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IEA: Finland shows how bioenergy and nuclear power can drive the energy transition

Ministry of Economic Affairs and Employment
Publication date 23.10.2018 14.26
Press release

The International Energy Agency (IEA) states in its in-depth review that Finland has adopted strong climate policies and ambitious 2030 targets for halving oil demand and phasing out coal use, among others. However, the IEA reminds the Finnish Government of the need to focus on cost-effective measures to achieve this goal.

Finland targets, for example, that 30% of transport fuels come from renewable sources. This means that, as a leader in advanced biofuels, Finland needs to ensure that the new biofuels obligation can be met with sustainable feedstocks. It should also encourage investments in the production of new biofuels for long-distance transport, such as freight, shipping and aviation.

“Finland aims at reducing car ownership by fostering a shift from personally-owned modes of transportation towards mobility solutions that are consumed as a service. This is commendable, but should not come at the expense of an increase of total transport emissions. Taking a holistic approach to the decarbonisation of the transport sector will require higher efficiency of vehicles and of the transport system as a whole, as well as more zero-emission mobility,” said the IEA Deputy Executive Director Paul Simons as he presented the report in Tampere on 23 October as part the World Energy Council’s Energy Day and the Energy 2018 event.

“The IEA review delivers once again an in-depth assessment of Finland’s energy policy and gives us recommendations that will play a key role when we prepare measures to mitigate climate change and tackle the challenges of energy security,” Minister of the Environment, Energy and Housing Kimmo Tiilikainen commented on the IEA recommendations.

“Finland will continue to search for ways to tackle long-term climate challenges in the energy sector, at the same time bearing in mind our goals regarding environmental sustainability, security of energy supply, and competitiveness,” said Tiilikainen.

“The IEA recommends that we adopt determined efforts to reach our energy and climate targets for 2050, review our taxation and support schemes for transport and combined heat and power production, promote the energy efficiency of vehicles, zero-transmission mobility and new fiscal instruments in the transport sector, and foster dialogue with our Nordic and Baltic neighbours. In many respects, we have already initiated measures corresponding with these recommendations, and there will be more initiatives in the future,” said Minister Tiilikainen.

The IEA reviews its member countries’ energy policies every five years and gives recommendations for new policy measures. The emphasis of the 2018 in-depth review of Finland’s energy policy was on emissions reductions in sectors not included in the EU Emissions Trading System, especially transport, and the sustainable use of forest biomass and the future of combined heat and power production as part of the electricity sector’s transformation.

More information:
The launch event will be webcast live on 23 October at 14.30 and a recording may be viewed later at:
IEA’s In-depth Review: Finland 2018 at:

Vilhartti Hanhilahti, Special Adviser to the Minister of the Environment, Energy and Housing, tel. +358 40 836 4823
Riku Huttunen, Director General, Ministry of Economic Affairs and Employment, tel. +358 50 3431 6519
Katja Tuokko, Senior Adviser, Ministry of Economic Affairs and Employment, tel. +358 50 465 5533

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