Contemporary challenges for the development of sustainable urban regions in the Nordic countries relate to how physical planning can contribute to green growth and city-regional competitiveness. More specifically, three types of challenges have been identified. The first relates to urban form and issues involving urban qualities and densification processes, accommodating rapid population growth, localisation and the mixing of urban functions. The second relates to social inclusion and segregation, the everyday life perspective and diversified lifestyles and mobility. Finally, while planning at the city-regional scale is increasingly seen as a way to meet these challenges, such a perspective also calls into question the traditional ways in which Nordic cities and regions are planned; the third type of challenge is therefore the fact that there is a recognised need for new and innovative forms of planning and governance.