Long-term Climate and Energy Strategy

Approximately 80% of the greenhouse gas emissions causing global warming originate in energy production and consumption, including transport. Therefore, climate and energy policy have become closely entwined in the past few years. The Finnish Government has submitted a report to Parliament on climate and energy policy in 2001 and 2005. Since the latest report, international and EU climate and energy political objectives and obligations have changed to such an extent that, in 2007, a policy position was set down in the Government Programme of Prime Minister Vanhanens second Cabinet, stating that the Government would draw up a long-term climate and energy strategy at the beginning of its current term, to define the principal objectives and means of Finlands climate and energy policy for the next few decades, within the context of the European Union and its objectives. It was decided that the Strategy would be submitted to Parliament in the form of a report. The report was prepared under the steering of the Governments Ministerial Working Group on Climate and Energy Policy. The preparatory body for the Ministerial Working Group has been the Climate and Energy Policy Network, comprising representatives of several ministries, including the Ministry of Employment and the Economy, Ministry of Transport and Communications, Ministry of Agriculture and Forestry, Ministry of Education, Ministry for Foreign Affairs, the Prime Ministers Office, the Ministry of Finance, and the Ministry of the Environment. The report consists of an outline and strategy texts, including background information, and four appendices. On the other hand, the strategy proper describes the changes that have taken place in the international operating environment, and presents the Governments outlines for energy and climate policy in the forthcoming years, alongside proposals for key measures for the attainment of the EUs objectives regarding the promotion of renewable energy, the enhancement of efficiency in energy consumption, and decreasing greenhouse gas emissions. The strategy sets targets for final energy consumption and electricity consumption in 2020, aiming to keep them relatively stable as compared to current (2008) levels. Final energy consumption is to reach 310 TWh (almost equal to the current level) and electricity consumption is to reach 98 TWh (slightly higher than the 2008 level of just under 90 TWh). The strategy presents two scenarios: the baseline in compliance with current measures and development, and the objective, meeting the EUs and national objectives. According to the scenarios, for 2020, electricity consumption would, at the baseline, be 103 TWh (terawatt-hours), primary energy consumption 479 TWh, final energy consumption 347 TWh and greenhouse gas emissions 89 Mt CO2-eqv. (million equivalent carbon dioxide tonnes) and corresponding emissions outside the emission trading sector, 36 Mt CO2-eqv. According to the objective, in 2020, electricity consumption will equal 98 TWh, primary energy consumption 430 TWh, final energy consumption 310 TWh and emissions outside the emission trading sector 30 Mt CO2-eqv. Emissions within industries included in emission trading are specified in accordance with EU-wide emission trading, which is under modification. The strategy aims for a marked increase in the share of indigenously generated energy, as well as improved energy efficiency and increased use of renewable energy. The share of renewable energy is targeted to increase to 38% of total final energy consumption. This will require an increase in the use of wood-based energy, waste fuels, heat pumps, biogas and wind energy. The use of forest chips is to be increased by two or three times over current levels, and by 2020, some 6TWh of wind energy to be harnessed for use, which would entail the construction of a minimum of 700 new 3 MW wind power plants. In addition, the share of coal and oil in Finlands energy balance is to decrease and energy divers

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