Overview of the Report
The European Court of Auditors (ECA) released a special report titled Smart cities – Tangible solutions, but fragmentation challenges their wider adoption (Special Report 24/2023). The ECA, as the EU’s external audit institution, evaluates the effectiveness and efficiency of EU programmes. This document analyses the Horizon 2020 lighthouse programme, a €381 million initiative aimed at demonstrating innovative solutions for sustainable urban development across Europe.
Key Findings on Replication
The audit reveals that only 13.3 % of the planned solutions were replicated in designated “Lighthouse cities,” while 21.1 % were adopted in “Fellow cities.” No systematic replication assessment was carried out, and none of the lighthouse cities secured an investor through the EU’s matchmaking platform, highlighting gaps in scaling successful pilots.
Fragmentation Issues
A central obstacle identified is the fragmentation of efforts among various stakeholders—national authorities, regional bodies, and private partners. This lack of coordination hampers the transfer of best practices and creates redundancies, limiting the overall impact of the programme on sustainable housing and urban resilience.
Implications for Sustainable Housing
The limited diffusion of proven solutions means that many European cities miss out on innovations that could improve energy efficiency, reduce carbon emissions, and enhance affordability in housing. The report underscores the need for a coherent framework that aligns funding, regulatory support, and market mechanisms to accelerate the uptake of green building technologies and integrated urban planning.
Recommendations for Improvement
The ECA proposes several actions:
- Establish a robust replication monitoring system to track the uptake of pilot solutions across member states.
- Create a dedicated EU‑level coordination hub to facilitate knowledge sharing and reduce duplication.
- Strengthen the matchmaking platform to connect innovators with investors, ensuring that successful pilots can secure the financing needed for broader implementation.
- Align national and regional policies with EU sustainability targets, providing clear incentives for cities to adopt proven solutions.
Data Highlights
- Horizon 2020 lighthouse programme budget: €381 million.
- Replication rates: 13.3 % (Lighthouse cities) and 21.1 % (Fellow cities).
- No lighthouse city obtained an investor via the EU matchmaking platform.
Relevance for Pan‑European Audiences
For policymakers, urban planners, and housing advocates across Europe, the report offers a factual baseline on the current state of smart‑city initiatives. It illustrates the potential of EU‑funded projects to drive sustainable housing, while also exposing structural shortcomings that must be addressed to achieve the EU’s Green Deal objectives and the broader goal of climate‑neutral cities.
Access Information
The full report is publicly available on the European Court of Auditors website, providing detailed analysis, methodology, and annexes for stakeholders seeking deeper insight into the programme’s performance and the recommended reforms.

