Climate change has become a global problem that requires urgent solutions, at different levels of governance. The European Union has approved the European Green Plan, and the development of Europe is more strongly directed towards a climate- neutral continent, reduction of greenhouse gas emissions, conservation of resources, while strengthening competitiveness and energy renewal. Cities are considered to be drivers of the economy, but at the same time they represent places that significantly emit greenhouse gases and pollute the environment. In order to mitigate and remove unfavorable impacts, it is important to direct activities and funds towards urban development, as well as to investigate how cities can contribute to the realization of the goals of the European Green Plan. The aim of this master thesis is to present the main determinants of the European Green Plan and to explain the connection between the European Green Plan and urban development. After the introductory considerations, the next chapter defines the European Green Plan, describes in more detail the areas it covers (such as climate action, clean energy, pollution removal, „Farm to Fork“ strategy, biodiversity conservation, carbon leakage, construction and renovation of buildings, different aspects of sustainability) and the financial dimension of the plan. Follows a description of selected characteristics of urban development in the European Union, including sustainable urban development and new instruments for encouraging urban development. A separate chapter deals with the analysis of the relationships between the objectives of the European Green Plan and urban development, with an example of urban development in Barcelona. The paper confirms the importance of the European Green Plan, as a comprehensive approach, where cities are the key agents of changes. In managing development, there are visible principles directed towards the green transition. Innovative and sustainable solutions, such as improving mobility, reducing emissions, increasing green spaces, green construction and other measures, also contribute to improving the quality of life and greater inclusion. All mentioned should be connected with a change in the habits of the population and adaptation to the activities, along with integrated strategic planning. As can be seen from the presented priorities of the European Green Plan, there are numerous areas where cities can contribute to the implementation with individual activities and at the same time use new instruments according to specific urban needs.