Espoo’s Climate Budget now published in the Climate Watch – emission scenarios for the built environment are also being developed

Espoo develops its climate governance systematically and with a vision for the future. Accordingly, the city aims to make its climate action increasingly accessible to decision-makers, partners and residents alike. The climate budget helps Espoo incorporate its climate targets into the city’s ordinary budgeting processes. 

“The climate budget strengthens Espoo’s pioneering position in climate governance. With it, the costs of Espoo’s climate action as well as emission reductions can be monitored and managed better than before, and resources can be directed to the most effective climate action,” says the Financial Planning Director Maria Jyrkkä from the City of Espoo.

The climate budget presents the share of the city’s annual budget that is targeted towards climate mitigation and adaptation. The city allocates resources to climate action as part of the city’s normal spending decision-making and financial expenditure framework. That is, the climate budget does not represent an additional or separate budget for climate work. The data from the climate budget will also be used for the purposes of Espoo’s EU Climate City Contract. 

The climate budget is published annually as part of the city’s budget, and it is monitored in the city’s financial statements. In addition to presenting the operating expenditure and investments allocated to climate action, the budget also presents emission reduction scenarios and written statements about climate action. The Carbon Neutral Espoo 2030 roadmap presents the city’s pathway to carbon neutrality in more detail.

Climate Budget included in the Espoo Climate Watch

The Espoo Climate Watch(external link, opens in a new window) compiles the city’s climate action so that residents, decision-makers and the city’s partners can access and monitor the progress of Espoo’s climate work. A detailed version of the climate budget has now been published in the Espoo Climate Watch website (external link, opens in a new window)to make Espoo’s climate action even more transparent to the Espoo community. (https://ilmastovahti.espoo.fi/talouskooste/talouskooste). 

The climate budget for 2024 showed that approximately 16%, or EUR 247 million, of the City of Espoo’s operating expenditure and 53%, or EUR 169 million, of the city’s investments are directed at climate mitigation and adaptation. In addition, 7% of the investments of selected subsidiaries in the Espoo Corporate Group, or EUR 11 million, are directed to climate action. It is worth noting that this expenditure in climate action often contributes to other dimensions of sustainable development, too. 

Timely mitigation and adaptation to climate change provides the Espoo economy with many other benefits that cannot be seen by only examining expenses. These manifest in, for example, long-term cost savings, health effects or in the improved everyday life of Espoo residents. Through climate action, we are creating sustainable growth, vitality and well-being in Finland and Espoo. 

Emissions from construction to be featured in the climate budget 

Espoo aims to reduce whole life carbon emissions from the built environment, in other words, emissions resulting from the materials, construction and the use of buildings over its entire life, including demolition and disposal. The city can reduce construction-based emissions through land use management, its own construction and cooperation with partners. In the future, Espoo’s climate budget will showcase the expenditure allocated to reducing whole-life carbon emissions from the built environment in more detail. 

In the Espoo area, emissions per capita have already fallen by 62% and total emissions by 30% since 1990, while the city has grown strongly. However, the city’s 80% area-based emissions reduction target does not include consumption-based emissions from traffic, energy or construction, or the consumption of food, goods and services generated outside Espoo’s borders. Importantly, a significant share of emissions from the built environment is only reflected in the city’s consumption-based emissions.

“The project “Developing Espoo’s climate governance and climate budget”, which is now ending, has improved Espoo’s understanding of whole life carbon emissions from the built environment. The work in the project was done in close collaboration with different units in the city. While Espoo is already taking pioneering steps to reduce emissions from construction, the results of the project showcase further needs for achieving Espoo’s ambitious climate goals,” says Senior Climate Specialist Karoliina Isoaho. 

The project “Developing Espoo’s climate governance and climate budget” has received funding from the Municipal Climate Solutions Programme of the Ministry of the Environment. The duration of the project from 11/2023 to 09/2024.  

Inquiries

Karoliina Isoaho, Senior Climate Specialist, karoliina.isoaho@espoo.fi

Samuli Skyttä, Finance and Planning Manager, samuli.skytta@espoo.fi

Espoo Climate Watch(external link, opens in a new window)

Espoo's climate goals

Climate Budget 2024(external link, opens in a new window)

Municipal Climate Solutions Programme(external link, opens in a new window)