Skip to content
  • Finnish Government
    • Prime Minister's Office
    • Ministry of Defence
    • Ministry of Transport and Communications
    • Ministry for Foreign Affairs
    • Ministry of Finance
    • Ministry of Economic Affairs and Employment
    • Ministry of Justice
    • Ministry of Education and Culture
    • Ministry of Social Affairs and Health
    • Ministry of the Interior
    • Ministry of Agriculture and Forestry
    • Ministry of the Environment

Valitse kieli:

This page is in Finnish. Go to the English site »

Or choose language:

Den här sidan är på finska. Gå till den svenska versionen av sidan »

Eller välj språk:

Dát siidu lea suomagillii. Sirdás davvisámegielat siidduide »

Dahje vállje giela:

Язык этого сайта финский. Перейти на русскоязычный сайт »

Или выберите язык:

Cette page est en finnois. Aller sur le site en français »

Ou choisir la langue:

Diese Seite ist auf Finnisch. Wechseln Sie zur deutschen Version »

Oder wählen Sie Ihre Sprache:

Tämä sivu on englanniksi. Siirry suomenkieliseen sivustoon »

Tai valitse kieli:

Choose language:

Den här sidan är på engelska. Gå till den svenska versionen av sidan »

Eller välj språk:

Язык этого сайта английский. Перейти на русскоязычный сайт »

Или выберите язык:

Dát siidu lea eŋgelasgillii. Sirdás davvisámegielat siidduide »

Dahje vállje giela:

Cette page est en anglais. Aller sur le site en français »

Ou choisir la langue:

Diese Seite ist auf Englisch. Wechseln Sie zur deutschen Version »

Oder wählen Sie Ihre Sprache:

Tämä sivu on ruotsiksi. Siirry suomenkieliseen sivustoon »

Tai valitse kieli:

This page is in Swedish. Go to the English site »

Or choose language:

Välj språk:

Язык этого сайта шведский. Перейти на русскоязычный сайт »

Или выберите язык:

Dát siidu lea eŋgelasgillii. Sirdás davvisámegielat siidduide »

Dahje vállje giela:

Cette page est en suédois. Aller sur le site en français »

Ou choisir la langue:

Diese Seite ist auf Schwedisch. Wechseln Sie zur deutschen Version »

Oder wählen Sie Ihre Sprache:

Tämä sivu on pohjois-saameksi. Siirry suomenkieliseen sivustoon »

Tai valitse kieli:

This page is in North Saami. Go to the English site »

Or choose language:

Den här sidan är på nordsamiska. Gå till den svenska versionen av sidan »

Eller välj språk:

Язык этого сайта северосаамский. Перейти на русскоязычный сайт »

Или выберите язык:

Vállje giela:

Cette page est en same du Nord. Aller sur le site en français »

Ou choisir la langue:

Diese Seite ist auf Nordsamisch. Wechseln Sie zur deutschen Version »

Oder wählen Sie Ihre Sprache:

Tämä sivu on venäjäksi. Siirry suomenkieliseen sivustoon »

Tai valitse kieli:

This page is in Russian. Go to the English site »

Or choose language:

Den här sidan är på ryska. Gå till den svenska versionen av sidan »

Eller välj språk:

Dát siidu lea ruoššagillii. Sirdás davvisámegielat siidduide »

Dahje vállje giela:

выберите язык:

Cette page est en russe. Aller sur le site en français »

Ou choisir la langue:

Diese Seite ist auf Russisch. Wechseln Sie zur deutschen Version »

Oder wählen Sie Ihre Sprache:

Tämä sivu on ranskaksi. Siirry suomenkieliseen sivustoon »

Tai valitse kieli:

This page is in French. Go to the English site »

Or choose language:

Den här sidan är på franska. Gå till den svenska versionen av sidan »

Eller välj språk:

Dát siidu lea fránskkagillii. Sirdás davvisámegielat siidduide »

Dahje vállje giela:

Язык этого сайта французский. Перейти на русскоязычный сайт »

Или выберите язык:

Choisir la langue:

Diese Seite ist auf Französisch. Wechseln Sie zur deutschen Version »

