In all eight Nordic countries the main responsibility for planning lies with local authorities. This chapter mainly focuses on how differentiating interests between the national state and local authorities concerning land use are handled in the Nordic countries and what policies and legal tools are applied. Generally, in the Nordic countries private interests in land use conversion in a specific area are managed by local authorities.
Denmark
In Denmark, municipalities have the main responsibility for spatial planning, including urban development. The municipal council can decide to expand zones for leisure and urban purposes at the cost of agricultural land and dedicate new areas to technical installations and infrastructure. The allocation of such areas must cohere with national law (urban growth regulation) and is subject to a strategic environmental assessment.
The Planning Act establishes the principle that urban development should occur from within and expand outward. This means that areas for urban growth should be directly adjacent to existing urban areas. The rules for urban growth further imply that municipalities may not designate more new areas for future urban expansion than they are expected to need in the coming 12 years. However, municipalities have the option to reallocate areas to different land uses.
The national government has the authority to intervene in certain cases of local planning regarding national interests and exercise national planning powers. According to the Planning Act the Minister for Rural Areas has an obligation to object to municipal plans conflicting with national interests. Furthermore, any minister may object to a proposed local plan on the basis of special considerations (concerning the exercise of authority or national interests) that the minister in question handles. If the national government raises an objection, the municipal council cannot adopt the proposed plan.
Objections between the national government and the municipality are often resolved through dialogues adapting the proposed plans to the relevant national interests or special matters. Municipal and local plans can also be disputed legally through the Danish Planning Board of Appeal. The board is in charge of, among others, complaints under the Planning Act and the Environmental Impact Assessment Act. The board’s mandate to make decisions in cases where disputes have arisen means that it plays an important role in the interpretation and practical definition of the Planning Act and other acts. Decisions from the board are final unless the board’s decision is brought before the courts. However, it is possible to bring the board’s decisions before the courts.
Faroe Islands
Physical planning in Faroe Islands is primarily regulated by the ‘Lagtingsloven’ on Urban Planning and Building Regulation from 1954. In addition, the redistribution of agricultural land for other purposes is, in certain cases, also governed by the ‘Lagtingsloven om Naturfredning’ from 1970, the ‘Lagtingsloven om Miljøbeskyttelse’ from 1988 and other specific legislation.
The ’Lagtingsloven om landsjorden’ regulates publicly owned land. Approximately half of all agricultural land in the Faroe Islands is publicly owned. This law states that when land is being sold for purposes other than agricultural use, the Faroe Islands Agricultural Agency (‘Búnaðarstovan’) must prioritize the sale of low-quality agricultural land over high-quality land. However, when land redistribution aligns with existing planning legislation, this prioritization is often difficult to enforce. Proposals that have been approved by the minister (‘Landstyremanden’) are legally binding.
Interventions in the outback (the areas outside the old settlements) are legislated by both the ‘Lagtingsloven’ on Urban Planning and Building Regulation and the legislation on nature conservation. In some cases, additional permits are required under environmental law and other special regulations.
Finland
Land use planning in Finland is guided by the Land Use and Building Act. Spatial planning is mainly governed by the municipalities who develop local master plans and detailed local plans. The municipalities must consider both regional plans and national land use guidelines when developing local plans. The Ministry of the Environment promotes and monitors the implementation of national interests in planning decisions. Municipal planning is supervised by the Centres for Economic Development, Transport and the Environment. These are national government authorities present in each region, providing advice and monitoring municipal spatial planning. Municipal planning can be challenged by regional authorities where municipal plans conflict with national interests. Disputes can be taken to court where mediation is insufficient. Such court cases have mainly resulted from disputes connected to the environment and biodiversity. In disputes concerning land use types other than agriculture, the State Forest Enterprise (Metsähallitus) has been appointed to mediate among stakeholders, for example between mining and forestry.
