5. Finland

As much as one-third of the total land area in Finland is covered by mires and peatland, constituting 9.3 million hectares. Mires encompass various types, including bogs. The peat layers vary significantly between regions, with those in the southern areas being notably thicker than those in the north. Due to the large peatland areas, Finland has a peat industry that covers 1.2 million hectares. Peat is used for energy and heating and sold as sphagnum for horticultural and environmental use.

Vitranen (2012)

Almost 6 million hectares of peatland are drained for forestry purposes. The drainage of peatlands disrupts water flow, degrades water quality, and increases nutrient runoff from the soil.

Nieminen et al (2010)

Most drainages occurred between 1960–1980, mainly for forestry reasons to improve tree growth and intense peat mining for fuel. Compared to Sweden, e.g., drainage took place much later in Finland, so machines were used to a larger extent than digging by hand. This has caused deeper ditches in a more methodological pattern. Due to this, the environmental effects have been worse compared to neighbouring countries. As a result of the historical situation on drainage of peatland fields and the subsequent severe environmental impact, Finland has a long history of restoration of peatlands. The ongoing restoration programmes have several objectives, including climate, biological, and hydrological.

Laudon et al. (2022)

The following sections will describe the Finnish policy landscape for rewetting. The assessment does not cover rewetting policies and funding programs for rewetting in Åland Islands.

Finland's main objectives for rewetting can be divided into two distinct focuses. For agricultural peatlands, the primary goal is to reduce greenhouse gas emissions. In contrast, rewetting forestry lands primarily aims to protect and enhance biodiversity and improve water quality. The Finnish government has committed to reaching carbon neutrality by 2035, with a commitment to transition to negative carbon emissions thereafter. A central element in Finland’s climate policy is the new Climate Change Act from 2022, which outlines the targets and trajectory for Finland to become carbon neutral by 2035 and emission targets for 2040 and 2050.

Republic of Finland State Treasury (n.d)

In the 2022 update, the act has been extended to address emissions from the land use sector, including forestry, and agriculture. For the first time, the act also included a specific goal to enhance carbon sinks.

Ministry of Agriculture and Forestry (2023)

Part of the Climate Action Plan is a roadmap for agricultural peatlands, where rewetting is pointed out as a measure to efficiently reduce emissions from the land. The Ministry of Agriculture and Forestry is responsible for the act. An overview of the policies is shown in Table 5 below.

Table 5: Key policies governing rewetting in Finland

The Climate Plan for the Land Use Sector will be part of the planning system under the Climate Change Act. The plan contains both an implementation and monitoring plan to measure the impacts. The implementation plan will be monitored in the annual climate change reports to the Parliament. The plan also includes climate wetland investments, where cultivated peatland fields are transformed into wetlands or bog-like areas. The plan takes a point of departure in overall climate objectives and lists all different measures targeted to land use change and CO₂ emissions from agriculture and forestry. The key principle in developing the plan has been to prioritise measures in the most cost-effective way to achieve the climate targets. Measures 7.4.2 and 7.4.4 focus on wetland investments to convert peatland fields into so-called climate wetlands, while Measure 7.4.5 outlines a plan to develop a utilisation roadmap for peatland fields, including wetlands, as part of the strategy. These measures are described below.

Measure 7.4.2 “Climate wetland on peatland fields” is funded through the CAP (Common Agricultural Policy) and supports so-called “non-productive wetland investment”, where CO₂ emission reductions are one of the targets. The policy instrument is part of the current CAP plan, which runs from 2023–2027. According to the plan, the goal is that 4,000 hectares will be turned into climate wetlands by 2030 and 7,500 hectares in 2035. The projected annual emissions reduction is estimated to be 0.07 million tonnes CO₂e in 2030 and 0.13 million tonnes CO₂e in 2035. The responsible authorities for the measure are the Ministry of Agriculture and Forestry, the Finnish Food Authority, and the Centers for Economic Development, Transport and the Environment (ELY).

