Intentions to invest in Finland are at high level but investment climate remains challenging

On 23 January 2024, the Ministerial Committee on Economic Policy discussed the current investment climate in Finland. Finland has a high number of investment intensions for major clean transition projects and the Government is actively taking measures to promote their realisation.

Finland has plans totalling EUR 50 billion for investment projects of more than EUR 100 million. However, their progress has been affected, among other things, by the rise in interest rates and the global competition for state aid. The Government is actively monitoring the development of Finland's investment climate and improving the conditions for realising the plans.

Finland has clear strengths that help attract investment, including the RDI ecosystem, expertise in materials and energy efficiency, and an extensive national grid. The Government aims to make Finland's investment environment more attractive, increase investment volumes, and create a national model for both repatriating and attracting large projects.

Promoting investment projects that facilitate the clean transition and solutions with high added value will be crucial for decarbonising Finnish industries and tackling the ongoing subsidy race. The Ministerial Committee on Economic Policy decided that the Ministry of Economic Affairs and Employment will begin drafting a programme to support industrial investment. The decision was based on the European Commission Communication of 17 March 2023 on Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia. This temporary framework for projects that decarbonise industry and promote the net-zero economy will remain in force until the end of 2025.

At this stage of preparing the programme, it is not possible to decide on the methods and timeframe for distributing the financial support. Deploying the financial support programme will require a notification of state aid to the Commission, and a prior approval by the Commission.

Inquiries: 
Petri Peltonen, Under-Secretary of State, Ministry of Economic Affairs and Employment, tel. +358 29 506 3662  
Janne Peltola, Ministerial Adviser, Minister of Economic Affairs and Employment, tel. +358 29 504 7095