Oder wählen Sie Ihre Sprache:

Tämä sivu on saksaksi. Siirry suomenkieliseen sivustoon »

Tai valitse kieli:

This page is in German. Go to the English site »

Or choose language:

Den här sidan är på tyska. Gå till den svenska versionen av sidan »

Eller välj språk:

Язык этого сайта немецкий. Перейти на русскоязычный сайт »

Или выберите язык:

Cette page est en allemand. Aller sur le site en français »

Ou choisir la langue:

Wählen Sie Ihre Sprache:

  • Valitse kieli Suomi
  • Välj språket Svenska
  • Select language English
Media
Ministry of Economic Affairs
Navigation
  • Frontpage
  • Responsibilities
    • Enterprises
    • Enterprise financing
    • Working life
    • Energy
    • Competition and consumers
    • Regions
    • Labour migration and integration
  • Current issues
  • Projects and legislation
  • Publications
  • Ministry
  • Contact information
  • Press releasesLink to an external website
  • NewsLink to an external website
  • ColumnsLink to an external website
  • Sign up for newsLink to an external website
  • Social media and webcastsLink to an external website
  • Russian attack on UkraineLink to an external website
suomiLue artikkeli suomeksi Link to an external website svenskaLäs artikeln på svenska Link to an external website English Link to an external website

Report evaluates the effects of Government Programme’s distribution obligation entries and the national implementation of RED III Renewable Energy Directive

Ministry of Economic Affairs and Employment
Publication date 12.2.2024 16.55
Type:Press release
The man is filling up his car with gasoline at the gas station

On 12 February 2024, the Ministry of Economic Affairs and Employment published a report on the changes to the distribution obligation of transport fuels. AFRY Management Consulting Oy produced the report on behalf of the Ministry. The report’s purpose was to evaluate the effects of the proposed changes to the distribution obligation outlined in the Government Programme.

The report focuses on the impacts that the reforms would have on renewable fuel demand, emissions from road transport and consumer prices as well as the wider significance of the changes for society and the economy.

The Government Programme of Prime Minister Orpo proposes a more moderate increase in the levels of the distribution obligation than previously planned for the years 2024–2027, which would substantially reduce the need for renewable fuels.

A more subtle increase of the obligation levels than currently legislated would decrease the pump price of diesel by about 7–12 cents per litre and the pump price of E10 petrol by approximately 9–17 cents per litre in 2024–2027. This would reduce the costs of households by an average of around EUR 58 per year. However, the report shows that the changes would increase road transport emissions by a total of 4.83 million tonnes of carbon dioxide over the review period.

The report also presents five scenarios for developing the distribution obligation by 2030. All scenarios meet the objectives of the RED III Directive on Renewable Energy. Of the scenarios, the development path under the current legislation would reduce transport emissions by 44 per cent, while the average scenario would reduce them by 41.9 per cent. Only in the scenario where emissions were halved, would Finland reach its emissions reduction target for road transport. 

The report also discusses the role and need for RFNBO (renewable fuels of non-biological origin) and intermediate product hydrogen in the distribution obligation by 2030. 

The scenarios show that Finland’s planned RFNBO production capacity could cover the need many times over, even if only half of the planned production facilities were realised. 

However, the effect of different RFNBO scenarios on the estimated pump price of transport fuels would not be considerable. The increase in pump prices caused by the minimum obligation to be added to the distribution obligation would be approximately three cents per litre in 2030. According to the report, the effect on prices is curbed in particular by the relatively small amount of RFNBO and intermediate product hydrogen in the distribution obligation.

According to the report, staggering the penalty fee levels of the distribution obligation can easily lead to a situation where the distribution obligation is not fulfilled above a certain penalty fee level. The staggering of the penalty fee and non-compliance with the distribution obligation in this way may result in a significant increase in road transport emissions. Limiting the distribution obligation to 18 per cent would increase road transport emissions by 0.64* million tonnes of CO2 in 2025–2027. 

AFRY’s report provides a comprehensive picture of the future scenarios for the distribution obligation and their effects. The report’s results will be used in updating the Distribution Obligation Act. The Government’s proposal concerning the distribution obligation in 2025–2027 and amendments to the Distribution Obligation Act are set to be submitted to Parliament in autumn 2024.

