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Vaasa is showing Europe how clean energy can power happiness

This year’s European Green Leaf city, Vaasa in north-western Finland, is showing how a strong commitment to sustainable energy can make a city both vibrant and happy.

  • News article
  • 1 April 2026
Vaasa sign and museum, Photo: City of Vaasa / Christoffer Björklund
City-Business Partnership
Citizen Engagement
Renewables
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Energy was running high in the Finnish city of Vaasa two weeks ago as it officially inaugurated its EU Green Leaf year in the midst of its major annual international Energy Week.

For a city of 70,000 inhabitants located in the most Northern part of Europe, Vaasa displays an impressive dynamism and international outlook. Tradition and innovation blend together, shaping a unique city personality built on energy, both literally and symbolically.

Vaasa Green Leaf Inauguration, March 2026. Photos: Vaasa EnergyWeek / Jukka Vähälummukka

Vaasa: European Green Leaf 2026

With the first signs of Finnish spring appearing, the ice on the sea was beginning to melt and the sun shone bright, mirroring the upbeat energy of the Vaasa city team. They were delighted to host their largest international conference at the same time as celebrating their Green Leaf title, while also welcoming the network of current and former Green Leaf and Green Capital winners and finalists.

That spirit is captured in Vaasa’s Green Leaf slogan: “Making a difference makes us happy.” It also echoes the city’s broader 2030 vision: “More passion, more energy.” Self-described as the “happiest city in Finland”—no small claim in a country that consistently ranks as the world’s happiest—the passion of the city team is evident not only in the city’s achievements so far, but also in its ambitions for the future.

Vaasa Energy Week. Photo: Jukka Vähälummukka

Energy capital of the Nordics: clean energy innovation

With the ambitious goal of becoming climate neutral by 202X—sometime within this decade—Vaasa will need all that energy. Yet, as a Covenant signatory since 2014, this ambition is built on a long-standing legacy of work and investment in sustainable energy and innovation

Often referred to as the energy capital of the Nordics, Vaasa is home to the largest energy technology cluster in the Nordics, bringing together companies, research institutions and the city itself.  

Vaasa aerial view. Photo: City of Vaasa / Christoffer Björklund

The origins of this cluster go back more than a century, when the first engine company established operations in the city. Today, the network of energy companies based in Vaasa drives some of the most forward-looking innovations in sustainable energy, collectively investing up to 30% of their revenue in research and development.

Among them is the maritime technology company Wärtsilä, whose technology is on board around 30% of the world’s shipping fleet. The company has been pioneering decarbonised cargo shipping technologies while also producing sustainable power plant solutions across the globe. In Vaasa alone, Wärtsilä employs around 3,800 people representing more than 100 nationalities – roughly 5% of the city’s population.

Wasaline Ferry, powered by Wärtsilä engines. Photo: City of Vaasa / Christoffer Björklund

Sustainable energy is deeply embedded in daily life in Vaasa, permeating all layers of society. It starts at an early age: energy and sustainability are integrated into the educational system from primary school onward.

Vaasa is also a major university city, with around 30% of its population made up of students. Engineers, scientists and researchers contribute strongly to the city’s innovative spirit. The city’s comprehensive educational model—from early childhood to university level—helps young people understand energy systems and the clean transition.

University students in Vaasa

University students. Photo: City of Vaasa / Mikael Matikainen

Impactful action: decarbonising heating in Vaasa

Such long-term investment and foresight have clearly paid off.

Today, Vaasa already boasts low emissions in many sectors, including heating and cooling, crucial in such a northern climate. More than 80% of buildings are heated through district heating, and over 90% of that heat is produced from renewable sources, a system that is exceptionally advanced in the European context.  

The municipally owned company Westenergy contributes significantly to this system, generating around 40% of district heating through waste-to-energy solutions.

Vaskiluoto. Photo: City of Vaasa.

Yet the city is not stopping there. Vaasa continues to push innovation to make its heating systems even greener and more efficient.

Through the EU-funded NEC initiative, the city is developing smart, low-carbon energy solutions. These include a digital twin of the Vaskiluoto energy system and new methods to optimise the interaction between electricity and heat.

Vaasa is also investing in system-level solutions such as heat storage and sector coupling, enabling renewable district heating, increased flexibility and more optimised energy flows. These pilot projects further strengthen the city’s role as a testbed for climate-neutral solutions.

Energy and beyond: a city focused on wellbeing

But energy is only the starting point – the driving force behind a broader vision of wellbeing.

Vaasa is equally committed to investing in its people: culture, leisure, sport and health. The city understands that a happy and creative population is essential to maintaining its innovative and forward-looking identity.

To support wellbeing, Vaasa is also committed to keeping nature close to urban life. The city aims to follow the 3-30-300 principle for urban greenery: every resident should be able to see three trees from their home, neighbourhoods should have at least 30% tree canopy, and everyone should live within 300 metres of a green space.

The neighbouring Kvarken Archipelago – a UNESCO World Heritage site – is a fundamental part of the city’s identity. Wild nature is not kept at the outskirts but integrated into urban life.

Canoe on the Kvarken Achipelago. Photo: City of Vaasa

Surrounded by water and forests, Vaasa offers residents full access to its natural environment. Cycling paths connect the entire area and are used year-round, even in sub-zero temperatures. Residents fully embrace this outdoor lifestyle: ice-swimming spots have even been created within the city itself, allowing people to dip into the sea along the waterfront.

Interestingly, this initiative emerged from the city’s participatory budgeting process — one example of the strong citizen engagement that underpins many of Vaasa’s initiatives.

Person with bicycle in Vaasa. Photo: City of Vaasa / Christoffer Björklund

The EU Green Leaf year itself has mobilised citizen groups to organise activities ranging from vegan picnics to sustainability events in kindergartens.

Although located at Europe’s Northern extremity, Vaasa represents the thriving European city of tomorrow: dynamic, sustainable, international and forward-looking, where people’s wellbeing and a better future lie at the heart of the city’s strategy and identity.

As Finland’s Minister for European Affairs and Ownership Steering, Joakim Strand, put it: “The Finnish government sees Vaasa as a model European city—forward-looking and investing in tomorrow and in its people.” 

Raippaluoto bridge. Photo: City of Vaasa

Details

Publication date
1 April 2026