Especially in times of economic hardship, the Commission is able to take risks and encourage measures to reduce carbon dioxide emissions and create efficient ways to save costs in a time when smaller companies are more likely to avoid risks.
The Commission quoted figures on congestion in the cities - where more than two thirds of Europeans - it costs about 1 percent of GDP.
"We need to encourage research and innovation that can lead us to our goals of free towns of carbon dioxide, progressively destroying conventional fuel cars in city centers, opting for electric vehicles and buses to cast silent smoke "said Transport Commissioner of the EU, Siim Kallas.
The purpose is to maximize the effectiveness of research resources and concentrate on a small number of demonstration projects.
"Innovation drives the competitiveness of Europe and is the best way to address energy efficiency," said Energy Commissioner Günther Oettinger.
He added that the partnership for intelligent cities and communities could help spread technology like heating and air conditioning, smart meters and zero energy buildings.
A group that includes business leaders, municipal officials and regulatory authorities will be created to help implement the project, said the Commission, and issued tenders to select programs eligible for EU subsidies.