Inquiries:
Harri Haavisto, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 29 504 7059, harri.haavisto(at)gov.fi
Esa Sipilä, Senior Principal, AFRY Management Consulting Oy, tel. +358 50 412 0839, esa.sipila(at)afry.com

*Correction 23/02/2024 - Corrected incorrect number in the report 0.48 -> 0.64
Report on the effects of the Government Programme entries concerning the obligation to distribute renewable fuels and the national implementation of the RED III Directive (In Finnish)File opens in a new tab pdf 1.7MB
EU directives Renewable Energy biofuels consumers emissions energy energy policy fossil fuels government platforms legislation liquid fuels motor fuels petrol settlement of matters traffic
Back to top

Shortcuts

  • Contact information
  • Departments and units
  • Organisation
  • Communications Unit
  • Sign up for news

The website

About the website

Change cookie settings

Data protection

Accessibility statement

Sitemap

Feedback

Contact information

P.O. Box 32, FI-00023
GOVERNMENT

Tel. +358 295 16001

registry.tem(at)gov.fi

            Ministry of Economic Affairs and Employment
Search page
  • Frontpage
  • Responsibilities
    • Enterprises
      • Industrial policy
        • Entrepreneurship policy
        • Advisory Board for Entrepreneurship
        • EU industrial policy
      • Innovation policy
        • Ecosystem policy
          • Business Finland’s ecosystem funding
          • Innovative cities and corporations
        • Innovation policy evaluation
          • Utilisation of research and expertise
        • Innovative public procurement
          • Network-based competence centre for sustainable and innovative public procurement (KEINO)
        • Innovation-friendly regulation
          • What is innovation-friendly regulation?
          • Promotion of innovation-friendly regulation in the EU and internationally
        • Industrial property rights
          • A patent gives its holder the exclusive right to an invention
          • Trademark supports brand building
          • Design rights protect design work
          • Employment Invention Committee
        • EU research and innovation policy
          • European Digital Innovation Hubs
          • How Finland’s Digital Innovation Hubs were created
        • International research and innovation cooperation
      • Focus areas
        • Tourism
          • Economic impacts of tourism
          • Employment in tourism
          • Government's Tourism Initiatives
            • Previous governments' tourism initiatives
          • Finland's Tourism Strategy
          • Tourism actors
          • Public subsidies for developing tourism
          • Domestic tourism
        • Space policy
          • The Finnish Space Committee
            • The Finnish Space Committee Secretariat
          • The National Strategy for Finlands Space Activities
            • Renewal of the Space Strategy
          • International space cooperation
          • National space legislation
          • Authorisation for space activities
          • Registry of space objects
          • Supervision of space activities
        • Business digitalisation for companies
          • Data economy growth programme
            • Pilot projects of the data economy growth programme
          • AI Regulation
          • EU AI Board and its sub-groups
        • Bioeconomy
        • Minerals policy
          • Minerals Strategy
          • Minerals sector
            • EU Critical Raw Materials Act
          • Minerals sector´s links and publications
        • Arctic Policy
          • Icebreaker initiative ICE Pact
          • Finland's Strategy for the Arctic Region
          • Arctic Economic Dialogue
          • Arctic mining: Greenland
          • Arctic fish industry: Iceland
      • Regulation of business operations
        • Freedom of enterprise in Finland
        • Accounting
          • Accounting Board
        • Auditing
        • Finnish Trade Register
        • Technical safety
          • Market surveillance
          • Market surveillance programmes
          • Assessing the functioning of market surveillance
          • Safety of toys
          • New EU regulation on market surveillance and compliance of products
        • Debt collection
        • Real estate brokerage agencies and letting agencies
        • Accommodation and catering business
        • Travel Service Combinations
        • Industrial property rights
      • Internationalisation of enterprises
        • Foreign corporate acquisitions
          • Questions and answers about the act on the screening of foreign corporate acquisitions
        • Foreign investments
      • Single market of the EU
        • Product Contact Point
          • Free movement of goods within the single market
          • General requirements for products in Finland
          • Other national product regulations
          • Product regulation at the EU level
          • Mutual recognition of goods in the EU
        • Administrative cooperation between the authorities in the single market
        • Authorities' notification obligations
        • Trade barriers
