On 12 October 2023, the Government submitted to Parliament its proposal for a new Emissions Trading Act and amendments to the Act on Biofuels, Bioliquids and Biomass Fuels. The current Emissions Trading Act and the Act on Aviation Emissions Trading would be repealed.

The implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM) will begin on 1 October. CBAM is a new kind of EU policy tool that imposes an emissions-based price on certain products from outside the EU equivalent to that imposed by the EU emissions trading scheme on similar products manufactured in the Union.

Finland submitted its draft update of the integrated National Energy and Climate Plan (NECP) to the European Commission on 30 June 2023. The energy and climate policy targets of Prime Minister Petteri Orpo’s Government Programme have been incorporated into Finland’s plan.

On 18 April 2023, the European Parliament approved five legislative proposals that are part of the “Fit for 55” package. Parliament, the Commission and the Council representing the EU Member States had reached a preliminary agreement on the proposals at the end of 2022. The climate package aims to reduce greenhouse gas emissions in the EU by at least 55 per cent by 2030, compared to 1990.

The EU’s Carbon Border Adjustment Mechanism aims to prevent carbon leakage, where greenhouse gas emissions are transferred to countries outside the Union through production, and at the same time to encourage non-EU manufacturers to reduce their emissions. The Ministry of Economic Affairs and Employment has appointed a working group to prepare the implementation of the mechanism in Finland.