Finland Secures €2.3 Billion EU Funding to Slash Industrial Emissions.
Finland has received approval from the European Commission for a €2.3 billion state aid package aimed at cutting industrial emissions and boosting clean energy investments. This initiative, offered as a tax credit, will support businesses investing in renewable energy, energy storage systems, and advanced emissions reduction technologies.
The plan includes three main areas of focus. First, it will fund renewable energy projects, excluding electricity generation, while supporting storage solutions for renewable hydrogen, biofuels, biogas, and other sustainable energy sources.
The second area targets industrial decarbonisation. Companies can qualify for support if they reduce greenhouse gas emissions by at least 40% or lower energy consumption by at least 20%. This measure is designed to help Finnish industries move away from fossil fuels while improving energy efficiency.
The third part of the scheme focuses on the production of strategic equipment, including batteries, wind turbines, solar panels, heat pumps, electrolysers, and carbon capture technology. Manufacturers of key components for these systems will also be eligible for funding.
This new initiative builds on a previous €400 million Finnish program approved in December 2024, which also aimed to accelerate clean energy adoption and emissions reduction. Both programs align with the EU’s broader goals of achieving net-zero emissions and reducing reliance on imported fossil fuels.
Funding will be available to all industries except financial institutions, with strict conditions to ensure fair competition. Projects must be completed within 36 months, and penalties will apply for delays. Only newly installed or repowered capacity will qualify, ensuring that the aid leads to real emissions reductions.
The program operates under the EU’s Temporary Crisis and Transition Framework (TCTF), which allows member states to provide targeted support for green energy initiatives. All aid must be allocated before the end of 2025.
The Finnish government views this scheme as a crucial step in strengthening industrial competitiveness while advancing EU climate goals. The European Commission will oversee implementation to ensure compliance with state aid rules and prevent investment relocations within the European Economic Area.