          • SOLVIT
          • SMET
        • EU Regulation of Digital platforms
          • Relationship between online platforms and businesses
          • Digital Markets Act
        • Single Market Emergency Instrument
      • Business services
        • Enterprise Finland services
      • Corporate social responsibility (CSR)
        • Business and human rights
        • Key guidelines on CSR
        • Handling Specific Instances of the OECD Guidelines for Multinational Enterprises
          • Questions and answers about the OECD National Contact Points
          • Specific Instances in Finland
        • Socially responsible public procurement
        • Committee on Corporate Social Responsibility
        • CSR reporting
        • Anti-corruption work
        • Combating forced labour
        • Due diligence obligation of companies
      • MEE Business Sector Services
    • Enterprise financing
      • Loans, guarantees and credits
        • Finnvera domestic financing
        • Finnvera export financing
        • State Guarantee Fund
      • Venture capital investment
        • State capital investment company
        • Finnish Industry Investment Ltd
        • Business Finland Venture Capital Ltd
      • European Fund for Strategic Investments (EFSI)
      • Enterprise developmental support
      • Supporting internationalisation
      • Research, development and innovation funding
        • Plan for research and development funding
      • Regional aid
      • General criteria for business subsidies on national level
        • Advisory Committee on Business Subsidy
        • Research Division on Business Subsidies
    • Working life
      • Labour legislation
        • Employment contract and employment relationship
          • Concluding an employment contract
            • Lay-offs and terminating employment relationship
            • Employment security during military or non-military service
          • Questions and answers on restraint of non-competition agreements
          • Family leave
            • Pregnancy leave, parental leave and childcare leave
          • Young workers
            • Light work suitable for young persons
            • Work that are not allowed to do or is hazardous to young persons
          • Posted workers
            • Obligation to notify
          • Working at sea
        • Working time and annual holiday
          • Working time
          • Annual holiday
        • Improving and maintaining employees’ competence
          • Study leave
          • Financially supported development of employees professional skills
        • Non-discrimination and equality in working life
          • Promotion of non-discrimination in working life
        • Protection of privacy at work and working with children
          • Protection of privacy at work
        • Co-operation procedure and other personnel representation systems
        • Collective agreements and mediation in labour disputes
        • Contractor’s obligations and liability
        • Employee’s position if employer becomes insolvent
      • Working life development
        • Working life barometer
        • Working Life Development Strategy
      • Employment
        • Public employment services
          • Public employment services for private customers
          • Public employment services for businesses and organisations
        • Employment areas
        • National objectives for promoting employment
        • National Advisory Board on Promoting Employment
        • Support and compensations
          • Pay subsidy
          • Employment policy project support
          • Start-up grants
          • Subsidy for arranging working conditions
          • Unemployment security
          • The European Globalisation Adjustment Fund for Displaced Workers
        • Multi-sectoral promotion of employment
        • Employment through procurement
        • Social entrepreneurship
        • International cooperation in employment matters
        • Non-Military service
          • Information for persons applying for non-military service
      • Employment Bulletin and Employment Service Statistics
        • Employment Bulletin
        • Regional annual averages
        • Release dates of statistics, Description and Quality description
      • Skilled labour force
        • Continuous learning
        • Identifying the competence of working-age people
          • Studies and pilots on identification of competences
        • Lifelong guidance
          • National development projects for lifelong guidance
    • Energy
      • Energy and climate strategy
        • Preparation of energy and climate policy scenarios
          • Calculations and models
          • Developing scenarios
      • Emissions trading
        • Emissions Trading Directive
        • Auctioning of emission allowances
        • Monitoring, reporting and verification
        • Emissions trading in aviation
        • Aid for electrification
      • Electricity market
        • Expropriation matters
        • Working group to explore smart grids’ potential for the electricity market
        • Energy communities
