Last year, 2020, brought a global pandemic and the launch of the EU Green Deal. In response to the former, national fiscal and monetary instruments were launched. The transition to a green economy with the associated funds and new policies announced is a new and long-term challenge. In practice, such challenges are largely tackled at the municipal level, as cities are responsible for a significant share of GHG emissions and have to take measures to adapt to climate change, however public funds alone are not sufficient to finance these efforts. In addition, fiscal rules and excessive deficit limitations need to be adhered to.