3. Finland

In 2019, the Finnish government announced its aim of achieving carbon neutrality in Finland by 2035 and becoming carbon negative soon after (Finnish Government, 2019). Three years later, this target was enshrined in the Finnish Climate Act, which lays down the objectives and establishes the framework for Finland’s climate policy.

In addition to the goal of carbon neutrality by 2035, the Finnish Climate Act outlines national emissions reduction targets for the subsequent years: 60% by 2030, 80% by 2040 and 90% (with an aspirational target of 95%) by 2050, compared to 1990 levels. Under EU law, Finland is also committed to reducing emissions from sectors covered by the EU’s Effort Sharing Regulation (ESR), including emissions related to road transport, heating of buildings, agriculture and waste management by 50% by 2030, compared to 2005 levels (EU Commission, 2024).

The commitment to carbon neutrality encompasses all GHG emissions and removals within Finland and will be realized solely with domestic actions, not with purchases of international carbon credits (Nordic Council of Ministers, 2023).

The Finnish Climate Act establishes a comprehensive climate policy planning framework, requiring the government to prepare several climate-related plans. These include a medium-term climate change policy plan to be drawn up by the government during each electoral term, and a long-term climate plan to be prepared at least once every ten years. The latest medium-term climate change policy plan was submitted to the Finnish Parliament in June 2022. The plan presents various measures intended to halve emissions from sectors covered by the ESR by 2030, achieving carbon neutrality by 2035 (Ministry of the Environment, 2022). The long-term climate plan is currently under development and is scheduled to be adopted no later than 2025 (Ministry of the Environment, 2024).

Each electoral term, the government moreover publishes a Climate and Energy Strategy covering the emissions trading, effort-sharing and land use sectors, energy sector maintenance and security of supply issues, and the functioning of energy markets. The government submitted this strategy to the Parliament in June 2022 (Ministry of the Environment, 2024).

In pursuit of the 2035 carbon neutrality objective, the Finnish government has emphasized the need for cooperation with businesses and organizations in relevant sectors. In 2019, it launched a formal cooperation initiative, referred to as the Low-Carbon Roadmaps, the aim of which is to engage the private sector in the efforts needed to meet Finland’s climate objectives.

The Low-Carbon Roadmaps initiative is intended to create a realistic strategy for Finland to attain its 2035 carbon neutrality objective. The initiative’s core purpose is to gather and communicate information essential to understanding the scale, costs, and preconditions of the actions required. By furnishing the government with comprehensive data and insights on anticipated sectoral developments, emissions trajectories, energy consumption projections, and technology deployment timelines, the initiative is expected to guide the formulation of effective policies and strategies, particularly within the fields of climate and energy (Ministry of Economic Affairs and Employment, 2021, 2024).

The initiative is furthermore intended to create a platform for dialogue between the government and the private sectors and give the industries an opportunity to communicate what regulatory environment changes are needed for them to implement their climate goals. This has the co-benefit of empowering the industries in their own endeavors toward the development of a low-carbon economy, strengthening their dedication to emission reduction and thereby increasing their contribution to Finland’s climate targets (Interviews, Finland).

Preceding the establishment of the Low-Carbon Roadmaps, the chemical industry had already developed its own roadmaps to outline the sector’s contribution to Finland’s climate targets. With the formal introduction of the Low-Carbon Roadmaps initiative, additional sectors began developing roadmaps in late 2019 and early 2020. At first, the government initiative focused on four significant energy-intensive sectors, collectively responsible for over 90% of Finland’s greenhouse gas emissions: the energy sector, the chemical industry, the forestry sector, and the technology sector. Subsequently, nine other sectors were either invited to join or joined at their own initiative, resulting in a total of 13 sectors actively engaged in developing and publishing their individual roadmaps (Ministry of Economic Affairs and Employment, 2021). The current sectoral coverage is seen as comprehensive (Interviews, Finland).

Early on, what was expected from the collaboration and how it would be carried out was relatively clear (Interviews, Finland). From the outset, it was established that the sectors themselves would have independent control over drafting and implementing their own roadmaps. This approach was deemed appropriate, as the sectors themselves have the best knowledge of the situation in their field. On the other hand, the Ministry of Economic Affairs and Employment had an important role in facilitating the work within the sectors. Operating under the principle of ‘light coordination’, the ministry offered support and guidance by various means, including by arranging discussions and seminars (Ministry of Economic Affairs and Employment, 2021). The ministry consistently encouraged the sectors to establish ambitious yet realistic targets, encouraging them to evaluate their potential emission reductions and implementation timelines (Ministry of Economic Affairs and Employment, 2021, 2024a).

To ensure consistency and usability of the roadmaps in governmental policymaking, the Ministry of Economic Affairs and Employment issued instructions that were, according to informants, generally adhered to by the sectors and proved useful for the work. The instructions are available in Finnish at the ministry’s website. The ministry also published a list of frequently asked questions intended for reference to assist the sectors in their work (Ministry of Economic Affairs and Employment, 2021).

