Smart Cities is partly funded by the Interreg IVB North Sea Region Programme of the European Union.
The North Sea Region Programme 2007-2013 works with regional development projects around the North Sea. Promoting transnational cooperation, the Programme aims to make the region a better place to live, work and invest in.

see http://www.northsearegion.eu/ivb/home/ and http://ec.europa.eu/regional_policy/funds/feder/index_en.htm

The other part of the Smart Cities project is funded by the partners.