Measure 7.4.4 “Wetting low-yield, thick-peat fields and cut over peatlands to establish climate wetlands” is funded directly through the government budget. Thick peat fields can enable more cost-effective emission reductions compared to low-peat fields, as they contain higher carbon concentrations, allowing for sustained emissions over a longer period. The plan states a target that 30,000 hectares of the so-called low-yield, thick-peat fields or cut-over peatlands should be taken out from production and rewetted to climate wetlands by 2035. The action is estimated to reduce CO₂e emissions by 0.175 million tonnes by 2030 and another 0.175 million tonnes by 2035. The responsible authority is the Ministry of Agriculture and Forestry.

Ministry of Agriculture and Forestry (2023)

Measure 7.4.5 outlines the plan to develop a roadmap for the utilisation of peatland fields. The roadmap aims to clearly define how to make the best use of peatland fields from a climate perspective. The roadmap will define the different types of peatlands, and their properties, and assess their potential climate impact from peatland fields. The responsible authorities to feed in with knowledge to the roadmap are the Ministry of Agriculture and Forestry, Ministry of Economic Affairs and Employment, Ministry of the Environment, Finnish Food Authority, Geological Survey of Finland, Natural Resources Institute Finland and Finnish Meteorological Institute.

The Finnish Ministry of Environment is responsible for the National Action Plan for Conservation and Sustainable Use of Biodiversity (2013–2020) as well as a mid-term report on the Climate Change Policy Plan towards carbon neutrality, published in 2022. The National Action Plan for Biodiversity is currently being updated and is expected to be completed by the end of 2024. The Action Plan serves as a national guiding document for the restoration of forestry peatlands, outlining only a broad national objective. The strategy does therefore not contain specific actions or policy instruments put in place to achieve the targets.

Government of Finland (2013)

The forestry sector has included elements from the Action Plan in the overarching National Forest Strategy for the Industry until 2025, where drained peatlands are included in rewetting initiatives.

Ministry of Agriculture and Forestry (2019)

The mid-term report on carbon neutrality outlines the projected change in land use until 2040, where around 11,600 hectares of peatland fields with a water level between -5 to 10 cm should be rewetted. The report further explains how the current CAP plan supports the establishment of climate wetlands on agricultural land. The support for rewetting under the CAP plan compensates for non-productive investments, meaning the land cannot be used for production once rewetting has been carried out. The support covers the conversion of peatland fields into wetlands or swamp-like areas. The peatland fields should contain at least 40% organic matter in the tillage layer.

Ruokavirasto (n.d)

Emissions from climate wetlands are reported annually as part of the national monitoring program and are classified under their own category. The estimated impact of reduced emissions from the land use sector is 0.1 Mt CO₂-eq in 2030 and another 0.1 Mt CO₂-eq in 2035.

Ministry of the Environment (2022)

The National Climate Change Adaptation Plan, National Forest Strategy and CAP Strategic Plan are general steering documents for peatlands and wetlands. However, these documents do not provide guidance on the amount of land, or which land should be prioritised, nor do they specify actions to ensure the rewetting and restoration of wetlands. Instead, they should be regarded as strategic policy documents for forestry and agriculture, outlining overarching development plans for these sectors.

Finland has structured its funding schemes for rewetting into different programmes that run between 5–10 years at a time. It is only the CAP plan from the EU that is not funded through government money. The funding can be divided into four different schemes, that is, both for private landowners in agriculture and forestry but the main part of the government funding is directed to rewetting on protected state-owned land. It has, however, been difficult to get an overview of the funding opportunities and the different programmes running at the same time, since there is no centralised responsibility delegated to any of the involved parties. The rewetting efforts are, therefore perceived to be scattered between different stakeholders and a comprehensive approach is lacking.

Table 6: Overview of rewetting funding schemes in Finland.

