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Finland’s Green Transition: Competing for Support Money
The race to transition to green energy has become a global competition, with large countries investing heavily in the sector. While Finland is lagging behind in terms of industrial investments, it still has a chance to remain competitive and take advantage of the economic benefits that come with green energy.
According to the Confederation of Finnish Business (EK), investment intentions for Finland’s green transition are increasing, with over 500 projects pending totaling 260 billion euros. If implemented, these projects could bring 20,000 new jobs. However, most of the projects are still in the planning phase, with some delayed or interrupted, especially in crucial sectors like hydrogen production and the battery industry.
To stay competitive in this field, Finland must seek financial support from various sources. The state could distribute subsidies to the best projects and an EU-level financial instrument could be an option to ensure fair distribution of resources among countries. However, the challenge remains on how to effectively compete for support and investments in the green transition race.
One potential obstacle is that large countries like Germany and France have already started distributing subsidies worth billions to projects in industries like green steel and the battery industry. The United States has also taken a lead by offering tax breaks for green transition investments through its Inflation Reduction Act package. In response, Europe is trying to keep up with these initiatives but faces limitations due to budget constraints.
Despite these challenges, Finland has many things working in its favor. It has a strong reputation as a leader in clean technology and renewable energy development. Additionally, there is growing interest from international investors who see potential opportunities for growth and profitability in Finland’s green economy sectors such as hydrogen production, battery industry, and emission-free steel production.
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