Greenhouse gas emissions are slowly decreasing
The Finnish Climate Act, revised in 2022, requires Finland to be carbon neutral by 2035. Emissions and carbon sinks must be in balance by that time. Finland is also bound by the obligations of the European Union. Under the Paris Agreement, the EU committed to reducing greenhouse gas emissions by at least 55% by 2030 (compared to 1990 levels). The EU aims to achieve carbon neutrality by 2050.
There are two ways to achieve emission reductions: through emissions trading and through non-ETS (non-emissions trading) emissions reductions. The latter has specific percentage reduction targets. In the EU, these targets are individually defined for each member state in the so-called burden-sharing. Finland must reduce these emissions by 50 percent from 2005 levels by 2030. Emission quotas will be adjusted in the second half of the 2020s if necessary.
The Finnish Climate Act requires that non-ETS emissions are reduced by 60% by 2030 compared to 1990 levels and by 80% by 2040. By 2050, the reduction should be at least 90%, with an aspiration towards reaching 95%.
Current
Total emissions are slowly decreasing
Greenhouse gas emissions in Finland peaked in the early 2000s, after which there has been a declining trend. Compared to the reference year 1990, emissions have decreased by about a third. Carbon dioxide emissions have the most significant impact, while other important greenhouse gases include methane, nitrous oxide, and certain fluorinated compounds.
Energy consumption and transportation are the largest contributors to emissions
Almost 70% of Finland's greenhouse gas emissions come from the energy sector. It includes all emissions from the production, distribution and combustion of fuels, including those from transportation. The next significant sources of emissions are agriculture and industrial processes and product usage.
Emissions from the energy sector have decreased
Emissions from the largest source – the energy sector – have dropped to less than half of their peak level in 2003. Significant reductions have also been achieved in waste management. Emissions from other sectors have remained roughly unchanged or have decreased slightly.
Imports increase the climate burden on Finns
Finns also burden the climate by consuming foreign products, whose production and transportion cause emissions outside Finland's borders. Consumption-based climate burden, which includes imports and exports, is about one-third higher than Finland’s territorial emissions.
Emissions trading is effective in curbing emissions from large facilities
Finland's and the entire European Union's emissions are curbed by the EU-wide emissions trading system. Emissions trading mainly covers large industrial plants and electricity and heat production. Since 2013, emissions from these facilities in Finland have decreased more sharply than Finland's total emissions. The emissions trading sector now accounts for about one quarter of Finland’s climate emissions.
A separate plan for emissions outside of the emissions trading
For activities not covered by emissions trading, a medium-term plan has been developed to curb emissions. This plan includes sectors such as transportation, building-specific heating, agriculture, and waste treatment. The plan assesses emission trends and scenarios, and proposes actions to mitigate emissions in each sub-area.
Municipalities in Finland are striving for carbon neutrality
Finnish municipalities are involved in emission reduction efforts. A municipality’s own operations cause only about 10% of local emissions, but it can influence broader reductions among businesses and residents.
Climate policies drive emissions reductions
Both global and Finnish climate policies aim to combat climate change by accelerating emission reductions until targets are met. The toolbox for achieving this goal is broad.
The European Union is boosting energy efficiency and launching emissions trading for fossil fuels in transport and heating. A carbon border tax has also been imposed on carbon-intensive imported products
