From Policy to Reality: Harnessing Data Spaces for Sustainable Urban Development

The proliferation of detailed data—from satellite observations and sensors to Internet of Things and administrative registries— combined with the widespread adoption of analytical tools is reshaping how we understand and respond to ‘grand’ societal challenges. Climate change is one such challenge, and the European Union has committed through a suite of strategies and measures to becoming climate neutral by 2050 while adapting to environmental shifts already underway. Central to this effort is the recognition of data as a strategic asset. Building a single market for data is expected to unlock social and economic benefits, while supporting the ambitions of the European Green Deal. Cities are at the forefront of this green and digital transition. Cities are mandated with direct service provision and implementation of European Union policies and regulations. Moreover, climate change is felt even more intensively in urban areas due to their morphology, density in population and built-up systems. In the past decades, cities achieved considerable progress in promoting innovative strategies to address environmental concerns, for instance, through the Covenant of Mayors1 initiative. Yet cities have been grappling with leveraging data into policymaking. Despite numerous initiatives to promote data-driven transformation, often, whole-of-system approaches are still lacking. Besides patchy or unavailable data governance frameworks, cities face challenges related to data availability, quality and interoperability. The European Union has mobilised with regulatory frameworks, standardisation efforts and research initiatives to encourage secure, trusted data sharing and use. Cities can tap into valuable resources including collaboration across European cities, exchange knowledge with key stakeholders, access funding and research to deploy context-based, sustainable solutions. Within the evolving landscape of data collaborations and technical solutions, data spaces are emerging as a promising model for facilitating collaboration across sectors and enabling data to be shared and reused in alignment with common policy goals. This policy brief explores two complementary approaches or frameworks for data sharing and use that enable the collaboration between city-relevant stakeholders in the realm of environmental sustainability. Drawing on the examples of two projects outlined further–USAGE and SPOTTED–we aim to understand how technical arrangements and governance mechanisms can harness the potential of data integration to drive environmentally sustainable solutions. Together, these perspectives offer actionable insights for city leaders and policymakers seeking to translate data into tangible climate action. The brief concludes with recommendations grounded in real-world pilot experiences.