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Várzea Urban Park: an innovative climate adaptation project in the heart of Setúbal, Portugal

Combining flood prevention and heat reduction with nature-based solutions

  • + 1.6 °C to 3.3 °C

    annual average increase in temperatures projected by end of the century

  • 5 to 17 %

    reduction in precipitation expected by the end of century 

  • 15 months

    Implementation timeline

Solutions

The city of Setúbal has faced repeated flooding in its city centre over recent decades, driven by intense rainfall events that exceed the capacity of existing drainage systems. In response, the municipality developed the Várzea Urban Park as a multifunctional, nature-based solution combining flood management, climate adaptation and urban regeneration. 

  1. Flood risk reduction: The park integrates large retention basins designed to control storm water during heavy rainfall events, significantly reducing flood risk in the city centre. With a capacity of approximately 240 000 cubic metres of water, the system helps prevent an overflow of drainage infrastructure and protects surrounding urban areas from flash flooding.
  2. Enhanced soil sponge effect and urban cooling: The project increases permeable green surfaces in the city centre, improving soil infiltration capacity and strengthening the ‘sponge city’ effect. This reduces surface run-off while also contributing to lower urban temperatures and improved microclimatic conditions, addressing both flood risk and the urban heat island effect. 
  3. Tree planting and environmental education: A tree planting programme involving local schools was introduced as part of the project, combining hands-on learning with climate awareness activities. These initiatives have transformed the park into an outdoor environmental education space, strengthening community understanding of climate adaptation and encouraging long-term behavioural change. 
  4. Ecologically driven spatial planning: The Várzea Urban Park operationalises Setúbal’s master plan by embedding ecological principles and ecosystem services into urban spatial planning. This ensures that green infrastructure and natural systems are fully integrated into territorial development strategies rather than treated as isolated interventions.

Co-benefits

Economic

The Várzea Urban Park generates significant economic co-benefits by reducing climate-related damages in Setúbal. Flood retention basins help prevent costly impacts on infrastructure, businesses and residential areas during extreme rainfall events, lowering recovery and repair expenses. At the same time, the expansion of urban green space reduces heat stress, contributing to improved public health and lowering associated healthcare costs, particularly during heatwaves. Together, these effects strengthen the city’s long-term economic resilience and reduce financial vulnerability to climate extremes.

Social

The project delivers strong social co-benefits by creating inclusive green space and strengthening community engagement. School-based tree planting and educational activities enhance environmental awareness among younger generations, while the park itself provides accessible recreational space in the city centre, improving well-being and quality of life. By involving residents in the design and stewardship of the area, the project fosters local ownership and environmental responsibility. In addition, improved flood protection enhances public safety and increases overall urban resilience.

Environmental

The Várzea Urban Park delivers key environmental benefits by embedding nature-based solutions into urban infrastructure. Retention basins reduce flood risk by managing storm water effectively, while expanded green areas increase soil permeability and improve water retention capacity. These measures also help mitigate urban heat and support biodiversity by creating new habitats in the city centre. By aligning with Setúbal’s ecological spatial planning framework, the project strengthens ecosystem services and promotes a more sustainable and climate-resilient urban environment.

Replicability

A scalable model for nature-based urban adaptation, turning flood-prone cities into climate-resilient green systems.

Best suited for

This model is particularly well suited for coastal and riverine cities facing recurring flooding, intense rainfall events and rising urban heat, especially where conventional drainage systems are no longer sufficient. It is highly relevant for municipalities seeking to integrate nature-based solutions, such as retention basins, permeable landscapes and urban parks, into dense urban environments to simultaneously reduce flood risk, lower temperatures, enhance biodiversity and strengthen community well-being. 

Stakeholders' role

The project was led by the Setúbal municipality, which coordinated design, implementation and EU funding mobilisation. Local schools and students played an active role through tree planting activities and environmental education programmes, strengthening community ownership and raising awareness of climate adaptation. This combination of municipal leadership and citizen engagement ensured both technical delivery and strong local anchoring. 

Built-in scalable tools

The Várzea Urban Park offers a modular and transferable approach to climate adaptation. Its nature-based components, such as retention basins and expanded green infrastructure, can be replicated and adjusted to different urban contexts and risk profiles. The embedded educational and participatory framework further strengthens scalability by demonstrating how community engagement can be integrated into infrastructure projects. In addition, its alignment with Setúbal’s municipal master plan illustrates how such solutions can be mainstreamed into long-term urban planning strategies. 

Funding pathways

The project was financed through EU funding streams, with the Setúbal municipality securing over EUR 3 million to support implementation. These resources enabled the construction of retention basins, the development of green spaces and the roll-out of educational activities. The funding structure demonstrates a replicable pathway for leveraging EU support to deliver integrated, nature-based urban climate adaptation projects. 

The Várzea project protects Setúbal’s city centre from annual flooding, recalling that the 2008 floods submerged cars in the city centre. With the Várzea intervention, the water accumulates in the retention basins and then progressively flows into the sea, preventing downtown flooding.

André Martins, Mayor of Setúbal