The United Nations Development Programme (UNDP) in Europe and Central Asia has announced the next cohort of 10 cities selected for the City Experiment Fund (CEF). This regional initiative brings cities together to reimagine and shape sustainable urban development through strategic innovations and transformative solutions.

CEF is supported and funded by the Ministry of Finance of the Slovak Republic, a longstanding UNDP partner in urban development and systemic innovation in the region. 

The list of 10 new cities selected to develop and test new approaches to some of the most pressing urban issues includes two cities from Ukraine: Kovel (Volyn Oblast) and Nizhyn (Chernihiv Oblast).

Over the next two and a half years, these cities will co-create and implement strategic innovation portfolios that take a holistic approach to urban development.

The portfolio approach is an innovative method of managing local development that helps cities plan and implement systemic changes more effectively, especially in conditions of uncertainty. Instead of focusing on a single solution, cities work simultaneously on several interrelated projects (options).

This approach allows for better change management and a constant search for new effective solutions in a dynamic environment. One important element of this approach is the gaining of new knowledge during implementation, as well as flexible management that allows quick adjustments to new circumstances.

Kovel and Nizhyn will work to strengthen their economic resilience, in particular through support for local businesses, economic and energy diversification, reduced vulnerability to external shocks, and the promotion of a green economy*.

In the initial phase of implementation, the city teams, with the assistance of UNDP, will implement several projects, some of which are common to both cities, while others are unique, among them:

1. Both cities will implement the Green Economy Business Accelerator programme. To implement it, consultants will map local green economy ecosystems, provide support and mentoring to businesses to help develop green innovations, and prepare the ground for future innovation competitions.

2. Green Economy Hubs will be created in both cities as demonstration platforms and knowledge-sharing centres for local stakeholders, including small and medium-sized enterprises.

3. In Kovel, smart and digital solutions will be piloted to improve the sustainability and resilience of municipal infrastructure that supports the local economy. This includes the introduction of digital energy consumption monitoring, automated management systems, and data analysis tools.

4. In Nizhyn, comprehensive energy efficiency assessments of selected facilities will be carried out to introduce modern resource-saving technologies that will ensure long-term sustainability and cost reduction.

After the initial stage, additional measures are planned, including educational games for children, the organization of public events dedicated to economic and energy sustainability, and support for the implementation of innovative financial instruments.

Building future-ready cities 

CEF was designed to empower cities to experiment, adapt, and innovate, equipping them with systems thinking tools, methodologies, and frameworks needed to navigate urban transitions. By leveraging data-driven insights, collaborative problem-solving, and real-world testing, cities will refine strategies tailored to their local challenges and sustainability goals. 

Key focus areas include: 

• Driving sustainability – Supporting cities' green transition, reducing emissions, and promoting low-carbon and environmentally friendly urban development.

• Enabling circular economy – Transforming urban resource flows, business models, and consumption patterns to create more closed-loop and sustainable systems. 

• Improving quality of life – Enhancing air quality, access to green spaces, and sustainable mobility, ensuring urban areas are more livable, inclusive, and equitable. 

• Reshaping urban systems – Rethinking energy, transportation, waste management, and land use to build more resilient, efficient, and people-centred cities. 

• Fostering resilience – Strengthening cities’ ability to withstand climate shocks, water scarcity, and biodiversity loss through green infrastructure, renewable energy, and nature-based solutions. 

The 2025–2027 phase of CEF will provide funding and expert support to empower city-level projects and implementation.

A key feature of the initiative is capacity building, with UNDP and city teams receiving tailored training, mentorship, and access to BOOST impact acceleration programmes to strengthen local innovation ecosystems. Additionally, participating cities will explore innovative financing mechanisms, ensuring the long-term sustainability of their initiatives. 

Since its inception in 2019, the initiative has contributed to driving urban transformation across Europe and Central Asia, enabling cities to accelerate systemic change and pioneer new models of sustainable development. 

*The transition to a green economy helps communities and countries move away from outdated development approaches towards modern, environmentally responsible solutions. This means the rational use of resources and concern for long-term environmental sustainability.

In Nizhyn and Kovel, this will be achieved by increasing the energy sustainability of communities: creating green economy ecosystems, developing decentralized energy generation, introducing smart metering and energy data systems, and testing energy-efficient equipment.