Abstract
Finland has a diverse energy mix with a large share of bioenergy. The share of renewables is high (32%) and the Government that begun its term in June 2019 has declared that Finland will become carbon neutral by 2035. To reach this goal major socio-technical transitions are required. The country will need to change energy production and the use of energy in industry, heating, and transport, and develop energy storage further. For achieving carbon neutrality carbon sinks are also crucial. This chapter shows that some of the transitions are progressing, backed by ambitious energy and climate strategies. At the same time, there is a strong path dependency that emerges from the central role of the forest industry and bioenergy, and heavy industries more generally in Finland. Major tasks for the future governance of the energy system include continuous improvement in energy efficiency, increasing the share of low carbon energy production that does not depend on biomass, and strengthening demand side management. The energy transition needs support from an ambitious policy mix in which policy coherence is ensured.
This is a preview of subscription content, log in via an institution.
References
Carbon neutral Finland. (2019). Hinku Network—Towards Carbon Neutral municipalities. http://www.hiilineutraalisuomi.fi/en-US/Hinku.
Council on Energy Policy. (1982). Programme on Energy Policy (in Finnish) (1982:76; Komiteanmietintö).
Crill, P., Hargreaves, K., & Korhola, A. (2000). Turpeen asema Suomen kasvihuonekaasutaseissa (20/2000; Kauppa- Ja Teollisuusministeriön Tutkimuksia Ja Raportteja). Ministry of Trade and Industry.
Energy Authority. (2019a). Energy authority: About us. Energiavirasto. https://energiavirasto.fi/en/energy-authority.
Energy Authority. (2019b). Energy efficiency. Energiavirasto. https://energiavirasto.fi/en/energy-efficiency.
Eurobarometer. (2010). Europeans and nuclear safety (No. 324; special Eurobarometer). European Commission. https://ec.europa.eu/commfrontoffice/publicopinion/index.cfm/Survey/getSurveyDetail/instruments/SPECIAL/surveyKy/769.
Eurostat. (2019a). Energy statistics—An overview—Statistics explained. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Energy_statistics_-_an_overview#Energy_intensity.
Eurostat. (2019b). Eurostat—Data explorer: Share of energy from renewable sources. http://appsso.eurostat.ec.europa.eu/nui/setupDownloads.do.
Fennovoima. (2019). Board of Director’s Report 2018 (Annual Reports). Fennovoima. https://www.fennovoima.fi/en/media/publications/annual-reports.
Finnish Customs. (2020). Finnish import statistics [Statistical tables]. Uljas Database. https://uljas.tulli.fi/v3rti/db/0/views/dc8723a215f149388d074740db1ffb08.
Finnish Energy. (2019). Finnish energy is creating a sustainable society. https://energia.fi/en.
Finnish Energy. (n.d.). The greatest challenge is the emissions reduction target for the burden-sharing sector. Retrieved October 30, 2019, from https://energia.fi/en/advocacy/energy_policy/energy_and_climate_strategy.
Geels, F. W. (2002). Technological transitions as evolutionary reconfiguration processes: A multi-level perspective and a case-study. Research Policy, 31(8–9), 1257–1274. https://doi.org/10.1016/S0048-7333(02)00062-8.
Geels, F. W., & Schot, J. (2007). Typology of sociotechnical transition pathways. Research Policy, 36(3), 399–417. https://doi.org/10.1016/j.respol.2007.01.003.
Government of Finland. (1972). The programme of Prime Minister Rafael Paasio’s II government 23.2.1972 (in Finnish) (Government Programme). Government of Finland. https://valtioneuvosto.fi/hallitusohjelmat/-/asset_publisher/55-paaministeri-rafael-paasion-ii-hallituksen-ohjelma.
Government of Finland. (1997). Finland’s energystrategy—The Government’s report on energy policy to the Parliament (in Finnish) (VNS 5/1997vp; Valtioneuvoston Selonteko Eduskunnalle). Council of State.
Government of Finland. (2007). Government programme of prime minister Matti Vanhanen’s second Cabinet. Prime Minister’s Office.
Government of Finland. (2015a). Finland, a land of solutions Strategic Programme of Prime Minister Juha Sipilä’s Government 29 May 2015 (12/2015; The Government Publications). Prime Minister’s Office.
Government of Finland. (2015b). National Forest Strategy 2025 Government Resolution of 12 February 2015 (6b/2015; Publications of the Ministry of Agriculture and Forestry). Ministry of Agriculture and Forestry.
Government of Finland. (2017a). Government report on the National Energy and Climate Strategy for 2030 (12/2017; Publications of the Ministry of Economic Affairs and Employment). Ministry of Economic Affairs and Employment.