        • Information on electricity shortages
          • Information in Arabic
          • Information in Chinese
          • Information in Estonian
          • Information in Persian
          • Information in Russian
          • Information in Ukrainian
      • Heating market
        • Waste heat
        • Studies, heating market
      • Renewable energy
        • Biofuels
        • Feed-in tariff for renewable energy
        • Guidelines and monitoring
      • Energy efficiency
        • Implementation of the Energy Efficiency Directive
        • Energy efficiency agreements and audits
        • Energy efficiency in awarding public contracts
        • Energy efficiency of products
          • Ecodesign of products
          • Energy labelling
          • Preparation of product-group specific requirements
      • Energy and Investment Aid
        • Energy aid
          • Projects eligible for aid
          • Applications and payments
      • Nuclear energy
        • Nuclear energy administration
          • Nuclear energy legislation
          • Nuclear Waste Management Fund
          • Nuclear liability
          • Licence procedure
          • International agreements and export control
        • Nuclear safety, security and safeguards
          • Nuclear safety
          • Security and safeguards
        • Nuclear facilities and projects
          • Loviisa power plant
            • Operating licence 2007-2030
            • EIA Programme
            • EIA Report
          • Olkiluoto power plant
            • Olkiluoto 1 and 2 operating licence
            • Olkiluoto OL1 ja OL2 EIA programme
            • Olkiluoto 1 and 2 EIA report
            • Olkiluoto 3
            • EIA of very low-level nuclear waste
          • Fennovoima
            • Environmental impact assessments
            • Processing of decisions-in-principle
            • Construction licence application
          • Decommissioning of research reactor
          • Terrafame recovery of uranium
        • Nuclear waste management
          • National programme
          • Final disposal of spent nuclear fuel
            • Application for operating licence
            • Construction licence
            • Decision-in-principle
            • Environmental impact assessment, Posiva
          • Spent nuclear fuel
        • Nuclear Energy Development projects
      • Security of energy supply
      • International and EU cooperation in the energy sector
        • EU cooperation energy policy
        • Nordic energy cooperation
        • International Energy Agency IEA
        • Renewable and clean energy cooperation
        • Nuclear energy cooperation
        • Other energy sector cooperation forums
      • Energy technologies
      • Low-carbon roadmaps
        • Updating the low-carbon roadmaps 2024
        • Low-carbon roadmaps 2020
    • Competition and consumers
      • Competition
        • Competition policy
        • Competition legislation
          • Key legislation
          • Merger control and competition neutrality
          • Sanctions
      • Public procurement
        • Publication of contracts and thresholds
          • EU and national thresholds
        • Advice and guidance on public procurement
        • Key operators
        • Public procurement legislation
          • Case law
          • Procurement Directives
        • Reform of public procurement legislation
      • EU rules on state aid
        • Procedures and coordination
        • Rules on State aid
          • National legislation
        • National and schemes and State aid granted
        • Public service assignment -SGEI
          • Application of SGEI regulation in Finland
      • Consumers
        • Consumer safety
        • Doorstep selling
    • Regions
      • Objectives and planning of regional development
        • Regional development priorities
        • Regional development and regional councils
        • Rural and island policy
        • Support areas
        • Legislation on regional development
        • Advisory Council on Regional Renewal
        • Monitoring and forecasting regional development
          • Regional Development Guidelines 2040
      • Urban development
        • Urban Policy Committee
        • Thematic partnerships
        • Ecosystem agreements
        • Urban development in the EU
          • The EU’s financial and development instruments for cities
      • Structural change
        • Abrupt structural change (ÄRM)
        • Positive structural change
      • EU’s regional and structural policy
        • EU’s cohesion policy
        • EU structural funds
          • Innovation and Skills in Finland 2021–2027
        • The Fund for European Aid to the Most Deprived (FEAD) 2014–2020
        • European Territorial Cooperation objective (ETC) 2014 - 2020
        • European Neighbourhood Instrument Cross-Border Cooperation (ENI CBC)
      • ELY Centres
        • Strategy of the Regional State Administrative Agencies and ELY Centres
    • Labour migration and integration
      • Integration of immigrants
        • Integration policy
        • Legislation and guidelines
        • Integration services
