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Green Cities 2 - Window II Extension 2



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

10 Nov 2021



PSD disclosed:

07 Sep 2021

Project Description

Extension of up to EUR 2.0 billion for Window II under the second Green Cities Framework ('GrCF2 WII'), approved in November 2021, to support investments related to Green Cities, which will bring total funding under GrCF2 to EUR 3.65 billion. 
In January 2023, an operation change was made to enable better support to climate action in cities with reallocation of funds from this Extension, keeping it at EUR 1.61 billion. The GrCF2 Window III (OpID 54238), was created to enable prospective sub-projects in the 12 eligible EU Member States to benefit from an Invest EU Guarantees.

Project Objectives

The over-arching aim of the GrCF2 is to continue to serve as a sector-wide catalyst for addressing climate and environmental challenges at the city level. This will be achieved through the preparation and subsequent implementation of Green City Action Plans ("GCAP"). GCAP methodology takes a systematic approach to identifying, benchmarking, prioritising and guiding green city actions by cities. The process involves four steps:

  1. Green city baseline and priority setting: measuring the current status of environmental and climate challenges in the city based on 70 core indicators and identifying the priority environmental challenges that need to be addressed.
  2. Green City Action Plan: preparing a document that articulates the city's vision, strategic objectives and priority actions and investments to address priority climate change and environmental challenges and meet the objectives, while considering wider co-benefits such as economic inclusion and digitalisation.
  3. Implementation: execution of the GCAP.
  4. Monitoring and evaluation: monitoring the GCAP results and updating the GCAP as necessary.


Thus GCAPs will be used as a means of identifying priority environmental and climate change challenges facing a city and subsequent green investments and policy interventions, together with wider strategic objectives in this field and potential co-benefits. Beyond GCAPs, the sub-projects will address company financial and operational performance, implementation capacity (where required), support their access to capital markets, contribute to increasing gender and economic inclusion and integration of digital/smart solutions (where applicable).

Transition Impact

ETI score: 70

The GrCF2 WII Extension 2 and each sub-project within the Framework will promote significant environmental improvements and support the Green transition quality through the development and implementation of GCAPs for the respective cities. The Framework will also pursue other TI objectives, including the Well-governed, Inclusive, Resilient or Competitive as the secondary transition quality for the sub-operations under the Framework. These secondary TI qualities will be pursued through selected project design and technical cooperation aimed at relevant capacity building and reforms.

Client Information

The Clients (borrowers) for the GrCF2 Window II will include sovereigns, municipalities, municipal owned utility companies, private companies and other sovereign entities supporting green city investmentsfor the purpose of investing in green urban infrastructure.

EBRD Finance Summary

EUR 1,613,000,000.00

The GrCF2 Window II Extension 2 will consist of public (both sovereign and non- sovereign) and private loans and bonds, in an aggregate amount of up to EUR 1,613 million, following the operation change approved in January 2023.

Total Project Cost

EUR 1,613,000,000.00

The GrCF2 will benefit from co-financing and technical cooperation assignments, funded by International donors, to support preparation and implementation of sub-projects.


Terms: Long-term sovereign and non-sovereign financing of municipal investments within the parameters of the GC initiative; Conditionalities: covenants in support of the green agenda, together with improving the operational and financial efficiency of the respective utility companies; EBRD attributes: in support of the GET 2.1, the GrCF2 will apply enhanced eligibility criteria with higher levels of climate-investment ambition. Non-financial additionality: higher inclusion and gender standards will be achieved.

Environmental and Social Summary

The Framework itself is not categorised. Each sub-project will be individually categorised and willbe subject to sub-project specific Environmental and Social Due Diligence and Environmental andSocial Action Plan. The sub-Projects under the GrCF2 will also meet the specific eligibility criteriaof the Framework, including that they result in significant environmental benefits. All sub-Projectscategorised as "A", which are not expected to be significant in number, will be submitted to Board for approval regardless of the size of the loan. 

Technical Cooperation and Grant Financing

A comprehensive TC package is envisaged to be deployed in support of the Framework and sub-projects. The TC assignments will be deployed taking into account country and city specifics, designed to the specific needs of each client. The following TC assignments are envisaged for sub-projects implemented under the framework:

  • Green City Action Plans and Policy Dialogue.
  • Feasibility Studies.
  • Gender Advisory Services.
  • Environmental and Social Assessment.
  • Project Implementation Support.
  • Capacity Building Support TCs.
  • Green Finance Roadmaps.
  • Civil Society Capacity Building.

The TC package for each sub-project will be designed on the basis of the need identified as part of the project structuring.

The TCs are expected to be funded by bilateral or multilateral donors and the EBRD Shareholder Special Fund ("SSF").

Company Contact Information


PSD last updated

11 Apr 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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