Possibilites to increase the effectiveness of the Finnish Climate Act

Mikael Hildén, Karoliina Auvinen, Martin Björklund, Tommi Ekholm, Ari Ekroos, Suvi Huttunen, Kari Hyytiäinen, Kai Kokko, Anu Lähteenmäki-Uutela, Michael Mehling, Adrian Perrels, Jyri Seppälä, Sampo Soimakallio, Päivi Tikkakoski, Erika Toivonen, Oras Tynkkynen

Research output: Book/ReportCommissioned report


The report analyses possible ways to increase the effectiveness of the Finnish Climate Act. The assessment focuses on the regulation of emission budgets, compensation and flexibilities, and extended carbon markets that would include sinks. In addition, 14 other proposals are assessed on a general level.
The report concludes that national emission budgets that are binding for the state administration would strengthen the Climate Act by providing a clear message on the path towards carbon neutrality. Emission budgets would both require and support the development of the planning system of the Climate Act. This would also strengthen the base for active involvement in the mplementation of EU’s climate goals. The Act would be strengthened further by including provisions on a fair transition, requirements for municipalities or regions to set emission targets, and obligations to assess climate impacts of bills and the state budget. The Climate Act is, however, not considered to provide an appropriate frame for the regulation of carbon markets to cover sinks.
Compensation and flexibility mechanisms are important, but their detailed regulation is not recommended to be included in the Climate Act. Instead, separate legislation should be considered to ensure consumer rights based on appropriate ac-counting, additionality and avoidance of double counting.
Translated title of the contributionPossibilites to increase the effectiveness of the Finnish Climate Act
Original languageFinnish
Number of pages213
ISBN (Electronic)978-952-383-045-5
Publication statusPublished - 2021
MoE publication typeD4 Published development or research report or study

Publication series

NameValtioneuvoston selvitys- ja tutkimustoiminnan julkaisusarja
ISSN (Electronic)2342-6799


  • ilmasto, päästöt, budjetointi, kompensointi, hiilinielut, hiilensidonta

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