The European Green Capital year 2021 strengthened Lahti's reputation and multiplied its visibility both nationally and internationally. The year also clarified the city's image in the business world. How has the development continued since then?
In Lahti, the municipal strategy and reputation are closely intertwined: without an approach centred on the environment, there would be no strong environmental reputation – and without reputation work, the strategy would not have become so deeply rooted.
– Compared to other cities of a similar size, I would assume that Lahti’s reputation as an environmental city is better known than the profiles launched by its peer cities.
So says Jarkko Majava, Development Manager at the Association of Finnish Local and Regional Authorities, who has followed Lahti’s development for years. He also knows the city both as his hometown in his youth and as a returnee with his family. According to Majava, good environmental work is being done elsewhere as well, but Lahti has succeeded in making its efforts a credible part of its brand.
– This does not happen by itself but requires consistent commitment and determined communication.
Lahti’s selection as European Green Capital was the European Commission’s recognition of the city’s long-term environmental work. Building a reputation is a long-term collaboration of actions and communication. Lahti’s emissions reduction target was recorded in the city’s strategy for the first time as early as 2009, which is exceptionally early on the Finnish scale.
– Often strategic priorities last for only one council term, coming and going without having time to take root, Majava reflects.
The international attention during the Green Capital year was widely utilized. Implementation involved 300 cooperation partners and 30 official business partners, who participated in the year with their actions and activities.
When the theme year ended just over four years ago, its impacts were assessed immediately. AFRY Finland, a design and consulting company, carried out the external evaluation. According to the report, the year strengthened Lahti’s position as an international forerunner in environmental matters, intensified cooperation in the region, accelerated the achievement of environmental goals and had a positive impact on the city’s reputation. At Lahti Region Development LADEC, it is estimated that the effects of the theme year are still apparent among businesses.
– Discussions on location decisions often start with the image of the area: what kind of perception we can create of the region. In this, the Green Capital status has been significant, as has the sustainability theme in general, says Isto Vanhamäki, Director of Business Environment Development at LADEC.
The location of a company is always part of its brand, regardless of industry or country. A company’s identity is tied to the region in which it operates. If the area has a strong and positive brand, it also supports the company’s marketing and activities.
– It is essential to be able to concretely demonstrate to companies what is being done in Lahti for the environment and how it also has an impact globally. At the same time, it is essential for companies to see how they can utilize this work in their own operations, Vanhamäki explains.
According to a city survey, 72 percent of Lahti residents considered the Green Capital project significant or very significant. The theme year also affected perceptions, as 55 percent of respondents, both in Lahti and elsewhere in Finland, felt it had positively influenced the city’s reputation. The project also aimed to create societal impact extending beyond the theme year.
– Companies in Lahti can proudly say that they operate in a city where environmental thinking is a central part of decision-making. This also defines their business activities, Vanhamäki states.
In international contexts, Vanhamäki has noticed that Lahti’s strong expertise in sustainability makes starting conversations easy, as it interests companies around the world.
– We have concrete expertise in developing sustainable business. In addition, we can utilize the European Green Capital status: the recognition was awarded by the European Commission, and only one city receives it each year. Lahti is unique in this group – the smallest and northernmost winner. This makes companies interested in us.
According to Vanhamäki, negotiations with companies about locating in Lahti increased significantly in 2022–2023. Since then, the number of negotiations has levelled off, but the current negotiation partners are larger companies than before.
A good reputation is an excellent start to negotiations, but many factors influence the final location decision.
– For companies, the most critical factor is not just a plot of land or premises, but the overall package that supports business. Lahti offers strong business ecosystems, especially in the fields of circular economy and electric mobility, which means that companies can find ready-made cooperation opportunities here. Subcontracting networks are also key – when partners are nearby, both costs and emissions are saved.
During the Green Capital year, impact projects were prepared to ensure the continuity of the work. One legacy project is the Lahti GEM (Green Electrification of Mobility) cluster for electric transport in the Lahti region.
– The expansion of LUT University to Lahti was a significant step, says Pekka Komu, Business Developer at LADEC.
In 2022, the first professorship in electric mobility in the Nordic countries was established at LUT University with the support of businesses. In addition, a professorship in mechatronics was established, funded by several cluster members.
LAB University of Applied Sciences launched degree programmes in electrical and automation engineering, and the Salpaus Further Education Centre offers training for the automotive sector.
– The cluster’s achievements also include the establishment of the Electronic Mobility Research Center (EMRC), formed through cooperation between LUT University and Kempower, a manufacturer of fast-charging devices for electric vehicles.
– In addition, Nordic RenGas received 45 million euros from the European Hydrogen Bank for the production of clean e-methane in Lahti. Kempower’s R&D funding for developing a heavy transport charging ecosystem is the largest R&D investment in the region’s history. Business Finland directly funds Kempower with 10 million euros and other companies in the ecosystem with 20 million euros. The remaining about 30 million euros consists of the companies’ contributions.
Lahti’s attractiveness and vitality have overall developed in a positive direction. According to data published in early 2025, the city rose from 59th to 43rd place in the national comparison of municipalities’ vitality and attractiveness, while the Lahti region climbed from eighth to fifth place in the Confederation of Finnish Industries’ municipal ranking. The Lahti area has particularly benefited from green transition investments, whose significance for regional vitality is continuously increasing.
How long can Lahti maintain its position as an environmental city? Development Manager Jarkko Majava identifies this as a question that should be considered carefully in Lahti.
– When something has been done for a long time, an assumption easily arises that it should be replaced with something new. From the outside, however, Lahti has not yet reached the point where the environmental theme would no longer have differentiation potential, he assesses.
The continuity of the Green Capital legacy depends on strategic choices. According to Majava, the strategic backbone should remain, even if environmental work shifts to the “business as usual” category.
Majava emphasizes that the importance of strategy is highlighted especially if, when the council term changes, the city were to decide to switch to a new focus area.
– If Lahti were to abandon its strategic environmental focus completely, it could send a negative signal. Lahti’s achievements are significant, but there is still a way to go before the goals are reached, he reminds.
Lahti’s long-term environmental work is based on strategic choices that have made the city an example for both Finnish and European cities. How far this legacy will carry into the future depends on how well Lahti succeeds in keeping the environmental theme relevant and strategically strong in urban development.
