Key Facts

Sustainable Urban Development (SUD) in Finland

During the EU cohesion policy period 2021–2027, at least 8% of each Member State’s ERDF funds must be invested in priorities and projects chosen by cities themselves to promote sustainable urban development. In Finland, this sustainable urban development funding under Article 11 of the Regional Development Fund (known as SUD funding) has been directed to support cities’ ecosystem agreements.

The state has signed long-term agreements with all Finnish university cities and university consortium cities on the allocation of public and private RDI funding to strengthen globally competitive ecosystems.

These 18 cities are called InnoCities. They have committed to developing innovation ecosystems based on regional expertise in collaboration with the area’s key RDI actors.

The goal of ecosystem agreements is to strengthen innovation ecosystems, meaning the development of innovation activities based on collaborative networks. Together, the ecosystem agreements form Finland’s national sustainable urban development plan (SUD strategies) within the EU regional and structural policy programme.

With the SUD funding, InnoCities develop collaboration, strengthen competence areas and increase the effectiveness of RDI activities. All the funded projects support the impelementation of the ecosystem agreements. The projects especially facilitate innovations that promote low carbon emissions, digital technology and well-being.

The InnoCities have a leading role in deciding which projects are funded. The funding is granted by the regional councils. The ecosystem agreements are funded jointly by the EU, the Finnish State and the cities, and the projects receive funding mainly from the European Union’s Innovation and Skills in Finland 2021−2027 programme.