The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are expanding their joint efforts to finance urban climate initiatives.

The GCF has approved a second funding tranche worth €87 million for the EBRD Green Cities Facility. This latest approval brings the total GCF concessional financing secured for the programme to €174 million.

The funding aims to assist municipal authorities, utility companies and private-sector businesses across 15 countries with climate mitigation and adaptation efforts. Participating nations include Albania, Armenia, Bosnia and Herzegovina, Georgia, Jordan, Kazakhstan, the Kyrgyz Republic, Moldova, Mongolia, Morocco, North Macedonia, Serbia, Tajikistan, Tunisia and Uzbekistan.

By providing concessional capital, the facility addresses bankability and affordability challenges while helping to attract further public and private investment. Assistance is delivered through policy guidance, technical support, capacity building and sustainable infrastructure investments.

The EBRD Green Cities initiative currently involves more than 60 participating municipalities. It targets investments across multiple sectors, including urban transport, district energy, solid waste, renewable energy, smart solutions, water and wastewater, building, electricity distribution networks, street lighting, climate resilience and nature-based solutions.

Under the initial financing tranche, the programme enabled the completion of eight Green City Action Plans (GCAPs). These tailored strategies help local authorities identify and prioritise critical environmental issues.

The first tranche also funded ten capital projects, including the River Bic Rehabilitation and Flood Protection scheme in Chisinau, Moldova. The project marked the first formal implementation of a nature-based solution by the EBRD. The newly approved second tranche will allow the facility to scale up investment support across participating urban areas.

The approval coincides with the upcoming tenth anniversary of the broader partnership between the EBRD and GCF. Over the past decade, both organisations have collaborated across various sectors, combining GCF resources with EBRD financing, technical expertise and private-sector mobilisation to advance global climate goals.