Finland: An Energy and Natural Resources Overview
Energy Sector
The overarching aim of the Finnish government’s energy policy is for Finland to become a global leader in zero-emission energy systems, the hydrogen economy and other climate and environmental solutions. The share of renewable energy will be further increased, and actions will be taken to improve energy efficiency and accelerate the transition to fossil-free transport and heating with an overall aim to become carbon neutral by 2035. The Finnish government published its national energy and climate strategy in 2026, setting out policy measures to accelerate the clean energy transition and reduce greenhouse gas emissions. The strategy aims to create a more favourable environment for investments in the clean transition and to strengthen Finland’s position in the clean energy markets in Europe.
In order to achieve the above goals, Finland has taken action to further improve the conditions for green investments – eg, by streamlining permitting procedures by introducing a new siting permit which bypasses the lengthy land use planning procedures, by granting priority to green investments in permit and appeal procedures, and consolidating permitting procedures under one authority, the new Finnish Supervisory Agency, creating a so-called one-stop shop for most environmental permit processes. To further attract green transition investments into Finland, the government introduced in 2024 a fixed-term tax credit for investments of at least EUR50 million that support a climate-neutral economy.
Wind power is the biggest renewables production technology in Finland. According to a statistic provided by the Finnish Renewables Association, wind power production increased by 1,023 MW in 2025, reaching a cumulative capacity of 9,433 MW by the end of 2025. The ongoing revision of the Land Use Act is likely going to introduce a distance requirement for wind power located outside wind power areas specified in the regional plan, which could, however, be circumvented with the consent of the landowners. According to the energy and climate strategy, the government aims to improve the social acceptability of wind power, create an even more suitable environment for investments as well as promote wind power production in Eastern Finland where wind power has previously been scarce due to restrictions related to military radars near the Russian border.
There is strong political will for offshore wind power development in Finland, both in territorial waters as well as in the Finnish Exclusive Economic Zone (EEZ). According to the energy and climate strategy, the state will enable the construction of offshore wind production capacity of 12 GW by 2040, and 20 GW by 2050, by offering areas for project developers. Currently, there is one offshore wind farm in operation, and many projects in various phases of project development in Finnish territorial waters. With respect to projects in the Finnish EEZ, a new EEZ Act entered into force in January 2025, which includes provisions concerning a tender process regarding the right to develop projects in areas identified by the government. The government is expected to announce the first areas, and the first process is expected during 2026.
The development of the solar PV sector continued to accelerate in 2025 and saw a record high of 227 MW of new installed solar power capacity, reaching a cumulative capacity of 352 MW. However, because the development process for solar projects has generally been relatively straightforward and rapid, a large number of projects have been proposed. According to Renewables Finland, there are over 300 solar power projects in various phases of planning, with a cumulative planned capacity exceeding 25 GW. This figure appears to exceed the current demand for new solar PV projects. Consequently, the profit margins for developing new solar PV projects have decreased, causing developers to postpone the development of new projects.
Finland aims to account for 10% of the EU’s clean hydrogen production and for at least the same percentage of hydrogen use. Furthermore, the energy and climate strategy envisions promoting carbon capture both as a means of carbon removal and as a driver of sustainable economic growth. The first industrial-scale renewable hydrogen plant has already begun operations, and several major hydrogen projects, as well as projects involving hydrogen derivatives, are expected to be commissioned over the coming years. Additionally, the national gas transmission company Gasgrid has been given the task of developing a national hydrogen transmission network and a network in the Baltic Sea region. Based on current regulation, it seems that a significant amount of renewable energy projects will need to be constructed to be able to reach the targets for Finnish renewable hydrogen projects.
The increase in electricity production has raised the need to develop reserve and balancing power projects. Due to the increased need, advances in technology and relatively light permitting process, BESS projects have been perhaps the most active segment in Finnish renewable energy transactions recently. Moreover, the government plans to promote opportunities to build small modular reactors (nuclear), as well as pumped-storage hydropower projects. The government has conducted a study regarding a cost-effective capacity mechanism that will ensure a sufficient amount of available electricity at all times. Incentives will be created for weather-dependent electricity producers to participate in this mechanism; otherwise, alternative measures will be introduced to secure the necessary regulating power. In addition, the national energy and climate strategy envisions a larger role for data centres in the energy system, which are expected to increase demand for renewable electricity.
Mining Sector
According to the Finnish energy and climate strategy, the government aims to promote the growth of the Finnish mineral and battery industry in order to strengthen European strategic autonomy and support the clean transition through the sustainable use of raw materials. Finland possesses significant potential in minerals required for green transition technologies, which is reflected in growing interest, exploration activity and investment in the sector.
The Finnish Mineral Strategy, published in December 2024, examines the current goals of the Finnish mineral sector and the safeguarding of industrial raw material supply. The mineral strategy envisions that sustainable exploitation of Finnish mineral resources will support the Finnish economy while offering solutions to European and global challenges. Among the key objectives identified in the strategy is the development of incentives to encourage the adoption of the best available technologies and circular economy solutions within the sector.
The government has amended the Mining Minerals Tax Act, increasing the taxation of mining minerals to approximately three times its previous level as of the beginning of 2026. In total, the tax on metal ores increased to 2.5% of the taxable value of the metal contained in the ore.
The European Union’s Critical Raw Materials Act (CRMA), which came into force in May 2024, aims to strengthen the EU’s capabilities across the entire value chain of identified critical raw materials and to improve the EU’s self-sufficiency in these resources. In accordance with the CRMA, projects concerning, for example, the production and processing of critical raw materials identified as “strategic projects” are eligible for streamlined permitting processes and easier access to financing in Finland.