Finnish lawmakers propose clean energy investment permits amid concerns over foreign company ties

A proposed legislation in Finland aimed at promoting clean energy might create opportunities for companies with unclear backgrounds to enter the market. The draft does not address the ownership structures of these companies, theoretically allowing a range of clean energy enterprises, including those potentially linked to authoritarian regimes such as China.

Kirsi Martinkauppi, a senior advisor to the government, noted that the investment permit proposal for the clean transition does not define what ties a company can have abroad. Traditionally, municipalities have governed local land use through zoning. However, the Finnish Parliament is currently deliberating a clean transition investment permit that would enable certain green transition projects to bypass standard zoning regulations. Many municipalities in Finland are eager to attract clean transition investments.

Ilari Soosalu, the mayor of Hamina, emphasized the importance of drawing diverse economic activities to enhance local vitality, stating that all new businesses are generally welcome. Meanwhile, local development company Cursor is assessing the backgrounds of new businesses in Hamina to clarify any foreign ties, particularly focusing on the origins of their financing.

Ilkka Hasanen, the director of Cursor’s investment services, acknowledged that the system may not be foolproof. He expressed concerns about municipalities’ eagerness for new jobs possibly leading to unsustainable decisions, especially in light of past collaborations with companies like Rosatom and Fennovoima, which have raised risks from authoritarian government ties.

Hannu Purho, a zoning architect in Kouvola, shared apprehensions concerning potential forced approvals of permits if these companies merely meet specific criteria, raising questions about future land use control.

Veli-Pekka Tynkkynen, a professor specializing in Russian environmental policy at the University of Helsinki, advocated for regulation regarding corporate ownership structures and increased oversight instead of leaving such decisions solely to municipalities.