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 literal and symbolic. This personality and their engagement in innovation won them the 2026 European Green leaf Award.
Self-described as the “happiest city in Finland”, 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. This 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.”
Energy capital of the Nordics: innovation and sustainable energy in Vaasa
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.
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
Vaasa, Finland
Covenant Signatory since 2014
Population: 67 620
Area covered: 545 km2
Key Figures
Overall CO2 emissions reduction target:
- - 74% by 2030
- Climate neutrality by 2050
City Awards: