In 2025, Finland remains at the forefront of global climate leadership with bold policy updates aimed at achieving carbon neutrality by 2035. With a new legislative framework and updated national strategies, Finland’s climate policy reflects both ambition and urgency.
In this blog post, I will guide you with the latest 2025 climate policy updates, the challenges the country faces, and the implications for its long-term sustainability goals.
Strengthened Climate Act Sets the Legal Foundation
Finland’s Climate Act (423/2022)
Finland’s Climate Act, updated in 2022 and entering full implementation in 2025, sets legally binding emissions reduction targets:
- −60% by 2030
- −80% by 2040
- −90% (mandatory) to −95% by 2050
All targets are based on 1990 emission levels. Additionally, Finland aims to become carbon neutral by 2035, with a net-negative emissions goal for the latter half of the century.
Climate Policy Planning Structure
The Act mandates a robust planning system, including:
- A Long-Term Climate Policy Plan (due in 2025)
- A Medium-Term Climate Policy Plan
- A Climate Change Adaptation Plan
- A dedicated Land Use Sector Plan
These instruments guide national and sectoral efforts toward the carbon neutrality target. (Source: Finnish Ministry of the Environment)
Major Strategic Updates in 2025
Updated Medium-Term Climate Policy Plan
Finland is focusing on its Medium-Term Climate Policy Plan, which covers emissions not included in the EU Emissions Trading System (ETS), such as transport, agriculture, and building-specific heating. It includes updated modeling to better align with both national and EU targets.
National Energy and Climate Strategy 2025
Finland’s National Energy and Climate Strategy, also being updated in 2025, outlines how key sectors will transition to low-carbon pathways. A public consultation was held, reflecting Finland’s commitment to transparency and public engagement. (Source: Finnish Government)
Finland Supports EU’s 2040 Climate Target
In April 2025, Finland formally announced support for the European Commission’s proposal to reduce greenhouse gas emissions by 90% by 2040. This aligns with Finland’s own progressive targets and strengthens its role in influencing EU climate governance.
Notably, Finland has backed the limited use of high-integrity international carbon credits and the inclusion of technical carbon removal technologies (like BECCS) under future emissions trading rules. (Source: Reuters)
Historic Coal Phase-Out Scheduled For 2029
Finland’s climate change policy has confirmed a scheduled coal phase-out by 2029. For this purpose, actions are being taken already this year.
Closure of Salmisaari Power Plant
In a landmark event for Finnish energy policy, the Salmisaari coal-fired power and heat plant in Helsinki was permanently shut down in April 2025. Operated by Helen Ltd., this was Finland’s last active coal plant.
The shutdown:
- Cuts national emissions by approximately 2%
- Reduces Helen’s direct emissions by over 50%
- Marks the completion of Finland’s coal phase-out ahead of its 2029 deadline
This transition is made possible by rapid investments in renewable energy and district heating solutions. (Source: Reuters)
Major Challenges Remain for Carbon Sinks
Despite strong mitigation targets, Finland faces critical challenges regarding carbon sink capacity, especially in its forests and peatlands.
Declining Forest Carbon Sinks
Data shows that Finland’s land use sector has shifted from a carbon sink to a net emitter, primarily due to:
- Increased logging
- Peatland degradation
- Climate-induced forest stress
Between 2009 and 2022, Finland’s carbon sink declined by over 90%, according to the Natural Resources Institute Finland (Luke). (Source: The Guardian)
OECD and CCPI Warnings
The OECD’s 2025 report flags Finland as off track to meet its climate targets unless stronger actions are taken in land use, biodiversity adaptation, and emissions pricing.
Similarly, the Climate Change Performance Index (CCPI) 2025 ranks Finland 37th globally, with particularly weak scores in energy use and national climate policy, despite its high renewable energy share. (Source: CCPI.org)
Looking Ahead – What to Expect in Late 2025
Key developments to watch in the second half of 2025 include:
- Final publication of the Medium-Term Plan and Energy Strategy
- Introduction of legislation for carbon sink restoration
- Expanded investment in bioenergy, wind, and geothermal solutions
- Implementation of the Land Use Climate Plan
These initiatives are expected to form the backbone of Finland’s revised pathway to meet the 2030 and 2035 milestones.
Conclusion
Finland’s 2025 climate policy updates signal a decisive step forward in aligning legal, strategic, and operational tools toward its ambitious climate goals. With a legally binding roadmap, coal exit achieved, and public engagement in strategic planning, Finland continues to set an example in climate governance. However, challenges such as declining forest carbon sinks and implementation gaps require urgent attention to ensure a just and effective transition.
At the same time, the Finland climate is best for visitors, hiking lovers, and tourists, offering a unique balance of clean air, natural beauty, and sustainable practices that enhance the country’s global appeal. As the year progresses, Finland’s performance will be closely watched both as a national success story and a critical player in shaping EU and global climate ambition.”
