Finland wants to be at the forefront of hydrogen technology and environmentally friendly transportation. This might be inferred from the country’s expenditure intentions for the funds received from the European Coronal Recovery Fund.
The Finnish Recovery and Resilience Plan places a high premium on addressing climate change (RRP). The 2.1 billion euros that the nation received from the EU to aid in rescuing the European economy from the Corona recession is the ideal amount. Finland remained among the top five nations with the largest greenhouse gas emissions at the start of this century. In addition, the intake of carbon dioxide is beginning to drop as a result of the fast-expanding logging of Finnish forests. The RRP seeks to position the nation for the future by making it a global leader in hydrogen, among other things.
The financial allotment for the green transition is no less than 50%. The funds must significantly aid in reaching the nation’s CO2 neutrality by 2035 climate goals. The nation must take in even more CO2 than it emits by 2040. Particularly, the energy, transportation, and industrial sectors—which now produce the majority of emissions—will be addressed. The digital transformation will be supported by 27% of the plan.
“When I first saw the idea, I was pleasantly impressed. According to Paula Kivimaa, professor of Climate and Society and participant in the Finnish Climate Panel, “We are aiming towards fossil-free transportation and a sustainable enterprise.” By spending €319 million on energy decarbonization, particularly in energy transmission and distribution and innovative energy technologies, the strategy aids in the green transition.
What particularly struck the professor is the 156 million euro investment in hydrogen technology. “In Finland, the industrial sector must become more environmentally friendly. This will undoubtedly benefit from the hydrogen network’s large-scale roll-out, as outlined in the plan.
In Finland, hydrogen will primarily be crucial to increasing the sustainability of the steel and chemical industries. It ought to make it possible to process metals and minerals. Since hydrogen has a high combustion temperature, it is ideally suited for this. For instance, the manufacturing procedures at SSAB’s steel mill in Raahe, which accounts for 7% of Finland’s emissions, will be powered by hydrogen.
Efficient heating
The proposal also promotes heating structures with sustainable methods. The replacement of fuel oil boilers with low- or zero-carbon heating systems is funded with €70 million. A really smart concept, Kivimaa comments. “Many homes in Finland’s rural areas still utilize outdated oil-fired heating systems. The Russian energy crisis and rising gas prices have intensified existing measures to make home energy systems more sustainable in addition to these plans. For instance, there are currently incentives available for eco-friendly heat pumps. I believe that in the near future, this sort of sustainable heating system will guarantee a quick transformation in the energy industry.
EU’s Next Generation
One of the biggest problems facing our generation is the corona issue. The European Union seeks to assist the Member States in overcoming the crisis through NextGenerationEU, the greatest recovery plan ever with €806.9 billion. The centerpiece of this strategy is the Corona Recovery Fund (723.8 billion euros).
The initial objective of this fund is to help the European economy recover from the recession brought on by the corona pandemic. The goal is to simultaneously encourage significant investments for the future and change-implementing actions.
The deadline for submitting a plan had been set for April 30, 2021, however, it has recently been extended to June 2022. Currently, plans have been submitted by 26 of the 27 Member States. The plans stipulate that the Member States must allocate at least 37% of their budget to climate action and 20% to digitalization.
Green mobility
Additionally, EUR 40 million will be used to support both private and public electric vehicle charging stations. “The fleet in Finland is rather old on average. We want to switch to electric mobility, but the infrastructure for charging has been a significant roadblock. The amount of government funding allocated by the RRP for the construction of electric vehicle charging stations close to residential complexes has grown. As a result, more people will be able to drive electric vehicles, which are currently too expensive for many due to the growing cost of fuel, according to Kivimaa.
“I believe it could take some time before we notice an effect. Overall, though, the development of the charging infrastructure and the nation’s already-existing electrified rail network make me feel optimistic about the future of Finnish mobility.
No solutions to urgent environmental problems
The climate professor concludes by saying that even so, the RRP does not address some of the additional environmental issues that the nation is currently confronting. “For instance, I think it’s unfortunate that the strategy gives little thought to addressing biodiversity. Additionally, there aren’t any plans to make agriculture, which is still a significant source of pollution, more sustainable.
“However, considering Finland’s very modest budget of 2.1 billion euros, I am happy. I hope the strategy will be used as a model for more business community investment.
