Case Studies
From policy fragmentation to systemic synergy: How smart cities can become the governance engine for carbon neutrality
Smart cities and carbon neutrality fall under different government departments—how can digital governance achieve coordination between them? A study of Chinese local governments reveals replicable institutional and technological mechanisms.
Cities are simultaneously undergoing two profound transformations: digitalization and low-carbon transition. These two should reinforce each other, yet in many administrative systems, they are often split across different departments and policy frameworks. Smart city projects are led by information technology agencies, while carbon neutrality goals fall under environmental protection and energy departments. This division of labor may be efficient under a single task, but when cities must complete dual transitions within the same timeframe, policy fragmentation becomes a systemic bottleneck.
The problem lies not in the departments themselves, but in the separation of governance logics. If digitalization merely serves efficiency improvement while low-carbon goals are treated only as emission constraints, it is difficult for the two to form synergy. Globally, the European Union has attempted to embed climate goals into digital policies through the European Climate Law and the Green Deal, but many more countries still lack similar top-level coordination frameworks. In China, although the dual carbon goals and smart city pilots are both regarded as national strategies, there remain significant institutional barriers at the local implementation level.
A case study published in Frontiers in Environmental Science closely examined how Chinese local governments attempted to break this deadlock. The study points out that relying solely on technological accumulation or organizational restructuring is insufficient; the key lies in building a governance mechanism that enables the two goals to operate in synergy. By analyzing the deployment of digital infrastructure, the restructuring of interdepartmental coordination platforms, and the application of digital tools in low-carbon public services, the study distilled three interrelated mechanisms:
First, the institutionalization of high-level digital data governance is the foundation. When data is elevated to a public resource for urban governance rather than a private asset of a particular department, cross-departmental information flow becomes possible. This entails establishing unified data standards, sharing protocols, and clear boundaries of data rights and responsibilities. In some pioneering cities, this is manifested in the establishment of a digital governance committee led by key government leaders, which directly coordinates data sharing and system integration.
Second, formalized cross-departmental policy coordination mechanisms are crucial. Ad hoc task forces often lose continuity due to personnel changes; only by institutionalizing coordination can policy consistency be ensured. The case study shows that the local government established a standing "Smart Low-Carbon" joint office, integrating previously scattered performance indicators and project approval processes, so that smart city projects and carbon reduction goals share the same assessment system. Such institutional arrangements effectively reduce the costs of interdepartmental bargaining.
Third, digital technology must be deeply embedded in low-carbon public service processes. From intelligent traffic signals optimizing traffic flow to reduce emissions, to real-time monitoring and dynamic regulation of building energy consumption, to big-data-based carbon footprint tracking, the value of technology lies not only in monitoring but also in providing actionable intervention solutions. The study points out that when digital tools become infrastructure for public services rather than decorative applications, the efficiency of low-carbon services is truly improved. For example, some cities use unified urban operations centers to conduct comprehensive analysis of energy, transportation, and environmental data, enabling precise profiling of and dynamic response to carbon emissions.These mechanisms do not operate in isolation but form a synergistic closed loop. Data governance breaks down information silos, cross-departmental mechanisms provide decision-making channels, and digital services translate policy intentions into concrete actions. Under such a framework, smart cities are no longer a potential driver of carbon emissions, but instead become a technological accelerator for carbon neutrality goals.
From a global perspective, this research offers insights that transcend national boundaries. Many cities face similar bureaucratic challenges: digital innovation and climate action fall under different professional domains, with few points of convergence. The EU's common framework provides a model of top-level design, while China's local practices demonstrate the possibility of bottom-up breakthroughs. For developing countries, this integrated path that takes into account both institutions and technology may hold greater long-term value than simply purchasing smart devices.
Future urban competition will no longer depend solely on computing power or the number of sensors, but more on whether governance systems can translate digitalization and sustainability into coordinated action. Cities that are the first to break down departmental walls and establish data-sharing and joint decision-making mechanisms will be more likely to gain an early advantage in the low-carbon transition. As the research points out, smart cities and carbon neutrality are not two parallel projects, but two core processes on the same urban operating system.
Only when public governance truly makes the leap from fragmentation to systematization can cities simultaneously fulfill the promises of being "smarter" and "greener." This restructuring has only just begun.
Source: Shi, Y., & Gong, Y. (2026). From policy fragmentation to coordinated action: re-engineering local governance for smart city development and carbon targets. Frontiers in Environmental Science, 14, 1756474. Original Link
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