EIB’s €30M Bet on Climate-Ready Cities

EIB’s €30M loan to Thessaloniki marks a new phase in Europe’s drive for resilient, climate-smart cities

23 Feb 2026

The European Investment Bank has approved a €30 million loan to the City of Thessaloniki, underscoring the European Union’s expanding focus on climate-resilient urban infrastructure. Announced on Feb. 18, 2026, the financing will support the city’s 2025–2030 investment program, aimed at modernizing core systems while strengthening protection against climate risks.

City officials said the funding will be directed toward sustainable mobility projects, energy-efficiency upgrades in public buildings and broader improvements to essential infrastructure. Climate resilience is central to the plan, with measures designed to address exposure to extreme weather and extend the durability of key public assets. The investment aligns with wider European efforts to integrate environmental targets into long-term infrastructure planning.

The agreement reflects a broader shift in how municipalities across the bloc are financing development. Climate policy is increasingly embedded in decisions about which projects move forward and how they are structured. The European Investment Bank, the EU’s lending arm, has emphasized long-term financing as a way to help cities pursue upgrades without placing excessive strain on public budgets.

Kyriacos Kakouris, a vice president of the bank, said in a statement that the investment would support Thessaloniki’s transition toward climate neutrality while improving residents’ daily lives. Local leaders described the agreement as an important step toward advancing the city’s sustainable development goals.

Though modest compared with larger multibillion-euro European programs, the Thessaloniki loan illustrates how targeted financing is becoming a routine instrument in the EU’s climate strategy. Cities across Europe face mounting pressure to modernize aging transport, energy and water networks while complying with stricter environmental standards. Access to structured, affordable capital is widely seen by policymakers and analysts as essential to turning climate commitments into completed projects.

As the European Union works toward its 2030 climate objectives, similar financing arrangements are expected to play a growing role in shaping the next phase of urban development.