The concept of smart cities includes a numer of issues to improve effectiveness of urban areas. These are: systems of energy supply, water supply, waste management, public transport or environmental protection. The main goal is to provide inhabitants with best life conditions. Institute is involved in doing research in topics related to the conept of smart cities. We are also partners of the report “CDP Climate Change Report 2015, Companies and cities for low carbon economy in Central and Eastern Europe”, representatives of Institute take part in panel discussions on this topic. We are also involved in the topic of circular economy, and by that we contribute to the concept of sustainable development of cities.