City climate action is a path to economic transformation

Europe is at a pivotal crossroads. Geopolitical instability and economic anxiety dominate the headlines and risk leading politicians into neglecting, or worse, actively dismantling, the continent’s climate leadership. This must not happen. Rather than turning their backs in a time of crisis, EU leaders should seek to accelerate climate action as a path to both security and prosperity.  

In the face of rampant disinformation and constant undermining by vested interests in the fossil fuel industry, some now talk of diluting Europe’s climate goals to appease lobby groups and climate-skeptic politicians. This would be a big mistake. Climate ambition cannot be diminished or dismissed for short-term political goals or vested interests. It must be long-sighted, future-proofed and transformational. Europe must now, more than ever, double down and show that climate action delivers for people, particularly those who have lost faith that climate action can benefit their everyday lives. 

A commitment to reducing net emissions by at least 90 percent by 2040, phasing out fossil fuels and a strong Clean Industrial Deal that puts cities at the center of its delivery is as important to the health and well-being of Europeans as a strong

defense policy, trade relationships or social safety net. If done well, with workers and families’ needs at the center, it will be essential to building a resilient, competitive and secure Europe.  

If Europe wants to win hearts, minds and markets, it must prove how the climate transition delivers not just long-term targets, but also tangible benefits — and this all begins in cities with good green jobs, security, healthier places to live, work and play and lower bills. 

Europe cannot achieve industrial competitiveness without decarbonization, and it cannot meet its climate commitments without transforming industry. Cities are hubs of economic activity, innovation and workforce development that will determine whether Europe succeeds in achieving both goals.  

City leaders understand how EU policies land on the ground. Empowered cities can turn high-level climate ambition into real economic transformation. 

Today, Europe’s 18 C40 cities, representing approximately 48 million residents and contributing €3.51 trillion to the global economy, already support 2.3 million green jobs — 8 percent of their total employment — including over 1.3 million in sectors like clean energy, waste and transport. That number will only grow as key sectors decarbonize. With the right support, cities can accelerate the creation of good, green jobs and better access to them: jobs that are safe, secure and future-proof.  

Europe’s 18 C40 cities, representing approximately 48 million residents and contributing €3.51 trillion to the global economy, already support 2.3 million good, green jobs  

The examples are everywhere: London’s Green Skills Academy is reskilling thousands for low-carbon careers. Rotterdam, where construction materials and buildings account for 25 percent of the city’s €1.3 billion annual spend, is using procurement to scale the circular economy, and through the Circular Materials Purchasing Strategy, strives for a 50 percent reduction in primary resource consumption by 2030. Considering that C40’s European cities have reduced per-capita emissions by 23 percent between 2015 and 2024, these are not just local initiatives — they are scalable models of the industrial transformation Europe needs.  

Cities also control powerful economic levers. Strategic procurement can shape markets, drive clean-tech adoption and support local small and medium-sized enterprises (SMEs). For example, Oslo mandates zero-emission construction in public projects, and five years on, 77 percent of municipal building sites are emission-free, a great example of procurement driving industry-wide changes. With direct access to funding and streamlined EU instruments, cities can go further and faster, creating demand for clean innovation and building thriving local economies from the ground up. 

Yet today, only 13 percent of the global workforce is ready for these future careers, and Europe faces urgent skills shortages in high-emitting sectors. Cities are ideally placed to bridge that gap. Madrid and London, for instance, are already training workers in retrofitting, heat pumps and renewables. Paris streamlines business registration to support start-ups, while Lisbon provides free ESG training to SMEs, ensuring they meet evolving climate standards. But this needs serious investment at the EU level and real collaboration. Without structured EU-city collaboration, industrial policies risk being disconnected from economic realities and workforce needs. 

A just transition also means ensuring that new green jobs are high-quality, inclusive and secure. The green economy has the potential to create 30 percent more jobs compared with a business-as-usual approach, but only if inclusion and fairness are built in from the start so these jobs will go to those who need them the most. Cities, in partnership with unions, businesses and workers, can ensure that industrial shifts translate into widespread job opportunities, particularly for marginalized communities. Projects such as ‘Boss Ladies’ in Copenhagen are championing the inclusion of women in the building sector.  

A Clean Industrial Deal that excludes cities will fall short. One that recognizes them as co-creators — alongside businesses, unions and communities — can build the industrial, climate and social transition Europe urgently needs in a time of crisis. Cities must be full partners, with direct access to the tools, funding and policy frameworks needed to drive this transition.  

To translate ambition into action, the Clean Industrial Deal must include clear national frameworks for sustainable investment, early business engagement and market-shaping tools like grants, innovation hubs and procurement. With strong public-private partnerships and targeted investments in cities, we can create the conditions for green jobs, resilient industries and lower energy bills. 

This unpredictable decade has presented a once-in-a-generation opportunity for Europe to create a future that works for everyone. Europe’s clean industrial strategy must prioritize city-led innovation, invest in workforce transformation and deliver for those who feel most left behind. That is how Europe can regain global leadership — not by pulling back, but by proving how climate action can be the surest path to economic resilience, energy independence and shared prosperity. 

This unpredictable decade has presented a once-in-a-generation opportunity for Europe to create a future that works for everyone.