL INTEGRATION which commutes to the core city of Oradea. Complementarily, the Oradea CHALLENGE 2 Metropolitan Area is also coordinating the urban regeneration of multi- in project design? modal transit hubs, railway stations, and railway assets in Oradea and the peri-urban area, contributing to an efficient and attractive metropolitan Cross-sectoral integration at the project level involves embedding public transport system. An urban regeneration concept produced within coordination during both project design and implementation. Integrated the Functional areas in the EU project was used by the Oradea City Hall to projects are characterised by their holistic approach, going beyond the prepare a detailed masterplan for the Oradea Railway Area and a feasibility primary objectives within a sector, territory, or group of stakeholders. At study for the public area in front of the railway station. As a result of having the functional area level, such projects also consider the potential impact a mature proposal for the regeneration and expansion of its metropolitan on adjoining municipalities, involving multiple sectors and stakeholders. railway system, the city secured financing of EUR 150 million from the According to the new output indicators introduced under Policy Objective 5 Transport 2021-2027 Programme. of the 2021-2027 cohesion policy (RCO76 Integrated projects for territorial Figure 8. Urban Regeneration Concept for the Oradea Railway Area development - see Glossary), for a project to be considered integrated, it needs to fulfil at least one of the following conditions: 1. the project involves different sectors (such as social, economic, and environmental sectors) 2. the project involves different administrative territories (e.g. municipalities) 3. the project involves several types of stakeholders (public authorities, private actors, NGOs) When selecting and prioritising projects as part of the strategic planning process, it is key to consider how they support cross-sectoral integration, as well as cooperation between different administrative units and stakeholders. Integrated projects should demonstrate value added compared to what would be achieved if different components would have been implemented separately, or if they would be addressed by single administrative units. In the 2021–2027 programming period of the EU cohesion policy, the Source: Oradea Metropolitan Area New European Bauhaus (NEB) initiative provides a guiding framework for integrated projects, emphasising the integration of sustainability, Establish partnerships and involve relevant stakeholders to accelerate inclusiveness, and aesthetics. Through its transdisciplinary approach, it can project implementation. Other major metropolitan projects included in the serve as an inspiration for going beyond siloed interventions, which can Sustainable Urban Mobility Plans are the development of a network of ring be applied to both larger and smaller-scale projects. In particular, the NEB roads and adjacent cycling lanes at metropolitan level, which are completed movement is centred on initiatives led by citizens and local communities or at an advanced stage of maturity. To ensure swift implementation, and brings a focus on the neighbourhood scale, within the overarching goal the Oradea Metropolitan Area established partnership agreements with to bring the Green Deal closer to citizens. municipalities in which the new projects are planned, Bihor County and the National Company for Road Infrastructure Management. The partnership In the first of this section, the presentation of the NEB initiative and its with the National Road authority is part of a proactive approach to accelerate focus on integrated projects is followed by a project in Trenčín that the preparation and implementation of key infrastructure projects, which aligns with these values. The second part of this section is dedicated to has set a positive model for other metropolitan areas in Romania. neighbourhood-level planning, including an example of co-developing a low traffic neighbourhood in Brussels, a transit-oriented development For more information project in Brno, and presents two guides on neighbourhood regeneration Public investments for metropolitan connective infrastructure – Oradea developed as part of the Functional areas in the EU project: Neighbourhood- Metropolitan Area: https://functionalareas.eu/preparing-of-public- level integrated approaches for regeneration and Transforming transit investments-for-metropolitan-connective-infrastructure/ spaces to destination places. Metropolitan public transport in Oradea Metropolitan Area: https:// functionalareas.eu/metropolitan-public-transport/ 116 117 CHAPTER 4. CROSS-SECTORAL INTEGRATION Applying NEB values to cultural regeneration projects NEW EUROPEAN BAUHAUS AS AN ENABLER OF PROJECT LEVEL INTEGRATION The Fiesta Bridge project in Trenčín, which received the title of the 2026 European Capital of Culture, incorporates New European Bauhaus values. The New European Bauhaus initiative, In the spirit of the original Bauhaus The project aims to create quality public spaces, address environmental movement, builds on the ideas of a unified approach combining beauty and challenges, and bring the community together, reflecting the NEB ambition function as well as a smart use of resources. It also prioritises affordability to create beautiful, sustainable, and inclusive places, products, and ways and accessibility to ensure that these principles benefit everyone. From of living. a cross-sectoral point of view, the initiative strongly emphasises the connection between the green, social, and cultural transitions and the As a cultural-led regeneration project included in Trenčín’s European Capital importance of designing integrated projects that involve several sectors, of Culture programme, it has a cross-sectoral focus by integrating the areas of expertise and diverse stakeholders. dimensions of natural and historical heritage, the development of creative industries and social transformation. The NEB also adopts a multilevel approach to transformation, recognizing that addressing global challenges requires actions at various levels, from the global scale down to the local level. Finally, the initiative recognises the importance of engaging the local level through place-based approaches INTEGRATED CULTURAL PROJECTS and the active participation of citizens and grassroots organisations. To help (TRENČÍN FUNCTIONAL AREA, SLOVAKIA) and support the development of integrated projects with NEB values, two The Fiesta Bridge project, a flagship project of the European Capital of important tools were created: Culture Trenčín 2026 programme, incorporates the values of the New The NEB Compass is a tool that can be applied to facilitate cross-sectoral European Bauhaus, transforming a former railway bridge into a dynamic integration at the local and functional area level. The framework guides hub of cultural and community engagement. The EUR 15 million budget for decision-makers in applying the three NEB values to their projects as part the reconstruction of the old railway bridge will be covered by EU funds, of an integrated project design process. It is structured on three values: with 8 % co-financing by the city. beautiful (aesthetics), sustainable (sustainability), together (inclusion) and three working principles: participatory processes, multi-level engagement, The Fiesta Bridge project began in 2021, aiming to repurpose an old railway and a transdisciplinary approach. The Compass is a supportive tool that bridge into a dynamic, multifunctional cultural space. This new community indicates key characteristics of a NEB project, as well as of exemplary projects space facilitates social activation, where the bridge acts as a canvas for for different levels of ambition. Building on the power of examples, the NEB cultural expression. It encourages out-of-the-box activities, filling public Compass provides several case studies that embody concrete advice for spaces with site-specific events and performances, such as local concerts integrated project design. An example of a project that reaches the highest or acrobatic and dance performances. This approach activates the bridge levels of ambition across all NEB values and working principles is a mixed- not just as a physical structure but as a social catalyst. use neighbourhood project implemented in Leuven (p. 26-27). The project While this project is implemented within the core city, it benefits the is focused on redevelopment of a former railway hall and was initiated by the residents of the functional urban area. By implementing the European local community, offering affordable spaces, fostering collaboration among Capital of Culture programme, Trenčín becomes a central point of attraction the local government, social organisations, entrepreneurs, and residents. for residents within and outside its administrative boundaries. The cultural The NEB Toolbox is a collection of tools that can be used by public and regeneration projects in Trenčín drive physical changes to public spaces and private authorities and other project owners to kickstart NEB projects. redefine their role within the community, stimulating the cultural vitality of The NEB toolbox was created as part of the ‘Support to the New European the wider functional area. Bauhaus Local Initiatives’ action which provided technical assistance to Prioritise architectural quality. The Fiesta Bridge project aims to become 20 small and medium-sized municipalities, supported by the European one of the city’s architectural landmarks and create a high-quality public Regional Development Fund. The toolbox is developed around three levels space. The inclusion of artworks, such as interactive sound installations and of interventions (identification, exploration, and refinement), offering light shows, will enhance its visual appeal. practical tools, approaches, and examples of best practices. Integrate green spaces and sustainable materials. Sustainability is at the For more information core of the Fiesta Bridge’s design. Plans include the integration of new European Union. NEB Compass. Available at: https://new-european- green spaces and the use of sustainable materials. The project redefines bauhaus.europa.eu/get-involved/use-compass_en the riverfront’s role in urban living, fostering a harmonious coexistence European Union. NEB Toolbox. Available at: https://new-european- with nature. The bridge will not only be a cultural spot but also a place for bauhaus.europa.eu/get-involved/use-toolbox_en relaxation and sports, promoting a sustainable lifestyle. 118 119 CHAPTER 4. CROSS-SECTORAL INTEGRATION Include the activation of public spaces in the project design through The section below explores integrated approaches that can inform community engagement. The Fiesta Bridge project embodies the NEB projects at the neighbourhood level, focusing on urban regeneration, and value of ‘together’ through its inclusive and participatory approach. The the interplay between housing, social inclusion, mobility, and economic project revitalises unused spaces, actively engaging with the city’s residents development. Urban regeneration is inherently cross-sectoral because by to uncover Trenčín’s potential in public spaces. The envisaged activities go definition, urban regeneration implies ‘a comprehensive and integrated beyond artistic interventions to include public debates, conferences, and vision and action which leads to the resolution of urban problems, and which events focusing on the utilisation of urban spaces, inviting participation seeks to bring about a lasting improvement in the economic, physical, social from all city residents and visitors. and environmental condition of an area that has been subject to change.’ Cultural, and creative industries can create positive ripple effects in (Peters, 2008). Moreover, the neighbourhood scale serves as an enabler of other sectors, generating new employment opportunities and driving integrated territorial development, as outlined by the New Leipzig Charter. innovation, while addressing social inequality and promoting inclusion. The document positions the neighbourhood as one of the key spatial scales Brownfield areas offer a valuable opportunity for reconversion into cultural at which local authorities should plan development measures, aligning it facilities, such as multi-functional cultural centres. For example, the to the functional area’s vision and objectives. Additionally, it advocates for Zagreb Urban Agglomeration and Brno Metropolitan Area identified the the neighbourhood’s role as a laboratory of innovation for the wider area, rehabilitation of a brownfield into multifunctional cultural centres as one of enabling tangible results to be achieved faster and scaled up. their major ITI projects, while the ITI Strategy of Jiu Valley (a just transition For example, the Brussels Region has developed the Good Move Regional region) includes the reconversion of former industrial sites into cultural Mobility Plan, facilitating the identification of 50 neighbourhoods hubs. across the region to become low traffic. Part of these neighbourhoods As part of the Functional areas in EU project, a guide on ‘Management models have developed their plan and implemented the measures, such as the for multifunctional cultural centres’ was developed, providing successful Pentagon neighbourhood. The Pentagon’s plan, developed together with examples of cultural centre management in terms of development, purpose, the community, aims to eliminate through-traffic, and improve public offerings, organisational structure, and financial sustainability. The guide spaces. This approach creates neighbourhoods with an increased quality also provides a brief overview of the European Capitals of Culture initiative of life where pedestrians, public transport, and cyclists are prioritised by and the benefits it offers to the cities awarded the title. Additionally, the incorporating multiple sectors: urban planning, economy, mobility, and guide outlines various funding opportunities available for cultural and community engagement. creative projects. CO-DEVELOPING A LOW-TRAFFIC NEIGHBOURHOOD For more information (BRUSSELS, BELGIUM) Functional areas in the EU. Management models for multifunctional cultural centres guide. Available at: https://functionalareas.eu/solutions- The process of transforming the Pentagon neighbourhood in Brussels started for-functional-areas/ with a participatory process in 2021. This collaborative effort progressed into a co-drafting process, where proposed circulation measures were Trenčín 2026. Bid Book Candidate for European Capital of Culture - debated and subsequently put into action. In 2022, the implementation Cultivating Curiosity. Available at: https://www.trencin2026.sk/_files/ phase of the new measures started. Feedback in relation to introduced ugd/70c014_29c2ccd4ca21475eadcbc5fcca4153a9.pdf changes was gathered to improve the plan. Stakeholder involvement was ensured throughout the process and institutionalised through the multi- stakeholder Steering Committee set up to oversee progress. Neighbourhood-level planning Start the process with a participatory framework to engage all stakeholders. This phase enabled the local authorities in Brussels to organise A neighbourhood is a community where people live, meet, work, and access a participatory diagnosis which collected and incorporated the stakeholders’ basic services, resulting in the territorial scale where challenges and solutions demands, concerns, and ideas. To facilitate this, a platform was developed, are directly visible. In the current context, climate change, digitalization, bringing together 600 participants. Additionally, neighbourhood-level and inclusion are transversal sectors that must be integrated with housing, meetings were organised, attracting 300 attendees, along with tailored mobility, services, amenities, and public spaces at the neighbourhood level. meetings involving representatives from the private and the public transport Therefore, neighbourhood-level planning is cross-sectoral, and the solutions sectors. Through the participatory diagnosis, the neighbourhood identified must be designed through an integrated approach. Multiple aspects must six key areas to guide its transformation: ‘road safety, noise disturbances be taken into consideration for neighbourhood regeneration, including - enhancing public spaces, cycling lanes and bike parking, transit traffic, affordability, energy efficiency, accessibility, inclusion, and aesthetics. improved signage and utilisation of parking facilities, and delivery zones’. 120 121 CHAPTER 4. CROSS-SECTORAL INTEGRATION Develop an action plan based on the outcomes of the participatory Mobilite Brussels. The Regional Mobility Plan 2020-2030. Available at: diagnosis phase. The second part of the elaboration process focused on https://mobilite-mobiliteit.brussels/en/good-move establishing the framework for specific traffic measures. In the case of the Good Move Brussels. What is a low-traffic neighbourhood? Available at: Pentagon, the action plan comprised the following measures: https://lowtrafficneighbourhoods.brussels • redirect transit traffic outside the neighbourhood by diverting automobiles through the inner ring road (Petite Ceinture), • construct the infrastructure for active and sustainable mobility, Another practical insight into the potential of neighbourhood-level including walking, cycling, and public transport, interventions to drive sustainable development of the wider functional • ensure accessibility for emergency, delivery and service vehicles, area is offered by the new Trinita District in the city of Brno. The project • map areas for inserting new green spaces, enhances sustainable mobility in the functional area, while also increasing the attractiveness of the core city through quality architectural design • design and construct intergenerational public spaces for play and interventions and mixed functions. leisure opportunities, establish local amenities, and enhance the quality of life. In addition, this phase incorporated measures to improve signalling of ENHANCING TRANSPORT-ORIENTED DEVELOPMENT IN TRINITA DISTRICT parking lots and commercial zones, develop logistic areas, improve the (BRNO METROPOLITAN AREA, CZECH REPUBLIC) public transport, promote car-sharing, and improve general infrastructure in the neighbourhood. The construction of a new neighbourhood in the south of the historic centre of Brno adjacent to the city’s new main railway station is aligned Identify and implement ‘low-hanging fruit’ interventions. The with the principles of transit-oriented development (see Glossary). This implementation process began with short term initiatives, such as outdoor example covers the development of a new and modern transport hub with events and community gatherings, to encourage people to spend time in various means of transportation, along with the development of residential these new public spaces that were temporarily opened for pedestrians. buildings, offices, and public spaces within the new district, as well as the This approach helped consolidate the envisioned long-term results. revitalisation of the riverfront near the new railway station. Develop a comprehensive communication plan to ensure meaningful participation. The communication plan of the project was organised in The Brno new central station project is directly linked with the transformation three targeted audiences, each group with its dedicated tools and channels: of the Trinita District by being the entrance and exit point of the area. The project comprises the following core elements: the design of the station was • ‘The general public: distribution of information leaflets to established through an international architectural competition, it includes households, Information meetings, videos explaining the project, solar-based solutions for energy efficiency, and continually informed the local community radio announcements, website with frequently community about the development process. For example, an exhibition asked questions, interactive map and route planner on the website, showcasing the design solutions was developed to engage the community call centre for inquiries and assistance, two communication waves and raise awareness on the benefits of the project and a dedicated section throughout the project. was developed on the Brno City Chief Architect’s Office online platform. • Stakeholders: bilateral meetings with various stakeholders The project relocates the central station in Brno and serves as an example of (residents, local businesses, visitors). how interventions to regenerate railway assets in a cross-sectoral approach • The Good Move Community: newsletter updates were sent to those contribute to the development of the wider metropolitan area. who joined the online community’. Apply a cross-sectoral lens to drive sustainable growth at the functional Implement co-evaluation and co-monitoring initiatives for continuous area and district level. The location of the new central transportation hub improvement. The local authority involved stakeholders to monitor the will improve mobility throughout the metropolitan area. As a key transport progress of the new circulation plan and used tools for gathering traffic hub aligned with future transport projects, the project reduces traffic data (e.g. Telraam, a locally developed solution). In addition, one year after congestion by curbing urban sprawl and facilitates swift transfers between the measures were implemented, a survey was developed to gather input various public transport options within the metropolitan area. from stakeholders. For more information As the point of entrance into the new district, the hub will positively impact its development. The district will provide sustainable means of transport, Brussels City. Good Move Pentagon: all about the new circulation plan. housing, jobs, and leisure opportunities for 30 000 inhabitants. The project Available at: https://www.brussels.be/goodmove includes the development of new public infrastructure (e.g., public spaces, 122 123 CHAPTER 4. CROSS-SECTORAL INTEGRATION systems for rainwater management, cycling infrastructure) and creates new For more information opportunities for private investors (e.g., apartment buildings, commercial Brno City Chief Architect’s Office. New Central Station. Available at: https:// activities, entertainment). It also creates a new residential neighbourhood kambrno.cz/novenadrazi/ in proximity to the city centre, designed according to the 15-minute concept (see Glossary), i.e., offering services and amenities within a 15-minute walk Brno City Chief Architect’s Office. Territorial study of the new district of from residents’ homes, along with accessible public transportation options Trnitá. Available at: https://kambrno.cz/novactvrt/uzemni-studie-nova- for longer trips outside the district. ctvrt-trnita/ Integrate ecological and sustainable design solutions. The new central Europoint Brno. The feasibility study. Available at: https://europointbrno. station is the gateway to the new district and is located near the Svratka cz/studie-proveditelnosti/ river. The location and design of the new station and its surrounding area will provide access to new green spaces and leisure opportunities, making As part of the Functional areas in the EU project, two guiding documents it highly suitable for residential development. The winning design includes focusing on neighbourhood regeneration were developed: The ‘Sustainable a park that will connect the river with the city centre and the new transport Regeneration of Apartment Block Neighbourhoods’ guide and the hub. The planned green solutions will integrate the banks of the river with ‘Transforming Transit Spaces to Destination Places’ guide. Neighbourhood- the urban fabric and install retention tanks to enhance the quality of the scale interventions can be included in a scale-up model at the level of the rainwater entering the Svratka river. Moreover, the station itself incorporates functional area, with the aim of achieving shared standards of living and solar panels generating electrical energy and other technologies that reduce reducing the pressure on infrastructure and services of more developed the station’s carbon footprint. areas. At the same time, investing in creating compact, affordable, and Ensure that local, regional, and national strategic directions are aligned quality neighbourhoods is an efficient measure to limit urban sprawl and in the project preparation phase. The Brno Metropolitan Area governance increase the attractiveness of the urban core. body is actively involved in the design of public spaces around the station, showcasing a strong cooperation between the City of Brno and the representatives of the municipalities in the larger functional area. Moreover, THE ‘SUSTAINABLE REGENERATION OF the Ministry of Transport, together with the Railway Administration, the APARTMENT BLOCK NEIGHBOURHOODS’ GUIDE South Moravian Region, and the City of Brno, used the feasibility study The ‘Sustainable Regeneration of Apartment Block Neighbourhoods’ guide results to approve the development of an integrated solution and implement showcases how neighbourhoods can be regenerated to achieve net-zero a transport-oriented development project. The solution was developed emissions, enhance urban resilience, and improve quality of life. This