Recently, the CAF Practitioners Network, where CAF users from around the world meet to exchange ideas, presented the findings of the CAF Impact Study 2025.

Climate change and ambitious climate targets require major investments in local infrastructure—while municipalities face tight financial and human resources. This guest article by Christian Raffer (German Institute of Urban Affairs (Difu)) explores how sustainable finance instruments such as green bonds and green promissory note loans can support municipal funding, and where their limits lie. It shows that sustainable finance can be a strategic building block, but not a silver bullet.

Austria’s municipalities under pressure: Rising costs, shrinking revenues, and increasing levies threaten local services and investments. Urgent reforms are needed to secure financial stability.

KDZ – Centre for Public Administration Research is pleased to announce the launch of the Municipal Exchange Fund “Austria for Ukraine” (A4U), funded by the Austrian Development Agency (ADA) as part of International Partnerships Austria and the Austrian Association of Cities and Towns (AACT), and in cooperation with U-LEAD with Europe.

Levies are an important source of income for municipalities, as they provide financial leeway and strengthen local autonomy. A European comparison shows that while municipalities in Scandinavia have extensive tax powers, these are severely restricted in other countries.

How can artificial intelligence support public financial auditing? Which control tasks can be automated – and where are the limits? This case study from Barcelona explores the first use of AI in contract auditing, outlining the technical and legal requirements as well as the potential gains for efficiency, transparency and overall management quality.

The new episode of KDZ in Dialogue, hosted by Siegfried Fritz, focuses on the link between local public finance and the United Nations’ Sustainable Development Goals (SDGs).

The CSPF network unites major European cities to exchange strategic approaches for sustainable municipal finances and strong local institutions. At the 11th meeting, participants highlighted the importance of administrative capacity, responsible use of AI, sustainable budgeting and robust integrity systems to strengthen democratic resilience.

The KDZ Newsletter informs you about current KDZ projects, topics and activities of interest to the public sector. The KDZ Newsletter is published ten times a year.

Cities are crucial in tackling global challenges like climate change and sustainable development. Four leading cities—Amsterdam, Barcelona, Bordeaux, and Hamburg—have joined forces in the SLPF project to integrate the UN's Sustainable Development Goals (SDGs) into their public financial systems. This collaboration aims to drive a sustainable future through innovative financial management.