This publication presents a compilation of extended abstracts of VTT’s recent research on smart cities. The global challenge is to reduce environmental impact and carbon footprint. At the same time societal development needs to be addressed and people well-being must be in focus. Pressure is growing to reduce our environmental impact and there is a parallel compelling need for business to stay globally competitive. Investment and expenditure needs for improving energy efficiency, modernizing infrastructure and creating high quality living environments are enormous. Smart sustainability as a dominating driver of technology development can also be seen in the R&D portfolio of VTT Technical Research Centre of Finland. A clear focus of our research for smart cities is sustainable city development, holistic energy systems, eco-efficient and intelligent buildings and districts as well as smart transport systems. In addition we focus on services, ICT and material technologies for improving smart city functions.