through an architectural and urban planning competition that focused both guide serves as a roadmap for functional areas aiming to transform their on the station and the surrounding public spaces, such as the banks of the river. built environment. It focuses on upgrading public spaces, enhancing active As part of the Functional areas in the EU project, support was provided and sustainable mobility, fostering community engagement, and improving for urban regeneration projects around railway stations, other railway energy efficiency, contributing to global climate targets by starting at the assets, and areas surrounding transit stops in eight functional areas in neighbourhood level. Romania, as they have a major impact on strengthening the functional area approach. The functional areas that received support are: The Sustainable Regeneration of Apartment Block Neighbourhood has four sections: Motivation, Guidance, Action, and Implementation. The Motivation • Caraș-Timiș Functional Area, and Guidance sections provide guiding principles and a framework for • Cluj Metropolitan Area, interventions, highlighting the importance of adopting a cross-sectoral • Oradea Metropolitan Area, approach in designing integrated solutions. The four principles for guiding • Valea Jiului Functional Area, interventions at the neighbourhood level are universal design, sustainability, • Bucharest Metropolitan Area, carbon neutrality, and resilience, covering the built environment, public • Constanța Metropolitan Area, spaces, and mobility. The Action section lists the necessary initiatives to • West Ialomița Functional Area. regenerate a neighbourhood, as follows: The level of support varied depending on the area, but overall, it • Retrofit the built space. This section provides guidance on how to involved identifying regeneration areas that contribute equitably refurbish buildings to be aesthetically appealing, energy efficient, to the development of the functional area, developing urban universally accessible, and resilient. Additionally, it covers measures regeneration concepts, and identifying potential sources of financing for to improve public spaces and build space for economic and implementation. These concepts and approaches benefit the functional community activities. area as a whole, with the responsibility for turning them into financeable • Enhance neighbourhood amenities. Two important aspects are and implementable projects lying with individual local administrations. highlighted and explained within this section: how to offer equitable 124 125 CHAPTER 4. CROSS-SECTORAL INTEGRATION access to amenities and enable community based circular economy THE ‘TRANSFORMING TRANSIT SPACES TO DESTINATION PLACES’ GUIDE as a response to improve amenities at neighbourhood level. • Reorganise urban mobility. Movement is an important aspect of The ‘Transforming Transit Spaces to Destination Places’ guide provides urban life, as such this section guides readers on how to reclaim guidelines for rethinking movement at neighbourhood level and activating space for pedestrians and cyclists by rethinking street hierarchy streets together with the community. to support active mobility and public life. Moreover, it highlights This document lists and explains the principles for rethinking the hierarchy how to improve access to public transit, ride sharing and electric of street users and enforcing urban movement at human speed. Moreover, vehicles, and incorporate basic design principles for safe and it provides ideas on how to change people’s behaviour and their perception aesthetical streets. of streets from transit corridors to community hubs. • Transform the urban realm. Within this section, several measures The document uses the concept of slow streets as an enabler to enhance to improve public space are listed, such as creating lively public the overall liveability of neighbourhoods, support climate change goals, spaces between buildings, creating a network of green areas, and promote sustainable modes of transport. To this end, the guide lists the implementing ecological landscaping practices and basic landscape principles of slow streets and community hubs, offers multiple case studies design principles, and integrating water bodies. from around the globe, and provides a practical list of funds that enable For each initiative, the guide provides several green, smart, and innovative the transformation of streets within neighbourhoods. There are three solutions, to accelerate the green and digital transition and achieve a net- principles for implementing the slow street concept and each comprise zero neighbourhood. Finally, the Implementation section of the guide different measures: provides examples of condominium management models for implementing Reprioritisation. This principle explains and provides measures on large-scale regeneration projects. reorganising urban mobility, creating safe community hubs, and ensuring For more information accessibility for all users. Functional areas in the EU. Sustainable Regeneration of Apartment Transit. Streets should function as transit corridors for all types of street Block Neighbourhoods. Available at: https://drive.google.com/file/ users, providing access to vehicles but not prioritising them. Therefore, this d/1ulWz9xyXLLUhWFFxVEFfJWk_O84SD8Mf/view principle is about coordinating all envisaged measures to reduce speed and encourage activities on streets with other changes in street infrastructure, provide access to necessary vehicular transit (e.g., ambulance), align with bike infrastructure and coordinate with pedestrian zones. Sustainable urban mobility at neighbourhood level enables a cross- sectoral approach, requiring measures that range from mobility and built Destination. For public spaces to invite pedestrians and cyclists, they must environment, to social inclusion, culture and economy. This approach be friendly for people (e.g., safe, aesthetical), have multiple seating and leads to regeneration, reduced pollution, and increasing quality of life. green areas, and be developed together with the local community. Hence, Additionally, it focuses on community-based planning to change the this principle focuses on measures that enable a compact and attractive hierarchy of street users, improve the design and attractivity of public neighbourhood developed by the community. spaces, and increase accessibility and inclusion. Walkable neighbourhoods For more information invite people outdoors to spend time in safe, accessible, and aesthetic Functional areas in the EU. Transforming Transit Spaces to Destination Places public spaces that enable social contacts, playing and other community Guide. Available at: https://functionalareas.eu/wp-content/uploads/2024/ activities. Therefore, the attractiveness of basic services and amenities at Transforming-Transit-Spaces-into-Destination-Places-.pdf neighbourhood level are strongly linked to walkability and cycling, fostering a vibrant and engaged community and a mixed-use development. The following guide, ‘Transforming Transit Spaces to Destination Places’, showcases ways to reshape the role and functionality of streets within neighbourhoods. This topic inherently involves collaboration across multiple sectors. For example, initiatives aimed to transform a street from a transit corridor into a vibrant destination require coordinated efforts spanning various disciplines and sectors, such as public space design, mobility and transportation, community engagement, and measures to support a balanced establishment of various services and amenities at the neighbourhood level. 126 127 CHAPTER 4. CROSS-SECTORAL INTEGRATION RECOMMENDATIONS 1. Leverage spatial planning tools and analyses to ensure coordination across various sectors. Use Geographic Information Systems databases and Land Suitability Analysis to inform strategic planning and policymaking at the functional area level. Ensure that spatial planning tools are central to the decision-making process, enabling a comprehensive understanding of the functional area’s dynamics and the cross-sectoral impact of planned interventions. 2. Promote the need for a supra-municipal approach to climate challenges and prepare climate planning documents at the functional area scale. Build on existing strategic documents and plans to ensure efficiency of resources and alignment with strategic priorities. Develop a multi-stakeholder task force including diverse actors such as public representatives, academia, civil society organisations, housing associations and the private sector to accelerate climate action and enhance interventions through a cross- sectoral lens. 3. Develop integrated projects and scale up neighbourhood-level approaches for regeneration. Draw inspiration from the New European Bauhaus and best practices in neighbourhood-level integrated approaches for regeneration to promote cross-sectoral integration at the project level. Ensure that project design and implementation consider the impacts on various sectors and involve a transdisciplinary team. Scale up successful neighbourhood-level projects to ensure that everyone enjoys similar standards of living across the functional area. . 128 REFERENCES CHAPTER 4. CROSS-SECTORAL INTEGRATION 1. Amsterdam City. City data. Available at: https://www.iamsterdam.com/en/business/startupamsterdam/ functionalareas.eu/solutions-for-functional-areas/ insights-interviews/city-data 23. Functional areas in the EU. Management models for multifunctional cultural centres guide. Available at: 2. Barcelona Metropolitan Area. Cartography Geoportal. 2022. 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EU funding may be accessed either through national or regional authorities (as is the case of funds for implementing EU cohesion policy), or directly, through competitive EU-wide calls on various topics. Securing funding for integrated projects at a functional area scale requires a strategic blend of funding and financing sources, as well as financial, EU initiatives with application via national or regional authorities technical, and administrative capacity. To respond to these challenges, National or regional authorities share the management of certain cohesion the chapter focuses on public, private and alternative funding sources, policy funds with the European Commission and publish calls for applications emphasising the need to diversify funding and financing sources to meet that functional area bodies should monitor. These funds include: investment needs. Functional area governance bodies often struggle with ensuring adequate The European Regional Development Fund and appropriate operational and financial resources to meet investment (ERDF), to invest in the social and economic needs. Barriers identified by functional areas participating in the Functional development of all EU regions and cities. areas in the EU include (according to a survey with 51 functional areas at the beginning of the project): The Cohesion Fund (CF), to invest in • maximising the impact of funds by mixing funds for integrated environment and transport in the less investments and blending various funding sources, prosperous EU countries. • limited knowledge of and experience with mobilising private sector financing and fostering collaboration with different stakeholders, and The European Social Fund Plus (ESF+), to • meeting eligibility requirements for EU initiatives with direct support jobs and create a fair and socially application for funding. inclusive society in EU countries. These challenges pertain to diverse factors including the maturity and size of functional areas, and availability and accessibility of technical and financial resources. Not all functional areas governance bodies possess the The Just Transition Fund (JTF) to support requisite expertise and, notably, the experience in executing integrated the regions most affected by the transition projects and mobilising the necessary resources. towards climate neutrality.’ This chapter is focused on understanding the landscape of EU funds Another fund that is accessed through national available for financing functional approaches and blending funding and authorities and is relevant for functional areas finance from various sources, structured around two challenges: (in particular coastal areas) is the European Mobilising and optimising the use of EU funds at the level of functional Maritime, Fisheries and Aquaculture Fund areas, covering: (EMFAF). Public authorities, universities, • European Structural and Investment Funds that involve application economic operators and their associations via national or regional authorities (funds for delivering the cohesion and non-governmental organisations are policy, synergies with other funds) and integrated territorial eligible to apply. investments (ITI, CLLD, OTT) Source: https://ec.europa.eu/regional_policy/funding/available-budget • EU initiatives with direct application, involving competitive calls at EU level (e.g., Horizon Europe, LIFE, CERV, Interreg Europe). To optimise the use of EU funds, this section offers insights into how integrated development can be supported by combining different funds. Mobilising additional financial resources: A mix of the above-mentioned funds can be used to encompass both the • complementarity with other sources of funding than EU funds tangible (primarily infrastructure) and intangible (such as human capital (financial instruments, local resources, public-private partnerships, development) components of investments. Brief illustrations in this regard attracting private investments). are outlined in the following practical insights. 132 133 CHAPTER 5. FUNDING AND FINANCE DEDICATED MULTI-FUND PROGRAMMES FOR FUNCTIONAL AREAS INTEGRATED TERRITORIAL DEVELOPMENT IN THE 2021-2027 (ERDF, ESF+): ITALY’S METROPOLITAN PROGRAMMES PROGRAMMING PERIOD National authorities can play a big role in supporting functional area EU cohesion policy for 2021-2027 enables functional approaches by approaches. As shown by the example of Italy, Member States can earmark fostering sustainable and integrated development of all types of territories funding for functional areas at the beginning of a new programming period and local initiatives (Policy Objective 5). With regard to integrated territorial by creating dedicated multi-fund programmes for functional / metropolitan development, the Common Provisions Regulation clarifies that ‘where a areas. Member State supports integrated territorial development, it shall do so through territorial or local development strategies in any of the following The Italian National Programme Metro Plus and Medium-sized Southern forms: (a) integrated territorial investments; (b) community-led local Cities 2021-2027 (National Programme Metro Plus), with a substantial development; or (c) another territorial tool supporting initiatives designed budget of EUR 3 billion, builds upon the success of the Multi-fund by the Member State.’ National Operational Programme Metropolitan Cities 2014-2020. The new programme was approved for joint support under the ERDF and ESF+ and is Integrated Territorial Investments were introduced under the Common built on three thematic pillars: digital agenda, sustainability, social inclusion. Provisions Regulation in 2013 (Reg. (EU) N° 1303/2013, CPR, Art. 36) as a tool for delivering cohesion policy in a more effective way by combining Support the functional approach beyond large metropolitan cities. The different sources of EU Funds to support the implementation of territorial National Programme Metro Plus extends its reach beyond metropolitan strategies. The main advantage of the tool is that it allows integrated cities, including suburbs and marginalised areas in medium-sized cities territorial strategies to receive EU support by combining funding from in less developed regions. This approach ensures a more equitable and various priorities of other policy objectives, Programmes and funds, efficient distribution of resources and opportunities and supports balanced while ensuring the integrated and place-based nature of the investments. territorial development. The programme reflects a holistic approach to Moreover, ITI is proved to be able to link thematic enabling conditions, urban development and the diversity of development needs in cities of thematic concentration and urban earmarking. The ITI remains in 2021 different sizes. Mobilising funds from both ERDF and ESF+, the National –2027 programming period as an optional programming tool for integrated Programme Metro Plus covers areas such as urban regeneration, housing, territorial development to link at least two programme priorities, and possibly green mobility, social inclusion and innovation, sustainable tourism, natural multiple policy objectives, programmes, or funds. All ITI interventions must heritage, or circular economy. respect the minimum requirements, be based on territorial strategies, and Decentralise funding programme management and empower sub- governance arrangements to involve the relevant territorial authorities or national structures. A key feature of the program is the delegation of bodies in the selection of operations supported from the programmes. responsibilities to 14 capital municipalities, serving as Intermediate Bodies. The ITI instrument is increasingly deployed in the EU. ITI has served as a This decentralised governance model facilitated more targeted and efficient compelling incentive to initiate and execute collaborative projects among interventions. public administrations at the functional area level. ITI strategies are, on average, more integrated, and promote cooperation and coordination, as For more information many of them are targeting functional areas covering multiple administrative Italy Metropolitan Programme. Available at: http://www.ponmetro.it/ units. home-2/pon-metro-plus-21-27/pn-metro-21-27-2/ Where Member States consider it appropriate, they may also apply Community-Led Local Development (CLLD) as an integrated territorial development tool. CLLD aims to involve local communities in the design Integrated investments are facilitated by instruments such as integrated and implementation of community-led local development strategies, with territorial investments and community-led local development (CLLD), and local action groups such as community organisations, businesses, and other territorial tools (OTT) employed to support integrated territorial local authorities working together to identify local development needs, development under EU cohesion policy. Integrated strategies developed set priorities, and implement solutions. The approach emphasises the for this purpose allow a mix of funds such as ERDF, ESF+ or EAFRD, CF or importance of community participation and ownership in the territorial JTF, where available, to finance identified projects at the functional area development process, and it aims to ensure that EU Funds are used level. effectively in accordance with locally identified needs. To ensure a mix of funds fit for territorial needs, involving functional area Member States also have the option to use other territorial tools for governance bodies in the programme design phase is crucial- this embodies promoting sustainable and integrated development in the programming the partnership principle outlined in the governance chapter (see Chapter period 2021-2027, as highlighted by the CPR. 3 - Governance). 134 135 CHAPTER 5. FUNDING AND FINANCE FINANCING INTEGRATED TERRITORIAL DEVELOPMENT its Regional Programme includes JTF interventions as a dedicated priority (KRAKÓW METROPOLITAN AREA AND WALBRZYCH SUBREGION, POLAND) axis. The region includes the broader subregion (NTS3) of Wałbrzych which receives assistance within the scope of the Just Transition Mechanism, as Identify the necessary funding mix for implementing the functional well as Wałbrzych functional urban area has its own ITI allocation. area’s integrated strategy. The ITI strategy of Kraków Metropolitan Area for 2021-2027 comprises a total of nearly EUR 254 million and includes the Wałbrzych subregion located in Lower Silesia region (Poland) is one of following sources of EU funding: ERDF, ESF+ and Cohesion Fund. This multi- the territories affected by the transition out of coal and therefore eligible fund approach supports the planning and implementation of integrated for support under the Just Transition Fund (JTF). Whereas the JTF is a key investments by comprehensively addressing the needs and challenges financing instrument to address objectives of the Territorial Just Transition identified in the functional urban area. Plan (TJTP), Wałbrzych subregion can also take advantage of ERDF and The strategic objectives of the ITI Strategy include six core areas: ESF+ funding available from the Regional Programme. This creates a critical environmental protection (e.g. development and modernization of mass of financing that can help effectively and comprehensively tackle a water and sewage infrastructure, energy efficiency of public buildings), broad array of social, economic, and environmental challenges as well as development of low-carbon mobility, strengthening of economic potential opportunities facing the subregion. (increasing the availability of investment areas), leisure culture (improving For more information the quality and availability of infrastructure and leisure offerings, protection European Commission. EU Funds for Lower Silesia region 2021-2027. and development of cultural heritage sites), education (increasing the Available at: https://ec.europa.eu/regional_policy/in-your-country/ availability and quality of pre-school, general and vocational education), programmes/2021-2027/pl/2021pl16ffpr001_en and social and health services (elderly care, dependent and disabled and respite services, mental health services). Estimate investment gaps beyond current allocations and identify JUST TRANSITION MECHANISM additional sources of funding. The ITI Strategy of Kraków Metropolitan Area is de facto an action plan (executive document) for the supra-local The Just Transition Fund is one of the three pillars of the Just Transition development strategy of the Kraków Metropolitan Area 2030, implementing Mechanism (JTM), serving as an instrument to guarantee an equitable its objectives in selected areas of cooperation. transition towards a climate-neutral economy. The mechanism offers specific assistance to facilitate the mobilisation of funds from 2021 to 2027 Adopted in 2021, the Kraków Metropolitan Area 2030 strategy integrates in regions most significantly affected by the climate transition, aiming to social, economic, environmental dimensions and is underpinned by a spatial mitigate its socio-economic repercussions. JTM incorporates three funding policy for the functional urban area. The supra-local development strategy pillars: the Just Transition Fund, the just transition scheme under InvestEU, sets seven strategic goals, corresponding to seven areas of metropolitan and the Public Sector Loan Facility backed by the EU budget. cooperation, such as partnership and committed staff, climate neutrality and increased quality of life, sustainable urban mobility, economic growth, The Just Transition Fund concentrates on supporting regions most improved education, and equality and social solidarity. profoundly impacted by the transition toward climate neutrality. Its objective The investment needs identified in the supra-local strategy for each of the is to alleviate the socio-economic costs triggered by climate transition by seven strategic areas were estimated at ca. EUR 1.7 billion by 2030, by far supporting the economic diversification and reconversion of the territories exceeding the value of the functional urban area’s ITI allocation for 2021- concerned. The JTF covers tangible (e.g., productive investments, local 2027, of EUR 254 million. For this reason, the strategy’s financing mechanism mobility, and the transformation of existing carbon-intensive installations) considers a wide range of funding sources to support the achievement of and intangible investments (e.g., upskilling and reskilling of workers). Funds ambitious development objectives, that include own funds, state budget, are accessed based on the approval of the Territorial Just Transition Plans EU funds such as ERDF and ESF+ under Regional Programme and national by the Commission as part of cohesion policy programme. programme for infrastructure, climate, and environment (FENiKS), and The second pillar of the Just Transition Mechanism involves a specialised private funds. InvestEU initiative designed to crowd in private investment. InvestEU Combine EU funding programmes to achieve development objectives at has the capability to endorse investments within the scope of Territorial the regional level. While the Kraków Metropolitan Area finances integrated Just Transition Plans (TJTPs) across a diverse spectrum of projects which territorial development through ERDF and ESF+, regions undergoing energy encompass both tangible and intangible or combined/integrated projects. transition may also include JTF funding in their strategies. For example, The third pillar of the JTM is the Public Sector Loan Facility, a blending the Lower Silesia region in Poland combines funding from ERDF, ESF+ and facility which combines grants from the European Commission (up to EUR JTF in its regional development strategy, and the managing authority of 1.5 billion) and loans from the European Investment Bank (up to