On 18–19 September 2025, over 200 participants gathered in Lviv for the Forum on Financial Sustainability of Communities — a key venue for dialogue between local governments, national institutions, and international partners. Organised by the Lviv City Council in cooperation with the Association of Ukrainian Cities and supported by the FELICITY II Programme, U‑LEAD with Europe, and the Polaris Programme, the Forum responded to one of the most urgent challenges of our time: how to finance sustainable local development during war.
With critical infrastructure under pressure and communities facing growing economic demands, the Forum focused on the readiness of municipalities to access recovery funding, manage public investments effectively, and align their strategies with EU integration. Discussions covered a wide range of topics: from local budgets and the 2026 planning cycle to innovative financial instruments, donor coordination, and decentralisation of powers.
Sustainable recovery in Ukraine requires more than just technical expertise or financial support — it requires both. They are two sides of the same coin. Only by combining them can we deliver climate-smart projects that truly serve communities in the long term, stated André Fabian, Head of Programme, FELICITY II, GIZ.
Andriy Moskalenko, First Deputy Mayor of Lviv for Economic Development, highlighted the city’s multi-dimensional role:
Lviv has several critical objectives: from rehabilitation and infrastructure development to strengthening the city’s ability to support the state. That requires resources. That’s why we actively work with both grants and loan instruments, often combining them. This allows us to implement needed changes today because tomorrow, we must be stronger than we are today.
FELICITY II is an international initiative supporting sustainable urban infrastructure development in Eastern European and Central Asia countries, aiming to reduce greenhouse gas emissions. The programme provides technical and analytical assistance to municipalities to help them design and implement climate-friendly investments in water supply, wastewater management, and energy-efficient buildings.
FELICITY II is implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with the European Investment Bank and with the support of the German Federal Government, under the framework of the International Climate Initiative (IKI).

