Project results are expected to contribute to all of the following expected outcomes:

• Project promoters, public authorities, and investors have a better understanding of the capital market demand and supply dynamics that underlie investments in projects fostering the transformation of neighbourhoods^[1] in line with the New European Bauhaus (NEB).
• Increased investments towards NEB-aligned projects for the sustainable^[1] and inclusive^[1] transformation of neighbourhoods.

Scope:

Increased investment in projects for the transformation of neighbourhoods in line with the New European Bauhaus (NEB) may be hindered due to a discrepancy between the demand and supply of capital in terms of size, diversity, returns, and risk. Small-scale NEB-aligned projects typically encounter large, short-term oriented, and highly risk-averse investment funds, which seek investment opportunities able to absorb large amounts of funding, driven by present legislation^[4].

Place-based impact investing is an approach that can contribute to investments in NEB-aligned neighbourhood projects by providing risk-adjusted financial returns while creating local social, cultural, aesthetic^[5] and environmental value and by helping to meet local needs in terms of community^[1] well-being, social inclusion, local economic resilience, and sustainable development^[7].

There is a need for research to understand the capital demand and supply-side aspects that influence and shape investments in NEB-aligned neighbourhood projects and to identify appropriate mechanisms to attract increased investment.

Proposals are expected to address all of the following:

• Analyse the capital market dynamics that influence investments in NEB-aligned projects for the transformation of neighbourhoods. This includes analysing at least the following:
  • The size, scale, and diversity as well as the barriers, risks, and drivers of capital market demand and supply for NEB-aligned projects.
  • The context of NEB-aligned investment projects, including political, financial, economic, regulatory, and cultural dimensions.
• Based on the above, develop an innovative investment solution that addresses and leverages the analysed capital market dynamics towards increased investment in NEB-aligned projects. The investment solution is expected to:
  • Leverage place-based impact investing approaches and is encouraged to combine them with other diverse and out-of-the-box investment approaches, frameworks, or funding schemes that contribute to social, environmental, aesthetic, and cultural impact in neighbourhoods. This may include the use of innovative digital financial instruments, platforms for community co-investment, or blockchain-enabled transparency mechanisms, among others.
  • Determine the types of capital (including, but not limited to, impact funds, real estate investors, family and pension funds, philanthropists, donors, and insurance companies) that can be mobilised and validate how to mobilise them.
  • Provide recommendations for decision-making on avenues to secure future funding and financing.
  • Support investors to assess the investment potential and returns (including economic, social, cultural, aesthetic and environmental) of NEB-aligned neighbourhood projects.
• Conduct the above analysis and validate the developed solution in at least three different Member States and/or Associated Countries.

Projects are expected to integrate and build upon the New European Bauhaus Investment Guidelines^[8].

Proposals are expected to follow a participatory^[1] and transdisciplinary^[1] approach through the integration of different actors and disciplines.

Proposals are expected to allocate at least 0.8% of their budget for engaging with the Horizon Europe-funded 'New European Bauhaus hub for results and impact' to share their intermediate and final results, findings and learnings, as well as to contribute to impact assessment.

[1] See definition in the Glossary section of the NEB part of the HE WP26-27.

[2] See definition in the Glossary section of the NEB part of the HE WP26-27.

[3] See definition in the Glossary section of the NEB part of the HE WP26-27.

[4] Examples include the EU Taxonomy, Fit for 55 package, and European Social Fund (ESF+).

[5] See definition of ”beautiful” in the Glossary section of the NEB part of the HE WP26-27.

[6] See definition in the Glossary section of the NEB part of the HE WP26-27.

[7] Impact Investing Institute, ’Section 1: What is place-based impact investing?’, Impact Investing Institute website, accessed 29 September 2025, https://www.impactinvest.org.uk/learning-hub/place-based-impact-investing/what-is-place-based-impact-investing/.

[8] European Commission, ’NEB Investment Guidelines’, New European Bauhaus, accessed 5 August 2025, https://new-european-bauhaus.europa.eu/tools-and-resources/neb-investment-guidelines_en . Sections of particular relevance for applicants to consider include: 1. Introduction; 2. Mapping the NEB; 4.4 Project risks; 5. Making the NEB case; and 6. Conclusions.

[9] See definition in the Glossary section of the NEB part of the HE WP26-27.

[10] See definition in the Glossary section of the NEB part of the HE WP26-27.