When Joensuu's coal and peat power plants go dark in 2030, the Finnish city won't just be left to figure things out on its own. It will have €160 million to build something better.
The money comes from an unusual three-way partnership: €18 million in EU grants, €120 million in loans from the European Investment Bank (the EU's bank for big projects), and €22 million from the city itself. The funding was announced in late 2024 to help Joensuu and the surrounding North Karelia region move away from peat—an energy source that once heated homes and powered industry but releases carbon dioxide when burned.
The plan isn't just about cleaner energy. It's about people. Working with the local housing provider Joensuun Ellin Kodit, the city will build new schools and childcare centers, renovate existing ones, and add student housing for young people studying at the local university. The Joensuu Art Museum and the city's main library will get fresh renovations too.
Children are at the heart of the project. Schools and daycare centers will include quiet spaces, easy-to-navigate layouts, and sensory-friendly designs meant to welcome neurodivergent kids—those who learn or experience the world differently. "Investing in schools, childcare facilities and student housing means investing in people and in the future of the region," said Karl Nehammer, a vice president at the European Investment Bank.
All the new and renovated buildings will meet high energy-efficiency standards, using materials and designs that cut down on pollution. This matters because buildings in Finland account for nearly 40% of the country's energy use and more than 30% of its greenhouse gas emissions. The project is expected to shrink that footprint significantly.
Mayor Jere Penttilä said the funding lets the city build in ways that would otherwise take decades. "In the coming years, we will build, among other things, a new swimming hall as well as daycare centers and schools," he said. "These projects are highly significant not only for the residents of Joensuu but also for people living in the surrounding areas."
The funding comes through a program called the Public Sector Loan Facility, part of the EU's Just Transition Mechanism—money specifically meant to help places that depended on polluting industries prepare for a cleaner future. Paloma Aba Garrote, who leads the EU agency managing the grants, put it simply: Europe should become climate-friendly "while leaving no one behind."
Construction work will also create jobs and bring business to local companies, helping the regional economy adjust as the old power plants close. For Joensuu, the message seems to be that ending an old chapter doesn't have to mean a harder life—it can mean better schools, warmer homes, and a city built to last.