This summer, Arizona once again found itself on the frontlines of climate extremes: record-breaking, deadly heat followed by one of the wettest monsoon seasons on record. These swings aren’t just testing infrastructure and ecosystems; they’re reshaping what it means to sustain an economy in a rapidly changing climate. Across the state, local leaders are asking a defining question: How can economic development support sustainable and resilient communities?
That question guided the Arizona Sustainable Economic Development Learning Lab, a first-of-its-kind pilot convened by the Center for Climate and Energy Solutions (C2ES) in partnership with the International Economic Development Council (IEDC) and Prosperity Strategies.
This innovative Learning Lab defines sustainable economic development practices as those that build future social, economic, and environmental needs into solutions for present challenges and opportunities.
The Lab equipped economic development professionals –defined broadly as community, business, and non-profit leaders and other stakeholders involved in local and regional economic development- with practical tools, case studies, and networks to build resilience into local economies—advancing projects that strengthen prosperity while addressing Arizona’s heat, drought, and flooding challenges.
Over several months, 35 participants representing cities, towns, Tribal nations, nonprofits, small businesses, utilities, and academic institutions completed a hands-on curriculum organized around four key elements: knowledge, resources, networks, and practice. Many participants then developed a capstone project to field-test lessons learned and model locally-driven approaches to sustainable economic development.
The Solutions Showcase, hosted at the Flinn Foundation in Phoenix, marked the culmination of this pilot. Thirteen innovative projects highlighted the creativity and determination of Arizona’s local leaders, from community gardens in Yuma that double as heat refuges and workforce pipelines for the agricultural sector, to a sustainability navigator designed to help small businesses overcome barriers to adopting greener practices. Other projects explored how communities can build economic diversity in rural areas historically dependent on single industries, such as mining or tourism. See the full list of projects below.
Across these efforts, common themes emerged: the need for economic diversification, expanded workforce pathways, stronger community branding, and increased capacity for small businesses. Many participants emphasized the potential of Arizona’s natural areas—not just as ecological assets, but as engines for heat and flood resilience, food access, education, and local tourism. Participants also underscored the importance of youth leadership, cross-sector collaboration, and community-driven design to ensure solutions are both inclusive and durable.
The energy in the room at the Showcase reflected a genuine sense of camaraderie and shared purpose. Participants exchanged lessons learned, offered new partnerships, and even began coordinating to advocate jointly for policy and funding solutions.
As C2ES and partners look ahead, the goal is to scale this model nationally, helping regions across the country define and implement what sustainable economic development means amidst growing climate and energy challenges. In Arizona, one thing is clear: communities are not waiting for perfect conditions. They’re turning insight into action, working together to build economies that can thrive in the face of increasing climate risks and uncertainties.
The pilot Learning Lab is generously supported by the Flinn Foundation and 18 additional partners across Arizona.
Local Innovation in Action: Arizona’s Sustainable Economic Development Projects
The Solutions Showcase featured 14 capstone projects that embody what sustainable, climate-smart economic development looks like across Arizona’s diverse communities:
- Defining Sustainability in the Verde Valley – Verde Valley Regional Economic Organization
Advancing small business loans and regional branding to diversify beyond tourism and create local jobs while protecting natural assets like the Verde River. - Ecotourism and Hospitality in Superior – Rebuild Superior and Superior Enterprise Center
Building a sustainable tourism strategy to complement mining heritage, leveraging local youth engagement and natural assets such as the Boyce Thompson Arboretum. - Growing Forward Garden Project – Greater Yuma Economic Development Corporation
Launching Yuma’s first community garden to improve food access, provide educational opportunities, and connect youth to agriculture careers. - Arizona Sustainability Navigator – Collaboration for Good, City of Surprise, and City of Phoenix
Creating a one-stop digital hub to help small businesses and nonprofits access sustainability tools, grants, and technical assistance. - From Roots to Renewables – 7SkyLine
Linking food and energy resilience by developing renewable energy career pathways and community garden programs for Tribal youth. - Sustainability Demonstration Garden – Flinn Foundation
Transforming campus space into a living laboratory for urban heat mitigation through tree planting, design innovation, and public education. - Coal Transition Strategies for Rural Communities – Salt River Project and Arizona Public Service
Developing a framework to repurpose decommissioned coal plant assets and retrain the workforce for clean energy and data center jobs. - Workforce Housing Revitalization in Historic Miami – PinDrop Trailers
Piloting adaptive reuse of vacant properties to create affordable workforce housing in a flood-impacted rural community. - Retention Low-Impact Exchange (LID) Plan – City of Mesa
Testing green infrastructure incentives to make small infill development more feasible while improving stormwater management and urban cooling. - Heritage Resources Management Degree Program – Arizona State Parks & Trails and State Historic Preservation Office
Designing a new degree program to build workforce capacity in heritage conservation as a form of sustainable development. - Solar Energy for Economic Development – Solar United Neighbors
Exploring community solar models to expand access, strengthen energy reliability, and support economic diversification in Phoenix and beyond. - Public Opinion Research Insights Tool – Center for the Future of Arizona
Developing a tool to help developers and local governments anticipate public sentiment toward renewable energy and sustainability projects. - Resiliency Planning for Casa Grande Businesses – City of Casa Grande
Creating a guide to help small businesses prepare for, respond to, and recover from climate-related disruptions.