Greenland
All land in Greenland is common property, meaning that private land ownership is not permitted. The municipal council serves as the land use authority within its respective municipality and is responsible for granting permission for land use within that area. Land for agricultural purposes are allocated to agricultural units or sheep breeding stations. The Cooperative Sheep Farmers' Associations (‘Savaatillit Peqatigiiffiit Suleqatigiissut’) plays a key role in agricultural matters in Greenland. Disputes among breeders are typically handled within this organisation. Authority over raw materials lies with the government, and a complaints system exists for land use related to resource extraction. However, no disputes have been formally addressed through this system to date. There is currently uncertainty regarding how future land use conflicts—particularly those involving raw materials—should be resolved, as such disputes are expected to emerge. Ongoing discussions focus on whether these matters should be handled within the existing planning and land use legislation, or if a new system should be established.
Iceland
Iceland implemented a new spatial planning system in 1998 with the adoption of the Icelandic Planning and Building Act, renamed in 2010 simply as the Planning Act. This reform transferred responsibility for spatial planning from the national authorities to the municipalities. Each municipality develops a spatial plan for its jurisdiction. Land use changes must adhere to the spatial plan and municipalities are responsible for land use change decisions and approving and issuing permits for development projects. A National Planning Strategy is also based on the Planning Act. The Minister must submit a proposal for a parliamentary resolution regarding a 12-year national planning strategy within two years of parliamentary elections. The current national policy was adopted in 2015 and gives general direction on national and public interests for municipalities to consider in planning. Each municipal plan is reviewed by the National Planning Agency (NPA) if there is a discrepancy between the municipal plan and the National Planning Strategy. The review is then considered by the municipality. There is however no obligation for the municipality to follow NPA instructions if it argues for and adopts a different approach. It can be difficult for municipalities to withstand the pressure from investors interested in development projects. This is partly due to the limited capacity of sparsely populated municipalities, which often cover large areas.
Norway
The conversion of agricultural land to other uses is regulated by the Land Act and the Planning and Building Act. A private landowner must apply for municipal approval to change agricultural land to another use. As a starting point, conversion of agricultural land is forbidden by the Land Act. Municipal evaluations consider approved municipal plans according to the planning and building act. They also evaluate whether new land use will environmentally or operationally impact surrounding agriculture, effects on the cultural landscape and potential societal benefits a conversion would bring. Besides initiatives from individual landowners, municipalities set the directions for land use in their municipal plan. Therefore, most processes to handle conflicting land use conversion goals and decisions are based on the municipal land use planning processes, following the procedures in the Planning and Building Act. Planning conflicts between local authorities and national interests are mediated by the regional authority, the county governor (Statsforvalteren). If no agreement is reached after mediation, the matter can be solved by the system of objection. An objection can be made by a concerned state or regional body, concerned municipality or the Sámi Parliament of Norway (Sametinget). In such cases, authority is transferred to the Ministry of Local Government and Regional Development which makes the final and legally binding planning decision instead of the municipality.
Sweden
The Swedish Planning and Building Act provides instructions on the hierarchy of the planning system in Sweden, establishing municipal responsibility for planning and developing local plans. The national instruments for steering local planning are the Planning and Building Act and the Environmental Code. Regional authorities and county administrative boards are in charge of monitoring the consideration of national interests in municipal planning. This is for example carried out through consultation with the municipalities in developing municipal plans. Legislation concerning agricultural land is found in the Environmental Code, which states that agricultural and forest land use are of national importance and should only be changed to meet considerable public interest. County administrative boards can make remarks concerning national interests formulated in the Environmental Code and must also provide documentation and advice to the municipalities in matters of public interests according to the Planning and Building Act. When disputes occur, individuals can appeal a decision from the municipality and the case can be tried at the Land and Environment Court of Appeal which makes a definitive decision. Cases brought to this court mainly concern individual building permits and do not dispute entire municipal plans. In recent years more cases concerning agricultural land conversion have been brought to court.
Åland
Decisions regarding land use in Åland are regulated by their Planning and Building Act and are specifically outlined in the general plan and detailed plans (‘generalplan’ and ‘detaljplaner’) developed by the municipalities. Any proposed changes to land use must be included in these planning documents before they can be implemented.
The role of the government in Åland (‘Landskapsregeringen’) regarding physical planning is to be a supervisory authority. The government provides feedback on the general plans when a new one is being developed. While it has the right to appeal (‘besvärsrätt’) it does not have decision-making power regarding physical planning. The government can only intervene in cases where the general plan violates planning and building regulations or environmental protection laws. In such instances, disputes are handled by the administrative court (‘förvaltningsdomstolen’).