EUR 10 136 137 CHAPTER 5. FUNDING AND FINANCE billion) to mobilise additional investments for public sector entities in the EU initiatives with direct application relevant for functional area financing regions most affected by the climate transition, as identified in the Territorial Just Transition Plans. The blending of European Investment Bank (EIB) loans To complement funds that require application via national or regional and Commission grants will facilitate the financing of projects that do not authorities (shared management funds), functional areas may seek generate sufficient streams of revenues to cover their investment costs to additional funding where they can apply directly through open calls at the meet the development needs of most affected territories in the transition EU level. While there are several funding opportunities in which cities or towards a climate-neutral economy. partnerships between cities or non-governmental organisations qualify for financial support, most of the available funds tend to prioritise local initiatives. Therefore, individual member localities may also contribute to advancing the functional area approach by mobilising resources independently, provided that their efforts align the goals defined in the CAPACITY BUILDING FOR JUST TRANSITION integrated development strategy of the functional area. (JIU CONURBATION AND JIU VALLEY FUNCTIONAL AREA, ROMANIA) Two major categories of eligible entities eligible for direct financing are: The Romanian Just Transition Programme is directed towards six counties significantly impacted by measures aimed to fulfilling Romania’s Groupings / aggregating entities commitment to climate neutrality, with a specific focus on the Jiu Valley • groupings of municipalities (formal or sub-region, which implements the ITI instrument. Three of the six counties informal) in Romania supported through the Just Transition Programme counties have partnered to develop joint projects, amplify their influence in the • local public entities aggregating several just transition process, and exchange best practices. They have formalised municipalities (officially recognised as a their collaboration through a memorandum of cooperation, with the tier of local government, with obligation for Intercommunity Development Association ‘Jiu Conurbation’ serving as the municipalities to join the supra-municipal governing body since its establishment in 2021. organisation). Capacity building is essential for a green and equitable transition. As part of the Functional areas in the EU project, the Jiu Conurbation and Jiu Valley Single entities governance bodies submitted a joint application and secured technical • local public authorities (an individual assistance through a dedicated instrument for Just Transition Fund regions municipality may apply for funding to (JTP Groundwork). The assistance covered: implement projects included in the integrated • stakeholder mapping and working sessions to identify challenges strategy that have a supra-municipal impact) and proposed solutions in each county; • legal entities other than public authorities • enhancing the capacity of civil society to support the just transition (a voluntary association of municipalities process and the collaboration with public authorities; may have a legal status in the form on an • involving the private sector in projects targeting workforce transition; NGO, universities, or small and medium- • reinforcing citizen engagement in just transition projects (including sized enterprises (SMEs) a guide for community engagement in just transition regions) Prepare the scale-up and transfer of best practices. Considering that The following section presents financing opportunities for single entities, the Jiu Valley has more extensive experience in the just transition process namely public authorities, or other local actors with a legal status. While the compared to the Jiu Conurbation, additional technical assistance was sought list below is not comprehensive, the examples cover the following sectors: to facilitate the transfer of best practices and the exchange of experiences environment and climate action; research and innovation; climate on specific topics. neutrality; social rights and justice; cooperation; culture; digitalisation; As all the other territories covered by the Romanian Territorial Just Transition mobility; and economy. They were selected as they offer individual Plans, the Jiu Valley sub-region will also benefit from technical assistance municipalities or local actors the opportunity to access financing that can provided by the InvestEU Advisory Hub, including a needs assessment and yield benefits for the larger functional area. At the same time, scalability, identification of potential applications for the Public Sector Loan Facility of knowledge transfer, and replication of best practices beyond administrative the Just Transition Mechanism. boundaries often increase the chances of accessing funding through these programmes. 138 139 LIFE PROGRAMME: The LIFE Programme is the EU’s funding instrument for Two initiatives funded through the Horizon Europe programme are CHAPTER 5. FUNDING AND FINANCE Environmental and climate the environment and climate action and has four sub-programmes: particularly relevant for urban authorities and Functional Urban Area Climate action governance bodies: neutrality Nature and Biodiversity sub-programme that aims to fund project for the protection and restoration of Europe’s nature DRIVING URBAN TRANSITIONS TO A SUSTAINABLE FUTURE (DUT) and halting and reversing biodiversity loss, nature conservation PARTNERSHIP: projects, in particular in the areas of biodiversity, habitats and Through research, innovation, and capacity building, the Driving Urban species); Transitions Partnership (co-funded under Horizon Europe) empowers Circular economy and quality of life sub-programme - aims local authorities, municipalities, service and infrastructure providers, at facilitating the transition toward a sustainable, circular, as well as citizens to transform global strategies into actionable toxic-free, energy-efficient and climate-resilient economy initiatives at the local level. It finances actions aimed to fostering and at protecting, restoring and improving the quality of sustainable, resilient, and climate-neutral urban development the environment, either through direct interventions or through a participatory research and innovation (R&I) strategy, such by supporting the integration of those objectives in other as projects that support urban authorities together with the relevant policies; stakeholders to shift the local economy towards a more sustainable one, improve energy efficiency of districts or rethink urban mobility Climate Change Mitigation and Adaptation sub-programme to reduce pollution and expand public spaces for active mobility. -contribute to the shift towards a sustainable, energy-efficient, renewable energy-based, climate-neutral and resilient For more information: DUT Partnership: economy, thereby contributing to sustainable development); https://dutpartnership.eu/ LIFE Clean Energy Transition sub-programme - aims at NETZERO CITIES: facilitating the transition towards an energy-efficient, NetZeroCities is a project funded through European Union’s Horizon renewable energy-based, climate-neutral and -resilient 2020 and Horizon Europe research and innovation programmes, in economy by funding coordination and support actions (Other support of the EU Green Deal. The project supports European cities in Action Grants) across Europe. reducing greenhouse gas emissions, aiming to attain climate neutrality Who can apply: Any public, private or not for profit organisation with a by 2030. While not directly offering funding, NetZeroCities developed legal personality established in an EU Member State, an overseas country or a finance guidance tool to help urban authorities identify funding territory associated with the EU (OCTs), or a third country associated with for climate neutrality projects. The tool provides five categories for the programme. funding opportunities: built environment, green infrastructure and nature-based solutions, waste and circular economy, transportation, Functional area governance bodies may apply, as long as they have a legal entity. and energy systems. For more information For more information: NetZeroCities finance guidance tool: https:// LIFE Programme: https://cinea.ec.europa.eu/programmes/life_en netzerocities.app/financeGuidanceTool CITIZENS, EQUALITY, RIGHTS AND VALUES (CERV): The objective of this HORIZON EUROPE: EU’s research and innovation programme, it finances programme is to safeguard and advance the rights and values outlined in Social rights Research and interventions in the following areas: climate science, energy supply, energy and justice innovation the EU Treaties and the Charter of Fundamental Rights. It contributes to use, and transport and mobility. Research projects span from developing the maintenance and ongoing development of societies that are open, strategies to fight climate change to supporting the shift from traditional rights-oriented, democratic, equitable, and inclusive, grounded in the energy resources to reliable and competitive energy systems. principles of the rule of law. As such, CERV program allocates funding to Who can apply: Legal entities from the EU and associated countries (eligible activities centred around four main pillars: promoting equality, rights, entities may vary depending on the topic of the call) and gender equality; enhancing citizen engagement and participation in Union democracy; combating violence, including gender-based and against Functional area governance bodies may apply, as long as they have a legal entity. children; and safeguarding and promoting the fundamental values of the For more information Union. HORIZON Europe Programme: https://cinea.ec.europa.eu/programmes/ Who can apply: Organisations; Public authorities; Local authorities; Towns horizon-europe_en / municipalities; Federations / associations of local authorities; Universities; https://research-and-innovation.ec.europa.eu/funding/funding- National Human Rights Institutions, Equality bodies, Ombuds Institutions; opportunities/funding-programmes-and-open-calls/horizon-europe_en International organisations; sometimes private companies if applying in 140 141 consortium with non-profit organisations; National Roma Contact Points; DIGITAL EUROPE: This programme is dedicated to the digital transformation CHAPTER 5. FUNDING AND FINANCE Data protection authorities; Memorial and heritage sites, Museums and of Europe. The funded projects aim to address critical areas such as Digitalisation archives, Survivors' associations, and Cultural, youth, educational and supercomputing, artificial intelligence, cybersecurity, advanced digital research organisation skills, and ensuring a wide use of digital technologies across the economy and society, including through Digital Innovation Hubs. Functional area governance bodies may apply as associations of local authorities. Who can apply: legal entities (public or private bodies) established in EU For more information Member States, including overseas countries and territories associated with CERV Programme: https://commission.europa.eu/about-european- the EU (OCTs), as well as EEA countries (Norway, Iceland, Liechtenstein). commission/departments-and-executive-agencies/justice-and- Functional area governance bodies may apply, as long as they have a legal entity. consumers/justice-and-consumers-funding-tenders/funding-programmes/ citizens-equality-rights-and-values-programme_en For more information: Digital Europe Programme: https://digital-strategy. ec.europa.eu/en/activities/digital-programme INTERREG EUROPE: Interreg Europe aims to improve the implementation Cooperation of regional development policies, including investment-oriented programs CONNECTING EUROPE FACILITY FOR TRANSPORT: The Connecting Europe for job creation and economic expansion. This will be achieved by promoting Facility (CEF) for Transport is a funding instrument for implementing European the exchange of expertise, pioneering strategies, and improving capacities Mobility transport infrastructure policies. It's dedicated to supporting investments to identify, disseminate and adopt best practices among regional policy in constructing new transportation infrastructure in Europe, as well as stakeholders. In the 2021-2027 period, Interreg funding is focused on upgrading and improving existing infrastructure. CEF Transport finances challenges like climate change, digital transformation, and social inclusion. projects that address cross-border challenges, remove transportation Interreg is structured on six strands of cooperation: Cross-border bottlenecks, and bridge gaps in both the Core and Comprehensive Networks. cooperation, Transnational cooperation, Interregional cooperation, the Additionally, it funds initiatives focused on horizontal priorities like traffic Instrument for Pre-accession Assistance Cross - Border Cooperation, management systems. Moreover, CEF Transport fosters innovation in Interreg NEXT Cooperation, Outermost Regions. transportation, aiming to enhance infrastructure use, reduce environmental impact, boost energy efficiency and enhance safety measures. Who can apply: Public authorities, public bodies, NGOs, associations, academic institutions, business organisations (in some cases also individual Who can apply: Legal entities, whether public or private bodies, established enterprises) in one of the eligible countries, which include EU Member States (including overseas countries and territories and third countries associated with the Functional area governance bodies can apply, depending on their status, CEF Programme (see participating countries). either as public authorities or bodies, or as associations or NGOs. Functional area governance bodies may apply, as long as they have a legal entity. For more information: For more information Connecting Europe Facility for Transport: https:// Interreg Programme: https://interreg.eu/about-interreg/ cinea.ec.europa.eu/programmes/connecting-europe-facility/transport- Interreg Europe 2021-2027 Programme Manual: infrastructure_en https://www.interregeurope.eu/sites/default/files/2023-02/IR-E_ programme_manual_annexes.pdf SINGLE MARKET PROGRAMME: The Single Market Programme (SMP) aims to facilitate single market integration and facilitate the EU's post-coronavirus Economy CREATIVE EUROPE: This programme provides support to the culture and recovery. Succeeding the COSME programme (2014-2020), SMP offers audio-visual sectors. The focus initiatives within this program are: the Culture diverse support mechanisms, specifically targeting small and medium-sized culture sector (e.g., architecture, cultural heritage, or design), the audio- enterprises (SMEs) to enhance their competitiveness and sustainability. visual sector (e.g., encourage cooperation, nurture talents, or support The initiative aims to streamline market access, foster entrepreneurship, innovative solutions) and a cross sectoral strand (e.g., policy cooperation, cultivate entrepreneurial skills, and propel industrial modernization while innovative approaches to content creation, or promoting media literacy). addressing global and societal challenges. Who can apply: Legal entities, both public and private, established in EU Who can apply: Businesses, providers of support services to business, Member States as well as EEA countries (Norway, Iceland, Liechtenstein) technology organisations, development agencies, chambers of commerce, and other third countries. training organisations, sectoral organisations, including social economy Functional area governance bodies may apply, as long as they have a legal entity. businesses and stakeholders. For more information: Creative Europe Programme: https://culture. While not directly eligible, functional area governance bodies can disseminate ec.europa.eu/creative-europe, https://ec.europa.eu/info/funding- information to SMEs, agencies and other actors at the functional area level. tenders/opportunities/docs/2021-2027/crea/wp-call/2024/call-fiche_ For more information: Single Market Programme: https://commission. crea-cult-2024-lit_en.pdf, CultureEU Funding Guide: https://culture. europa.eu/funding-tenders/find-funding/eu-funding-programmes/single- ec.europa.eu/funding/cultureu-funding-guide/booklet market-programme/overview_en 142 143 Specific European funding programmes and initiatives with direct application also approach. Knowledge Hub - Ensure that URBACT knowledge and practice is CHAPTER 5. FUNDING AND FINANCE explicitly mention groupings of municipalities or local public entities aggregating made accessible to urban practitioners and policymakers to feed into local, several municipalities as eligible to apply in their funding calls, supporting joint regional, national, and European urban policies, in particular through the investments and capacity building. Initiatives focused on capacity building, European Urban Initiative; and contributing to the Urban Agenda for the EU. innovation, and sustainable energy transition are outlined below. Who can apply: Cities, municipalities, towns; Local agencies defined as public or semi-public organisations set up by a city, partially or fully owned by EUROPEAN URBAN INITIATIVE: The European Urban Initiative financed the city authority, responsible for the design and implementation of specific Capacity by ERDF resources provides direct support to innovative projects through policies (economic development, energy supply, health services, transport, building and innovation competitive calls for proposals submitted by EU urban authorities. The etc.); Infra-municipal tiers of government such as city districts and boroughs EUI allows cities and groupings of cities to experiment and develop in cases where they are represented by a politico-administrative institution transferable and scalable solutions to challenges related to sustainable having competences for policy-making and implementation in the policy urban development. EUI serves as a platform for EU cities of various area covered by the URBACT network concerned in which they are willing sizes in enhancing their capacities to design and implement sustainable to get involved; Metropolitan authorities and organised agglomerations in urban development strategies, policies and practices in an integrated and cases where they are represented by a politico-administrative institution participative way, while fostering a more effective use of EU funds. having delegated competences for policymaking and implementation in In addition to knowledge and capacity building opportunities offered the policy area covered by the URBACT network concerned. Other eligible through EUI, i.e., City2City exchanges and peer reviews (see Chapter 3 - beneficiaries: Provincial, regional, and national authorities, as far as urban Governance), EUI also funds innovative projects through calls for proposals issues are concerned; Universities and research centres, as far as urban on one or more topics proposed by the European Commission. The terms issues are concerned, Managing Authorities of cohesion policy and EU of reference for the second call for EUI Innovative Actions (EUI-IA) refer to Solidarity Funds innovative solutions that require a functional area approach. Functional area governance bodies may apply if they are ‘represented by a Who can apply: EU urban authorities, defined as local administrative units politico-administrative institution having delegated competences for policy- categorised as cities, towns, suburbs, or functional urban areas, with a making and implementation in the policy area covered by the URBACT minimum population of 50 000 inhabitants. network concerned’. Associations or groupings of urban authorities are eligible. Functional urban For more information area governance bodies are encouraged to follow the EUI calls for proposals URBACT IV Programme Manual November 2023: https://urbact.eu/sites/ and consult eligibility criteria in their terms of reference. default/files/2023-10/URBACT%20IV%20Programme%20Manual%20 For more information November%202023.pdf Functional areas in the EU. Takeaways from the Knowledge Exchange on EUROPEAN CITY FACILITY (EUCF): The EUCF is a European initiative designed Capacity Building for Functional areas: https://functionalareas.eu/the- Sustainable to assist municipalities / local authorities, groupings of municipalities/ energy knowledge-exchange-on-capacity-building-for-functional-areas/ local authorities, or a local public entity aggregating municipalities/local transition Terms of Reference European Urban Initiative – Innovative Actions: authorities across Europe in formulating investment concepts to accelerate https://www.urban-initiative.eu/sites/default/files/2023-05/EN_ the transition to sustainable energy. Specifically, it covers services like ToR_2nd%20EUI-IA%20Call%20for%20Proposals_31V2023_0.pdf feasibility studies, market analyses, stakeholder assessments, and legal and financial analyses. While not directly financing investments, the grant may URBACT IV: The URBACT IV Programme addresses the capacity needs help functional area bodies access the necessary services and expertise to Capacity of urban authorities in designing and implementing sustainable urban create concepts that may attract follow-up investments. building development strategies and plans according to an integrated, participatory and place-based approach, replicating good practices and designing Who can apply: Municipalities/local authorities; Groupings of municipalities/ investment plans for innovative urban actions. URBACT will build up the local authorities; Local public entities aggregating municipalities/local institutional capacity of cities needed to implement territorial strategies. authorities URBACT IV has three main actions: Transnational networks - Enhance the Functional area governance bodies may apply as groupings of municipalities/ ability of European cities to collaboratively design and execute Integrated local authorities or local public entities aggregating municipalities/local Action Plans aligned with shared sustainable urban development objectives. authorities. This includes transferring proven urban best practices and formulating For more information investment strategies for replicating successful elements of Urban Innovative Actions. Capacity building- Enhance the capability of urban stakeholders to EU City Facility: https://www.eucityfacility.eu/home.html develop and execute sustainable urban development policies, practices, and Guidelines for Applicants: https://www.eucityfacility.eu/apply-for-eucf- innovations through an integrated, participatory, and locally contextualised support/guidelines-for-applicants.html 144 145 A practical resource for accessing EU funding is the 'Guide to EU Funding' CHAPTER 5. FUNDING AND FINANCE published by the European Parliamentary Research Service. Tailored for ESTABLISHING A REVOLVING FUND TO SUPPORT CO-FINANCING AND regional and local authorities, NGOs, businesses, professionals, and citizens, PROJECT PREPARATION NEEDS it offers concise information organised by funding area. With structured (ORADEA METROPOLITAN AREA, ROMANIA) sections, embedded hyperlinks, and eligible beneficiary lists, this guide simplifies the navigation and comprehension of EU funding opportunities. A key challenge highlighted by the participants of the Functional areas in the EU project is that smaller urban or rural localities that are part of a functional Consistently monitoring opportunities for financing projects envisaged area often lack the financial capacity to meet co-financing requirements. to implement the integrated strategy of the functional area is advisable. This can be a significant barrier to accessing EU funds or participating in Creating a database with funding programmes and initiatives that can projects. The Oradea Metropolitan Area offers a good practice example potentially fund planned investments may increase the chances of accessing of how to ensure co-financing of investment projects through short-term funding and can support discussions with member municipalities of the loans from a revolving fund. The fund is established with proportional functional area. contributions from all member localities, with the core city making the largest contributions by virtue of its size and resource base. DATABASE OF EU SOURCES OF FUNDING WITH DIRECT APPLICATION The Metropolitan Area is made up of many rural settlements and a large share of these communes do not have the necessary cash-flow to cover Considering the above challenges, each functional area may create and co-financing for EU projects, feasibility studies, technical projects. The implement processes, responsibilities, and mechanisms/tools to facilitate management authority established a revolving fund to support the 11 access to non-reimbursable funds, enabling the initiation and management member communes to meet co-financing obligations for integrated projects of collaborative projects at the functional area level. that contribute to the managing authority’s development objectives. The primary objective should be to systematically monitor the available Create a sustainable financial stream of own revenues for the functional funding opportunities and select those suitable for the functional area area governance body. The budget of the Metropolitan Association