The European Bank for Reconstruction and Development (EBRD) has pledged an additional €3 billion ($3.4 billion) to its Green Cities programme, reinforcing its dedication to sustainable urban transformation across a growing network of cities. This renewed investment, to be allocated over the next five years, will be supported by contributions from the Green Climate Fund (GCF) and other partners.
The expanded framework not only brings increased funding but also broadens the programme’s scope to include nature finance and green capital markets. Additionally, it introduces an enhanced methodology for Green City Action Plans (GCAPs) to help cities address complex climate challenges with more effective, targeted strategies. The updates include the introduction of a GCAP refresher (GCAP2) for cities that completed their plans over five years ago, ensuring cities can continue evolving their environmental goals.
Lin O’Grady, Deputy Head of the EBRD’s Sustainable Infrastructure Group said, “EBRD Green Cities is more than an investment programme; it is a commitment to building cities where people can thrive in healthier, greener environments. With this renewed commitment, we are empowering a growing community of cities to meet climate goals, improve people’s daily lives and create a legacy of sustainability.”
Gianpiero Nacci, Director of Climate Strategy and Delivery at the EBRD said, “The refined GCAP methodology empowers cities to drive impactful climate action. With more precise, target-oriented plans, tailored to each location’s unique needs, cities can turn ambition into action, addressing urgent climate challenges and building resilient urban spaces that prioritise the well-being of their residents.”
EBRD Green Cities focuses on core urban sectors such as transport, water, buildings, district energy, solid waste, and environmental clean-up. Within each area, the programme promotes energy efficiency, decarbonisation, adaptation, digitalisation, gender equality, and economic inclusion, while also aiming to attract private sector investment and mobilise private finance.
Since its launch in 2016, EBRD Green Cities has invested €2.86 billion ($3.07 billion) across 91 projects, reducing annual CO₂ emissions by 4,915 kilotonnes—comparable to taking over a million polluting cars off the roads. The network has grown to include over 50 cities, with 36 having completed their GCAPs and another 14 currently developing their own.