New Finnish Government programme gives a strong boost for energy transition

Reducing emissions from our society and industry requires massive investments in clean energy production, security of supply and a flexible electricity system already this decade. The decisions and actions taken in this new government term will be central to this development.

At Fortum, we have reviewed the Government Programme announced on 16 June 2023, especially from the perspective of achieving the clean energy transition and the carbon neutrality target. We have also actively addressed these issues in the run-up to the elections and during the Government negotiations.

We welcome the energy and climate policy proposals in the Government Programme and consider them to be pro-business, and we believe the measures outlined in the programme will provide a solid basis for boosting the energy transition over the next four years.

We are very pleased with the Government’s signal of its will to strengthen Finland’s position as an investment target for the clean transition, develop exports based on zero-emission production and continue an ambitious climate policy in line with national climate legislation. The objective of ensuring affordable energy for consumers is also important.

The Government’s ambitious target is to double clean electricity production, although the programme leaves the target timetable open. The Government Programme includes strong support for nuclear, hydro, wind and solar power, and the hydrogen economy. It also aims to streamline the permitting of building clean energy and to make it a key factor in Finland's competitiveness.

In addition to clean electricity production, the Government Programme supports the decarbonisation of industry. Both policy proposals support Fortum’s strategic targets to produce clean energy reliably and to promote industrial decarbonisation.

Some of the proposals require clarification and further analysis

We very much welcome the Government Programme’s strong emphasis on decarbonisation of industry as part of the clean energy transition and that the Government is also exploring the possibility of Government involvement in financing solutions for strategic investments. We hope that the Government will make this concrete as soon as possible. The Government Programme rightly emphasises the importance of a stable and predictable regulatory framework and smooth permitting procedures for new investments. However, it is clear that pilot projects based on new technologies, especially on a large scale, are not only market-driven, but need both political and financial support to become a reality.

The additional obligations on wind power planned by the Government need further clarification. It is also important that projects already under construction or development can be implemented under the current rules.

We hope that the new Government will quickly formulate a new climate and energy strategy to solidify the objectives of the Government Programme. This will ensure the investments needed to meet the climate targets, safeguard the competitiveness of Nordic industry and make Finland an attractive investment target.