Written by the UNDP Innovation Team Istanbul Regional Hub in partnership with the European Commission.

As the EU Commission and the United Nations Development Programme (UNDP) concluded the Future-Fit Cities Forum 2025: Missions Possible in Chișinău, Moldova in early April, it is an appropriate time to reflect on its lessons for the EU-funded Mayors for Economic Growth (M4EG) Facility. The Forum has already become a well-recognized brand for regional gatherings of urban innovators and mayors from cities across the Eastern Partnership (EaP) countries. This edition proved as successful as previous ones and saw fruitful exchanges of ideas among key stakeholders on how to support sustainable local development in line with EU standards. Kindly hosted by our partners in Chisinau, the Forum also reaffirmed the strong relationship between the EU and Moldova and their commitment to Moldova’s European Accession process.

As it was announced publicly during the Forum, M4EG will continue to steer the urban innovations journey within its network of cities and beyond to bridge cities with innovations and help them to navigate within growing levels of uncertainties for the next cadence of four years. 

The Future-Fit Cities Forum created a momentum to take stock of what we managed to create together with municipalities across the EaP and in the EU, civil society organisations, private sector and international partners; and we will seize this opportunity to further reflect on what we achieved and what awaits us and partners in the next exciting chapter of urban makeovers!

In lieu of recap / What We’ve Achieved Together

Since 2017, M4EG has been funded by the European Union, and with UNDP as implementing partner since 2021, the M4EG Facility has fostered a dynamic network of municipalities, collectively rethinking the meaning of local economic growth and resilience across EaP countries. The results? A testament to the future-readiness of local leadership and resilient economies.

The M4EG network has grown into a vibrant ecosystem of networking, partnerships, and co-creation. Over the years, more than 430 municipalities have reaffirmed their commitment to the initiative, with nearly 50 cities benefitting from innovative financing for urban development through three key pillars: Portfolio Journey, Urban Imaginaries, and the EU Response and Renewal Programme. These streams have provided tailored support to municipalities, enabling them to reimagine urban spaces, implement innovative solutions, and address mounting complex challenges. From crafting a new Pathways for Economic Growth (P4EG) methodology for next generation local development planning to fostering holistic urban transformation portfolios, the M4EG Facility has delivered tangible results on the ground.

At the core of the M4EG complex system you’ll find a Portfolio Journey that is a three-year-long programme for in-depth learning and strategic planning, and based on systems thinking, which uses a “portfolio approach” to address complex problems that cannot be solved through traditional project management methods alone.  

Equipped with a portfolio approach, municipalities have implemented projects on green and blue energy transitions in 18 municipalities in the Republic of Moldova and Ukraine, in conjunction with crucial assistance to refugees and internally displaced persons in the wake of Russia’s unjustified war of aggression against Ukraine.  Meanwhile, sustainable tourism in Armenia and green and smart solutions for cities in Azerbaijan and Georgia were actively developed with the portfolio approach. The latter became a sandbox for local authorities to enhance community infrastructure, promote a coherent and holistic approach to local development in line with EU standards, and foster sustainable development.

The last two years have also been marked by the learning journey and graduation of 24 municipalities across Urban Imaginaries. Initially, cities focused on small initiatives to reinvent key aspects of local living through human-centered design methodologies and community engagement under the guidance of the Centre for Public Impact (CPI). Later, the focus shifted to scaling, financing, mentorship, and peer exchanges with ARUP.

One of M4EG’s central contributions has been development of future-ready capabilities of municipalities, delivered digitally through six tailored courses at the Urban Learning Center and through deeper in-person training sessions reaching a total of more than 1800 learners in the region.  This has been made possible with partners such as ARUP, TalTech and Climate-KIC.

What’s Next?

The time is now right for the European Union and UNDP to take a bold and innovative step forward in driving municipal development through the M4EG Facility. Building on lessons learned, this phase will incorporate new methodologies to address complex challenges. M4EG municipalities will delve deeper into familiar concepts while exploring a mission-oriented economy, focusing on solving specific societal challenges through targeted, strategic interventions.

As we move ahead, the focus remains on empowering municipalities to become future-ready and design impactful, hyperlocal projects. M4EG will to continue its transformative journey while redefining what is possible for cities across the Eastern Partnership region.

In the coming years, the Facility and partners will work on enhancing local funding efforts by embedding stronger funding and financing approaches in all workstreams of M4EG and creating alignment with key EU initiatives in the EaP region and the Global Gateway Strategy. Municipalities need to focus on building financial attractiveness and fostering resilient local economies to thrive in today’s uncertain circumstances. Together with ARUP, M4EG already described instruments to increase funding for investment under the extensive research, along with the free thematic online course called “Funding and Finance for Municipalities” – both providing up to date know-how around urban financing, and informs the core focus of M4EG in the coming years.

As we embark on this new direction, we extend our gratitude to all our partners and local authorities – those who have been with us, joined us along the way, or plan to collaborate in building a resilient and sustainable urban future in the region.

The journey continues – keep an eye out for what’s next!