€25 Million EIB Loan Helps Tartu Build a Greener Urban Future

The EIB loan will help fund a wider municipal investment programme worth €51 million, with projects scheduled to continue until 2030.

Tartu is preparing to make schools, kindergartens, public buildings and everyday travel more sustainable with a €25 million loan from the European Investment Bank (EIB). The financing will support projects that reduce energy use, improve indoor conditions and give residents safer, better-connected routes for walking and cycling as Estonia's second-largest city works towards becoming climate neutral by 2050.

A €51 million programme focused on daily life

The EIB loan will help fund a wider municipal investment programme worth €51 million, with projects scheduled to continue until 2030. European Union funding and Tartu's own financial resources will cover the remaining costs, allowing the city to renovate public buildings while expanding cycling paths, pedestrian walkways and shared spaces across different neighbourhoods.

Schools, kindergartens and other municipal facilities are expected to use less energy after renovation, lowering running costs and reducing their environmental impact. The upgrades are also designed to create healthier indoor conditions, giving children, teachers and public employees warmer, more comfortable and modern spaces in which to learn and work.

Around three-quarters of the planned investment is expected to support climate action. This strong focus reflects Tartu's membership in the European Union's "Climate-Neutral and Smart Cities" initiative, which brings together cities testing practical approaches that could help Europe achieve climate neutrality by 2050.

Safer walking and cycling routes across the city

The programme will expand and connect cycling lanes, walkways and public spaces, making it easier for people to travel without relying on cars for every journey. Better links between homes, schools, workplaces and essential services can encourage more residents to walk or cycle while creating safer streets for children, older people and daily commuters.

EIB Head of Tallinn Office Götz von Thadden said the projects would improve people's quality of life while reducing energy consumption, strengthening sustainable transport and helping Tartu become a more resilient city. The investment treats climate action as something residents can experience directly through better buildings, safer journeys and more welcoming public spaces.

Mayor Urmas Klaas said Tartu's move towards climate neutrality is closely tied to building a higher-quality and more sustainable urban environment. He explained that the renovation of schools and kindergartens is not only about reducing energy use, since improved indoor air quality and modern learning spaces can also make a meaningful difference to children and educators.

Education and science support Tartu's green ambition

Located around 190 kilometres southeast of Tallinn, Tartu has approximately 100,000 residents and plays a central role in Estonia's education, science and healthcare sectors. It is home to the University of Tartu, founded in 1632, along with the Ministry of Education and Research and Tartu University Hospital, where healthcare services, medical training and research come together.

This academic and scientific community gives the city a strong foundation for developing a knowledge-based and environmentally responsible urban future. The new financing also continues an established partnership between Tartu and the EIB, following a €20 million loan agreed in 2019 for improvements to schools, kindergartens and other educational facilities.

By combining energy-efficient renovations with safer active-travel routes and better public spaces, Tartu is turning its climate goals into improvements that people can see and use every day. The latest investment provides the city with the resources to continue that work systematically through 2030 while building momentum towards climate neutrality.