Since 2023, rewetting initiatives have been part of Finland's CAP Strategic Plan. This marks the first time economic support has been made available for converting cultivated peatland soils into wetlands. The programme runs from 2023–2027 and around €60 million is allocated to rewetting measures. The Ministry of Agriculture and Forestry manages the funds from the EU Commission and is responsible for making the national plan and measures. The implementation of the CAP plan, which includes agreements with farmers, follow-up and monitoring as well as the compensation payments, is handled by Ruokavirasto, the Finnish Food Authority. The Food Authority maintains direct contact with farmers and, for specific implementation and control matters, collaborates with municipalities or operates at the regional level.

Compensation covers costs for converting cultivated agricultural peatland into wetlands. Compensation is eligible for “non-productive investments” under the environmental compensation scheme, meaning the area covered by the agreement can no longer be used as agricultural land. If the wetland area exceeds 0.5 hectares, the maximum compensation is €12,000 per hectare. However, for smaller wetland areas between 0.3 and 0.5 hectares, the maximum compensation is €4,100 per hectare. In addition, an agreement on the management of wetlands is also agreed upon between the owner and the Ministry of Agriculture and Forestry. The farmer is also eligible to receive an annual payment of €500 per hectare for managing the land in the years following its establishment. There is however no further compensation for production losses from converting the land.

European Commission (n.d)

According to the Ministry of Agriculture and Forestry, there were no applications during the first year (2023) and only a handful during 2024. Extensive information sharing and knowledge building on rewetting and wetland restoration are essential to motivate farmers and clarify the changes in the CAP, the funding scheme, and the associated environmental and climate benefits. Since the programme operates in five-year cycles, farmers face significant uncertainties about compensation and contract arrangements once the programme period ends. The Ministry of Agriculture and Forestry emphasises the need for clearer political support from the Finnish government. Investments in broader information sharing, public awareness campaigns, and earmarked funds from the state budget are essential to ensure long-term compensation for rewetting agreements beyond the CAP programme's end. The Ministry notes that such measures have not yet been implemented due to a lack of dedicated resources for effective communication and advisory efforts. Allocating these funds could reduce uncertainties significantly and potentially encourage more farmers to participate in rewetting agreements.

As part of the Government's report on the Climate Change Plan for the Land Use Sector, measure 7.4.4, titled “Wetting low-yield, thick-peat fields and cut-over peatlands to establish climate wetlands,” is funded directly from the government budget. A total of €30 million has been allocated for the period 2023 to 2025, with an annual allocation of €20 million from 2026 onwards. These funds will be used to compensate landowners for repurposing their land for carbon storage. In total, 30,000 ha is targeted to be withdrawn from production and rewetted. The land will no longer be classified as agricultural land. Geospatial methods will be employed to identify and prioritise suitable areas. The funding is administered through the Ministry of Agriculture and Forestry.

Ministry of Agriculture and Forestry (2023)

The Helmi Habitat Programme is a government-funded initiative managed by the Ministry of the Environment and implemented by the Parks and Wildlife Department at Metsähallitus. Running from 2021 to 2030, the programme is a direct continuation of the National Biodiversity Action Plan, which ended in 2020. Its primary goal is to enhance biodiversity protection and prevent ecosystem degradation. One of the focus areas of the Helmi programme is the restoration of peatlands, mainly focused on state-owned protected land, but also voluntary restoration on private land is undertaken, although to a lesser extent. In the restoration programme, drained ditch lands are refilled with water, and the pristine landscape and tree stand are recreated to the best possible extent. Small dams are also constructed to regulate water flows. The programme aims to restore 60,000 hectares of peatland until 2030, everything is solely on voluntary basis.