is (based on eligibility criteria and alignment with the specific needs, composed of contributions paid on a yearly basis by each associated challenges, long-term priorities, and medium-term objectives identified local administrative unit. The municipality of Oradea, as the core city, has at the functional area level). Subsequently, the identified opportunities assumed the role of supporting metropolitan development and to reduce should be disseminated within the functional area, to ensure widespread awareness among all constituent localities. the disparities between the municipality and its neighbouring localities. While the largest financial contributor within the Association is the Oradea Functional areas bodies should include technical staff specialised in municipality, funds are directed to support other member localities. The EU funding, responsible for continuous monitoring, identification, and annual contribution is EUR 1.5 per resident, a relatively high amount, dissemination of existing opportunities for non-reimbursable financing. compared to other metropolitan associations in Romania (often EUR 0.20 / A user-friendly database should encompass all relevant financing resident). opportunities relevant for the functional area body and be updated on a Create additional financial mechanisms to support the financial capacity regular basis (e.g., monthly). Such a database was developed within the of smaller localities to access funding and participate in joint projects. Functional areas in the EU project and can serve as a model for replication The metropolitan fund was established through a partnership agreement. (see a template below). It supports investments that contribute to the improvement of the quality For more information of basic public infrastructure and services. Initially set up to offer grants Functional areas in the EU. EU funding sources database. Available at: https:// (non-reimbursable financial support), the metropolitan fund was turned docs.google.com/spreadsheets/d/1_YwS1cnxDg7kjMl61K_-57n-YmjstZus/ into a revolving instrument offering interest-free loans, to respond to the edit?usp=sharing&ouid=114845077696385364642&rtpof=true&sd=true high financing needs of member municipalities. The value of the revolving Functional areas in the EU. Template for EU funding database. Available fund is EUR 200 000. at: https://functionalareas.eu/wp-content/uploads/2024/03/Template-for- Loans can be used to cover expenses for feasibility studies or technical Monitoring-EU-Funding-Sources.xlsx projects, project co-financing, cash flow for reimbursements, purchase of goods/equipment). While the sums are not large, the process of accessing Besides monitoring opportunities for financing, functional area governance the loan is much quicker than through a private bank loan. bodies should also consider the risk of smaller municipalities not having the financial resources to cover co-financing or project preparation costs To benefit from the loan, the localities must submit an application for when applying for EU funds independently or as a grouping. Therefore, an investment for which they wish to obtain the co-financing / financial mechanisms such as revolving funds for offering short-term loans may support. The financial support is granted to members under the following prove highly efficient. conditions: 146 147 • The repayment period is four months and loans can be accessed only Moreover, mobilising private resources for economic competitiveness and CHAPTER 5. FUNDING AND FINANCE once a year by each member development, particularly in functional urban areas can have a positive spill- • Loans are granted on a first-come, first-served basis, requiring a over effect. To support the attraction of private investments, the tools and favourable vote from the Council of the Association made up of the practical insights focus on establishing a supra-local development agency mayors of the member municipalities and developing joint approaches to investor targeting and promotion, and databases of available investments sites across the functional area. • Loans are available only to members who have paid their contribution In addition, several other alternative financial streams can be explored, up to date (at the time of filing the application for financial support) including the issuing of bonds, accessing loans, crowdfunding, or corporate • The support is formalised in the form of partnership agreements. social responsibility initiatives. Examples of projects financed through the metropolitan fund include a road connecting the core city with a peri-urban commune, as well as a training FINANCIAL INSTRUMENTS AND ADVISORY SUPPORT TO LEVERAGE centre in a neighbouring commune. The centre will host the organisation EU FUNDS THROUGH THE EUROPEAN INVESTMENT BANK of counselling and training programmes to increase the employability of trainees. Other projects refer to: modernising an internal road within a Financial instruments (see Glossary) represent an optional form of ROHU project, arranging a park, acquisition of a dump truck with plough complementary support, enabling Managing Authorities at either national and salt spreader, conserving and protecting the natural heritage of Bihor or regional levels to provide support to end beneficiaries (such as SMEs or (Romania) and Hajdu Bihar (Hungary) counties. households) to attain policy objectives. These instruments can be overseen by National Promotional Banks or other Financial Institutions, such as the For additional costs that cannot be covered through the revolving fund, the European Investment Bank. municipality of Oradea can decide to pay a supplementary contribution to the budget of the intercommunity development agency to cover the costs EIB directly supports the objectives of the cohesion policy, recognising the of feasibility studies for projects in other localities. This decision is based on need for specialised investments considering diverse economic growth and the jointly agreed investment objectives within the General Assembly of the increasing disparities. This encompasses efforts to enhance the connection Metropolitan Association. This procedure aims to contribute to a balanced between rural and urban areas, tackle urban inequalities, promote growth territorial development. in rural communities, as well as the development of sustainable and social infrastructure and economic restructuring to ensure a just transition. For more information: Oradea Metropolitan Area Intercommunity Development Association: According to the EIB, most EU municipalities consider there is a gap in https://zmo.ro/contact investments for infrastructure, especially for digitalisation, and climate change mitigation and adaptation, but also urban transport, areas which are strongly linked to functional approaches. To support these sectors, functional areas can benefit from the three mechanisms offered by EIB: lending, blending CHALLENGE 2 How to mobilise additional financial resources? and advisory services. Relying solely on public funding is not an optimal approach for covering Firstly, public sector lending from EIB can be accessed by states, national comprehensive investment needs at functional area level. Public funds are agencies, departments, institutions, and ministries, regional or local insufficient to meet all investment needs and should be augmented by authorities or public sector companies (e.g., utilities). Loans provided by the private sector resources. European Investment Bank are typically upwards of EUR 25 million, aimed Leveraging EU funds can effectively create larger financial streams and to support large-scale investment project or a comprehensive investment enable more efficient use of these funds. This strategy not only diversifies programme. In addition, the EIB also offers framework loans for the public the funding base but also potentially increases the overall investment, sector, designed to fund an investment program composed of several leading to more comprehensive, robust, and sustainable development smaller-scale projects. Both options need to align with one or more of the projects. EIB’s priorities (such as supporting climate and environmental sustainability, An example of such an approach are public-private partnerships, which may sustainable cities and regions, cohesion, social sustainability, innovation, also leverage EU funding to cover high investment needs, optimise the use digital and human capital, or SMEs). of funds and increase efficiency and quality of services and infrastructure. Secondly, blending refers to the integration of financing from the European Moreover, financial instruments (loans, guarantees, or equity) can be Investment Bank with additional EU funds under shared management, through deployed to use EU funds as a leverage to attract additional financing, with financial instruments such as loans, guarantees or equity. To this end, the the support of EIB. This section also presents innovative approaches to Common Provisions Regulation for the 2021-2027 period introduces notable ensure financial resources for preparing and co-financing investments from enhancements in the synergy between financial instruments and grants. As own revenues through revolving fund mechanisms. 148 149 CHAPTER 5. FUNDING AND FINANCE a result, member states also have an enhanced flexibility of using financial MOBILISING EIB FUNDING FOR PREPARING ENERGY EFFICIENCY INVESTMENTS instruments for the implementation of programmes. These investments are aimed to projects that not only have the capacity for repayment but also (UPPER SILESIAN AND ZAGŁĘBIE METROPOLIS) possess the potential to yield significant non-financial benefits, such as economic, social, and environmental impacts. This is based on an ex-ante The Upper Silesian and Zagłębie Metropolis (Górnośląsko-Zagłębiowska assessment that identifies market failures, suboptimal investment situations, Metropolia - GZM) functional area accessed the European Local ENergy and the corresponding investment needs. Assistance (ELENA) facility to improve the energy efficiency of municipal multi-family buildings. The metropolitan office has undertaken integrated To support the use of financial instruments, the Fi-compass was launched measures to implement investments using funds from the European as a collaborative effort by the European Commission and the European Investment Bank. Investment Bank, serving an advisory platform for financial instruments under EU shared management. It provides practical know-how through Bundle investments in energy efficiency at the functional area level to meet resources such as ‘how-to’ manuals, factsheets, case studies, training minimum investment thresholds. In the case of the ELENA programme, a seminars, networking events, and informational videos. minimum required target value of the investment is EUR 30 million, which is hard to meet for a single municipality. Measures taken at the metropolitan Thirdly, the EIB also offers a comprehensive array of advisory services, with level to include a total of 18 municipalities in a joint package helped to meet the InvestEU Advisory Hub as the first point of contact. In the realm of this requirement for accessing the support programme. The metropolitan project development, the ELENA (European Local ENergy Assistance) facility governance office of the Upper Silesian and Zagłębie Metropolis took on can support interventions for energy efficiency at the functional area scale, the coordination of the process of preparing and implementing this project, including the following eligible activities: technical studies, energy audits, in close collaboration with participating municipalities. This also served to business plans and financial advisory, legal advice, tendering procedure strengthen the institutional capacity of the metropolitan office itself and to preparation, project bundling and project management. enhance cooperation within the functional area. Moreover, the bundling of Another opportunity for advisory services is offered by the EIB Project Advisory the projects enables economies of scale and of shared standards of quality Support Service Agreement (PASSA), a strategic initiative aimed to facilitating in implementation. EU-funded projects by providing technical assistance to enhance public Access funding and advisory services for preparing quality projects. The sector investments. Through collaboration with experts, local partners, and funds from the European Local Assistance Facility ELENA program will be used external consultants, PASSA accelerates project execution and facilitates the to prepare the technical documentation necessary to launch investments absorption of EU structural and investment funds. These flexible agreements in 18 municipalities of the Upper Silesian and Zagłębie Metropolis. Their offer tailored advisory services to project teams and local administrations, implementation is expected to improve energy efficiency in multi-family ensuring efficient and effective use of resources for public sector investments. municipal buildings and reduce CO2 emissions by at least 60 % from the Also, in the realm of project development, JASPERS is a technical assistance baseline. facility funded by the European Commission and EIB that has been assisting The metropolitan office is the leader of the project consortium and the Member States in preparing large, complex investments, extending to the coordinates cooperation between municipalities, technical advisors, and the preparation of background strategies. Some examples of areas of JASPERS EIB. The municipalities will receive support in the formulation of technical support which are relevant for functional areas are the development of studies and in preparing applications for funding from external sources. It is Sustainable Urban Mobility Plans in six Member States (PL, RO, EL, PT, ES and expected that as a result of the project, documentation with an estimated CY) and the review of Integrated Urban Development strategies in Romania. value of more than EUR 2.1 million will be produced for 185 multi-family For more information buildings in the metropolitan area. The municipalities' own contribution European Commission. InvestEU Advisory Hub. will be 10 % of the project's value, while the remaining 90 % will be grant Available at: https://investeu.europa.eu/investeu-programme/investeu- funding from the EIB. advisory-hub/about-investeu-advisory-hub_en For more information European Investment Bank. fi-compass platform: Financial instruments European Investment Bank. ELENA project factsheet. under EU shared management. Available at: https://www.fi-compass.eu Available at: https://www.eib.org/attachments/documents/147-project- European Investment Bank. EIB financial and advisory support. factsheet-improving-energy-efficiency-in-multi-family-residential-buildings- Available at: https://www.eib.org/en/products/index.htm in-the-gzm-metropolis.pdf European Investment Bank. JASPERS facility. Available at: https://jaspers.eib.org/ 150 151 CHAPTER 5. FUNDING AND FINANCE PUBLIC-PRIVATE PARTNERSHIPS (PPP) under the PPP formula among several entities, generating economies of scale by including in the proceedings smaller projects, usually too small for By definition, public-private partnerships (PPPs) involve public bodies potential private partners to be interested in, attracting reputable private and the private sector and aim to deliver public services through risk partners with experience in a given subject matter, reducing the cost of sharing, pooling of private sector expertise or additional sources of capital materials through large-scale purchasing. (Common Provisions Regulation, 2021). For a PPP to be established, it must demonstrate superior value-for-money compared to traditional public Explore the possibility to bundle PPP projects at the functional area level procurement, based on reliable comparative analysis. to ensure economies of scale. Conceptual work is currently underway for the preparation of a bundle of PPP projects by six municipalities in the While commonly structured at the national level for large infrastructure Kraków metropolitan association, involving the construction of several projects, public-private partnership projects can be implemented at a public facilities (a kindergarten/school, an administrative centre, a train functional area scale across a wide range of sectors, such as transportation, station with a shopping area and a parking lot), supported by World power and energy, water and wastewater, solid waste management, Bank experts. The projects involve construction of infrastructure and its telecommunications, street lighting, healthcare, education, social subsequent maintenance or management. The estimated financial potential infrastructure. Besides bringing in financial resources secured from local of the entire package of projects is about EUR 50 million. The PPP package budgets or EU funds, public authorities possessing strategically located land project aims not only to create new public facilities, but also to incorporate can attract private sector interest for commercial development, enhancing sustainability goals and achieve a positive impact on local communities infrastructure and services. within the functional urban area. The final decisions on the implementation Blended PPPs are increasingly developed at the EU level, to leverage public of individual investments will be the result of an analysis of local conditions funds more effectively, for instance, by combining European funds with and the financial feasibility. The Kraków metropolitan association office will private finance in PPP projects. This involves securing a portion of public play a key role in coordinating the PPP bundle. funding as a grant from EU funds. The European PPP Expertise Centre notes Launch a PPP pilot project to refine and expand a mechanism of cooperation that blending brings additional discipline in fund deployment, improving at the functional area level. The implementation of the pilot will support value for money and may offer several advantages, like efficiency gains the development of a mechanism for the preparation and implementation from private sector involvement and enabling investment in otherwise of bundles of PPP projects. It is also an opportunity for wider promotion and unprofitable high-cost projects, partially covered by EU funds. dissemination of PPP formula among smaller local governments, deepening inter-municipal cooperation within functional urban areas and increasing For more information their investment potential and propensity to implement projects with supra- UNECE. Economic cooperation and integration. Public-private partnerships local impact. case studies. Available at: https://unece.org/ppp/casestudies European PPP Expertise Centre (EPEC). Blending EU Structural and Investment Funds and PPPs in the 2014-2020 Programming Period - Guidance Note. 2016 INSTITUTIONAL RESPONSE TO ATTRACT, RETAIN AND EXPAND Functional areas in the EU. Opportunities for public-private partnerships PRIVATE INVESTMENTS (ORADEA METROPOLITAN AREA, ROMANIA) at the functional area level. Available at: https://functionalareas.eu/wp- Creating a dedicated agency for attracting private investments at a supra- content/uploads/2024/05/Public-private-partnerships-for-developing- local level can be an effective solution for developing local economies and functional-areas.pdf. increasing job opportunities. Oradea and its metropolitan area have been increasingly attractive to residents, tourists, and investors due to its ongoing development, high absorption of EU funds, and administrative performance. BUNDLING PPP PROJECTS IN FUNCTIONAL URBAN AREAS However, the key challenges at the metropolitan and county level relate to economic diversification, creating new jobs, increasing the median (KRAKÓW METROPOLITAN AREA, POLAND) salary level, and increasing the resources available for public investments PPP bundling involves combining several similar investments (e.g., thermal within the local budgets. The solution to these challenges lies in attracting, modernisation of school buildings in a functional area, replacement of retaining, and expanding private investments. street lighting in several neighbouring towns, modernisation of roads, Establish a one-stop-shop for private investors. The Oradea Local construction and modernisation of school and kindergarten infrastructure) Development Agency has been a driving force behind the efforts to attract and proceeding as if they were one project. The advantages of PPP bundling private investments since the 2008 economic crisis, establishing and include increasing the negotiating power of local governments in talks with managing four industrial parks of the city. The agency has evolved to manage a potential private partner, spreading the costs of preparing investments the entire network of industrial parks at the county level, comprising 11 152 153 CHAPTER 5. FUNDING AND FINANCE units in seven localities and acts as a single point of contact for potential investment and preparing the location, and assistance after the investment, investors. The main advantage of this setup is that the chances of making an throughout the activity. It also engages in joint projects with educational investment increase significantly. Investors do not need to initiate separate institutions and NGOs to ensure the availability of a skilled workforce for discussions with different entities to compare offers, and the agency can investors. help them choose the right fit from the available parcels across the county. For more information To this end, a collaboration protocol was signed between the agency, the Functional areas in the EU. Attracting private investments in Oradea county council, and the local councils of the municipalities hosting the Metropolitan Area, Romania. industrial parks. Available at: https://functionalareas.eu/attracting-private-investments/ Creating a dedicated agency for attracting private investments can be an Oradea Local Development Agency: https://adlo.ro/ effective solution for developing local economies and creating new jobs. Only in Oradea, the agency has attracted a total of EUR 580 million and supported the creation of 10 000 new jobs. For optimum efficacy and efficiency, a dedicated agency should: COMPETITIVE PROFILES AND DATABASE OF INVESTMENTS PLOTS AT THE • Serve as a one-stop-shop for investors, covering the entire cycle of METROPOLITAN LEVEL (KALISZ-OSTRÓW AGGLOMERATION, POLAND) an investment attraction, retention, and expansion, by supporting companies in selecting locations, acting as a partner and mediator for Investor attraction depends on factors like availability of land plots and local and foreign investors in their relationship with public institutions, skilled labour, tax incentives, access to markets, utilities infrastructure and and administering common spaces and assets. other factors, including quality of life. Creating a profile and joint database of available resources such as land plots at the functional area scale • Ensure that the area can also attract and retain a skilled workforce. The requires strong collaboration between administrative units, pursuing joint Oradea Development Agency engages in joint projects with educational development and going beyond competition to collaboration. institutions and NGOs, seeking to match skills development in the area with needs of local companies. It also invests in the quality of life Develop an investor-friendly profile (a document or online platform for through the extension of public transport, business infrastructure, and investor promotion) based on sound data analysis at the functional scale support for local start-ups. to enhance competitiveness: The importance of data in attracting investors • Have sufficient authority and remit to remove barriers to investment - lies in its role in creating a comprehensive profile for the area. This profile such the ability to provide land at concessional terms for investments. may help target and attract potential investors and may include detailed All of these to be done within appropriate legal prescripts. information on various aspects such as available investment plots, a database of major companies, profile and availability of labour force and educational • Maintain collaboration between public institutions and local councils data, mapping of infrastructure, quality of life, cost of living, and commuting as this is essential for effective management of industrial parks and patterns. This process will also inform the identification of the desired profile attracting investors to less developed areas. of future investors, matching existing local skills and resources, as well as the Expand the role of the one-stop-shop to cover the full cycle of investment, vision for the area’s development. beyond investor attraction. While investor attraction may be the most resource-intensive activity for dedicated teams or agencies, the signing Create joint databases of available investment sites. The Kalisz-Ostrów of a contract between public authorities and private investors is only the Agglomeration and Kraków Metropolitan Area provide an example of efforts first step and should be followed by efforts for business retention and to promote the economy of the entire area of the functional urban areas expansion. Business retention focuses on supporting and strengthening and attract new domestic and foreign investment through joint databases of existing businesses, including the facilitation of interactions with public available investment sites. The databases contain information on the location authorities and educational institutions, recognising their role in providing of land plots, their purpose, development, ownership, contact person. By jobs and their contribution to the local economy. Finally, business expansion accessing these databases, potential investors can obtain information on involves working with existing businesses to identify growth opportunities investment plots available across the functional urban area in one place. and facilitate their expansion. In this sense, the role of the Oradea Local Identify opportunities to finance joint business promotion and market Development Agency goes beyond the promotion and attraction phase and analysis: The Kraków Metropolitan Area also implemented a project covers the entire cycle of an investment, offering support to potential and called Kraków Metropolitan Area for Business (KMA4Business) in 2019- existing investors alike. 