CloseTheGap develops solutions to address the funding gap in municipal mobility projects

Cities and municipalities are key players in the mobility and climate transition, yet they face significant financial pressure. The 2025 Municipal Survey shows that budget shortfalls are the biggest obstacle. At the same time, investment needs are rising, while climate change and the transition are exacerbating social inequalities.
CloseTheGap is developing new approaches to mobilize additional sources of funding for municipal transformation projects. The focus is particularly on philanthropic and alternative financing models, for which suitable, transferable structures have been lacking in Austria to date.

Based on a mixed-methods design (including desk research, interviews, GIS analyses, and co-creation), a practice-oriented and ethically sound regulatory framework will be developed and tested under real-world conditions in demonstration cities.
For the first time, the project combines financing, governance, law, and ethics into an integrated model for municipalities in Austria and is testing it directly in practice.

Key outputs include an analysis of municipal financing needs, models for alternative financing instruments, a practical handbook, and specific reference processes and implementation tools for widespread use.