Energy governance in Finland

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.