2023, financed by the Regional Operational Programme 2014-2020. Its Align the service offer with the demands and preferences of the market objectives were to increase the internationalisation of SMEs (through and potential investors. The agency offers various services, including economic promotion, access to information on foreign markets and trends, assistance in selecting the location for investment, assistance for making the promotional activities) and to maintain the favourable dynamics of foreign 154 155 CHAPTER 5. FUNDING AND FINANCE direct investment in the Kraków Metropolitan Area and the entire Lesser other factors. The third dimension the scan assesses is the FDI demand—the Poland region (through the promotion of the economic offer of the Kraków extent of existing or potential future global or regional FDI flows in identified Metropolitan Area on foreign markets, diversification and strengthening of priority sectors and subsectors. the foreign expansion of SMEs and the acquisition of investments with high Sector Scan assessment leads to the identification of a short list of priority added value, located in the Kraków Metropolitan Area). sectors for FDI attraction and presents sector profiles (e.g.,software & IT As part of the Kraków Metropolitan Area for Business project, a detailed services, food processing, agriculture) outlining the key strengths of the analysis of several foreign markets was carried out to assess their export area’s value proposition to investors in each of these sectors. The results potential for regional companies. An important result of the project was to of the sector scan can be used to develop regional or functional area-level integrate the efforts of public partners and business support organisations investor promotion strategies. to create a common narrative about attractive and competitive conditions The WB’s Sector Scan was recently applied in the region of Pomerania in for locating new investments available in the Kraków Metropolitan Area. Poland. In 2022 the World Bank evaluated the achievements of the Invest Establish multi-stakeholder governance mechanisms to attract private in Pomerania agency in supporting and promoting regional investments investments. In the case of the Kraków Metropolitan Area, the project was and prepared a substantive contribution to the new strategy for 2022-2027 implemented in partnership of four entities that carry out activities for based on the findings. economic development and entrepreneurship (a private company involved For more information in the promotion of Kraków, the Kraków Metropolitan Association, the Chamber of Commerce and Industry, and the City of Kraków). World Bank. Boosting Foreign Direct Investment. November 2021. Available at: https://documents1.worldbank.org/curated/en/099135001212235481/ For more information pdf/P1719510f6c46503909d230883e7a7ca5da.pdf Kraków Metropolitan Area for Business. Joint database of available World Bank. Invest in Pomerania: Impact Evaluation and Inputs to New investment sites. Available at: https://kma4business.metropoliaKrakówska. FDI Strategy for 2022-2027. January 2023. Available at: https://www. pl/tereny-inwestycyjne worldbank.org/en/country/poland/publication/invest-in-pomerania- impact-evaluation-and-inputs-to-new-fdi-strategy-for-2022-2027 SUB-NATIONAL SECTOR SCAN METHODOLOGY LIVING LAB APPROACH TO SUPPORT ENTREPRENEURIAL DEVELOPMENT Investor targeting, understood as proactively reaching out to desirable (KALISZ-OSTRÓW AGGLOMERATION, POLAND) and likely to invest companies and presenting them with a tailored value The entrepreneurial ecosystem in the Kalisz-Ostrów Agglomeration identified proposition to help them select an investment location is a core element of the need to consolidate economic activities at the agglomeration level to an area’s promotion strategy. The World Bank’s Foreign Direct Investment create an entrepreneurial value chain. The main goals were to effectively (FDI) Sector Scan can be a useful tool for developing well-targeted investor attract investors and support the development of companies in sectors promotion strategies at subnational level, including the level of functional relevant to the development of the Kalisz-Ostrów Agglomeration (e.g., areas. food and aviation industries), identified in the regional smart specialisation The Sector Scan assesses the potential of sectors and subsectors to attract strategy (see Glossary). FDI, by determining their: To this end, the Living Lab participatory approach provided the reference • (a) ‘feasibility’, or readiness for investment promotion, framework within which the priorities for entrepreneurship development • (b) ‘desirability’, or potential contribution toward achieving a in the Kalisz-Ostrów Agglomeration were established. This approach was region’s overarching policy goals. applied with a view to creating sustainable open innovation ecosystems based on co-creation, rapid prototyping, and testing, as well as scaling- Feasibility criteria consider a region’s attractiveness and competitiveness up innovations and businesses, to provide joint-value to the involved as a location for investment relative to alternative locations based on cost, stakeholders. Living Labs operate as intermediaries among citizens, research quality, and other competitiveness criteria. organisations, companies and government levels bringing them together Desirability criteria consider whether foreign direct investment (FDI) in the in a participatory manner. Engaging citizens, NGOs, organisations, private sector or subsector has the potential to meet a region’s long-term economic companies, local authorities offer a governance framework and a platform and social development objectives. It examines potential contributions to for testing solutions identified in the ideation process. After prototyping, job creation, productivity, export growth and economic diversification and the living lab methodology involves the calibration of the solutions and 156 157 community projects, or infrastructure developments. Unlike CHAPTER 5. FUNDING AND FINANCE implementation in the real environment. While living labs can be established traditional financing methods, crowdfunding allows functional area in various fields (education, infrastructure, or health), it can be very useful bodies to tap into a diverse pool of investors, including residents, for boosting entrepreneurship in a region or functional area. businesses, and supporters, thereby democratising the funding As a result of applying the Living Lab methodology, the Kalisz-Ostrów process, and fostering community engagement in local initiatives. Agglomeration entrepreneurship support system will provide a one-stop- • Venture capital can be directed towards specific projects, providing shop for entrepreneurial support, access to advanced services in innovation a crucial source of funding for innovative and high-growth through partner networks, digitisation and business greening, a tailor-made initiatives. Another noteworthy approach is the involvement of set of measures that support leading regional industries, promotion of Kalisz- local companies through Corporate Social Responsibility initiatives, Ostrów Agglomeration’s investment offer through consistent branding, that can be directed to achieving strategic goals defined in the public e-services for business, economies of scale in the investment process integrated development strategy at the functional area level. ( e.g., access to a larger pool of available workers and a coherent education system matching the demand from enterprises). It is also aims to enable These diverse funding opportunities provide a comprehensive framework the exchange of knowledge and resources (e.g., FDI services, local market for financing functional area level investments aligned with objectives assessments and reports), the reduction of costs and duplication of services identified through integrated development strategies and with larger or resources for business support, the inclusion of stakeholders in policy objectives at EU level. making for entrepreneurship, and the establishment of new value-added businesses. The entrepreneurial potential of v may be further strengthened by the development of a joint investment offer of Kalisz-Ostrów Agglomeration, followed by measures supporting networking and cooperation of business support institutions with more advanced entities in the broader region and beyond. For more information European Network of Living Labs: https://enoll.org/ In addition to the examples previously mentioned, a range of complementary innovative financial strategies can be employed. These include the issuance of green bonds, and the exploration of crowdfunding and venture capital attraction. This strategy could provide a significant boost in funding, leveraging the collective strength and resources, contributing to meeting high investment needs that cannot be solely covered through public funding. • Green bonds can be issued by governments, municipalities, public utility companies or corporations to raise funds for projects with environmental benefits. These bonds are specifically earmarked for projects aimed to mitigating or adapting to climate change, promoting renewable energy, enhancing energy efficiency, or improving sustainable infrastructure. By issuing green bonds, public authorities can access additional capital beyond traditional public or EU funding sources to finance sustainable projects. A key point to explore is the potential opportunity of issuing bonds by metropolitan or functional area governance bodies. • Crowdfunding is a method of raising capital through the collective efforts of many individuals, typically via online platforms. It involves asking small contributions from a large pool of investors or donors to fund a particular project, business venture, or cause. In the context of functional area bodies, crowdfunding can be used to finance smaller 158 159 CHAPTER 5. FUNDING AND FINANCE RECOMMENDATIONS 1. Diversify funding sources for integrated investments: To meet financing 6. Explore public-private partnership opportunities and financial needs at the functional area level, identifying a mix of public funding instruments for implementing projects at functional area level: Consider sources is needed. The process of identifying funding opportunities the innovative approach of bundling Public-Private Partnership projects at should be guided by the strategic objective outlined in the integrated the functional area level to ensure economies of scale. By combining similar development strategy. This approach ensures that financial resources investments such as thermal modernisation, street lighting replacement, and are directed towards goals that contribute meaningfully to the overall infrastructure modernisation, this strategy streamlines project management development vision. and attracts private investment more efficiently. Blended Public-Private Partnership, leveraging EU funding and enabling risk-sharing, are another 2. Improve capacity for implementation: Mobilising public financial option to attract private investment. Moreover, financial instruments can be resources requires enhancing technical capacity at the functional area used to complement EU grants for key investment areas. level. Identifying opportunities for technical assistance is essential to effectively implement the integrated territorial strategy and other plans. Strengthening technical capacity and governance creates a foundation for 7. Establish a one-stop-shop agency for attracting targeted private successful and sustainable use of public financial resources. investments: To effectively attract private investments, the whole investment process should be simplified. This can be achieved by setting up a supra- local agency to cover the full investment cycle, matching market demands with the investment offer. By doing so, investors can explore a wider range 3. Create sustainable financial mechanisms to support smaller localities: of business opportunities across the functional area through a single point There are significant disparities in the financial capacity to participate in of contact. At the same time, a supra-local agency can ensure that potential joint projects between larger and smaller localities in a functional area (co-financing, project preparation costs). To address this, a revolving fund investments meet the area’s long-term development objectives. composed of own revenues of the functional area governance body can be set up to offer short-term loans. By creating a sustainable financial mechanism, the functional area can maximise access to public financial resources and accelerate joint investments. 4. Develop a joint competitive profile and database of investment plots: Developing comprehensive competitive profiles and joint databases for available sites should be based on meticulous data analysis, offering a detailed overview of the functional area’s strengths and investment potential. 5. Develop opportunities to support the functional approach beyond large metropolitan cities at the national level (i.e., suburbs and marginalised areas in medium-sized cities, as well non-urban types of functional areas). This inclusive approach can ensure a more equitable and efficient distribution of resources and opportunities and supports a balanced territorial development. Decentralising funding programme management and empowering sub-national structures as Intermediate Bodies can support more effective and accelerated decision-making and optimise the use of resources. 160 161 REFERENCES CHAPTER 5. FUNDING AND FINANCE 1. Association for Integrated Territorial Development of the Jiu Valley. 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Available at: https://www.eib.org/attachments/ documents/147-project-factsheet-improving-energy-efficiency-in-multi-family-residential-buildings-in- the-gzm-metropolis.pdf 162 163 6 MONITORING AND Robust M&E contributes to joint investment accountability and transparency CHAPTER 6. MONITORING AND EVALUATION while building stakeholders’ trust. It should answer the recurrent question ‘What’s in it for me?’ by demonstrating the advantages that make EVALUATION stakeholders eager to work together at the functional area level. The assumption is that what gets monitored, is achieved, and what is achieved, builds confidence in cooperation. Considering that overcoming competition among administrative units and demonstrating the positive impact of joint investments was a common challenge cited by representatives of functional areas part of the Functional areas in the EU project, this chapter aims to inspire decision-makers at the functional area and national level to coordinate efforts in the monitoring and evaluation of integrated supra- Monitoring and evaluation (M&E) are key pillars in the design and municipal strategies. implementation of integrated strategies. However, this process is often reduced to a formal requirement and, therefore, it lacks the capacity to The chapter starts with practical insights and resources relating to data track performance in achieving the objectives of cooperation, manage access that allows to establish a baseline and measure progress towards uncertainty, adapt the action to changing circumstances, and support shared objectives set in the integrated strategy. It then offers examples impactful stakeholder engagement. This chapter offers practical insights of how to formulate an M&E system of indicators and how to ensure and tools for ensuring meaningful monitoring and evaluation at the transparency and easy access for citizens and other stakeholders to functional area level. statistical data and information about joint projects. Finally, the chapter presents the application of participatory M&E for integrated strategies and In strategic planning, achievement of objectives and results initiatives projects that aim to ensure a sense of ownership. within a strategy should be measured within a specific M&E framework. This includes deciding who will be responsible for the M&E system (e.g., a monitoring committee), the necessary funding and human resources, and How to build data availability at the functional area CHALLENGE 1 establishing the set of indicators to be monitored. level for monitoring and evaluation? Both handbooks developed with the support of the Joint Research Centre Availability of data at the functional area level allows for a more precise (see Introduction) offer comprehensive guidance on the M&E process of understanding of supra-municipal dynamics, needs, and opportunities, integrated strategies in urban and non-urban areas and are highly relevant leading to more targeted and effective policy interventions. Having common for functional areas setting up M&E systems. and standardised indicators throughout the functional area is essential to With regards to indicators, the ‘Handbook of Territorial and Local measure the effectiveness and advancement of functional area strategies. Development Strategies’ notes that the M&E systems should not be ‘overly complex and unworkable in practice, or too simplistic, delivering To achieve this, functional area governance bodies may start with assessing the wrong information’. At the same time, the ‘Handbook for Sustainable available data sourced from city, regional, national, or EU statistical Urban Development Strategies’ highlights that monitoring should not be sources, identify gaps, and proactively seek to address them. In the case perceived solely as an obligation, but rather as a reflection of the evidence of functional areas with a higher technical and financial capacity, addressing supporting results-oriented frameworks. When coupled with stakeholder this gap in data collection may involve partnerships with universities, engagement, monitoring also creates a shared ownership of successes and research institutions or private actors. challenges. Available data can be stored and published in various online formats. Monitoring supports the data needed for the evaluation of an integrated Interactive platforms allow users to manipulate stored data, enabling strategy, which informs the necessary adjustments for enhancing the impact them to generate customised maps or graphics. Examples of such platforms of interventions. While actual monitoring begins with the implementation are Geographic Information Systems (GIS - see Chapter 4 - Cross-sectoral of planned actions, the evaluation process covers the entire strategic integration) and Open Data platforms, as they allow users to interact with planning cycle, starting with an ex-ante evaluation of the effectiveness and the data, customise visualisations and perform analyses. On the contrary, efficiency of strategy implementation, reflecting on past experiences and static platforms present data in fixed formats that limit interaction, merely potential risks. Mid-term evaluation during implementation aims to adjust informing users that they only have access to published maps and graphics the strategy to changing circumstances. Finally, ex-post evaluation takes without customization options. place after the implementation of the strategy, assessing the achievement Such platforms can help authorities and citizens in monitoring the of the objectives and its impact (see Glossary). implementation of the integrated strategy, displaying the progress towards target values across various indicators. Several functional areas across the 164 165 EU developed such dedicated platforms to aggregate territorial data and Ensure that data is presented in a user-friendly mode and can be used CHAPTER 6. MONITORING AND EVALUATION support planning and M&E processes, including Brno Metropolitan Area, by all interested stakeholders, including residents. InfoGZM portal is the Polish Górnośląsko-Zagłębiowska Metropolia, Brussels Capital Region, the largest database of knowledge on the Silesian Metropolis. Thanks to Metropole de Lille or which created a metropolitan socio-economic its attractive form and constant enrichment with new information, it is observatory compiling relevant data to support M&E efforts at a supra- used by the offices of municipalities and public administration, academics, municipal scale (see practical insight below). businesses, as well as residents, students, or NGOs and is open to all who want to know more about the metropolis and monitor its development. Considering the relatively high costs that creating a territorial data platform may involve, functional areas may initially set up a static platform to present ‘METROPOLISES IN NUMBERS’ PLATFORM, UNION OF POLISH key M&E data and identify possible funding opportunities to expand it. METROPOLISES However, to support a standardised approach and ensure all functional Another example is the ‘Metropolises in numbers’ platform, implemented areas have access to relevant data, functional area representatives can also by the Centre for Analysis and Research of the Union of Polish Metropolises advocate for functional area-level data collection at the national level. For – an association of 12 core cities of Poland’s largest metropolitan areas instance, the Kraków Metropolitan Area organised discussions with the (Kraków, Białystok, Bydgoszcz, Gdańsk, Katowice, Lublin, Łódź, Poznań, National Statistical Office about the possibility to collect and aggregate Rzeszów, Szczecin, Warsaw and Wrocław). data aggregated at the functional area level. The end goal is ensuring the availability of data relevant for monitoring and evaluating the socio- Share regular updates on the data gathered at the functional area level economic impact of joint planning and investments, which may further to monitor strategy implementation. The interactive data enables users to shape policymaking. select a functional area and presents data through various graphics, with a 2018 baseline, offering accessible data useful for both the diagnosis and monitoring phases of the strategy. It publishes data on key indicators such DATA OBSERVATORIES TO SUPPORT MONITORING AND EVALUATION as demography, labour market, entrepreneurship, education and childcare, OF SUPRA-MUNICIPAL STRATEGIES IN POLISH FUNCTIONAL AREAS construction and real estate, transport, health and social care, culture, environment, and tourism. The source of data is the Local Data Bank of the INFOGZM PORTAL, SILESIA, POLAND Central Statistical Office in Poland. In addition, the platform also sends a InfoGZM portal is run by the Metropolitan Socio-Economic Observatory semi-annual statistical bulletin with the most important demographic and established by the assembly of Górnośląsko-Zagłębiowska Metropolia socio-economic data on the 12 metropolitan areas. (GZM) in 2018. The metropolis is composed of 41 contiguous municipalities Figure 9. Monitoring metropolitan transport data: Kraków Metropolitan Area in Silesia, Poland. The Observatory’s goal is to collect, process and analyse public data and monitor changes and processes observed at the metropolitan level. The data obtained supports the planning and monitoring of the social and economic development of the metropolis. Establish a one-stop shop for open data on key thematic areas at the functional area level. InfoGZM is not only a tool for presenting data, but more importantly a ‘one-stop info shop’ for preparing and performing analyses of the developments in the metropolis. More than 200 datasets have been collected in five thematic groups: demography, finance, economy, infrastructure, and environment. Compiled data are presented on maps, cartograms, charts, reports, and infographics. InfoGZM also contains a list of materials prepared for and about the GZM, as well as in-house studies, such as interactive maps on labour mobility, spatial development patterns and trends of the GZM municipalities (based on spatial development studies), and information on urban regeneration programs. Identify all relevant data sources besides national statistics. In the case of the InfoGZM portal, the main source of data is the Central Statistical Office, but information from other sources is also used, such as municipal Source: Metropolis in numbers (https://metropolie.pl/) public information bulletins, Regional Audit Office, Ministry of Finance and municipal budgets, Central Office of Geodesy and Cartography, Central For more information: Inspectorate of Environmental Protection, National Geological Institute. InfoGZM Portal: https://infogzm.metropoliagzm.pl 166 