Climate smart district

Location: Malmö, Sweden

Population: 703,920 [metropolitan]

Climate: Oceanic

Duration: 2011-2020

Sector: Cross-cutting

Funding sources: Public-private

City networks: Covenant of Mayors, ICLEI

Savings: Expected energy savings equal to 25%.

Solutions: Installation of heat pumps. Wind turbines, decentralised energy management systems and other measures.

Multiple benefits: Creation of jobs and residential buildings, improved infrastructure for public transport and cycling paths.

Hyllie Sustainable District – is the biggest development area in the city of Malmö aiming at becoming the most climate smart district of the entire Öresund region [source].

Objective – To be district completely based on renewable or reused (generated from waste and waste water) energy by 2020.

Solutions – The energy will be generated locally from heat pumps, wind turbines and solar panels, as well as biogas from locally‐produced organic waste. The area will integrate smart-grid solutions for electricity, heating and cooling and decentralised energy management systems made by Siemens. Mandatory food waste sorting was introduced. Sorted organic waste is then used to make biogas for fuelling buses and garbage trucks of the district. In terms of sustainable transport, there will be an access to a carpooling system, electric car recharging stations and biogas reservoirs for biogas fuelled vehicles. Hyllie district is well located and cycling to the city centre takes only 15min on scenic bicycle paths [source].

Funding – A total budget of USD 23.2 Mln*. Funding was provided by the private and public entities. The City of Malmö and the companies VA SYD (waste and water management company) and E.ON (electric utility company) made the initial investment. USD 6.1 Mln* came from European Commission funds via public funding by the Swedish Energy Agency. Thus, this is real-estate project, under which construction companies selling residential and commercial spaces contributed the most to the realisation cost of the project.

Innovation – Hyllie is Malmö’s largest district development area. It will be the most climate smart district in the Öresund region and will be based 100% on renewable or reused energy by 2020 [source]. The district is also used as a large-scale, EU funded test-bed for smart technologies that will later be deployed in other parts of Malmö and other countries [source].

Success factors –​ The City of Malmö signed the Climate Contract with the energy provider E. ON and the water and waste management company VA SYD. This enhanced the commitment to become the most climate-smart city district in the Öresund region as well as a global benchmark for sustainable urban development [source]. All parties engaged in construction in Hyllie comply with the Environmental Construction Programme for Lund and Malmö. The programme has 10% stricter environmental requirements than the national level ones (source).

Significant outcomes:

  • 9000 jobs created;
  • 9000 homes constructed;
  • Energy source of the district will be 100% renewable or reused (energy from waste or waste water) based by 2020;
  • Expected energy savings up to 25% because of the relocation of the companies to environmentally certified premises;
  • Improved public transportation, walking and cycling paths.

Synergies with local policies:

Political alignment:


  • Hyllie district will be used to test and evaluate a variety of intelligent solutions for the control and storage of energy that will later will deployed in the city of Malmo;
  • The goal of being 100% based on renewables by 2020 is also driving technology developments for the companies working with the projects in the area [source].

*The conversion rate used is SEK 1 = USD 0.11

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Sectors: Cross cutting, Digital

Country / Region: Europe, Sweden

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In 1 user collection: Good practices of cities

Knowledge Object: User generated Initiative

Published by: Malmö Stad