Finland and China continue to develop cooperation in energy sector – new memorandum of understanding signed in Beijing

Finland and China signed a memorandum of understanding (MoU) on energy cooperation in Beijing on 27 January 2026. The areas of cooperation focus in particular on clean energy, smart energy systems and energy innovation.

The memorandum was signed on behalf of China’s National Energy Administration (NEA) by Director Wang Hongzhi and, on Finland’s behalf, by Ambassador of Finland to China Mikko Kinnunen, representing Minister of Climate and the Environment Sari Multala. The signing took place in connection with Prime Minister Petteri Orpo’s visit to China.

The MoU builds on the principles set out in the memorandum of understanding signed between the two countries in 2023. Its aim is to lay the foundation for exports of Finnish clean energy technology. Cooperation will be developed particularly to promote clean energy, smart energy systems and energy innovation.

In the field of clean energy, potential areas of cooperation include the use of biomass for energy, waste‑to‑energy solutions, distributed electricity generation, energy storage, hydrogen, clean and smart heating and cooling, carbon dioxide capture, clean electricity and other areas that support the clean and low‑carbon energy transition.

Cooperation on smart energy systems may include measures to improve power system flexibility, grid balancing and ancillary services, clean and efficient coal‑based power generation, decentralised combined heat and power (CHP) generation and the digitalisation of energy systems.

In the area of energy innovation, cooperation may include the further development, identification and selection of Chinese–Finnish pilot projects, as well as practical cooperation between local administrations and businesses to promote and apply innovative energy technologies in both countries. This cooperation has already taken concrete form through demonstration projects between Finland and China (Ministry press release 29 October 2025).

Environmental and climate themes were also prominent in October 2024, when Minister of Climate and the Environment Kai Mykkänen took part in a state visit to China with Finland’s President Alexander Stubb. At the time, Minister Mykkänen highlighted that rapid technological development could help China achieve its environmental and climate targets faster than expected.

More than half of electricity consumption and around four fifths of total energy consumption in China are still covered by fossil fuels. However, the aim is to significantly increase the share of renewable energy and to achieve carbon neutrality by 2060. China’s solar and wind power generation have grown rapidly in recent years.

Prime Minister Orpo is accompanied in China by a large business delegation: https://valtioneuvosto.fi/en/-/prime-minister-orpo-to-meet-with-chinese-leadership-in-beijing

Inquiries:
Päivi Laitila, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 121
Esteri Hukka, First Secretary, Embassy of Finland in Beijing tel. +86 1781 3649 173
Marko Tiesmäki, Minister Counsellor, Trade and Business Development, Embassy of Finland in Beijing, tel. +86 138 1082 2640