        • Administration of integration and the actors involved
        • Monitoring of integration
        • Integration SIB project
      • International expertise and labour
        • Labour immigration administration
        • Labour immigration legislation
        • Labour migration services
        • Promotion of migration of talents
        • Talent Boost
  • Current issues
    • Press releases
    • News
    • Columns
    • Sign up for news
    • Social media and webcasts
    • Russian attack on Ukraine
  • Projects and legislation
    • Statute drafting
      • Streamlining legislation at the Ministry of Economic Affairs and Employment
        • One-in, one-out principle
      • More streamlined legislation
        • How can the regulatory burden be reduced
        • REFIT programme of the European Commission
      • Assessment of regulatory impacts on business
    • Current projects
      • Government’s labour market reforms
        • Improving industrial peace in the labour market
        • Increasing local collective bargaining
        • Developing the conciliation system
        • Amendments to the Co-operation Act
        • Ensuring essential work
        • Lower threshold for terminating employment
      • Measures of the Government concerning work-based immigration
        • Three-month unemployment rule
        • Income limit for residence permit for an employed person
      • Changes to unemployment security sanctions
      • TE services reform 2024
        • Frequently asked questions about the TE services reform 2024
          • Questions and answers on information systems and enterprise architecture
          • Questions and answers about joint services for young people
      • Reform of the Integration Act
      • Experiment on recruitment subsidy for sole entrepreneurs
        • Questions and answers about the recruitment subsidy trial for sole traders
      • Sustainable Growth Programme in the MEAE
        • Funding available to companies under the Sustainable Growth Programme
          • First application round for energy investment aid
          • Second application round for energy investment aid
          • Third application round for energy investment aid
          • Fourth application round for energy investment aid
          • Fifth application round for energy investment aid
          • RRF energy investment aid projects granted aid
        • Other funding targets under the Sustainable Growth Programme
      • Project: Licensing and supervision
    • Completed projects
      • Local government pilots on employment
        • Pilot areas
      • Employment measures of Prime Minister Marin's Government
        • Ministerial Working Group on Promoting Employment
          • Summary of the measures proposed by the sub-groups on employment promotion
      • Government report on the future of the retail sector
      • Working capacity programme
        • Number of work ability coordinators to rise
        • TE service pilots for jobseekers
        • Työkanava Ltd
          • Questions and answers on Työkanava Ltd
        • Public procurement can help promote employment
        • Centre of expertise for social enterprises
        • Social impact of employment of people with partial work ability
      • Developing Finland’s Sustainable Finance Ecosystems
      • Entrepreneurship strategy
      • Artificial Intelligence 4.0 programme
        • AI4point0FI videos
      • The National Roadmap for Research, Development and Innovation
      • The Sustainable Growth Programme for the Transport Sector 2021-2023
      • Health sector growth strategy
      • Maritime Industry Development Programme
  • Publications
    • Labour Force Barometer
    • Employment Bulletins
    • Annual Statistical Summaries
    • Publications 2013–2014
    • Brochures
      • Welcome to Finland
  • Ministry
    • Management and organisation
      • Ministers
        • Minister of Employment
        • Minister of Economic Affairs
        • Minister of Climate and the Environment
        • Minister of the Interior
        • Minister of Local and Regional Government
      • Senior officials
        • Management Groups
      • Departments and Units
      • Government agencies, companies and funds in the administrative branch
      • Labour Council
        • Tasks of the Labour Council
      • National Conciliator's Office
      • Cooperation Ombudsman
    • Strategies and operational planning
      • Strategy
      • Values
      • Budget
      • Documents on planning and monitoring
        • Performance targets
        • Sustainability reports
    • Cooperation in the EU and at other international forums
      • Nordic Cooperation
    • Security of supply and securing of vital functions in the administrative branch of MEAE
    • Discretionary government grants
    • Ministry´s Visual Identity
    • Whistleblower protection
    • History
    • Information about the website
      • Data protection
      • Accessibility statement
      • Cookies
    • Contact information and visiting address
  • Contact information
    • Ministry’s Communications Unit
    • Feedback