Overall assessment

The 2010 version of the Climate Policy Tracker gave Finland a rating of F. Since then the trend is slightly positive as Finland introduced a feed-in premium scheme to promote the use of renewable energy in January 2011. The premium is in most cases adequate, although ambition levels for solar, wind and geothermal energy remain low.

After the elections in April 2011, a government was formed in June 2011. The new government has shown some climate ambition in the governmental programme, but the concrete policy measures are still quite unclear. For example, the decision about an ambitious climate law was left open in the government’s programme. However there are measures in place to reduce green house gases such as the subsidised use of solar panels and hybrid cars.

Recommendations on most urgent actions

  • Finland could benefit from policy measures that support energy saving and energy efficiency. The present plans to lower energy taxation for energy-intensive industries would result in lower incentives to save energy and thus should not be implemented.
  • There is a clear focus on renewable energy production for biofuels and hydro energy. The target levels and subsidies for wind power, solar energy and geothermal energy are not very ambitious and could be increased. Small and micro-scale renewable energy production should be promoted. The taxation of peat should be strictly connected to its
    CO2 emissions.
  • The transport sector is under-represented in energy and climate policies. There are no instruments to promote electric vehicles or a modal shift.