Energy Policies of IEA Countries: Finland 2018 Review

Since 2016, the International Energy Agency’s (IEA) in-depth country policy reviews focus on key energy security challenges in fast-changing global energy markets as well as on the transition to clean-energy systems. This latest update on Finland’s energy policies therefore offers insights into three special focus areas – bioenergy, transportation, and combined heat and power (CHP) production. With abundant forest resources, Finland is a global leader in developing second-generation biofuels. This report examines the impacts of greater biofuel use on sustainability and the country’s carbon sink, and it offers perspectives for Finland’s potential for innovation in heavy duty, aviation and maritime transport. The country has aligned its climate and energy policies within a robust policy framework and set ambitious climate targets for 2030, such as cutting oil consumption in half and achieving 30% of renewables in transport by 2030. As the power sector is largely decarbonised, transport is a key sector for the country’s ambitious national climate targets. Finland has been a leader among IEA countries in public and private spending on energy research, development and demonstration. A longer-term policy framework for 2050 will be pivotal to guide investments in clean energy technology innovation, a critical factor for reaching decarbonisation goals. The report looks at the challenges Finland faces and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.