Based on the European Commission’s Cohesion PolicyAction plan on financing sustainable growth, as well as the Guide to Cost-Benefit Analysis of Investment Projects, this lecture will focus on the recent developments in EU polices in the area of regional development and the allocation of capital flows towards sustainable investment in order to achieve sustainable and inclusive growth and to manage risks stemming from climate change. The aim is also to enhance knowledge on the key elements of project evaluation in sustainability context, such as long-term view, global (and local) perspective, economic development and environmental degradation and stakeholders’ participation. In order to facilitate the understanding and practical application of CBA in the water management projects, a number of cases studies will be provided.