The European Commission has signed a €4 million (£3.35m) grant agreement for a three-year project to support sustainable transport in the EU.

Called ‘Civitas Capital’ – an acronym for cities, vitality and sustainability – the project is funded by the EU’s research programme to support cities in their efforts to innovate more sustainable urban mobility.

The agreement was signed by the Commission and a consortium of 14 EU research institutes and consulting companies, including 10 SMEs.

The news comes after the EU launched its annual campaign – the 12th edition of the European Mobility Week earlier this month to encourage green daily transport and tackle air pollution.

Civitas Capital will issue recommendations on future research and development priorities which the Commission will integrate in its 2014-2020 research programme, develop training packages and organise placement and exchange of professionals. It will also manage an activity fund of around €500,000 (£418,847) to support the transfer of green transport measures to other cities.

Commission Vice-President Siim Kallas, who is responsible for transport said the project is “one of the most important EU initiatives in this field and will deliver tangible results”.

In 2011, the Commission set a target of phasing out the use of conventionally-fuelled vehicles in urban areas by 2050.