Government of Finland. (2017b). Kohti ilmastoviisasta arkea—Valtioneuvoston selonteko keskipitkän aikavälin ilmastopolitiikan suunnitelmasta vuoteen 2030 (Government Report to the Parliament). Ministry of the Environment.
Government of Finland. (2019). Programme of Prime Minister Antti Rinne’s (and Sanna Marin’s) Government 6 June 2019 INCLUSIVE AND COMPETENT FINLAND – A socially, economically and ecologically sustainable society (Government Programme). http://urn.fi/URN:ISBN:978-952-287-760-4.
Harju, J., Hokkanen, T., Laukkanen, M., Ollikka, K., & Tamminen, S. (2016). Vuoden 2011 energiaverouudistuksen arviointia (61/2016; Valtioneuvoston Selvitysja Tutkimustoiminnan Julkaisusarja). VATT Institute for Economic Research. http://vatt.fi/documents/2956369/3243686/Vuoden%202011%20energiaverouudistuksen%20arviointia%20VNK/86970bfe-3656-4756-88ef-06d941aa4e80.
Heiskanen, E., & Matschoss, K. (2016). Experiments for identifying necessary and missing competences for a smart and sustainable energy system. European conferences on the human dimensions of global environmental change, Berlin, Germany, 23/05/2016, Berlin. http://hdl.handle.net/10138/176455.
Hildén, M. (2011). The evolution of climate policies – The role of learning and evaluations. Journal of Cleaner Production, 19(16), 1798–1811. https://doi.org/10.1016/j.jclepro.2011.05.004.
Huuki, H., Karhinen, S., Kopsakangas-Savolainen, M., & Svento, R. (2017). Flexible demand and flexible supply as enablers of variable energy integration. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2966053.
Hyysalo, S., Lukkarinen, J., Kivimaa, P., Lovio, R., Temmes, A., Hildén, M., Marttila, T., Auvinen, K., Perikangas, S., Pyhälammi, A., Peljo, J., Savolainen, K., Hakkarainen, L., Rask, M., Matschoss, K., Huomo, T., Berg, A., & Pantsar, M. (2019a). Developing policy pathways: Redesigning transition arenas for mid-range planning. Sustainability, 11(3), 603. https://doi.org/10.3390/su11030603.
Hyysalo, S., Marttila, T., Perikangas, S., & Auvinen, K. (2019b). Codesign for transitions governance: A mid-range pathway creation toolset for accelerating sociotechnical change. Design Studies, 63, 181–203. https://doi.org/10.1016/j.destud.2019.05.002.
IEA. (2013). Energy policies of IEA countries 2013 review Finland. IEA. Paris, France.
IEA. (2019). IEA Energy Atlas. http://energyatlas.iea.org/#!/tellmap/-297203538/4.
Johnstone, P., & Kivimaa, P. (2017). Multiple dimensions of disruption, energy transitions and industrial policy. Energy Research & Social Science. https://doi.org/10.1016/j.erss.2017.10.027.
Kern, F., Kivimaa, P., & Martiskainen, M. (2017). Policy packaging or policy patching? The development of complex energy efficiency policy mixes. Energy Research & Social Science, 23, 11–25. https://doi.org/10.1016/j.erss.2016.11.002.
Kivimaa, P. (2008). Finland: Big is beautiful—Promoting bioenergy in regional-industrial contexts. In W. Lafferty & A. Ruud (Eds.), Promoting sustainable electricity in Europe: Challenging the path dependence of dominant energy systems. (pp. 159–188). Edgar Elgar, Cheltenham, UK & Northampton, MA, USA.
Kivimaa, P., & Kern, F. (2016). Creative destruction or mere niche support? Innovation policy mixes for sustainability transitions. Research Policy, 45(1), 205–217. https://doi.org/10.1016/j.respol.2015.09.008.
Kivimaa, P., & Mickwitz, P. (2011). Public policy as a part of transforming energy systems: Framing bioenergy in Finnish energy policy. Journal of Cleaner Production, 19(16), 1812–1821. https://doi.org/10.1016/j.jclepro.2011.02.004.
Kivimaa, P., Kangas, H.-L., & Lazarevic, D. (2017). Client-oriented evaluation of ‘creative destruction’ in policy mixes: Finnish policies on building energy efficiency transition. Energy Research & Social Science. https://doi.org/10.1016/j.erss.2017.09.002.
