News

23 October 2025

German cities and industry kick-start dialogue process to drive climate neutral-competitiveness

Cities and industries across Germany are joining forces to strengthen both climate action and economic competetiveness. The launch of the German City-Industry Dialogue, held in Berlin under the theme “Strong Cities. Healthy Economy.”, marks the start of a two-year process to advance climate neutrality and competitiveness together.

Facilitated by Climate-KIC, ICLEI Europe, and the World Business Council for Sustainable Development (WBCSD) with the support of the BMW Foundation Herbert Quandt and a broad network of partner organisations, the Dialogue creates a structured space for cooperation between municipalities, companies and policymakers. The aim is to identify realistic ways to finance and implement the necessary transition.

The Dialogue’s approach recognises that climate protection and competitiveness are deeply interconnected. Climate change is already straining local economies, with extreme weather damaging infrastructure and driving up costs for cities and businesses. As hubs of both daily life and economic activity, cities’ resilience is vital – yet required investments often exceed their financial capacity by far.

“In an urban world, cities shape the infrastructure that people and businesses need. They are key enablers of a thriving economy and society. Their investments in infrastructure are essential drivers of the climate transition, economic growth, and competitiveness. Therefore, it is essential to secure and strengthen the investment capacity of cities and public enterprises.”

– Wolfgang Teubner, ICLEI Europe Regional Director. 

The Dialogue’s initial impulse paper, released alongside the event, emphasises climate protection as a necessary investment in jobs, quality of life and economic strength in Germany and Europe. The paper includes additional key reflections from the discussion, as well as areas for further action.

Around 80 representatives from industry, cities, federal and state governments joined the launch, where the core topics of buildings and construction, transport and mobility, as well as energy, heating and cooling were explored. In addition, financing, procurement, standardisation and procedures were discussed as the central levers for practically implementing climate neutrality and competitiveness.

The strong turn out highlights a shared recognition that cities and companies must collaborate more closely to address both the economic and environmental consequences of climate change:

“The strong interest from industry clearly shows how important it is to have this dialogue now. With the City-Industry Dialogue, we are creating a space where trust can grow and future-proof solutions can be developed together – for an innovative economy and a sustainable society.”

– Sabine Kuschel, VP Leadership & Challenges at the BMW Foundation Herbert Quandt. 

The collaboration comes at a crucial moment, as the EU pursues ambitious climate targets whilst working to strengthen the competitiveness of its domestic industry.

Further events within the framework of the City-Industry Dialogue will follow. Interested cities and companies wishing to participate or to host a dialogue format can contact: Laura Broo, Senior Expert for Advocacy, ICLEI Europe (laura.broo@iclei.org).

The initial impulse paper can be found here.