Evaluation: Finland’s Environmental and Natural Resources Cooperation Generates Development Results and Business Partnerships
Finland’s development cooperation has strengthened the sustainable use of forests and water, improved access to clean energy, and supported disaster risk management in several partner countries, according to a new independent evaluation. The evaluation assessed results in the environment and natural resources sectors from 2010 to 2024, as well as opportunities for private-sector collaboration.
The impacts were visible in forest cover and in access to clean water, sanitation, and waste management; with Finland’s support, 6.7 million hectares of forest have been protected, restored, and sustainably managed, and 2.5 million people now have access to improved water and sanitation services.
In Tanzania, community-managed forests supported by Finland experienced only 0.88% deforestation, compared to 5.44% in surrounding areas. In addition, 5.7 million people gained access to clean energy, and early warning systems for extreme weather events have been developed in more than 40 countries, strengthening disaster preparedness.
Biodiversity objectives, included only from 2023 onwards, were less well integrated into Finland’s bilateral programmes. However, there are results generated through civil society organisations and multilateral institutions working on biodiversity. In many sectors, Finland has supported the development of governance practices and information systems, whose long-term sustainability depends on continued maintenance and sufficient resources.
Reduced Funding Threatens Finland’s Capability
Challenges arose especially from pilot projects that did not scale, insufficient financial resources, and inadequate consideration of local incentives. The reductions in development cooperation resources have further weakened the sustainability of results and Finland’s operational capacity.
Some private-sector actors have engaged in collaboration across different sectors. According to the evaluation, opportunities for Finnish companies are emerging particularly in procurement related to large international financing programmes, for example in the field of digital environmental services. However, long application processes, uncertain funding pathways, and difficulties in scaling from pilots to commercial delivery hinder participation.
The evaluation highlights the need for a clearer pathway for companies in the environment and natural resources sectors, as well as stronger support services to ensure that Finnish expertise translates into sustained market participation. Shrinking resources widen the gap between political ambitions and practical implementation capacity.
Nature-Based Solutions Alongside Technological Approaches
In his opening remarks at the evaluation launch event, Under-Secretary of State for Development Policy Pasi Hellman stressed the timeliness of the evaluation and the changing global operating environment. He highlighted shifts in the multilateral system, and the strong linkages between foreign, security, trade, and development policy. He also noted that in the changing landscape of global development finance, the private sector plays an increasingly important role in sustainable development solutions. Laura Rajaniemi from the Ministry for Foreign Affairs’ Unit for Climate and Environmental Diplomacy thanked the evaluation team and welcomed the forward-looking recommendation on biodiversity, particularly the possibility of strengthening this objective within the work of multilateral development banks. Focusing on Finland’s areas of strength is, however, challenging, as only one bilateral forestry-sector project and two natural resources–sector projects remain.
Anne Tarvainen (WWF Finland) and Hanna Matinpuro (Siemenpuu Foundation), current chairs of the programme-based civil society organisation partners, emphasized the funding gap related to international biodiversity commitments. Financing for environmental, natural resource, and biodiversity targets requires contributions from both the private sector and public development cooperation. Alongside technological solutions, nature-based solutions are needed. They reminded that biodiversity loss poses a threat to national security, as also highlighted in a recent report published by the United Kingdom. Participants expressed hope that future discussions will take a whole-of-society and a whole-of-environment approach, considering the interlinkages between environmental and climate agreements.
Janne Peljo, Chief Policy Adviser at the Confederation of Finnish Industries, noted that Finnish companies have Europe’s top-level expertise in the green transition. They are well positioned to address global sustainable development challenges, including those related to biodiversity. Finland’s exports of environmental products and services have doubled in ten years, and this potential should be better utilized internationally. According to Peljo, technologies currently being developed in Finland will become global mainstream within a few years. At the same time, it is important to identify the areas where Finnish business offerings fit in the best.
The evaluation was based on comprehensive evidence, including document and geospatial analysis, interviews, comparisons with peer countries, and a survey among Finnish companies. The results and recommendations were presented on 26 February 2026 to the Ministry as well as stakeholders in Finland and abroad. A management response will be prepared by the Ministry for Foreign Affairs.