Relevant sectoral ministries also actively participated in the initiative, overseeing roadmap efforts within their domains. These ministries included the Ministry of Transport and Communications, the Ministry of Agriculture and Forestry, the Ministry of Economic Affairs and Employment, and the Ministry of the Environment.

Internally, each sector appointed a project manager to oversee and coordinate the preparation of its roadmap. The project manager was supported by a steering group comprising representatives from member companies and key stakeholders. While the composition and function of the steering groups varied between sectors, their main task typically involved providing industry insights crucial to the preparation of the roadmaps.

Across all sectors, collaboration involved multiple stakeholders, including operators within the relevant sector, consultants, and trade association committees. Some sectors organized workshops, discussions, and other venues for participation, such as comment portals and member surveys, in order to gather additional views and insights from membership and stakeholders (Ministry of Economic Affairs and Employment, 2021).

Despite the challenges posed by the coronavirus pandemic, nearly all roadmaps were finalized according to schedule and made public in May and June 2020. The roadmaps can be accessed in Finnish at the website of the Ministry of Economic Affairs and Employment. In October 2020, the ministry published a report summarizing the key outcomes of the Low-Carbon Roadmaps initiative to date. Published in English the following year, it included summaries of the published roadmaps, a description of the work process, and information on further work. It also explores how the roadmaps will be utilized in climate and energy work towards a low-carbon Finland (Ministry of Economic Affairs and Employment, 2021).           

Most roadmaps are structured into main content, outlining sector-specific strategies for GHG reductions within designated timelines, and supplementary content providing broader context and addressing various issues, including cross-sectoral opportunities. Each roadmap typically offers a comprehensive description of the current situation within the respective sector, evaluating available emission-reducing technologies and measures, and projecting achievable emission reductions. Scenario analyses, including business-as-usual and low-carbon scenarios, are employed to forecast future sectoral developments. By facilitating the identification of research and development funding needed over the next few years to support a low-carbon economy, such analysis is intended to aid the government in updating its climate and energy strategy in order to meet climate targets (Ministry of Economic Affairs and Employment, 2021).

Following the publication of the roadmaps, the government started preparing their updates. While updating the roadmaps is voluntary, at the time of writing this report multiple sectors are engaged in this process, which requires various new analyses and stakeholder dialogues. The update process was scheduled for completion in Spring 2024 (Ministry of Economic Affairs and Employment, 2024a).

Feedback from informants (notably fewer in Finland than in the other countries), indicates that in Finland the Low-Carbon Roadmaps initiative has been very effective and has played an important role in addressing climate change. Both public and private sector informants expressed a positive outlook on the initiative, highlighting the substantial efforts, resources, and determination invested by all involved parties. The issuance of the roadmaps according to schedule amid the societal disruptions caused by the coronavirus pandemic was specifically noted as demonstrating the commitment by both public and private sectors.

It was emphasized that Finland’s business community is in general acutely aware of the escalating impact of climate change on business environments. Consequently, there is a strong inclination among businesses to actively participate in and contribute to the green transition and the ambitious 2035 carbon neutrality target. This proactive engagement is driven by the recognition of the competitive advantage to be gained by staying ahead of competitors and swiftly implementing new climate-friendly solutions. One informant noted that the key success of the Low-Carbon Roadmaps initiative was that the industry sectors were keen to use this platform to state loud and clear that they support the government’s ambitious climate policy.

Informants reported a high level of trust between the public and private sectors, perhaps attributable to Finland’s longstanding tradition of close collaboration and open dialogue. Also, the country’s small size, coupled with its accessible administration and minimal hierarchy, was noted as a factor potentially contributing to effective cooperation. Another factor specifically mentioned as helpful to the initiative was the Climate Policy Roundtables, regularly hosted by the Finnish government to create a common understanding across various societal sectors of how Finland can make a just transition to a carbon neutral society by 2035 (Finnish government, 2023).

There appears to be general satisfaction with the information-sharing and transparency surrounding the Low-Carbon Roadmaps initiative. A private sector informant noted that the industry felt well informed about the overall work and that the process was transparent. Information was accessible, and adequate opportunities existed for open dialogue with the government during specific meetings and the climate roundtables mentioned above.

While acknowledging the government’s overall effective communication and support in the development of the roadmaps, it was noted by one informant that some labor associations would have wanted to be more involved in the process in order to ensure a more prominent discussion of social aspects in the roadmaps.

Although establishing a direct correlation between roadmap proposals and actual climate policy proves challenging, informants generally seemed to consider that the roadmaps have influenced the government’s climate and energy policy. However, one private sector informant mentioned frustration voiced by some industries about inadequate government responses to their proposals. Additionally, some sectors seem to have encountered difficulties in effectively implementing the roadmaps, particularly due to challenges related to reaching out to small and medium-sized enterprises (See: Ministry of Economic Affairs and Employment, 2021).

Other challenges cited by informants include the situational differences between sectors, which pose obstacles to developing harmonized instructions and guidance on the use of methodologies, numerical data, and other aspects.