Gummerus-Rautiainen et al. (2021)

The METSO programme

METSO (n.d)

is a voluntary conservation initiative for Southern Finland, managed by the Ministry of Agriculture and Forestry. The program has run in several periods since 2008, the last period running from 2021 to 2025. The program involves agreements between forest owners and the state, allowing landowners to voluntarily participate in nature conservation efforts. The forest owner can either sell the land to the state for permanent preservation or the forest owner can agree on temporary conservation for either 10 or 20 years. The forest owner is compensated for both the lost value of the land and a compensation value equivalent to the lost value of the timber. For the permanent protection programme, the compensation is tax-free, and all nature management costs are funded by the government. The programme has set clear area-based targets for its current period, which ends in 2025, but the programming period will continue for another five years until 2030 with new clear objectives and targets. By 2025, 96,000 hectares of forest are to be designated as either permanent or temporary nature reserves. Additionally, another 82,000 hectares should be protected through fixed-term environmental forestry subsidy agreements or managed and restored through specific nature management projects. However, it has been challenging to determine the total funding allocated to the METSO Programme for this period, as well as how close to the hectare target, the programme is so far.

Helmi and METSO are similar programmes with significant synergies and cooperation between them. The key difference between the two programmes lies in their focus areas. METSO targets forests on mineral soils that are closer to their natural state, while Helmi is dedicated to restoring drained peatlands to improve their ecological status. METSO is managed by both the Ministry of Agriculture and Forestry, and the forestry department at Metsähallitus. Helmi is coordinated by the Ministry of Environment and the Parks and Wildlife department at Metsähallitus. Focus lies on both state-owned protected land and privately owned land but divided between the stakeholders. Both programmes collaborate closely to ensure that different habitats are assessed and considered holistically, to ensure synergies and connections between areas.

Gummerus-Rautiainen et al. (2021)

As part of the Catch the Carbon programme, funded by the government and organised through the Ministry of Agriculture and Forestry, a project titled “Roadmap for the Use of Agricultural Peatlands” was initiated. Running from 2023 to 2024, the project developed a roadmap for the utilisation of peat fields, assessing their economic, environmental, and land-use impacts across Finland for the years 2035, 2040, and 2050. This initiative is part of the broader implementation of the government's Land Use Sector Climate Plan, aimed at achieving carbon neutrality by 2035. Led by LUKE, the Finnish Natural Resources Center, the project was a collaborative effort involving farmers, the food industry, and municipalities. While it was scheduled for completion by the end of October 2024, the final roadmap was not yet been made available as of November 2024.

Natural Resources Institute Finland (n.d)

The Helmi Habitat Programme runs from 2021 to 2030, with the annual rewetting of land reported each year. The first evaluation of the programme will be done in 2025, and a final evaluation will be conducted in 2030 after the programme period ends.

SYKE, the Environmental Research Institute, personal communication, November 22, 2024

The METSO Programme is evaluated regularly by Luke. The most recent review, conducted in 2022, detailed the programme's progress since its launch in 2008 and outlined an action plan for 2025. The report also included data on the total hectares restored each year and cumulatively since the programme's inception. However, the report outlines the results for the whole program, which includes different kinds of nature restoration efforts, apart from rewetting. It has therefore not been possible to find any reporting specifically on rewetting efforts linked to the program. Furthermore, it is stated that a significant part of the restoration measures is also reported in the Helmi Habitat programme, there will therefore be overlaps. The goal of the current METSO programme period until 2025 is to restore 96,000 hectares of forests, and by the end of 2022 93% of the target had been reached. It is however stated that there is a need for increased funding towards the end of programme period to reach the target.

Anttila et al (2023)

To our understanding, a lot of the monitoring and evaluation from restoration efforts in Finland is conducted through the Peatland Group of the Finnish Board on Ecological Restoration, which is an expert group consisting of researchers from universities and research institutes, as well as civil servants from the Ministry of Environment and Metsähallitus Parks and Wildlife department. The expert group focuses on ecological restoration of forestry drained peatlands, especially protected areas. The group has several purposes, the main ones being design of monitoring schemes to study the ecological effects of restoration and providing guidelines for peatland restoration. Another important purpose of the expert group is to bridge knowledge and expertise between research and practical management.

