TANGO-W is an applied research project that uses the concept of Urban Transformative Capacities (UTC) to evaluate cities’ potential for sustainability, specifically at the intersection of food, energy, and water systems. Funded by JPI Urban Europe, the project aims to help cities tackle challenges associated with climate change and encourage more sustainable urban development. In this policy brief, we employ a multi-level perspective on sustainable transitions (Geels, 2009) to frame our understanding of niche innovations and their interaction with socio-technical regimes and landscapes. Drawing on lessons learned within the seven Urban Living Labs (ULLs) in the TANGO-W project, we offer 12 key policy messages designed to drive urban transformation at the local level. These recommendations equip policymakers with actionable strategies to tackle contemporary challenges facing European cities.