Jyväskylä’s journey to a circular economy

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About the OECD #ResilientPlaces blog series 
In an era of unprecedented economic, environmental and geopolitical changes, local and regional leaders are uniquely placed to turn these changes into opportunities to improve the well-being of all citizens, strengthen resilience and boost competitiveness. Following the OECD Regional Development Policy Ministerial Committee meeting in Warsaw, Poland (19–20 May 2025), the OECD Champion Mayors, local and regional leaders, as well as stakeholders, continue to share innovative solutions to reinforce local and regional resilience in this blog series.

Sustainability is integral to Finland, where nature is ever-present. Climate action is a priority and lies at the heart of the City of Jyväskylä’s vision for the future. Achieving this vision requires a circular economy approach across all sectors. How can we make this a reality?  

Nature’s role in Finland 

Environmental sustainability is not just a core value for Jyväskylä and Finland; it is common sense. This is why we do our best to take all the opportunities to move towards systemic
circular solutions. 

While national and local debates continue on the best ways to advance sustainability, there is little disagreement about the need for climate action. The real debate only begins when we discuss how to get there. Circular economy solutions offer a win-win that everyone agrees is a “must”, not a “nice-to-have”.  

For people in Finland – and certainly for us in Jyväskylä – nature is part of everyday life. Forests are never more than 15 minutes away, and many of us can step directly into one from our own backyard. This deep connection to the natural world shapes our culture, and sustainable management strategies have long been second nature.  

  • The City of Jyväskylä owns 8,700 hectares of forest of which 13.5% are protected. 
  • Most of the city’s forests are located within a five-kilometre radius of the city centre. 
  • The average age of the city’s forests is 60 years. 
  • The total growth (2018) is approximately 53,000 cubic meters per year. 

A circular Jyväskylä  

Overconsumption of natural resources is simply not an option – perhaps explaining why the principles of the circular economy resonate so strongly with us.  Jyväskylä’s approach to the circular economy is driven by a clear goal: to ensure that our businesses remain sustainable and competitive. We firmly believe that only those companies that embed circularity at their core will survive and thrive.  

Businesses that use resources wisely are not only more profitable but also more resilient to disruptions in global trade as they reduce dependence on imported raw materials – particularly in critical raw materials, where risks are mounting. A circular economy approach then, far from conflicting with business interests, strengthens them. 

So, what are the opportunities for circular economy solutions in Jyväskylä? 

The University of Jyväskylä has developed methods for harvesting rare earth metals from industrial waste streams. There is already concrete business around this technology and the technology is scaling up.  

Weeefiner, a technology company, is working on recovering rare materials from mining water and wastewater to improve material circulation. Jyväskylä is also investing in “urban mining,” through which e-waste is processed and recycled to reclaim critical raw materials instead of extracting them from deep earth. 

The city owned waste management company Mustankorkea Oy has captured biogas from the biowaste treatment process and developed it into a product for sale, a vehicle fuel, for the use of citizens and companies. The majority of their own vehicles are also biogas-powered. 

And wastewater treatment company Jyväskylän Seudun Puhdistamo Oy has replaced the soda ash used in the wastewater treatment process with circular calcite, a by-product from forest industry. This was not only a more environmentally conscious choice but also benefited the company economically as it saved on maintenance.  

Source: City of Jyväskylä

Jyväskylä’s private companies are getting in on the act. For example, Valmet is a local company that produces paper machines that is investing heavily in R&D to make its machines more energy efficient. Valmet’s R&D is supported by VTT Technical Centre’s Jyväskylä unit, which is also investing in a pilot production line that dramatically reduces the amount of water needed to produce bio-based fibre products.

These innovations will help maximise the use of wood-based fibres while minimising energy use — replacing fossil-based materials and creating products that are easier to recycle. This joint project of VTT and 50 companies aims to reduce water consumption by 90 % and halve the energy consumption in these processes. 

Lessons learned 

Jyväskylä has made progress in circular economy experiments, but our projects have been isolated and sector specific. As highlighted by OECD work, a structured framework is needed to leverage the innovation ecosystem, including research institutions, students, start-ups, and businesses. So too are city-level indicators on consumption and circularity that would give a clearer picture of how effectively Jyväskylä is moving towards a circular economy. This needs to be addressed to drive progress forward. 

At governance and policy level, it would be beneficial to align the city’s approach more closely with national programmes, like Finland’s Circular Economy Green Deal with the City of Jyväskylä’s Resource-wise 2040 Programme. 

The transition towards a circular economy model is a shared effort. It is not just about citizens recycling their used milk cartons, but about the community and businesses taking action and assuming responsibility. The city is there to guide, support and enable while also taking responsibility ourselves.

Source: City of Jyväskylä

OECD support for Jyväskylä’s journey to circularity
The OECD has produced focused guidance relevant to Jyväskylä’s circular economy transition, including The Circular Economy in Jyväskylä, Finland, along with broader reports such as The Circular Economy in Cities and Regions of the European Union and The Circular Economy in Cities and Regions. These sources offer both city-specific analysis and wider frameworks to guide urban circular strategy and governance.

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Timo Koivisto (born 1970) has held the position of mayor of Jyväskylä since 2015 and is now in his second eight-year term. He has a master’s degree in laws from the University of Turku and a military rank of lieutenant. He has previously worked as the deputy mayor of Urban Planning and City Infrastructure at the City of Jyväskylä as well as special aide to several ministers. He has also been awarded the honorary doctorate of the Faculty of Sport and Health Sciences of the University of Jyväskylä.  

Timo enjoys sports – watching and doing them a lot, and he’s a regular sight at the local Padel hall. He also enjoys reading.