167 Open data can complement statistical data for monitoring and evaluation • impact indicators are about the broader, long-term changes we CHAPTER 6. MONITORING AND EVALUATION purposes, enriching the ability to observe, analyse, and respond to expect to see as a result of the intervention. These changes go various spatial and environmental challenges. By integrating them into beyond the direct effects of strategy implementation (e.g., the the monitoring and evaluation process, these tools enable the tracking of proportion of people using different modes of transportation, the changes over time, support the assessment of impacts, and help predict overall health of the population, or the satisfaction of citizens with and mitigate risks. available job opportunities in the area. Figure 10. Measuring results, outputs and impact of strategies GEOSPATIAL AND GEO-STATISTICAL OPEN DATA MONITORING RESOURCES To support data-based planning and monitoring, a practical guide prepared under the Functional areas in the EU project presents a vast list of resources for geospatial and geo-statistical open-data sources that functional areas can access. These include comprehensive databases like the World Bank GeoData, EU Open Data Portal, Eurostat, ESA’s Copernicus Open Access Hub, USGS Earth Explorer, NASA Earth Observation Data, and ESRI Open Data Hub. These platforms provide a wealth of data on various topics, including environmental data, demographic statistics, and spatial data. Their relevance to monitoring is evident in their ability to offer real-time Source: URBACT, Setting up efficient indicators & monitoring systems and historical data, crucial for tracking changes, predicting trends, and to measure performance (urbact.eu/sites/default/files/measuring_ making informed decisions. performance_implementation_0_1_0.pdf) Tailored to more specific needs in land use, environmental monitoring, climate adaptation, and urban development, the guide also presents At EU level, data from all programmes is gathered to monitor performance other resources like EC INSPIRE GeoPortal, EEA Copernicus, European and report to various EU bodies and citizens on how cohesion policy Environmental Agency Geodata, E-PRTR, Climate-ADAPT, EC GHSL, ESDAC, funds are used, their performance, and benefits. This is done using and Google Environmental Insights Explorer. common output and result indicators defined at the level of the Specific Objectives (SO) of each Policy Objectives. In the 2021-2027 cohesion For more information policy, functional area approaches are monitored through common Functional areas in the EU. Geospatial and geo-statistical open-data output indicators under PO5 ‘A Europe closer to citizens’ (see Glossary). sources guide. Available at: https://functionalareas.eu/wp-content/ A selection of the key indicators that capture territorial integration uploads/2023/06/Geo-spatial-Geo-statistical-open-data-sources.pdf is briefly presented below. The full list of common output and result indicators can be consulted for additional guidance by functional areas that are in the process of setting up their monitoring and evaluation CHALLENGE 2 How to monitor and evaluate integraed strategies? systems, for interventions related to all five policy objectives. The M&E framework of a strategy builds upon the shared vision, objectives, Table 1. Selection of common output indicators for ERDF/CF/JTF and priorities. This implies selecting and defining suitable output, results, (2021-2027) relevant for functional area approaches and impact indicators (see Glossary) to track progress: • output indicators refer to the actual things that happen because of a specific intervention (e.g., the length of newly built cycling Population lanes). As defined by OECD, they are ‘the products, capital goods covered by and services which result from development interventions’. projects in the Number of persons covered by framework projects supported by the Funds in the • result indicators refer to the short-term and medium-term RCO74 of strategies persons framework of strategies for integrated changes (also referred to as ‘outcomes’) brought by specific for integrated territorial development. interventions, as an effect of the outputs. They may reference territorial beneficiaries, population targeted or users (e.g., the number development of beneficiaries or users of a new facility or infrastructure). 168 169 CHAPTER 6. MONITORING AND EVALUATION INDICATORS FOR MEASURING THE IMPACT OF INTEGRATED INVESTMENTS Number of contributions to strategies for integrated territorial The European Observation Network for Territorial Development and Strategies for Cohesion (ESPON) offers guidance on assessing the effectiveness of development reported by each integrated contributions to specific objective contributing from integrated investments, identifying a concise and clear set of territorial RCO75 territorial development strategies the Funds in line with CPR Article 28 indicators, specifically designed for assessing the impact and added value of (a) and (c).(...) This indicator does integrated investments. These indicators can be included in the monitoring supported not cover CLLD strategies which are framework of integrated territorial and local development strategies, going counted under RCO80. beyond indicators measuring the direct performance of programmes and projects. Number of integrated projects The short list of seven indicators is informed by several ESPON projects, supported under integrated including Indicators of Territorial Cohesion (INTERCO), Key Indicators for territorial development which are Territorial Cohesion and Spatial Planning (KITCASP), and Spatial Indicators integrated in themselves in line for the ‘Europe 2020 Strategy’ Territorial Analysis (SIESTA): with CPR Article 28. A project is considered integrated in itself if it • Net migration rate: this indicator reflects the difference between fulfils at least one of the following immigration and emigration in a year. It captures the attractiveness of conditions: a) the project involves a territory, offering insights into investment impacts in terms of quality Integrated different sectors (such as social, of life. projects for RCO76 projects economic and environmental territorial • Population potential living within 50 km: how compact a territory is, sectors) the project integrates development several types of stakeholders as well as service demand, market potential, and polycentricity. (public authorities, private actors, • Natural population change: this indicator measures the disparity NGOs), b) the project involves between live births and deaths, offering insights into socio-economic different administrative territories conditions and the attractiveness of a territory for families and younger (ex: municipalities), and c) the individuals. project involves several types of stakeholders (public authorities, • Newly completed private dwellings as a percentage of the total private actors, NGOs). housing stock: assesses if investment and economic development retain Number of contributions to residents, as new housing and investments reflect the attractiveness of Community- Community-led local development a territory. strategies by each specific objective • Modal split of passenger transport: this indicator is defined as the led local contributing from the Funds in RCO80 development strategies line with CPR Article 28 (b) (...) percentage share of each mode of transport in total transport and can strategies capture the impact of integrated investments on vibrancy and activity. Contributions to other integrated supported territorial development strategies • Access to public services (hospitals and schools): this indicator should be counted under RCO75. assesses if public services and investments are effectively distributed Number of citizens and institutional geographically, providing transportation options and ensuring well- stakeholders involved in the functioning transport networks preparation and implementation of strategies for integrated territorial • Long-term unemployed persons as a proportion of total unemployed Stakeholders people: this indicator reveals economic development and ongoing development. Stakeholders involved in the participating in several meetings / structural issues. Prolonged unemployment suggests social exclusion preparation and events are to be counted multiple and highlights the inclusivity of economic growth and integrated implementation participations of RCO112 times. If two or more representatives investments. of strategies stakeholders from the same stakeholder for integrated Specific guidance for using these indicators is offered in a policy brief, noting organisation participate in the territorial that if there are no changes in these indicators despite the implementation same meeting, the organisation is development to be counted once. Stakeholder of integrated territorial investments, ‘the impact of integrated investments engagement activities limited only might be questionable’ (ESPON, 2018). to inform and consult stakeholders are not to be counted For more information Source: European Commission (ec.europa.eu/regional_policy/sources/ ESPON. Indicators for integrated territorial and urban development. evaluation/performance2127/performance2127_swd.pdf) Available at: https://www.espon.eu/integrated-indicators 170 171 Effective monitoring and evaluation approaches are exemplified by the CHAPTER 6. MONITORING AND EVALUATION Cluj Metropolitan Area, where the Integrated Urban Development Strategy neutral city’, the indicators are decreasing annual emissions of NOx, includes a comprehensive list of indicators, formulated in alignment with population connected to new/improved water supply networks, the common output and result indicators defined for ERDF/CF/JTF for the additional annual amount of selectively collected waste, population 2021-2027 programme period. A second practical insight shows how Brno benefiting from additional protection measures against disasters Metropolitan Area supports stakeholders to keep track of socio-economic caused by climate change (other than flood or fire). The SO4 ‘No one progress and cooperation at supra-municipal level through various data left behind’ is monitored through the following indicators: the annual visualisation platforms. number of children using childcare infrastructure, number of occupants of new/improved public housing, social services for homeless persons in operation. MONITORING THE IMPACT OF STRATEGIES AT THE FUNCTIONAL AREA LEVEL BY INTEGRATING QUANTITATIVE INDICATORS AND • Impact indicators. These indicators are defined at the strategic level QUALITATIVE INSTRUMENTS and are both quantitative (e.g., modal share of public and non-motorized transport, the value of local GDP, the value of CO2 emissions, number of CLUJ METROPOLITAN AREA, ROMANIA people living in marginalised communities) and qualitative (e.g., share The Integrated Urban Development Strategy establishes a long-term vision of population satisfied with the financial situation of their household, for the Cluj-Napoca municipality and the Cluj Metropolitan Area. The share of population satisfied with the response time to a request strategy defines general objectives, specific objectives, and development submitted to the local administration, share of population satisfied with priorities for each specific objective. For example, for the specific objective the quality of public spaces). These indicators aim to capture the long- of a ‘Well connected city’ that aims to (complement), the strategy defines term, larger changes within society, which are not directly linked with development priorities, such as encouraging green public transport and the implementation of the Integrated Urban Development Strategy. non-motorised travel, traffic decongestion, and multi-modality. Its action For more information plan identifies priority projects funded from diverse sources and details the Cluj-Napoca City Hall. Integrated Urban Development Strategy of Cluj- implementation, monitoring, and evaluation phases of the strategy. Napoca and Cluj Metropolitan Area. Available at: at: https://files. Establish a framework for monitoring the integrated strategy. The primariaclujnapoca.ro/2022/10/04/SIDU-Cluj_RO_Sep28.pdf strategy includes a set of indicators and the establishment of a Monitoring Committee of implementation of both the Integrated Urban Development Strategy and the Sustainable Urban Mobility Plan at the metropolitan level. The committee serves not only as a monitoring but also aims to strengthen SUPPORTING THE MONITORING AND EVALUATION OF THE cooperation and collaboration among all members of the functional area INTEGRATED STRATEGY THROUGH DATA COLLECTION AND and other stakeholders. The technical and administrative support of the VISUALISATION Committee is intended to be provided by the metropolitan governing body, (BRNO METROPOLITAN AREA, CZECH REPUBLIC) which develops an annual report regarding the monitoring and evaluation of the implementation of Integrated Urban Development Strategy and Brno Metropolitan Area provides a replicable model for monitoring the impact Sustainable Urban Mobility Plan and organises annual meetings of the of cooperation at the functional area level and solutions for its improvement, committee. which is also an objective of the Integrated Urban Development Strategy for 2021+. This model involves a datahub offering insights on the metropolitan Set output, result, and impact indicators. The indicators of the Integrated area, a comprehensive questionnaire for mayors developed by the City of Urban Development Strategy are aligned with the EU-level approach to Brno in collaboration with Masaryk University conducted every three years performance, monitoring and evaluation of programmes and are defined (2017, 2020, and 2023), an interactive map of geo-located ITI projects. for development priorities, objectives, and the overall strategy. Moreover, the Integrated Development Strategy of the metropolitan area • Output indicators. These indicators are set for all development requires consistent tracking of the number of integrated investments at priorities defined under each specific objective, with intermediary and the supra-municipal level. The city of Brno also developed an interactive final target values (for 2024 and 2030). For instance, the indicators for platform for keeping track of major projects. the development priorities ‘Well connected city’ include the length of the new cycling lanes, the length of rebuilt or modernised railway, the Monitor and publish existing data at the functional area level. Statistical surface of newly developed green infrastructure, the surface of open data gathered at the level of the Brno Metropolitan Area offers key insights into spaces created or rehabilitated in urban areas. socio-economic dynamics and directly supports the monitoring of the supra- • Result indicators. These indicators are defined for each specific municipal strategy. For easy visualisation, a web data hub can provide the objective of the strategy. For the SO3 ‘Green, resilient and carbon general public access to data interactively. To this end, a dedicated page with data on the Brno Metropolitan Area sourced from the Czech Statistical Office 172 173 CHAPTER 6. MONITORING AND EVALUATION was created. The page includes indicators such as population, the number • ‘Do you identify with the fact that your municipality is part of the of residential buildings under construction and completed, the number of metropolitan area?’ registered job seekers and unemployed, as well as the number of businesses The results of the 2023 survey showed a strong interest in metropolitan and large enterprises in the Brno Metropolitan Area, applications and cooperation, with 91 % of mayors recognising its value. It also indicated that patents granted, and the value of foreign direct investments. The data portal cooperation is not primarily driven by financial incentives despite about 60 is developed by the Data and GIS departments within the City Hall of Brno. % of municipalities being aware of funding opportunities through the ITI Figure 11. Brno City data hub, including data on Brno Metropolitan Area instrument. To gather insights on challenges faced by municipalities, topics to address at the metropolitan level and their inputs on improving metropolitan cooperation, the survey includes the following questions: • ‘How do you expect your municipality to develop over the next five years compared to the current state?’ • ‘What do you perceive as an obstacle to the further development and functioning of the municipality?’ • ‘From your point of view, what topics would be expedient to solve uniformly at the metropolitan level in the future?’ • ‘In your opinion, what factors are the most important for maintaining long-term functioning cooperation within the Brno metropolitan area?’ Source: Brno data hub (https://datahub.brno.cz/ • ‘What factors do you think most threaten the development of pages/1ece38d1a9ba4119b549bbf4d257e6d8) metropolitan cooperation in the Brno metropolitan area?’ Track the number of joint applications, as well as ongoing and Based on the survey results, the most important areas of cooperation at the implemented integrated projects. The Brno Metropolitan Area uses metropolitan level, namely transport and mobility, energy, education, waste indicators for monitoring the implementation of the integrated strategy, management, population ageing, tourism and sport, culture, revitalisation distinct from those linked to operational programmes. Responsibility for measures, residential development, and commercial building. ensuring the update of the indicator data lies with the ITI Department Figure 12. Mayor’s willingness to cooperate in Brno Metropolitan Area within the City Hall of Brno. The indicators include submitted applications for support for integrated projects, integrated projects with a legal act, integrated projects in progress, and completed integrated projects. Establish a regular practice for monitoring the willingness to cooperate of municipalities making up the functional area. The Brno Metropolitan Area regularly sends a questionnaire to the mayors of municipalities part of the metropolitan area to monitor their willingness to cooperate. The survey also aims to gather information on challenges faced by municipalities and topics they consider relevant at a metropolitan level. Participation in the survey registered high rates, ranging from 88 % in 2017 and 96 % in 2020. In 2023, 95 % of municipalities that participated in the survey (174 out of 183) shared their thoughts on the current cooperation, the extent of their municipality’s participation, elements influencing this collaboration, and prospects for formalisation of metropolitan cooperation. The willingness to cooperate is measured through questions like: • ‘Are you willing to participate in metropolitan cooperation with your municipality? If so, how?’ • ‘Do you think it is expedient to solve selected topics of strategic and Source: https://storymaps.arcgis.com/ territorial planning within the Brno metropolitan area together at storiesf1524a/227ca148a8aa246e7f3fdf1317 the metropolitan level in the future?’ 174 175 CHAPTER 6. MONITORING AND EVALUATION The insights collected support the M&E process of implementing the Figure 14. Interactive map of projects in Brno Integrated Urban Development Strategy at metropolitan level and serve as a foundation for potential future institutionalisation of such collaborations, strengthening the dialogue and understanding among municipalities. Moreover, data collected through the survey was further used in scientific research on the topic of metropolitan cooperation. Provide easily accessible information on completed and ongoing projects at the city and functional area level to support a transparent M&E process. A GIS map of ITI projects is hosted on the website of the Brno Metropolitan Area, offering the possibility for citizens to visualise projects financed through the ITI and improve their awareness of the impact of joint investments. Figure 13. GIS map of ITI projects in the Brno Metropolitan Area Source: Office of the City Architect of Brno (https://kambrno.cz/projekty/) For more information Brno Metropolitan Area. Questionnaire to mayors in the Brno Metropolitan Area (Czech). Available at: https://storymaps.arcgis.com/ stories/f1524a227ca148a8aa246e7f3fdf1317/print Brno Metropolitan Area datahub: https://datahub.brno.cz/ pages/1ece38d1a9ba4119b549bbf4d257e6d8 Brno Metropolitan Area GIS Map of ITI projects: https:// mestobrno.maps.arcgis.com/apps/webappviewer/index. html?id=d07af7a9178c4b48853fecd6306d946d Brno City presentation of major projects: https://kambrno.cz/projekty/ Source: https://mestobrno.maps.arcgis.com/apps/webappviewer/index. html?id=d07af7a9178c4b48853fecd6306d946d, accessed March 2024 Brno Metropolitan Area. Integrated Development Strategy 2021+. Available at: https://metropolitni.brno.cz/wp-content/uploads/2022/05/ At the city level, the Office of the City Architect of Brno developed a digital ISR-BMO-21_-duben-2022.pdf platform that allows users to access information on various topics. These include territorial planning documents and the portal for the spatial plan, architectural and urban planning competitions, project statuses, data and A M&E framework should also be designed at the project level, including maps, upcoming events, school activities focused on architecture, urbanism, the specific data required at various stages of the project life cycle, the public space and spatial planning, and an online store offering branded roles and responsibilities, frequency of data collection and analysis. The materials. For example, the project section provides insights on proposed figure below presents the key phases of the M&E process. city-wide concepts, allowing citizens to monitor the status of projects. It lists six categories - public spaces, architecture, transport, water and landscape, Figure 15. Project level monitoring and evaluation development, and conception (documents and input analysis) - allowing users to track specific projects or gain an overview. In addition, the section presents the number of ongoing projects, concepts, and locations as well as an interactive map for visualising the distribution of implemented projects across the city. As opposed to sharing merely documents and data sets, the data hub, map of ITI projects, and project presentation platform enable interaction and easy visualisation and promote a more transparent process of monitoring the implementation of the Integrated Urban Development Strategy and achieving shared goals. Developing such instruments also contributes to Source: Interreg North-West Europe (https://cyclehighways.eu/evaluate/ higher awareness of a shared metropolitan identity why-do-you-monitor-and-evaluate.html) 176 177 Establishing a baseline before the implementation provides a point of CHAPTER 6. MONITORING AND EVALUATION comparison against which the project can be evaluated. This might include GUIDANCE FOR ESTABLISHING A PARTICIPATORY MONITORING AND pre-project surveys, assessments of existing conditions, or analysis of EVALUATION PROCESS statistical data. Without a baseline, it becomes challenging to assess The degree of participation in M&E may vary, along the following spectrum: whether and to what extent the project has achieved its intended outcomes • passive participation (responding to requests for information), and impact. • involvement (stakeholders volunteer information and show interest in how it is used), How to facilitate participatory monitoring and • active participation (stakeholders participate in determining which CHALLENGE 3 evaluation? information to gather, selecting appropriate methods for data collection, and deciding on the approach for data analysis. Participatory M&E shifts the focus from external control to community • ownership / empowerment (stakeholders contribute to selecting involvement and ownership. It is characterised by the active involvement the criteria and indicators for measuring progress and hold staff of stakeholders (citizens, organisations, policymakers) in defining success accountable). criteria, measuring progress, making decisions, and acting upon the results (Guijt & Gaventa, 1998). With regards to functional areas, it yields Participatory monitoring requires a detailed planning process, outlining the additional benefit of an enhanced awareness of the supra-municipal who should participate and when, across the following stages: methodology initiatives among stakeholders. design, data collection, data collation, analysis of findings, and dissemination. Planning an indicator-based approach to participatory monitoring involves Participatory M&E can be carried out for different reasons, including more several key steps (Guijt, 1998) that are summarised below: accurate and timely information, empowering beneficiaries, increasing • Decision to start: recognize the complexity and potential cost accountability, or upholding the right of stakeholders to be involved in involved in initiating a participatory monitoring process, considering decisions that affect them (Intrac, 2020). the involvement of various groups. Participatory M&E involves targeted beneficiaries who have direct • Identify participants: determine who has essential perspectives experience and knowledge of local conditions. They can provide relevant or knowledge and who would benefit from capacity-building in questions, identify changes in their communities, and assess how sustained monitoring. Invite all stakeholders to be partners, ensuring interventions impact them. that all steps are negotiated collectively. Implementing participatory M&E processes also requires targeted • Identify monitoring objectives: clarify each group’s motives for capacity-building support for local actors. Adopting innovative methods monitoring to specify their willingness and capability to participate and technologies can further streamline and encourage participatory in different tasks. monitoring. Technical assistance for capacity building from the European Commission, including opportunities under EUI and TAIEX (see Chapter 3 • Clarify objectives of monitored work: clarify and agree upon these - Governance) can be accessed to increase the capacity of administrative objectives, particularly in contexts involving multiple groups. staff working on monitoring. • Select indicators: choose indicators for each objective, ensuring they The Handbook on Territorial and Local Development Strategies emphasises are ‘SMART’: Specific, Measurable, Attainable, Relevant, Timely. the need for consensus among stakeholders on strategic priorities for The final choice of indicators also depends on the feasibility of the effective participatory monitoring. It stresses the importance of capacity available methods. In some cases, preferred indicators may need to building for meaningful involvement and the involvement of the community be adapted or replaced due to constraints like cost and time. in setting objectives, indicators, and corrective actions. It is important to • Select methods: choose methods based on available time, skills, co-create monitoring systems with strategy owners, local communities, technology, and resources. Consider methods that can assess and citizens to share control over the monitoring process and outcomes several indicators simultaneously. (European Commission, 2022). • Decide monitoring frequency and timing: determine the best times This section aims to guide the implementation of participatory M&E for measuring indicators and establish a monitoring schedule, practices of strategies and projects, supported by digital tools. possibly as an annual calendar. • Prepare and fine-tune methods: test the chosen methods and tools for feasibility and reliability. Train involved individuals to ensure competence in their roles. 