Why we are interested in the New European BAUHAUS

Launched by the European Commission in 2021, the New European Bauhaus (NEB) initiative is a financial instrument to transform the "built environment" in Europe through a holistic approach to the design of buildings, open spaces and neighbourhoods.

The initiative supports the implementation of solutions that are not only sustainable, but also inclusive and aesthetic, respecting diversity, traditions and culture. The built environment, as a major economic sector, has a strong impact on resources, the environment and climate change. Due to population growth and increasing urbanization, the built environment needs new and updated urban assets that directly impact individual well-being and societal functioning.

NEB supports the provision of innovative solutions to transform the built environment into a living space characterized by sustainability, inclusion and aesthetics, and this will be done by:

• engaging citizens living in the neighborhoods;
• providing tools and guidelines;
• offering personalized solutions for different communities;
• taking into account the perspectives of stakeholders in the design and implementation process;
• placing social inclusion as a leading factor, while stimulating economic development and competitiveness.

Cluster Sofia Knowledge City is a platform that unites business, science, education and other stakeholders to implement innovations and smart solutions for the city of Sofia. As such, the cluster sees the NEB as a powerful political and financial instrument that can support the transformation of the city of Sofia into a smart city and a city of knowledge. Transformation is a long process, based not only on technological innovation and digitalization, but also on innovative business models for improving the urban environment. Through these models, public and private investments can integrate the values ​​of sustainability, inclusion and aesthetics into the built environment. These are values ​​that are at the core of the NEB. Therefore, although the NEB does not directly address economic and financial issues, aligning the investment projects of the cluster and its members with the NEB can have long-term economic and financial consequences for all stakeholders in the city of Sofia.

In 2024, the European Commission published the NEB Investment Guidelines, the result of close cooperation between the EC and JASPERS (Joint Assistance to Support Projects in European Regions), an advisory programme funded by the Commission and the European Investment Bank. The Guidelines provide investors and developers with best practices and quality assurance to put NEB into practice. They help shape investment projects to address climate neutrality, climate change adaptation, rapid urbanisation, response to humanitarian crises, and the accessibility of sustainable high-quality housing, construction and renovation. In other words, these guidelines support the implementation of projects that would be long-term and go beyond purely financial feasibility. By integrating aesthetics, sustainability and inclusion, NEB adds a unique quality to investment projects, making them attractive to investors looking for sustainable and impactful projects.

How is the NEB funded?

The NEB is a cross-sectoral initiative and is funded by various EU programmes, in particular Horizon Europe, Cohesion Policy and LIFE. As of June 2024, nearly €400 million had been allocated to it. The NEB principles have been used in numerous calls for proposals under various EU policies, funded by the EU budget in various programmes. In addition, all Member States, including Bulgaria, have national programmes with NEB references that can be explored.

From 2025, the NEB has a multi-annual funding instrument, the NEB Facility, which aims to revitalise investment in the blind areas. It is a cross-sectoral instrument that combines different financial instruments of the Commission and covers the full cycle of solution implementation – from research and innovation to deployment – ​​through the following two components:

• The Research & Innovation component, anchored in Horizon Europe - includes actions from research to testing and demonstration, with an annual indicative budget of €120 million.
• The Roll-out component - gathered from eight other EU programmes, will deploy solutions for the built environment. The component aims to meet the budgetary ambition of the Research & Innovation component through investments in different EU programmes over the next 3 years.

For all this, including getting acquainted with the a new funding tool to revitalise neighbourhoods (The New European Bauhaus Facility) and viewing the open calls, visit the EU website.