Acknowledging the importance of Information and Communication Technologies (ICT) in this field, the report looks at ways for cities and local communities to develop into energy-efficient, carbon-neutral Smart Cities. The report, which is foreworded by the mayors of four prominent European Cities, hereby addresses both advanced cities and newcomers. It identifies research areas and medium-term research needs which are essential for moving in the smart direction. It also explores the role Europe can play in this process. For ease of reading, it includes an executive summary. Last but not least, the report displays a number of definitions and names relevant initiatives in Europe.