Urban development sector

Cities are the source of about 75% of the world’s CO₂ emissions but they also represent a valuable ally in the fight against climate change and the drive towards Circular Economy. Mayors are often the ones who work on practical and long-term solutions, being responsible for purchasing zero-emission public transport, constructing energy efficient social housing and subsidising energy-saving and photovoltaic systems in buildings.

The EIB tackles environmental and social issues by supporting projects that make life in urban areas more sustainable. We support investments into integrated urban development, urban regeneration and renewal, as well as into water and waste management services, sustainable mobility, education and health infrastructure that benefit all citizens.

We help urban authorities access tailor-made solutions and accelerate their urban investment projects through URBIS, a dedicated advisory platform.

Download the EIB Climate Action in Cities Overview 2020

Social and affordable housing loans are a major element of the EU bank’s urban lending and of its support for EU urban policy, as described in this brochure. An example is the expansion and energy efficiency improvement of Madrid’s social housing stock. The project will help families on low income to obtain housing while at the same time lowering their energy bills and gas emissions.

Between 2016 and 2020, we invested nearly €107 billion in urban areas. Moreover, about 30% of our total annual lending is dedicated to the EU Urban Agenda. Part of this is deployed to higher-risk projects under the European Fund for Strategic Investments, a key component of the Investment Plan for Europe.

Through the Global Climate City Challenge, in collaboration with the Global Covenant of Mayors, as well as facilities like ELENA, URBIS and JASPERS, we share our expertise with municipalities around the world so that they can carry out their urban climate action projects. Watch our videos to learn more about how we finance cities:

Projects eligible for financing

Among others, we finance projects in the following priority areas:

Nearly zero-emission public transport
Examples: new tramways of Liege (Belgium), Krakow (Poland) and Rabat (Morocco)
Smart cities
See how towns in Belgium, Croatia and Hungary became more sustainable

Energy-efficient buildings
Examples: projects financed in Lithuania, in Turku (Finland) and in Bordeaux (France)
Social and affordable housing
Examples: projects financed in France, Spain (Madrid) and Poland (Poznan)
Solid waste management
Improving waste management systems both inside the EU and around the world. See how we made an impact in France and the UK.
Circular Cities
Supporting cities in their transition towards a more circular economy. Read more in our guide The 15 circular steps for cities
Urban regeneration and multi-sector urban infrastructure
Example: a new EIB green and urban infrastructure investment programme in Greece
Water and sewerage
Examples: expansion of wastewater treatment in Belgium, Brazil and Bosnia and Herzegovina

The City Climate Finance Gap Fund

The Gap Fund paves the way for cities to deliver ambitious infrastructure development for low-carbon, resilient and livable cities. It provides technical assistance for early-stage planning and project preparation. It unlocks a pipeline of financially viable urban investments that contribute to local transformation, global climate goals and green recovery. The Gap Fund was announced at the United Nations Climate Action Summit 2019 and was launched in September 2020. Since its operational launch, it has approved technical assistance for 33 cities, turning their climate ambitions into finance-ready projects. It is funded by Germany and Luxembourg and implemented by the European Investment Bank and the World Bank.

Go to dedicated website

Cohesion and regional development

From support for small businesses to financing for education and skills training, the EIB is helping to build a more inclusive Europe. Explore our cohesion projects using this interactive map.

See the map

Recovering frontlines

Cities and towns are important pillars of EU plans to address climate change and digitalisation with COVID-19 funds. Our European municipality study looks at where investment is needed most.

Read the blog

Browse our projects

EIB projects under appraisal

EIB financed projects

Contact us

Do you need finance or technical assistance for your project?

We offer a wide range of financial products, as well as technical assistance through URBIS, a dedicated advisory platform within the European Investment Advisory Hub (EIAH), Jaspers and other advisory services benefitting cities including ELENA, EPEC and fi-compass.

Do you have a question?

For enquiries regarding the financing facilities, activity, organisation and objectives of the EIB, contact the Information Desk
Contact us
Tel. +352 4379-22000
Frequently asked questions

Are you a journalist?

Contact our Press office
Tel. +352 4379-21000
press@eib.org
www.eib.org/press

Case studies

Real stories speak louder than general policies.
Discover the impact of our projects