Insight
Finland’s industrial sector plays a pivotal role in shaping the country’s economic landscape, particularly in hard-to-abate industries such as metals, chemicals, and manufacturing. The sector also faces significant greenhouse gas emissions challenges, accounting for 22% of the national GHG balance in 2023. Finland is committed to achieving carbon neutrality by 2035, supported by ambitious policies, research initiatives, and funding opportunities. This makes Finland a leader in decarbonisation efforts within the European Union.
Industry GHG Emissions
In 2023, Finland’s greenhouse gas emissions from industrial processes and product use amounted to 4.7 million tonnes of CO2-equivalent. These emissions included approximately 1.98 million tonnes from the metal industry, 1.07 million tonnes from the chemical industry, 0.77 million tonnes from the mineral industry, and 0.13 million tonnes from non-energy products and solvent use. Emissions from energy-related stationary combustion of fossil fuels in manufacturing industries and construction contributed an additional 5.3 million tonnes of CO2-equivalent. Since 1990, emissions in this category have decreased by over 50%, highlighting significant progress in reducing industrial emissions.
Economic Relevance of Sectors
Chemicals & Refining
Annual net turnover (2023):
30 billion €
Number of employees:
Approximately 12,500
Main export markets (2023):
Sweden, USA, Netherlands, Belgium, Germany, UK, Poland
Biggest companies based on turnover:
Neste, Kemira, Yara, Umicore, Linde, Jervois, Borealis Polymers, PPG Tikkurila
Metals Including Iron and Steel
Annual net turnover (2023):
53 billion €
Number of employees:
Approximately 187,000
Main export markets (2023):
EU, USA, UK
Biggest companies based on turnover:
SSAB Finland, Outokumpu, Boliden, Terrafame
Cement & Lime
Annual net turnover (2023):
1 billion €
Number of employees:
Approximately 5,000
Biggest companies based on turnover:
Parma, Rudus, Lujabetoni
Decarbonising Finland’s Industry – Funding Opportunities
Finland supports industrial decarbonisation through various funding initiatives. The Clean Energy Transition Partnership (CETP), with a budget of 5 million € in 2023, focuses on industrial energy systems and carbon capture, utilisation, and storage (CCUS). The Sustainable Manufacturing Finland program emphasises innovative business models and productivity improvements while addressing climate change challenges. The Hydrogen and Batteries program, running from 2023 to 2028, promotes the development of hydrogen and battery technologies, aiming to establish zero-carbon solutions in Finnish industry.
Relevant Policies and Roadmaps
In 2019, Finland set the ambitious goal of becoming carbon-neutral by 2035, aspiring to be the world’s first fossil-free welfare society. To achieve this, integrated sector-specific low-carbon roadmaps were collaboratively developed by the public and private sectors. In 2020, 14 Finnish sectors, including metals, chemicals, and energy-intensive industries, outlined pathways for decarbonisation. Updated roadmaps are set to be published by the Ministry of Economic Affairs and Employment in autumn 2024, providing actionable blueprints to accelerate emission reductions. These efforts are further supported by the government’s updates to the national energy and climate strategy and a dedicated industrial policy strategy.
Flagship Projects
Several flagship projects highlight Finland’s commitment to industrial decarbonisation. The SHARC project, supported by 88 million € from the Innovation Fund, will integrate electrolysis and carbon capture technologies at Neste’s Porvoo refinery by 2025, aiming to reduce more than 4 million tonnes of CO2-equivalent over its first decade of operation. The PULSE project focuses on chemical recycling and plans to implement advanced technologies at the Porvoo refinery by 2028, with an expected reduction of 10.3 million tonnes of CO2-equivalent over its first ten years.
The P2X-Europe project showcases power-to-liquid technology in the chemicals sector using renewable hydrogen, with Finland contributing 70 million € to this initiative in Harjavalta. It is expected to reach market readiness by 2024. Additionally, the MORSE project demonstrates digitalisation technologies in the steel industry, with operational plants in Finland and Austria. These projects exemplify Finland’s leadership in innovative and scalable decarbonisation solutions.