Metsähallitus (n.d)

The expert group also conducts primary research themselves on peatland restoration, and publishes research articles regularly, to report on the effects. It has therefore not been evident to get an overview of the monitoring and evaluation being conducted for the different restoration programmes running. The latest article being published was in late November 2024 called “Restoration of forestry drained boreal peatland ecosystems can effectively stop and reverse ecosystem degradation”. The study covers 151 different sites, representing six different ecosystem types. The sites have been studied for ten years in a row and shows that not restoring leads to further degradation of the ecosystems, but restoration can stop and reverse that trend. The authors conclude though, that the ten-year period is still too short to capture the full effects from restoration. But variabilities across ecosystem types and outcomes over time can still be seen. The authors stress the need for more evidence-based evaluations of restoration efforts.

Elo et al. (2024)

Another quite recent collection of Finnish restoration literature can be found in a report from Kareksela et al. 2021.

Kareksela et al. (2021)

In an interview with the Parks and Wildlife Department, national conflicts related to rewetting activities were discussed. Especially two uncertainties were highlighted – the long-term climate effect on climate objectives and shifts in the job market. For over 30 years, the Finnish government has been restoring drained peatlands in protected areas to rehabilitate ecosystems, enhance biodiversity, and improve water quality. Due to Finland's long history with rewetting, research and monitoring of climate effects have been prioritized to understand the impacts. The short- and long-term climate effects from rewetting are quite well understood, but the immediate climate warming effect and its impact on short term climate objectives are uncertain. Metsähallitus notes significant uncertainty around the immediate warming effect of rewetting and its implications for global warming in the short term. This immediate effect is not currently accounted for in Finland's national climate objectives for 2035. As a result, the near-term impact of rewetting initiatives on Finland's emission targets remains uncertain.

Metsähallitus, personal communication, November 20, 2024

Estimates from Metsähallitus' forestry division suggest that approximately 3,600 jobs within the forestry sector could be lost due to rewetting practices. However, job creation in restoration management must also be considered to provide a balanced view, despite the anticipated market shift from forestry to restoration activities. Rewetting on forestry land conflicts with timber production, which is a significant export commodity for Finland. Goods from the forest sector account for one-fifth of the country’s total exports. The overall effect of rewetting on GDP and the broader economy, however, remains uncertain, which is why these estimates should be.

Metsähallitus, personal communication, November 20, 2024

In general, it can be noted that Finland is very active in peatland restoration and rewetting practices and has been for several decades.  It was only in the early 2020s that rewetting became part of the national climate objectives, and since then, it has played a significant role in government-funded research projects and monitoring efforts. Rewetting has nevertheless played a significant role in policy objectives since long before climate objectives, to improve water quality and enhance biodiversity across the country. Finland has set clear targets for rewetting both for emission reduction purposes and for hydrological and biodiversity purposes. The programmes are funded by the government and set dedicated targets for how many hectares of land should be rewetted, as well as what type of land should be prioritised. Both forestry and agricultural land is part of the government funding, however, due to the large extent of forests in Finland, forestry areas are the main target for rewetting drained peatlands. Rewetting agricultural land to reduce emissions is an exception, as it is exclusively covered by the CAP funded directly by the EU Commission. However, the allocation of funding in five-year periods has raised concerns, as uncertainty about the structure of future funding discourages farmers from committing to rewetting practice

On a final note, it can be concluded that Finland has a long tradition of monitoring effects from rewetting peatlands. From interviews with Metsähallitus and SYKE, who both are active in restoration activities, there is a pretty good understanding of the effect of rewetting activities on different types of land in different parts of the country. The climate effects – initial warming followed by subsequent cooling – are well monitored and evaluated. However, it remains uncertain how recent and upcoming rewetting initiatives will influence overall emission reduction targets to achieve climate neutrality by 2035.

Metsähallitus, personal communication, November 20, 2024

SYKE, the Environmental Research Institute, personal communication, November 22, 2024