North Karelia is a predominantly rural region in Eastern Finland. With the exception of Joensuu, the only urban centre, the region’s 165,941 inhabitants are sparsely distributed (7.7 inhabitants per square kilometre). North Karelia is a forerunner in renewable energy, largely thanks to innovations emerging from its robust forestry industry. Renewable energy accounts for 63% of total energy use in North Karelia (28.5% in Finland as a whole), with 82% of this coming from wood-based sources.
VISION OF NORTH KARELIA 2025
North Karelia as a world leading forestry region and Joensuu as the European Forestry Capital act as forerunners of bioeconomic society.
Powering ahead
North Karelia is often referred to as the Europe’s forest region. Almost 90% of its total area is covered by forest and the forestry industry makes a substantial contribution to the regional economy. The bioeconomy accounts for a large portion of this, with activities relating predominantly to the use of woody biomass for energy. Estimates from the regional council suggest that at least 120 companies are working in the bioenergy and renewable energy sector, with a combined turnover of around €20 million in 2010 (OECD 2012). This industry experienced considerable growth between 2004 and 2010, both in terms of turnover (130%) and job creation (60%) (OECD 2012). Joensuu’s and the entire region’s expertise cluster attracts businesses, investments and experts of the industry from around the world. In close international cooperation with other regions and actors that have focused on bioeconomy, the region offers solutions that help to achieve national growth targets. (Regional Council of North Karelia 2015)
Local drivers fuel industry growth
There are several factors that have contributed to North Karelia’s green growth – not all of which can be attributed to public policy. In fact, the development of North Karelia’s bioeconomy has some decidedly local components. First, the natural conditions present a unique combination of cheap wood, cold temperatures and high cost energy alternatives. Second, a large portion of the companies that make up North Karelia’s forestry industry are locally owned by cooperative private firms, individuals and municipalities. Together, these factors provide a strong financial incentive to develop biofuels as they reduce the cost of energy while at the same time ensuring that the profits generated from energy sales remain in the local economy. In addition, research institutions are strongly linked with business in North Karelia through a substantial regional innovation network. This ensures that research objectives evolve in response to specific needs within the region, contributing directly to the competitiveness of the forestry industry.
Regional dimension
North Karelia’s bioenergy sector makes a substantial contribution to regional development. It provides development opportunities for local businesses, creates jobs, contributes to regional energy security and reduces energy costs. In addition, it improves the competitiveness of the forestry industry, the majority of which is locally owned. Most importantly, these benefits are achieved with minimal impact to the landscape – a vital asset in the region’s successful tourism industry.
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