Finland’s climate goals at risk as government faces scrutiny over emissions strategies

The fate of Finland’s climate goals currently hinges on the EU’s emissions trading system and individual companies’ initiatives. The government led by Petteri Orpo has only determined a few measures aimed at reducing emissions in the country. These measures are insufficient to meet Finland’s two binding climate targets, as stated in the climate annual report mandated by Finnish climate law. The report indicates that the emissions yet to be reduced represent about half of Finland’s total current emissions.

Research professor Raisa Mäkipää from the Natural Resources Institute stated that impactful climate actions in the land use sector have yet to materialize, with previously agreed measures being rolled back, indicating a reluctance to progress. This inaction has led to a lawsuit against the government since achieving carbon neutrality is now a legal requirement. Furthermore, Finland could face unpredictable costs related to EU climate targets, raising concerns about the implications of inaction.

So far, the government has proposed incentives, such as tax relief for adopting electric vehicles and strengthening the electricity grid to support renewable energy. Additionally, the government has approved proposals to extend emissions trading to the transportation sector by 2027 and to offer tax rebates to companies transitioning to greener practices. However, uncertainties remain regarding the effectiveness and participation of businesses in these programs.

The government’s strongest measures, such as capturing emissions from factories, have received only modest funding compared to Sweden’s more robust investments. The scope of Finland’s emissions reduction strategies is crucial, particularly with the looming deadline of carbon neutrality by 2035 and the need for carbon sinks in forests to offset remaining emissions. Tighter regulations on logging could be a necessary step toward achieving these goals.