As outlined in the report, Nordic cities encounter a range of challenges in their pursuit of climate neutrality through spatial planning. These challenges stem from multilevel governance complexities, particularly in regulatory autonomy and financial independence, as well as misalignments and coordination gaps within municipal departments. On the other hand, Nordic cities have been at the forefront of pioneering innovative climate strategies. Our analysis identified several country-specific opportunities and challenges across the land use, buildings and construction, and transport and mobility sectors, emphasising how cities leverage their policy tools and economic and knowledge resources to address various sets of obstacles.
In this concluding chapter, based on our analysis and the discussions held during a stakeholder workshop at the Nordregio Forum 2024 (see Chapter 5), we provide a comprehensive perspective on Nordic opportunities and challenges in pursuing climate neutrality, identifying shared cross-country weaknesses and strengths. We aim to offer actionable insights for local governments to enhance their climate efforts and achieve their climate neutrality goals. The chapter begins by exploring key weaknesses across the Nordic Region, including regulatory limitations, geographical constraints, path dependencies and prevailing mindsets. We then highlight the inherent strengths of Nordic cities, focusing on the assets and practices that can be leveraged to drive climate progress. Lastly, we present concluding reflections, outlining the roles of critical actors in the transition to climate neutrality and suggesting areas for future research.
Nordic weaknesses
The pursuit of climate neutrality in cities across the Nordic Region is hindered by a set of systemic weaknesses embedded in their governance, regulatory frameworks, financial dependencies and societal preferences. These challenges manifest themselves across various sectors of spatial planning and reflect broader regional complexities.
Regulatory Aspects
Land use: Despite most municipalities having strategic land use plans that emphasise climate neutrality, the often fragmented and project-based approach to spatial planning poses challenges for cohesive urban strategies. Municipalities frequently engage in extensive negotiations with developers, which can undermine comprehensive planning efforts and limit long-term climate goals.
Buildings and construction: National and local regulations related to the buildings sector are not always aligned, complicating the integration of sustainability standards into new buildings, construction processes and retrofitting of the existing building stock. Furthermore, conflicts often arise between developers’ varying levels of commitment and willingness to adopt greener practices and limitations in national or local regulations concerning the standards applicable to buildings.
Transport and mobility: The adoption of tolls and congestion fees – key tools to curb emissions – remains inconsistent across the region. A general lack of polluter-pays policies weakens incentives for reducing transport-related emissions and can hinder progress towards climate neutrality.
Cross-sectoral: Current tools for assessing emissions often fall short in capturing the full scope of climate impacts. Future advancements should focus on developing more comprehensive and precise mechanisms to measure and manage emissions across sectors. Enhanced life cycle assessments, improved integration of indirect emissions and methodologies to account for biodiversity and social impacts are essential for informed decision-making and impactful climate policies.
Path Dependencies
Cross-sectoral: The inherited urban form of many Nordic cities reflects past planning decisions, such as urban sprawl, which limits opportunities for efficient land use and transit-oriented development.
Land use: The distribution and location of available land for development often do not align with climate neutrality objectives, limiting strategic land use planning.
Geographical Differences
Transport and mobility: There are significant geographical differences in the Nordic Region, influencing accessibility, development and resource allocation. These variations are often not taken into account sufficiently in transport regulations aimed at achieving climate neutrality. The uneven implementation of transport schemes across Nordic cities creates disparities in the availability and effectiveness of sustainable mobility solutions. Remote areas, in particular, face pronounced challenges due to lower population densities and limited infrastructure investments, making it difficult for these regions to access and adopt low-emission transport options effectively.
Financial Issues
Buildings and construction: Financial schemes for retrofitting and energy-efficient construction are often inadequate, exacerbating inequalities and creating risks of energy poverty. Households in lower-income brackets are disproportionately affected, as they struggle to afford necessary upgrades.
Cross-sectoral: Nordic cities rely heavily on funding from national governments to implement climate initiatives, yet these funds are often insufficient to meet ambitious targets. This financial dependence limits local governments’ autonomy and ability to innovate. Additionally, the slow implementation of investment projects for transport infrastructure poses a significant challenge, as decisions made years or even decades ago may no longer align with current political priorities or climate goals.
Preferences and mindsets
Mindsets and habits are as crucial to the climate transition as policy changes. Public preferences for traditional urban forms and car-dependent lifestyles often conflict with sustainability goals, making behavioural change essential. For example, while densification and reduced car use are critical for lowering emissions, they challenge established habits and preferences, particularly in suburban and rural areas. Balancing these preferences with the urgent need for sustainable transitions remains a persistent challenge for Nordic cities.
Nordic strengths
The Nordic Region has several key strengths that position its cities as leaders in climate transition efforts.
Urban planning and climate strategy
Integration of spatial planning and climate goals. Climate neutrality strategies are increasingly embedded in the spatial planning frameworks of Nordic cities, which are characterised by strong political commitment to the climate effort. Cities are implementing compact urban development models, green infrastructure and mixed land use to reduce emissions
Pioneering energy-efficient building standards. Nordic cities have a strong foundation in energy-efficient construction, benefiting from stringent building codes, financial incentives and innovative material use. The ability to integrate circular economy principles into the construction sector further enhances sustainability and contributes to lowering carbon footprints.
Sustainable mobility and public transport investments. Investments in sustainable transport systems, including electrified public transport, cycling infrastructure and pedestrian-friendly urban design, position Nordic cities as leaders in green mobility. The shift towards low-emission zones, car-free urban areas and electrification of public transport fleets support broader climate neutrality goals.
Institutional and financial capacity
Institutional capacity. This includes a strong foundation of knowledge, well-established networks and the ability to mobilise resources effectively. Engagement in transnational and intermunicipal collaborations enables Nordic cities to scale up successful climate initiatives and attract funding from EU programmes and other international organisations. These partnerships also facilitate policy experimentation and access to external funding and research supporting new models across different urban contexts.
Municipal autonomy in decision-making. Nordic municipalities generally benefit from significant autonomy in spatial planning, empowering local governments to craft and implement climate strategies tailored to their specific contexts. This flexibility boosts innovation and enables solutions that address local needs and challenges effectively. Coupled with a robust taxation system, Nordic cities are well-equipped with tools to regulate emissions and promote greener practices through targeted incentives and policies.
Abundant renewable energy resources. Many Nordic cities have access to substantial renewable energy sources such as hydropower, wind and biomass. This energy mix provides a foundation for decarbonising key sectors, including transport, heating and electricity generation, making it easier to transition to climate-neutral urban environments.
Public engagement
Citizen participation. While challenges exist in mobilising all stakeholders, there is growing emphasis on participatory governance and citizen involvement in climate action. Cities are increasingly incorporating public consultation processes, co-creation initiatives and community-driven climate projects into their activities to foster a sense of collective responsibility for sustainability.