With the launch of the European Green Deal (EGD) in 2019, the European Union aims to become a global leader in the ecological transition. To implement sustainable policies at the local level, a place-based, analytical approach is a necessary prerequisite to understanding territorial specificities and adapting the EGD challenges to local conditions and opportunities. Moreover, the research acknowledges the key role of public participation and, thus, the need to construct innovative policies that involve citizens in this process. On this basis, our primary goal was to create a comprehensive, multipurpose, and non-context-specific analytical framework that could support ecological transition policies within the EGD through a place-based, participatory approach. After outlining the major features of the EGD and the place-based approach, this paper describes the steps that were taken to define the framework and select the types of data to be used. In response to the scarcity of methods adaptable to different scales, contexts, purposes, and target groups, we built upon the current studies on sustainability assessments and developed a novel analytical framework for territories ranging from municipalities to nations. This study suggests that a comprehensive, multidimensional territorial analysis—which can interpret and communicate environmental, socio-economic, and institutional specificities of territories—is decisive for bringing together local administrations and citizens, as well as meeting the challenges posed by sustainable development.