The Finnish government has reversed its stance on the framework crisis and decided to attract clean investments with tax relief. This decision was praised by experts in an interview, who emphasized the importance of attracting green industrial investments to Finland as soon as possible.
According to Ulla Heinonen, director of green growth at the Confederation of Finnish Business, Finland needs to actively shape its industrial future to meet economic, ecological, and geopolitical goals. The coming months will be crucial in determining whether Finland will attract factories using fossil-free energy, such as battery production, clean steel production, and hydrogen production.
The government’s decision to provide tax credit for large industrial investments that lead to a zero-emission economy has been welcomed by stakeholders. Projects that make investment decisions by the end of next year can get a refund of 20 percent of the total investment amount, with a maximum tax credit of 150 million euros per project.
EK’s director of green growth, Ulla Heinonen, and Bios research unit investigator Paavo Järvensivu both see the government’s decision as a positive step towards attracting green investments and renewing the industry in Finland. They believe that this shift in strategy reflects a recognition that Finland must actively invest in and support industries that are aligned with the green transition.
Despite previous government policies focusing on attracting green investments through permits and clean electricity, the current tax relief strategy is seen as a necessary response to competition from other countries that are offering support to green industries.
