The implementation of the EU’s Clean Energy for all Europeans Package (CEP) leads to important legislative updates, including recasts of the Renewable Energy Directive, the Directive on common rules for the internal market for electricity and the new Regulation on the internal market for electricity. What do the recast directives imply for enhanced smart and sustainable city development? This policy paper aims to bring hands-on insights and experiences from (EU-funded) projects and initiatives on the ground, and to formulate policy recommendations based on these. The focus is on aspects that affect urban planning and governance for Smart Cities and Communities (SCC). The paper checks the assumptions that underpin the CEP, and identifies challenges and opportunities that come forward in the SCC domain. Like this, it connects the dots between the innovative edges of current practice and what one may expect from a fully implemented CEP for the future of climate neutral cities.