This report is the culmination of the Nordic Climate Neutral Cities (NCNC) project, which examines how cities in the Nordic Region are striving to achieve climate neutrality through spatial planning. Funded by the Nordic Council of Ministers, the project ran from 2021 to 2024 in the scope of the Nordic Thematic Group for Green and Inclusive Urban Development (TGA).
Based on a multilevel governance approach and in-depth analysis of nine case studies – Aarhus and Vejle (Denmark), Tampere and Oulu (Finland), Reykjavík (Iceland), Trondheim and Kristiansand (Norway) and Lund and Växjö (Sweden) – the report provides new insights into governance challenges, financial constraints, regulatory barriers and spatial planning trade-offs. The report also highlights Nordic cities’ leadership, strong climate commitments and innovative local solutions. The findings underscore the need for improved governance coordination, stronger financial support and policy adjustments to accelerate climate action.
While Nordic cities have demonstrated strong commitment to sustainability, they also often grapple with outdated national regulations that limit their ability to implement ambitious climate policies. In Denmark, for example, Aarhus and Vejle face obstacles due to restrictive national building codes and a lack of road pricing mechanisms to reduce emissions. Similarly, Trondheim in Norway is struggling to introduce zero-emission zones due to legal barriers. Financing green/sustainable initiatives poses another challenge. While state funding is crucial for large-scale sustainable projects, it is often considered inadequate for local governments. Cities such as Växjö in Sweden and Oulu in Finland find it difficult to secure financial support for sustainable transport and green construction. In Iceland, Reykjavík’s reliance on national funding complicates efforts to implement major climate-friendly infrastructure.
Urban development presents additional hurdles. Balancing densification with environmental conservation is a common challenge across the region. Lund in Sweden emphasises a compact urban form but faces pressure to preserve green spaces. In Finland and Norway, greenfield developments involve sustainability trade-offs, while local preferences for detached housing complicate densification efforts. In the buildings sector, one issue is that regulations on energy requirements mainly apply to new construction and public buildings, while the energetic retrofitting of the existing housing stock remains a matter of private initiative, as in Norway. Finally, in the transport sector, despite strong cycling and public transport networks, car reduction policies remain politically sensitive in several Nordic municipalities. Cities across the region struggle to implement effective car-reduction measures due to public resistance and national policy gaps.
On the other hand, the analysis shed light on several strengths. Nordic cities benefit from well-established sustainability policies, robust climate expertise and a high level of local political commitment. Cities like Växjö are leaders in sustainable wood construction, while Aarhus actively advocates for more stringent national climate regulations. In addition, the Nordic Region is a global leader in green technology and energy solutions. Iceland’s renewable geothermal energy potential, Sweden’s investments in sustainable construction materials and Finland’s smart mobility solutions present scalable opportunities for climate-neutral urban development. Furthermore, many Nordic cities are embracing densification and a transit-oriented development approach to reduce emissions, investing in compact, well-connected urban structures and integrating housing with sustainable transport options to lower car dependency. Finally, public initiatives such as participatory planning and citizen-driven sustainability programmes create local momentum for progressive climate policies.
Against this backdrop, this report offers new insights into the challenges, strengths and opportunities of Nordic cities in their climate efforts. It also highlights future measures for local, regional and national governments to take. Key takeaways for action include:
Strengthen multilevel governance: Enhance alignment between vertical and horizontal levels of governance to combat siloed thinking, reduce inefficiencies and ensure cohesive strategies for climate action.
Prioritise public engagement: Future efforts should focus on engaging the public through targeted communication campaigns to raise awareness and inspire behavioural change. Helping citizens understand the benefits of sustainable choices can increase support for bold policies.
Boost mobilisation for climate efforts: Strengthen climate networks and cross-sectoral collaboration to help local governments and stakeholders align their policies with climate ambitions, fostering a unified approach to sustainability.
Expand taxation and regulatory frameworks: Introduce mechanisms to hold polluters accountable by implementing fees and regulatory instruments that reflect the true environmental cost of emissions. Such measures can generate revenues to fund sustainable projects while incentivising greener practices.
Harmonise emissions calculations: Standardise emissions calculations across Nordic countries to ensure consistency, transparency and comparability in tracking progress. Such alignment will also foster cross-border collaboration, policy coherence and effective allocation of resources towards the goal of climate neutrality.
Overall, achieving climate neutrality will require Nordic cities to unite the efforts of diverse stakeholders, align frameworks and incentives with a shared vision, address knowledge gaps and collaborate closely with other levels of government.