178 179 CHAPTER 6. MONITORING AND EVALUATION • Implement monitoring systematically: collect data consistently to gain an objective understanding of changes. Be prepared to adjust RECOMMENDATIONS methods or indicators if they prove inadequate or if external factors change. 1. Leverage existing data and advocate for systemic, long-lasting Discussing these questions and steps can clarify roles, responsibilities, and partnerships for data collection: Assess the extent to which existing the timing of participation. This approach helps in identifying the right data from various levels (city, regional, national, or EU) can be used stakeholders for each phase of the monitoring and evaluation process, for M&E purposes. Explore partnerships with research institutes or ensuring effective participation and meaningful contributions. universities to support data collection and analysis at the functional area For more information scale. Complement official data with geospatial and statistical open-data Abbot J., Guijt I. Changing views on change: participatory approaches to resources and engage in discussions for developing statistical data for monitoring the environment. SARL Discussion Paper No.2. July 1998. IIED. functional areas at the national level. London. Available at: https://www.betterevaluation.org/sites/default/files/ Changing_views_on_change_Participatory_approaches_to_monitoring_ 2. Integrate effective monitoring and evaluation in strategic planning the_environment.pdf processes to effectively steer the implementation process and optimise the use of resources. Establish a robust set of indicators that encompasses social, economic, and environmental dimensions, aligning DIGITAL TOOLS FOR PARTICIPATORY MONITORING OF PROJECTS with the strategic objectives. Develop a clear M&E system based on (BARCELONA, SPAIN) output, results, and impact indicators. Indicators for assessing intangible effects of integrated investments such as willingness to cooperate, social The case of Barcelona exemplifies how citizens can be empowered to cohesion, and perceived quality of life should also be defined. A balance actively participate in monitoring co-designed interventions using a digital between complexity and simplicity is crucial to avoid creating systems platform. This practical insight pertains to the Decidim platform, offering that are either unworkable or overly simplistic. specifics on one of the participatory processes involved in the development of superblocks within the city. Additionally, it highlights the platform’s role 3. Access technical guidance and capacity-building resources for improved as a monitoring tool. monitoring and evaluation. Ensure that administrative staff involved Develop a comprehensive participatory platform that can also serve as a in monitoring and evaluation and other engaged stakeholders have the monitoring tool. The city of Barcelona uses an online platform (‘Decidim’) required capacity to collect and analyse data and if they can effectively for engaging stakeholders in the decision-making process and solution implement the monitoring and evaluation system. design, as well as monitoring the progress of their proposals and observing the decisions made by the governing body. For example, the platform was 4. Create a digital platform for visualising data on the implementation of used for the preparation of interventions within the city’s ‘superblocks’ the integrated strategy and progress towards targets. Such a platform to reduce traffic and activate public spaces. The platform provides access can start by offering information on the status of realisation of major to information referring to consultations and other materials, while projects, and can be further developed into an interactive dashboard, also offering insights into the state of ongoing projects (see For more including GIS maps. These can facilitate the sharing and monitoring of information). It includes multiple features, including digital consultation, strategy implementation, providing a visual overview of key interventions debates, submission of proposals, and monitoring the status of offline and and progress towards targets. The goal is to encourage stakeholder online proposals. Citizens gain access to all discussions and materials and participation in monitoring, which can inform adjustments and create can monitor progress and results. higher awareness of joint investments at the functional area level. For more information 5. Engage diverse stakeholders in the design and monitoring of projects. Consider incorporating features like surveys, interactive mapping tools Decidim.Barcelona. The consultation process for Superblock Barcelona and participatory platforms to gather qualitative and quantitative data in the Eixample neighbourhood 2021-2022. Available at: https://www. for major projects at the functional area level. This allows us to tap into decidim.barcelona/processes/SuperillaBarcelona/steps?locale=es a broad range of perspectives and can maximise project outcomes and enable innovative thinking and problem-solving. 180 181 REFERENCES CHAPTER 6. MONITORING AND EVALUATION 1. Abbot J., Guijt I. Changing views on change: participatory approaches to monitoring the environment. 24. Route you App. Available at: https://www.routeyou.com/nl-be/route/view/9544578/hikingroute/ SARL Discussion Paper No.2. July 1998. IIED. London. 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Brno Metropolitan Area. Questionnaire to mayors in the Brno Metropolitan Area. Available at: https:// metropolie-w-liczbach/dashboard storymaps.arcgis.com/stories/f1524a227ca148a8aa246e7f3fdf1317/print 28. Urbact. Performance in policymaking. 2020. Available at: https://urbact.eu/sites/default/files/urbact_ 5. Brno Metropolitan Area. Datahub. Available at: https://datahub.brno.cz/ guidance_-_performance_in_policy-making_1.pdf pages/1ece38d1a9ba4119b549bbf4d257e6d8 29. Urban Data Platform Plus. Available at: https://urban.jrc.ec.europa.eu/?lng=en 6. Brno Metropolitan Area. Map of ITI projects. Available at: https://mestobrno.maps.arcgis.com/apps/ 30. World Bank. Monitoring and evaluation: Tools, Methods, and Approaches. 2004. Available at: https:// webappviewer/index.html?id=d07af7a9178c4b48853fecd6306d946d ieg.worldbankgroup.org/sites/default/files/Data/reports/mande_tools_methods_approaches.pdf 7. Cluj Metropolitan Area. The Integrated Urban Development Strategy. Available at: https://files. primariaclujnapoca.ro/2022/10/04/SIDU-Cluj_RO_Sep28.pdf 8. Decidim.Barcelona. Participatory platform. Available at: https://www.decidim.barcelona/?locale=es 9. European Commission. European Neighbourhood Policy and Enlargement Negotiations (DG NEAR). Available at: https://neighbourhood-enlargement.ec.europa.eu/monitoring-and-evaluation_ en#:~:text=Monitoring%20uses%20systematic%20collection%20of,of%20allocated%20funds%20 (OECD) 10. European Commission. Guidance document on ex-ante evaluation. 2013. Available at: https://ec.europa. eu/regional_policy/information-sources/publications/evaluations-guidance-documents/2013/ guidance-document-on-ex-ante-evaluation_en 11. European Commission. Guidance for Member States on Integrated Sustainable Urban Development. 2016. Available at: https://ec.europa.eu/regional_policy/sources/guidance/guidance_sustainable_ urban_development_en.pdf 12. European Commission. Horizon 2020 indicators. Assessing the results and impact of Horizon 13. European Commission. Commission Staff Working Document. Performance, monitoring and evaluation of the European Regional Development Fund, the Cohesion Fund and the Just Transition Fund in 2021- 2027. 2021. Available at: https://ec.europa.eu/regional_policy/sources/evaluation/performance2127/ performance2127_swd.pdf 14. European Commission, Joint Research Centre. Handbook of Territorial and Local Development Strategies. 2022. Available at: https://publications.jrc.ec.europa.eu/repository/handle/JRC130788 15. European Commission, Joint Research Centre. Handbook of Sustainable Urban Development Strategies. 2020. Available at: https://publications.jrc.ec.europa.eu/repository/handle/JRC118841 16. ESPON. Indicators for integrated territorial and urban development. Available at: https://www. espon.eu/sites/default/files/attachments/Policy%20Brief%20Indicators%20for%20integrated%20 development_0.pdf 17. Functional areas in the EU. Compendium of best practices in Barcelona and Barcelona Metropolitan Area. Available at: https://functionalareas.eu/wp-content/uploads/2023/07/Best-Practices-Barcelona- and-AMB_compressed.pdf 18. Functional areas in the EU. Geospatial and geo-statistical open-data sources guide. Available at: https:// functionalareas.eu/wp-content/uploads/2023/06/Geo-spatial-Geo-statistical-open-data-sources.pdf 19. Guijt, I. Participatory Monitoring and Impact Assessment of Sustainable Agriculture Initiatives: an Introduction to the Key Elements. SARL Discussion Paper No. 1. IIED, London. 1998. Available at: https:// www.iied.org/sites/default/files/pdfs/migrate/6139IIED.pdf 20. INTRAC. Participatory M&E. 2020. Available at: 21. https://www.intrac.org/wpcms/wp-content/uploads/2017/01/Participatory-ME.pdf 22. OECD. Glossary of Key Terms in Evaluation and Results-Based Management. 2009. Available at: https:// www.oecd.org/development/evaluation/dcdndep/43184177.pdf 23. OECD. Open Government Scan of Lebanon. 2020. Available at: https://www.oecd-ilibrary.org/ sites/78600670-en/index.html?itemId=/content/component/78600670-en 182 183 A ANNEX. CLASSIFICATION Defining statistical units that describe functional dependencies are essential for informing policy-making processes at the appropriate scale. Reflecting the maturity of the concept, in 2017, the typology of functional urban area was included in a legislative initiative by Eurostat OF FUNCTIONAL AREAS for a harmonised territorial classification for statistical purposes and has replaced the former term of larger urban zone. The aim of the Annex is to ensure a common understanding of functional areas and showcase the variety of functional areas. This section pulls together the key defining elements of functional areas, (Council of Europe - CEMAT, ESPON, OECD, World Bank). Functional Urban Areas Functional urban areas are the most prevalent type of functional areas, among a diversity of other typologies. A major step in the direction of mainstreaming the concept of functional urban areas into EU policies was made in 2012, when the European Union and OECD put forward a common framework for the concept of functional urban areas, based on the following definition: ‘a functional urban area consists of a city and its commuting zone. Functional urban areas, therefore, consist of a densely inhabited city and a less densely populated commuting zone whose labour market is highly integrated with the city’ (EU- OECD). Subsequently, a commuting zone contains the surrounding travel-to-work areas of a city where at least 15 % of employed residents are working in a city (‘a local administrative unit where most of the population lives in an urban centre of at least 50 000 inhabitants’ - Eurostat). Therefore, the population threshold for selecting clusters of contiguous high- density grid cells is above 50 000 inhabitants. For practical purposes, commuting flows are defined in connection with employment, but may also reflect flows to access education, health, culture, sports, or commercial facilities. Figure 16. The EU-OECD algorithm to identify a functional urban area The delimitation of functional urban areas according to the EU-OECD methodology is based on commuting flows and implies a minimum threshold of 15 % of the population commuting to an urban centre. This entails that the delineation of a functional urban area is constantly evolving. Source: The EU-OECD definition of a functional urban area (2012) 184 185 Metropolitan areas and regions Mountain areas Mountain regions are home to around 12 % of the EU population and are rich in natural Home to 60 % of the EU’s population, metropolitan regions are key drivers of development assets and biodiversity but have been declining on average by 3 % annually since 2010, mainly and were responsible for generating 69 % of the GDP and 63 % of the employment in the EU due to limited access to key services. While predominantly overlapping with rural areas in 2019, according to the Ninth Report on Economic, Social and Territorial Cohesion (2024). and predominantly rural regions, three capital regions are classified as mountain regions: As highlighted by the report, real GDP per capita in metropolitan areas outpaced that of Ljubljana, Oslo, and Bern. Eurostat defines mountain areas at the NUTS3 level and identifies non-metropolitan regions across the EU from 2001 to 2021, largely driven by above-average three types of regions: ‘where more than 50 % of the surface is covered by topographic growth rates in capital city regions. mountain areas; in which more than 50 % of the regional population lives in topographic At its core, a metropolitan area is conceptualised as a ‘social, economic, geographical, and mountain areas; where more than 50 % of the surface is covered by topographic mountain political space characterised by shape, size, and nature and by the interactions between areas and where more than 50 % of the regional population lives in these mountain areas.’ individuals and organisations’ (OECD, 2013). As spatial units, following the EU-OECD Coastal areas methodology, metropolitan regions are functional urban areas (understood as cities and their commuting zones) of 250 000 or more inhabitants. While functional urban areas are Coastal areas are defined as local administrative Unit that border a coastline (morphologic defined at the local administrative units level, metropolitan regions are NUTS 3 regions or a contiguity) or are close to one, with at least 50% of their surface within 10 km from the combination of NUTS 3 regions and have a higher population threshold. coastline. (Eurostat- TERCET). Except for Czechia, Hungary, Luxembourg, Austria and Slovakia, all EU member states have coastal areas. The terms metropolitan ‘area’ or ‘region’ are often used interchangeably, however they Coastal regions may have different meanings, as theoretical concepts, governance forms or spatial units. For instance, metropolitan forms of governance created by voluntary association do Coastal regions delineated at the NUTS level 3 are defined as ‘having a border with a coastline, not necessarily overlap with the spatial concept of the functional area (although local having more than half their population within 50 km of the coastline, or having a strong administrative units forming part of the functional urban area may be eligible to join such maritime influence’. an association, they may choose not to). Moreover, while territorial typologies in the EU are River catchment areas increasingly formalised, there are notable differences across Member States in the population ‘River catchment areas develop along natural corridors that cross different territories thresholds above which a settlement is considered urban, the rights and responsibilities of regardless of their administrative boundaries. However, the existence of rivers is not the urban governments and their areas of influence, as well as the forms of association between administrations. only condition for defining these areas, as factors such as population density and economic activities also reflect their influence.’ (CEMAT, 2017) Functional natural areas Delta areas ‘Deltas are landforms of variable sizes that were formed at the mouth of the rivers, where The specific challenges and potential of areas defined by geographic criteria are increasingly several conditions are met: the rivers carry a large volume of alluvium and the flow has recognised at the EU level. Natural areas such as mountain areas, island areas, coastal areas, low speeds, the riverbed is expanded and has low slope, no tides occur, there are no littoral river catchment areas, delta areas, or lake areas are often confronted with shared barriers stemming from geographical isolation, low demographic density, depopulation, ageing, currents or there are remote littoral currents.’ (CEMAT, 2017) as well as climate-related challenges requiring coordination between local administrative Lake areas units. At the same time, their development potential and capitalisation on natural assets To reduce disparities between various regions’ development levels, particular attention was can be elevated through functional approaches to planning, which need to be balanced with given to specific areas like rural regions, industrial transition areas, and regions with natural environmental protection and landscape management measures. or demographic challenges, mountain regions, islands, and sparsely populated areas. Several A part of these geographic typologies identified by the Preparatory Study for the 17th Session recent papers developed by ESPON highlight the specificities of lake regions as territorial of the Council of Europe Conference of Ministers Responsible for Spatial Planning (CEMAT) units that require place-based, integrated policies. Instead of specifying quantitative criteria, are also officially defined by the Methodological manual on territorial typologies published according to ESPON, ‘a lake region is interpreted as a region around a lake in which a regional by Eurostat in 2018. development approach may be meaningfully elaborated.’1 Island areas Territorial characteristics primarily pertain to four key policy areas: management of water resources; conservation of ecosystems; advancement of tourism, recreational activities, and The island typology is also applied at the level of NUTS 3 regions and includes areas that are residential utilities; Transportation and ease of access.2 entirely composed of one or more islands. The criteria for these areas (which may include more than one NUTS 3 regions, based on specific criteria (Eurostat 2018, Territorial typologies manual). 1. ESPON, Policy Brief. Integrated territorial development in lake regions in Europe, 2020 2. idem 186 187 Figure 17. Mountain regions in the EU Figure 18. Island regions in the EU public body. EGTCs allow public authorities from different Member States to set up ‘a joint structure to implement projects, investments or policies in a specific territory, whether co- financed by the EU budget or not’.3 Other typologies Several other typologies of functional areas were identified in the Preparatory Study for the 17th Session of the Council of Europe Conference of Ministers Responsible for Spatial Planning by applying different lenses, as described below: • economic lens- clusters and innovative regions, free economic / trade zone, tourist areas, areas under industrial restructuring • cultural lens: cultural heritage areas (built/complex) • social lens: sparsely populated areas, areas with population at risk of poverty. • complex functional areas that have more than one characteristic Source: Eurostat, JRC and European Commission The concept of functional areas covers a rich diversity of typologies, as reflected in the figure below. The figure shows the different types of functional areas identified in the study Figure 20. Coastal regions in the EU conducted in preparation of the 17th session of the CEMAT. Figure 21. Types of functional areas Source: Eurostat, JRC and European Commission Figure 19. Coastal areas near the North Sea Source: Eurostat Source: Eurostat, JRC and European Commission Cross-border and trans-national cooperation areas Cross-border and trans-national cooperation are key pillars of the EU cohesion policy. This specific type of functional area has been benefiting from increased support for development and analysis through programs such as Interreg or ESPON. As highlighted in the Council of Europe study cited above, they correspond to ‘communities located in different territories, from two or more states, transforming the potential or common border issues into developmental resources.’ (CEMAT, 2017) EGTCs (European grouping of territorial cooperation) are a particular form of transnational cooperation, with a full legal personality granted by EU law, since 2006. EGTC members can Source: Council of Europe. 