Finland aims for net zero by 2035 in new climate act

Finland's updated Climate Change Act entered into force today, setting a target of net zero emissions by 2035, arguably the most ambitious climate goal in the developed world.

Finland plans to reduce emissions by 60pc by 2030 — from a 1990 baseline — and hit carbon neutrality, or net zero, by 2035. These are more ambitious targets than the EU's goal of a 55pc emissions reduction by 2030, also from 1990 levels, and net zero by 2050, a more typical target for developed economies.

Finnish prime minister Sanna Marin aims for the country to be carbon-negative "soon after" 2035, with a focus on strengthening carbon sinks. Forest cover made up around 74pc of Finland's land area in 2020, World Bank data show, though Statistics Finland data show that in 2021 the land use sector, which includes forestry, was for the first time a source of net carbon emissions, albeit narrowly.

Separately, the government submitted an updated national climate and energy strategy to parliament on 30 June, which aligns with medium-term climate policies, although the strategy is not regulated by the Climate Change Act.

The strategy addresses energy efficiency and renewable energy such as wind power and focuses on promoting heat production from non-fossil fuel sources — including waste heat and heat pumps. It also sets out hydrogen and e-fuels targets and suggests the use of small modular reactors for power and heat generation.

The plan sets out the funding required, including €150mn ($157mn) from 2024 for large-scale demonstration projects for new energy technology, some of which will be directed to hydrogen, although additional funds will be needed for hydrogen transport and distribution. The government has reserved €53mn to support increased domestic wood chip supply and €1mn/yr will be channelled towards consumer energy advice.

Finland has highlighted the need for a predictable long-term climate and energy policy, including "clear and easy licensing rules" to encourage private-sector investment. It is also focused on the phase-out of Russian fossil fuel imports, which it has already "almost completely" halted, it said.

By Georgia Gratton