Koljonen, T., Soimakallio, S., Asikainen, A., Lanki, T., Anttila, P., Hildén, M., Honkatukia, J., Karvosenoja, N., Lehtilä, A., Lindroos, T. J., Regina, K., Salminen, O., Savolahti, M., Siljander, R., & Tiittanen, P. (2017). Energia- ja ilmastostrategian vaikutusarviot: Yhteenvetoraportti (21/2017; Valtioneuvoston Selvitysja Tutkimustoiminnan Julkaisusarja). Valtioneuvoston kanslia.
Kopsakangas-Savolainen, M., & Svento, R. (2013). Promotion of market access for renewable energy in the Nordic power markets. Environmental and Resource Economics, 54(4), 549–569. https://doi.org/10.1007/s10640-012-9605-z.
Kröger, M., & Raitio, K. (2017). Finnish forest policy in the era of bioeconomy: A pathway to sustainability? Forest Policy and Economics, 77, 6–15. https://doi.org/10.1016/j.forpol.2016.12.003.
Lausuntopalvelu. (2017). Luonnos valtioneuvoston asetukseksi energiatuen myöntämisen yleisistä ehdoista. Lausuntopyynnön diaarinumero: Tem/2096/03.03.01/2017. Lausuntopalvelu.fi. https://www.lausuntopalvelu.fi/FI/Proposal/Participation?proposalId=05d9f489-aefe-4368-891f-d07c278b636f.
Leinonen, A. (Ed.). (2010). Turpeen tuotanto ja käyttö Yhteenveto selvityksistä. VTT Technical Research Centre of Finland. Espoo, Finland.
Liski, M., & Vehviläinen, I. (2016). Gone with the wind? An empirical analysis of the renewable energy rent transfer. CESifo Working Paper Series, 6250, 1–70.
Liski, M., Nokso-Koivisto, O., Nurmi, E., & Vehviläinen, I. (2019). Towards carbon free transport: A proposal for a mechanism (in Finnish) (p. 20). Aalto University, School of Economics. https://www.dropbox.com/s/j4r511z64ndjlav/AaltoEI_LVM-raportti_Final.pdf?dl=0.
Lund, P. D. (2017). Implications of Finland’s plan to ban coal and cutting oil use. Energy Policy, 108, 78–80. https://doi.org/10.1016/j.enpol.2017.05.043.
Majuri, P. (2016). Ground source heat pumps and environmental policy – The Finnish practitioner’s point of view. Journal of Cleaner Production, 139, 740–749. https://doi.org/10.1016/j.jclepro.2016.08.017.
Matschoss, K., & Heiskanen, E. (2017). Making it experimental in several ways: The work of intermediaries in raising the ambition level in local climate initiatives. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2017.03.037.
Ministry of Agriculture and Forestry. (2017, September 13). European Parliament voted on the LULUCF Regulation – Important step for forestry. https://mmm.fi/en/article/-/asset_publisher/euroopan-parlamentti-aanesti-lulucf-asetuksesta-tarkea-askel-metsataloudelle.
Ministry of Finance. (2019a). The Finnish State Budget 2020 [in Finnish] (State Budget).
Ministry of Finance. (2019b, August 30). Working Group appointed to assess long-term development of transport taxation (in Finnish). Valtiovarainministeriö. https://vm.fi/artikkeli/-/asset_publisher/tyoryhma-selvittamaan-liikenteen-verotuksen-kehittamista-pitkalla-aikavalilla.
Ministry of the Environment. (2017). Ministeri Tiilikainen: Ympäristöneuvoston LULUCF-päätös Suomelle pettymys. Valtioneuvosto. https://valtioneuvosto.fi/artikkeli/-/asset_publisher/ministeri-tiilikainen-ymparistoneuvoston-lulucf-paatos-suomelle-pettymys.
Ministry of the Environment, & Ministry of Agriculture and Forestry. (2017, October 12). Environment Ministers to agree on the LULUCF regulation. Https://Www.Ymparisto.Fi/En-US/Climate_and_air/Environment_Ministers_to_agree_on_the_LU(44766). https://www.ymparisto.fi/en-US/Climate_and_air/Environment_Ministers_to_agree_on_the_LU(44766).
Ministry of Trade and Industry. (1979). Programme for energy policy, approved by the Govenmnet 15.3.1979 [in Finnish] (p. 30).
OECD. (2016). OECD economic surveys FINLAND (January 2016; OECD Economic Surveys). OECD.
Official Statistics of Finland. (2019). Statistics Finland—Statistics by topic—Energy supply and consumption. http://www.stat.fi/til/ehk/tau_en.html.
Olkkonen, V., Rinne, S., Hast, A., & Syri, S. (2017). Benefits of DSM measures in the future Finnish energy system. Energy, 137, 729–738. https://doi.org/10.1016/j.energy.2017.05.186.
