Urban areas as major population centres are inherently exposed to high and compound climate risks, impacting across a socioeconomic, ecological, financial, and political nexus. The EU policy landscape recognises the critical importance of urban climate adaptation, as encompassed by the European Green Deal, EU Climate Adaptation Strategy, and European Climate Law. A key aspect of achieving the policy objectives is using knowledge and intelligence derived from Earth Observation (EO) to enable smarter, faster, and more systemic adaptation. This report presents the findings of the second deep dive assessment of the Knowledge Centre on Earth Observation (KCEO), focusing on how EO products and services can support EU policies on urban climate adaptation.