Energy investments of Finland’s Sustainable Growth Programme promote the green transition
On 16 December 2021, the Government issued a decree that will allow support to energy investments under Finland’s Recovery and Resilience Plan in 2022–2026. The aim is to promote energy investment and energy infrastructure projects that reduce greenhouse gas emissions in Finland and support the country’s 2035 carbon neutrality target.
The Recovery and Resilience Plan is part of the Sustainable Growth Programme for Finland, which, in line with the objectives of Prime Minister Sanna Marin’s Government Programme, supports ecologically, socially and economically sustainable growth.
In addition to climate objectives, the funding will also promote new business opportunities in sustainable growth for companies.
“Green transition funding will support companies’ energy transition and enable the commercialisation of new technologies at the same time. The funding will be used to renew the economic structure and will help create new jobs. Finnish companies are in a good position to lead the way in green solutions,” says Minister of Economic Affairs Mika Lintilä.
EUR 520 million to energy system transition and industrial energy solutions
Upon the adoption of the decree, calls for applications related to the energy system transformation and industrial energy solutions of the Sustainable Growth Programme can be opened. The amount of available funding will total about EUR 520 million. The Ministry of Economic Affairs and Employment and Business Finland will announce the first call for applications in the next few days.
The Sustainable Growth Programme has specified the following amounts of funding to energy investments:
- Investments in energy infrastructure: EUR 155 million
- Investments in new energy technology: EUR 155 million
- Low-carbon hydrogen and carbon capture and utilisation EUR 150 million
- Direct electrification and decarbonisation of industrial processes EUR 60 million
The funding will come from the EU Recovery and Resilience Facility (RRF). These figures may still change, as the final amount of funding from the EU will be specified in summer 2022.
Both the Ministry and Business Finland can make funding decisions based on the thresholds set in the Decree. In accordance with the Decree, Business Finland will make decisions on aid to Important Projects of Common European Interest (IPCEI) related to hydrogen.
Condition for granting aid is the principle of “do no significant harm”
The Decree’s content is largely in line with the Government Decree on general terms and conditions for granting energy aid in 2018–2022, but it also lays down provisions on the general and special conditions related to the implementation of projects and the granting of aid in accordance with Finland’s Recovery and Resilience Plan.
For example, the funding criteria include special requirements related to the use of the EU’s Recovery and Resilience Facility, such as compliance with the “do no significant harm” principle. According to this principle, investments should not cause significant harm to environmental objectives.
The Government Decree will enter into force on 16 December 2021 and remain in force until 31 December 2026.
Antti Siika-aho, Special Adviser to the Minister of Economic Affairs, tel. +358 29 504 7228
Inkeri Lilleberg, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 29 504 7092