Pahkala, T., Uimonen, H., & Väre, V. (2018). Flexible and customer-centred electricity system Final report of the Smart Grid Working Group (33/2018; Publications of the Ministry of Economic Affairs and Employment). Ministry of Economic Affairs and Employment. http://julkaisut.valtioneuvosto.fi/handle/10024/161119.
Rogge, K. S., Kern, F., & Howlett, M. (2017). Conceptual and empirical advances in analysing policy mixes for energy transitions. Energy Research & Social Science. https://doi.org/10.1016/j.erss.2017.09.025.
Ruostetsaari, I. (2006). Social upheaval and transformation of elite structures: The case of Finland. Political Studies, 54(1), 23–42. https://doi.org/10.1111/j.1467-9248.2006.00564.x.
Ruostetsaari, I. (2010a). Changing regulation and governance of Finnish energy policy making: New rules but old elites?: Changing regulation and governance of Finnish energy policy making. Review of Policy Research, 27(3), 273–297. https://doi.org/10.1111/j.1541-1338.2010.00442.x.
Ruostetsaari, I. (2010b). Citizens, politicians and experts in energy policy-making: The case of Finland. Energy & Environment, 21(3), 203–222. https://doi.org/10.1260/0958-305X.21.3.203.
Ruostetsaari, I. (2017). Stealth democracy, elitism, and citizenship in Finnish energy policy. Energy Research & Social Science, 34, 93–103. https://doi.org/10.1016/j.erss.2017.06.022.
Särkijärvi, J., Jääskeläinen, S., & Lohko-Soner, K. (Eds.). (2018). Carbon-free transport by 2045 – Paths to an emission-free future interim report by the transport climate policy working group. Ministry of Transport and Communications. http://urn.fi/URN:ISBN:978-952-243-555-2.
Säynässalo, E. (2009). Nuclear energy policy processes in Finland in a comparative perspective: Complex mechanisms of a strong administrative state. In M. Kojo & T. Litmanen (Eds.), The renewal of nuclear power in Finland (pp. 126–158). London: Palgrave Macmillan.
Schoenefeld, J. J., Hildén, M., & Jordan, A. J. (2018). The challenges of monitoring national climate policy: Learning lessons from the EU. Climate Policy, 18(1), 118–128. https://doi.org/10.1080/14693062.2016.1248887.
Schoenefeld, J. J., Schulze, K., Hildén, M., & Jordan, A. J. (2019). Policy monitoring in the EU: The impact of institutions, implementation, and quality. Politische Vierteljahresschrift, 60(4), 719–741. https://doi.org/10.1007/s11615-019-00209-2.
Statistics Finland. (2019a). Electricity consumption by sector, year and data. PxWeb. http://pxnet2.stat.fi/PXWeb/pxweb/en/StatFin/StatFin__ene__ehk/statfin_ehk_pxt_013_en.px/table/tableViewLayout1/.
Statistics Finland. (2019b). Total energy consumption by source and CO2 Emissions by Energy source, Year, Season and Data. PxWeb. http://pxnet2.stat.fi/PXWeb/pxweb/en/StatFin/StatFin__ene__ehk/statfin_ehk_pxt_001_en.px/table/tableViewLayout1/?rxid=8d24da60-f00f-4aca-b7a9-a27f980bcdf4.
Statistics Finland. (2019c). Trade. https://www.tilastokeskus.fi/tup/suoluk/suoluk_kotimaankauppa_en.html.
Toivanen, P., Lehtonen, P., Aalto, P., Björkqvist, T., Järventausta, P., Kilpeläinen, S., Kojo, M., & Mylläri, F. (2017). Finland’s energy system for 2030 as envisaged by expert stakeholders. Energy Strategy Reviews, 18, 150–156. https://doi.org/10.1016/j.esr.2017.09.007.
Valkila, N., & Saari, A. (2013). Experts’ view on Finland’s energy policy. Renewable and Sustainable Energy Reviews, 17, 283–290. https://doi.org/10.1016/j.rser.2012.09.036.
Acknowledgment
We acknowledge the support of the Strategic Research Council at the Academy of Finland (Grants 314325 and 314350), project Smart Energy Transition and program coordination.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this entry
Cite this entry
Hildén, M., Kivimaa, P. (2020). Energy Governance in Finland. In: Knodt, M., Kemmerzell, J. (eds) Handbook of Energy Governance in Europe. Springer, Cham. https://doi.org/10.1007/978-3-319-73526-9_9-1
Download citation
DOI: https://doi.org/10.1007/978-3-319-73526-9_9-1
Received:
Accepted:
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-73526-9
Online ISBN: 978-3-319-73526-9
eBook Packages: Springer Reference Political Science and International StudiesReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences