The United Nations Decade on Education for Sustainable Development (ESD) expanded the epistemological and methodological debate on sustainability and education. Currently, ESD encompasses a broad spectrum of socio-political issues (including global citizenship and social justice), while “place-bonding” is seen as key to fostering citizen advocacy in local communities and enhancing “children’s lived experiences of local issues”. Herein, we emphasize both the political and the pedagogical value of this perspective, arguing that ESD bears the potential to overcome “universal vs. individual” tensions and dichotomies. Our line of reasoning is that the “capabilities approach” (CA), although it did not originally focus on children, can offer a useful theoretical framework in support of ESD, thanks to its multidimensional nature and focus on the concrete agency of individuals. Accordingly, we see the CA as playing a key role in bridging the gap between universal prescriptions, which disregard the specificity of the actors involved, as well as the peculiar nature of their social environment and its context-specific needs or constraints. We supplement this theoretical discussion by presenting “The Flying Carpet”, an ongoing community-based education project that has elicited the active involvement of over one hundred 11–13 year old students in an urban regeneration project in a municipal district of Milan.