2020. Functional areas in Member States of the Council of Europe be Member States, regional or local authorities, associations, or any other public body. EGTC members can be Member States, regional or local authorities, associations, or any other 3. European Commission https://ec.europa.eu/regional_policy/policy/cooperation/european-territorial/european-grouping-territorial-cooperation_en 188 189 G TERM DEFINITION/EXPLANATION SOURCE GLOSSARY Data-based planning The integration of data-driven tools with computational methods provides a powerful means to gain a comprehensive understanding of urban dynamics. Physical data gathered from urban environments plays a pivotal role in informing urban intervention decisions. Medium, https://medium.com/ noumena-data/data-driven-urban- planning-b4ae4a6a1848 The digital twin city offers a model of urban planning and construction for future sustainable development that TERM DEFINITION/EXPLANATION SOURCE effectively combines innovations in digital technology with urban operational mechanisms and provides a feasible path Digital twin WeForum, https://initiatives. In a ‘15-minute city’, everyone can meet most, if not all, of their for urban upgrading. Through the precise mapping, virtual- C40, https://www. city weforum.org/digital-twin-city/home needs within a short walk or bike ride from their home. It is real integration, and intelligent feedback of physical and digital c40knowledgehub.org/s/article/ cities, it promotes safer, more efficient urban activities and 15-minute city a city composed of lived-in, people-friendly, ‘complete’ and How-to-build-back-better-with-a-15- connected neighbourhoods. It means reconnecting people more convenient and inclusive everyday services, as well as minute-city?language=en_US with their local areas and decentralising city life and services. helps to create more low-carbon, sustainable environments. Community-led local development (CLLD) is a tool for involving European Commission, The degree of urbanisation classifies local administrative citizens at local level in developing responses to the social, https://ec.europa.eu/regional_ units as cities, towns and suburbs or rural areas based on a European Commission, https:// Community- environmental, and economic challenges we face today. CLLD policy/en/information/publications/ Degree of combination of geographical contiguity and population density, ec.europa.eu/eurostat/ led local is an approach that requires time and effort, but for relatively guidelines/2014/guidance-on- statistics-explained/index. urbanisation measured by minimum population thresholds applied to 1 km² php?title=Glossary:Degree_of_ development small financial investments, it can have a marked impact community-led-local-development- population grid cells; each local administrative unit belongs in-european-structural-and- urbanisation on people’s lives and generate new ideas and the shared exclusively to one of these three classes. commitment for putting these into practice. investment-funds Community- a coherent set of operations the purpose of which is to meet JRC, Handbook of Sustainable Urban ‘Design contests’ means those procedures which enable led local local objectives and needs. It contributes to achieving the Development Strategies (Glossary), the  contracting authority to acquire, mainly in the fields of EUR-LEX, https://eur-lex.europa. development Union strategy for smart, sustainable, and inclusive growth, https://publications.jrc.ec.europa. Design town and  country planning, architecture and engineering or eu/legal-content/EN/TXT/ strategy and is designed and implemented by a local action group.' eu/repository/handle/JRC118841 contests data processing, a plan or design selected by a jury after being PDF/?uri=CELEX:02014L0024-20240101 put out to competition with or without the award of prizes. The single rulebook of EU funds jointly delivered with member states and regions. A common provisions regulation is established to govern 8 EU funds whose delivery is shared with The Doughnut Model is a conceptual framework developed by Member States and regions. Together, they represent a third of developed by British economist Kate Raworth, that visualises European Commission, https:// the EU budget. The 8 funds covered by this common regulation sustainable development by representing a 'safe and just Doughnut eu-mayors.ec.europa.eu/sites/ are: European Commission, https:// space for humanity' between planetary boundaries and Model default/files/2023-12/2023_CoMo_ Common commission.europa.eu/funding- social boundaries. This model aims to guide policymakers and CaseStudy_Brussels_EN.pdf Provisions European Regional Development Fund (ERDF) tenders/find-funding/funding- communities towards achieving both ecological sustainability Regulation European Social Fund Plus (ESF+) management-mode/common- and social equity. Cohesion Fund provisions-regulation_en Just Transition Fund (JTF) Ex-ante The ex-ante evaluation is the inventory check and reflection on European Commission, https:// European Maritime, Fisheries and Aquaculture Fund (EMFAF) ec.europa.eu/enrd/evaluation/back- evaluation past experiences before setting out on your new journey. basics/ex-ante-evaluation_en.html Asylum and Migration Fund (AMIF) Internal Security Fund (ISF) Evaluation of a development intervention after it has been Border Management and Visa Instrument (BMVI) completed. Note: It may be undertaken directly after or long OECD, https://www.oecd. CBA is an analytical tool used to assess the economic advantages Ex-post after completion. The intention is to identify the factors of org/development/evaluation/ or disadvantages of an investment decision by quantifying the 2014 CBA Guide with the Economic evaluation success or failure, to assess the sustainability of results and dcdndep/43184177.pdf welfare changes attributable to its implementation. It aims to Appraisal Vademecum 2021-2027 impacts, and to draw conclusions that may inform other quantify all benefits and costs for society in monetary terms. for evaluating major infrastructure interventions.' investments. Cost-benefit These include economic, social, and environmental impacts. European Commission, https://ec.europa.eu/regional_ analysis (CBA) It was a compulsory tool in the 2014–2020 programming policy/en/information/publications/ https://ec.europa.eu/ period for major projects financed by the European Regional Effectiveness analysis considers how successful action has been guides/2021/economic-appraisal- Effectiveness regional_policy/sources/ Development Fund or the Cohesion Fund and is a voluntary in achieving or progressing towards its objectives. evaluation/performance2127/ vademecum-2021-2027-general- tool in the 2021–2027 programming period with the necessary principles-and-sector-applications performance2127_swd.pdf contextual adjustments. European Commission, Climate Becoming ‘climate neutral’ means reducing greenhouse gas Efficiency considers the relationship between the resources https://ec.europa.eu/ neutrality emissions as much as possible, but it also means compensating EU Council, https://www.consilium. Efficiency used by an intervention and the changes generated by the regional_policy/sources/ europa.eu/en/5-facts-eu-climate- for any remaining emissions. intervention. evaluation/performance2127/ neutrality/ performance2127_swd.pdf 190 191 TERM DEFINITION/EXPLANATION SOURCE TERM DEFINITION/EXPLANATION SOURCE OECD, Glossary of Key Terms in ‘The systematic and objective assessment of an ongoing ‘Systematic collection of data on specified indicators to provide Evaluation and Results-Based or completed project, programme or policy, its design, OECD, https://www.oecd. the management and the main stakeholders of an ongoing Management. 2009,https:// Evaluation implementation, and results. The aim is to determine org/development/evaluation/ Monitoring intervention with indications of the extent of progress and www.oecd.org/development/ the relevance and fulfilment of objectives, […] efficiency, dcdndep/43184177.pdf achievement of objectives and progress in the use of allocated evaluation/dcdndep/43184177. effectiveness, impact, and sustainability’ funds' pdf Multi-criteria analysis (MCA) is a method to support decision- The functional area is the area or region that functions as a making, by exploring the balance between the pros and cons of unitary system from a political and / or social and / or economic CEMAT, https://archive.ectp-ceu. different alternatives. The comparison of alternatives is based point of view. In other words, the FA is defined by the internal eu/ectp-ceu.eu/images/stories/ Principles of Multicriteria Functional upon a set of explicitly formulated criteria, which represent system of interactions and relationships and covers, in whole PDF-docs/cemat/CEMAT%20 Analysis, https://www. area aspects of the alternatives that need to be considered during or in part, the territory of several administrative-territorial Romania_%20rfeport%20EN_ cambridge.org/core/books/ decision-making.More specifically, MCA assists the decision- units that cooperate and are linked / united by economic, rev%2001%202018.pdf Multi-criteria abs/multicriteria-analysis-for- making process by framing decision problems, illustrating the communications, transport activities. analysis environmental-decisionmaking/ performance of the alternatives across all criteria, exploring principles-of-multicriteria-analys https://ec.europa.eu/ trade-offs, formulating a decision, and testing its robustness. A functional urban area consists of a city (i.e. an urban centre is/22EB53BE4EFBD2674FEA098F Functional eurostat/web/nuts/territorial- All this while considering, on the one hand, the ‘analytical’ with a population of more than 50 000) and its commuting D5EF0F98 urban area typologies#Functional%20 performance of the alternatives across all criteria, and, on the zone whose labour market is highly integrated with the city. other hand, the preferences and opinions of the stakeholders urban%20areas%20(FUA) involved in the process. Union measures of financial support provided on a complementary basis from the budget to address one or more Interventions shall be coordinated and aligned between the specific policy objectives of the Union. Such instruments may different levels of governance concerned in each territory, from take the form of equity or quasi-equity investments, loans or Multi-level CPR Article 29(2) and (3), Fi-compass, https://www.fi- programming to implementation and monitoring, with special guarantees, or other risk-sharing instruments, and may, where governance http://data.europa.eu/eli/ compass.eu/info/glossary, based attention to the involvement of relevant territorial authorities appropriate, be combined with grants.' 'Financial instruments approach reg/2021/1060/oj on Article 2(p) FR; Article 37(7) or bodies in project selection to ensure strategic consistency help to trigger investments on the ground for revenue- with local needs and challenges. (8)(9) CPR  generating and cost-saving activities, while maximising private Financial investment with minimum public support to deliver the interventions shall involve throughout the whole policy cycle instrument JRC, Handbook of Sustainable cohesion policy objectives of economic, social, and territorial Multi- all relevant actors, including inhabitants, civil society networks, Urban Development CPR Article 29 (1)(d), http://data. cohesion. Financial instruments represent a more efficient stakeholder community organisations and private enterprises together in Strategies (Glossary), https:// europa.eu/eli/reg/2021/1060/oj and sustainable alternative to complement traditional grant- approach the planning, implementation and monitoring of integrated publications.jrc.ec.europa.eu/ based support. The European Regional and Development territorial and local development strategies. repository/handle/JRC118841 Fund and the Cohesion Fund support projects on the ground, transforming EU resources into financial products such as The New European Bauhaus is an EU initiative that brings loans, guarantees and equity.' citizens, experts, businesses, and institutions together to New European Union, https://new- reimagine sustainable living in Europe and beyond. In addition Where an urban development strategy or other territorial European european-bauhaus.europa.eu/ to creating a platform for experimentation and connection, the strategy, or a territorial pact referred to in Article 12(1) of the Bauhaus about/about-initiative_en initiative supports positive change also by providing access to ESF Regulation, requires an integrated approach involving JRC, Handbook of Sustainable EU funding for beautiful, sustainable, and inclusive projects. Integrated investments from the ESF, ERDF or Cohesion Fund under Urban Development territorial more than one priority axis of one or more operational Strategies (Glossary), https:// Emerging non-standard geographies” are the focus of an investments pro- grammes, actions may be carried out as an integrated publications.jrc.ec.europa.eu/ ESPON study and refer to areas: ‘Which do not belong to territorial investment (an ‘ITI’). Actions carried out as an ITI repository/handle/JRC118841 more “standard-type” typologies, which are forming the may be complemented with financial support from the EAFRD geographical dimension of emerging and/or new territorial or the EMFAF. challenges related to, for instance, Covid-19 pandemic, transition towards carbon neutral economy, energy transition, The joint planning of activities constitutes a form of positive migration, pollution, or environmental elements such as water EPSON, https://www.espon. co-ordination, where units not only seek to avoid overlaps OECD, https://www.oecd- basins, green areas etc. In this context, functional territories eu/espon-2030/thematic- and conflicts but also aim to find ways to co-operate on the Non-standard ilibrary.org/sites/9bd34ff4-en/ covered by ESIF’s integrated development strategies within actions-plans/governance- Joint planning delivery of services and policies. Through joint activities and geographies index.html?itemId=/content/ Cohesion Policy 2014-2020 may also be examined. That are new-geographies/territorial- interventions, two or several independent units can create component/9bd34ff4-en characterised by the documented functional relations or governance-non-standard synergies for the delivery of their own work, while contributing networks or flows between people and/or places and that to the achievement of overall shared goals. have existing governance mechanisms in place. That are not exclusively defined by administrative borders nor necessarily OECD, https://www.oecd. composed of contiguous spaces. Where data is fragmentary, or Mid-term Evaluation performed towards the middle of the period of org/development/evaluation/ a lack of pan-European overview is evident.’ evaluation implementation of the intervention.' dcdndep/43184177.pdf 192 193 TERM DEFINITION/EXPLANATION SOURCE TERM DEFINITION/EXPLANATION SOURCE Nomenclature It has been created by Eurostat to provide a standard Urban and rural areas are increasingly integrated, and this of territorial classification of the EU territory. It is a geographical integration covers a complex set of linkages (e.g., population units for nomenclature subdividing the territory of the EU into regions and labour market flows, public service provision, transport statistics at three different levels. network, environmental services). Improving these market and non-market connections enhances the development of Other both urban and rural populations. Rural-urban partnership is One of three forms in which Member States can support CPR, http://data.europa.eu/eli/ territorial defined here as the mechanism of co-operation that manages integrated territorial development, in addition to ITI and CLLD. reg/2021/1060/oj tools these linkages to reach common goals and enhance urban-rural OECD, https://read.oecd-ilibrary. relationships. Depending on the purposes of the partnership, Outputs: The products, capital goods and services which result org/urban-rural-and-regional-de- Rural-urban the actors involved will vary from public sector or private sector from development interventions. OECD, https://www.oecd.org/ velopment/rural-urban-part- partnerships only to a mix of public, private and other actors. As employed Outputs, dac/results-development/what- ner ships_9789264204812- Outcomes: The likely or achieved short-term and medium-term here, the concept of rural-urban partnership has distinct outcomes, are-results.htm en#page36 change and effects of intervention outputs. features, involving a collaboration with: (1) an awareness of impact Impact: Positive and negative, primary and secondary, long- the interdependence of rural and urban areas in a given space term effects produced by development interventions (functional region), (2) a membership mix that includes the relevant rural and urban representatives, (3) a framework for Participatory processes are a series of meetings within a action or objectives that represents mutual interests (urban specific time frame to promote the debate and contrasting and rural), (4) initiatives aimed to yielding collective benefits to of arguments among the public or between the public and urban and rural partners, (5) an organisational form that is fit Barcelona City Hall, https:// for purpose to help realise the partnership’s objectives. municipal authorities, to receive their opinions and proposals ajuntament.barcelona.cat/ Participatory concerning a specific municipal action. A participatory process participaciociutadana/en/ process may be used to carry out an analysis of a specific question or A supply chain involving a limited number of economic how-can-you-promote-and-par- EUR-LEX, https://eur-lex. subject, to search for creative and innovative ideas to put into Short supply operators, committed to cooperation, local economic ticipate-participatory-process europa.eu/legal-content/EN/TX- practice and to suggest what types of intervention are most chain development, and maintaining close geographical and social appropriate according to the characteristics of each initiative, T/?uri=celex%3A32013R1305 relations between food producers, processors, and consumers. context, and case. A place-based innovation policy concept to support regional Interreg Europe, https://www. The partnership principle is fundamental to the implementation Smart prioritisation in innovative sectors, fields, or technologies interregeurope.eu/sites/default/ of European cohesion policy. It implies close cooperation Specialisation through the ‘entrepreneurial discovery process’, a bottom- European Commission, https:// files/inline/Smart_Specialisation_ between the Commission, the authorities at national, regional, Strategy up approach to reveal what a region does best in terms of its Partnership ec.europa.eu/employment_so- Strategy__S3__-_Policy_Brief.pdf and local level in the Member States and other governmental scientific and technological endowments'. principle cial/esf/docs/tp_socialpartners_ and non-governmental organisations and bodies during the en.pdf Territorial governance is not linked to any specific institutional different stages of the implementation cycle of the Structural Funds. setting. It encourages players to stretch beyond existing institutional frameworks. Given its flexible approach, territorial governance can work in all institutional systems of EU Member European Parliament, https:// Policy A Europe closer to citizens by fostering the sustainable and European Commission, https:// States. Territorial governance is important for the targeted www.europarl.europa.eu/RegDa- Objective 5 integrated development of all types of territories (one of the 5 ec.europa.eu/regional_policy/ Territorial and result-oriented implementation of EU Cohesion Policy, ta/etudes/STUD/2015/563382/ (PO5) policy objectives of the 2021-2027 cohesion policy) policy/how/priorities_en governance the Europe 2020 strategy, the Territorial Agenda 2020 (TA IPOL_STU%282015%29563382_ 2020) and the Urban Agenda. For Cohesion Policy particularly, EN.pdf the shared management system, the partnership principle, World Bank, https://ppp.world- and territorial instruments such as Community-Led Local bank.org/public-private-partner- Development (CLLD) and Integrated Territorial Investment (ITI) Project Governments must decide how to allocate limited resources ship/sites/ppp.worldbank.org/ are the basis of territorial governance. prioritisation for infrastructure development. files/2022-03/WPS7674_Prior- Territorial strategies implemented pursuant to point (a) or (c) itizing_Infrastructure_Invest- of Article 28 shall contain the following elements: ment.pdf (a) the geographical area covered by the strategy; (b) an analysis of the development needs and the potential Public-private partnerships (PPPs) are a mechanism for the of the area, including economic, social and environmental government to procure and implement public infrastructure interlinkages; World Bank, https://ppp.world- Territorial CPR, http://data.europa.eu/eli/ and/or services using the resources and expertise of the (c) a description of an integrated approach to address the Public-private bank.org/public-private-partner- strategy reg/2021/1060/oj private sector. Where governments are facing ageing or lack of identified development needs and the potential of the area; partnerships ship/about-us/about-public-pri- infrastructure and require more efficient services, a partnership (d) a description of the involvement of partners in accordance vate-partnerships with the private sector can help foster new solutions and bring with Article 8 in the preparation and in the implementation of finance. the strategy. They may also contain a list of operations to be supported. 194 195 TERM DEFINITION/EXPLANATION SOURCE TERM DEFINITION/EXPLANATION SOURCE Transit-oriented development means integrated urban places designed to bring people, activities, buildings, and public space together, with easy walking and cycling connection Actions to adapt to the impacts of climate change, like European Environmental Agency, between them and near-excellent transit service to the rest of Climate Institute for transportation and preventing flooding, preparing for heatwaves, and reducing https://www.eea.europa.eu/en/ Transit the city. It means inclusive access for all to local and citywide adaptation development policy, https:// other climate risks. topics/at-a-glance/climate oriented opportunities and resources by the most efficient and healthful www.itdp.org/library/standards- development combination of mobility modes, at the lowest financial and-guides/tod3-0/what-is-tod/ and environmental cost, and with the highest resilience to disruptive events. Inclusive TOD is a necessary foundation for long-term sustainability, equity, shared prosperity, and civil peace in cities. European Environmental Agency, Climate Reducing the emission of greenhouse gases into the atmosphere Urban-rural linkages touch on a broad variety of thematic areas https://www.eea.europa.eu/en/ mitigation and enhancing their sinks to slow down climate change. ranging from urban and territorial planning, strengthening small topics/at-a-glance/climate and intermediate towns, from enabling spatial flows of people, products, services, and information to fostering food security systems as well as touching mobility and migration, reducing the environmental impact in urban-rural convergences, developing legislation and governance structures and promoting inclusive UN-Habitat, Green infrastructure is a strategically planned network of Urban-rural financial investments among others. https://unhabitat.org/topic/ur- natural and semi-natural areas with other environmental linkages ban-rural-linkages features designed and managed to deliver a wide range of European Commission, Fostering partnerships between urban and rural actors and areas at the local level are crucial for a transformative agenda. ecosystem services such as water purification, air quality, space https://knowledge4policy. Blue-green But also, global partnerships for an integrated territorial for recreation and climate mitigation and adaptation. This ec.europa.eu/glossary-item/ infrastructure development are crucial for transforming towards sustainable network of green (land) and blue (water) spaces can improve green-blue-infrastructures_en and resilient societies. Through shared principles these levels environmental conditions and therefore citizens' health and of transformation can be better aligned. quality of life. It also supports a green economy, creates job opportunities, and enhances biodiversity. Urban farming refers to growing food within city environments, utilising spaces such as rooftops, vacant lots, and even walls Sustainable Review, https://sus- Urban to cultivate plants. By incorporating sustainable agricultural tainablereview.com/urban-farm- farming practices into these unconventional settings, city dwellers can World Bank, ing-and-sustainability/ Public-private partnerships (PPPs) are a mechanism for the actively contribute to a greener future and address pressing https://ppp.worldbank.org/pub- issues like climate change and resource scarcity. Public-private government to procure and implement public infrastructure lic-private-partnership/about-us/ partnerships and/or services using the resources and expertise of the private about-public-private-partner- sector. ships Urban sprawl is a form of unplanned urban and suburban development that takes place over a large area and creates Yale, https://campuspress.yale. Urban sprawl a low-density environment with a high segregation between edu/ledger/urban-sprawl-a- residential and commercial areas with harmful impacts on the growing-problem/ Europe’s 'lagging regions' include poor 'low-income' areas in World Bank, https://www.world- people living in these areas. Lagging central and eastern Europe, many of which are converging bank.org/en/region/eca/publica- regions rapidly, as well as 'low growth' regions in southern Europe that tion/rethinking-lagging-regions are experiencing stagnant productivity and job destruction. Horizontal integration is about organising and coordinating the policy fields in a specific area and normally refers to all the URBACT, https://urbact.eu/ Horizontal actors operating at that level, even if some of them may be articles/combining-horizon- European Commission, integration Indicator for integrated projects defined in the 'Staff Working the delivery function of a national (or regional) ministry—for tal-and-vertical-integration https://cohesiondata.ec.europa. example the local office of the job centre. Document 'Performance, monitoring and evaluation of the RCO76 eu/2021-2027-Indicators/2021- European Regional Development Fund, the Cohesion Fund Vertical Vertical integration is about bringing policies from different URBACT, https://urbact.eu/ Integrated 2027-ERDF-CF-JTF-Common- and the Just Transition Fund in 2021-2027', as follows: 'A integration levels of government together for the people and places articles/combining-horizon- projects for Indicator-metadata/4t73-mihb/ project is considered integrated in itself if it fulfils at least one concerned. tal-and-vertical-integration territorial data_preview of the following conditions: a) the project involves different development sectors (such as social, economic and environmental sectors) Solutions that are inspired and supported by nature, which are (Regio European Commission, the project integrates several types of stakeholders (public cost-effective, simultaneously provide environmental, social, common https://ec.europa.eu/region- authorities, private actors, NGOs), b) the project involves Nature-based and economic benefits and help build resilience. Such solutions output al_policy/sources/evaluation/ European Commission, different administrative territories (ex: municipalities), and solutions bring more, and more diverse, nature and natural features indicator) performance2127/perfor- c) the project involves several types of stakeholders (public and processes into cities, landscapes, and seascapes, through mance2127_swd.pdf authorities, private actors, NGOs).' locally adapted, resource-efficient and systemic interventions. 196 197 https://functionalareas.eu/ 198