Stronger urban economies and clean industries for better jobs

26 February 2025

Urban centres are the engines of Europe’s economic progress and innovation. They drive local industries, create quality employment and foster the development of new technologies. As Europe embarks on an industrial transformation, cities are uniquely positioned to lead the decarbonisation of industry and champion sustainable growth. With the European Union’s Green Deal Industrial Plan setting out an ambitious roadmap to decarbonise industry by 2050, cities must be equipped and empowered to harness local strengths and forge effective partnerships.

The Clean Industrial Deal, that has been unveiled today, 26 February, will further reinforce this transition by introducing measures that support clean-tech manufacturing and simplify state aid rules.

Eurocities #100daysEU campaign: setting the agenda

The first 100 days of the new European Commission are critical to establish priorities and address the challenges that lie ahead. The #100daysEU campaign highlights that cities are not only centres of economic activity but also vital drivers of innovation and sustainable development. Insights from the Eurocities Pulse, where 67% of city leaders ranked climate action as a top priority, highlight the urgent need for policies that support urban climate initiatives. In tandem with this, the Eurocities Manifesto calls for a robust framework that enables cities to take decisive measures in areas such as sustainable transport, energy-efficient buildings and the circular economy.

The message is clear: if cities are given the right tools and support, they can lead the way in building a fair and green economy for all.

Cities as drivers of the transition

Across Europe, cities are already making significant strides in implementing practices that promote net-zero emissions and sustainable development.

Toulouse has emerged as a key player in green industry through initiatives that repurpose used metal and promote the reuse of building materials. The local government has embraced the circular economy by setting criteria in public procurement that prioritise sustainability. This approach not only cuts CO₂ emissions but also creates new jobs in the green construction sector. By collaborating with academic institutions and industry partners, Toulouse is also investing in training programmes that equip professionals with the skills needed for a sustainable future.

In Poland, some major cities including Lodz, Rzeszow, Warsaw, and Wroclaw are working together as part of the NetZeroCities project. These cities have adopted innovative practices such as building renovations, public-private partnerships, and energy service company models to drive their green agendas. Their efforts focus on creating climate-neutral environments that balance renewable energy adoption with social inclusion. The collaborative nature of these initiatives demonstrates how shared knowledge and coordinated action can help cities overcome common challenges and set benchmarks for sustainable urban development.

The Basque city of San Sebastian has taken bold steps to address both environmental and demographic challenges. Recognising the need to retain young talent, the city has launched several programmes to support youth employment and entrepreneurship. Initiatives such as financial aid for start-ups, grants for hiring young professionals, and the Technological Vouchers programme – which partners with research centres to support innovative companies – all contribute to creating a dynamic urban ecosystem.

Enhancing capacities with Prospect+

The EU-funded Prospect+ project is another example of how cities can bolster their capabilities. By providing access to innovative financial strategies, such as energy performance contracting, crowdfunding and soft loans, Prospect+ helps cities overcome budget constraints and drive energy efficiency.

The project’s mentoring programme and Community of Practice enable urban leaders to share best practices, ensuring that limited public funds are used effectively to support the energy transition. This initiative is critical to ensure that even when subsidies run out, cities have the financial strategies needed to continue their progress.

Public procurement: a strategic tool for sustainability

Public procurement is far more than a routine administrative process: it is a powerful tool for shaping markets towards sustainability and social responsibility. By leveraging procurement policies, cities can drive demand for innovative, environmentally friendly products and services.

The Big Buyers Working Together (BBWT) project is a prime example of how collective approaches to public purchasing can make a significant impact. Through BBWT, cities pool their expertise on specific good or services where European collaboration is needed, in order to develop innovative and strategic approaches to procurement. The project covers areas such as zero-emission construction sites, heavy-duty electric vehicles, circular construction materials, and digital healthcare solutions. This collective approach ensures that public funds are spent efficiently, driving market-wide change while supporting the objectives of the Green Deal Industrial Plan.

By integrating sustainable procurement practices, cities not only boost local industries but also set a benchmark for suppliers across Europe. This strategy helps transform public markets into drivers of innovation, circularity and social responsibility.

Talent and quality jobs fuelling urban competitiveness

A thriving urban economy relies on dynamic local ecosystem built by entrepreneurs, innovators and skilled talent. Cities can foster competitiveness by supporting start-ups and small businesses, mentoring and funding schemes. Such initiatives not only generate high-quality jobs and boost emerging talent, but also drive the adoption of new technologies that keep industries and businesses competitive.

Collaboration between local authorities and industry is essential for establishing innovation hubs and forging effective public-private partnership. These efforts can create environments where new ideas thrive, ensuring that the benefits of economic transformation are shared widely while reinforcing Europe’s competitive strength.

That is why the support of European institutions is crucial. The new European Commission must lay the groundwork to ensure that the coming years follow a path of economic and environmental sustainability. This should be the guiding principle for development policies and the promotion of local businesses, securing the livelihoods of millions of European citizens.

A clear call to action

The industrial transformation underway in Europe is not a distant vision: it is happening now. The challenging future facing climate change, economic inequality and social exclusion demands bold and decisive action. European cities have shown their ability to innovate and adapt, but they need ensured and continued support from policymakers.

The future of Europe’s industrial landscape may depend on our ability to empower cities with the tools, resources and the autonomy they need to lead the transition to a green and fair economy. By supporting measures that drive innovation and social responsibility, policymakers can ensure that our urban centres remain engines of progress and prosperity. .

Let’s build an urban future that is both green and inclusive. A future where clean industries create better jobs, a higher quality of life for all, and a better world to live in.

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This article has been prepared as part of Eurocities #100daysEU campaign, which seeks to highlight 10 actions for cities that the new European Commission should be focussed on.

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