The Sustainable Urban Development Law is a regulatory instrument on a national level and the first act on sustainable urban development in the country. It lays out principles, guidelines, instruments and norms to achieve sustainable urban development. The Law focuses on active citizen participation, social housing, extensive competences of municipalities, financial instruments for urban development and the incorporation of disaster risk management, mitigation and climate adaptation criteria in urban planning. The instrument introduces innovative financial instrument such as the participation of the state in the increase in value of the land (added value of the land), given that this exceptional increase in the price of land was due to the works of the state or due to zoning changes. It should further be used for e.g. public green infrastructure investments or water supply.