Energy efficiency agreements have delivered savings on a billion-euro scale

Between 2017 and 2025, Finnish companies and municipalities invested more than EUR 2 billion in measures improving energy efficiency. Thanks to these measures, the organisations are saving 18.6 terawatts (TWh) of energy per year compared with the initial situation. With the help of voluntary energy efficiency agreements between the government and sectors, Finland has achieved the EU’s strict energy efficiency obligations without the need for national legislation or other mandatory measures.

More energy savings were achieved during the third energy efficiency agreement period (2017–2025) than during any previous period in the 30-year history of the scheme. 

“This voluntary scheme combines concrete objectives, annual monitoring and practical support. The results show that the model generates substantial savings while allowing companies and municipalities to flexibly develop new energy efficiency measures based on their own circumstances,” says Minister of Climate and the Environment Sari Multala.

A total of 780 companies and 160 municipalities or joint municipal authorities joined the Energy Efficiency Agreements for the years 2017–2025. Their energy use accounted for nearly 60 per cent of Finland’s total energy consumption. The participants invested over EUR 2.1 billion in 34,500 energy efficiency measures. The government supported these measures by granting nearly EUR 170 million in energy aid for investments during the agreement period. The measures reduced Finland’s annual carbon dioxide emissions by as much as four million tonnes. 

Energy efficiency is a key element in Finland’s energy and climate work

Comprehensive and effective energy efficiency agreements have long been the cornerstone of Finland’s Energy and Climate Strategy. The government and the sectors have chosen the agreements as a key means of promoting energy efficiency in Finland and to achieve the EU’s strict energy efficiency obligations on market terms. The flexible agreement system has been adapted over the agreement periods to respond to the EU’s tightened energy efficiency requirements. 

Energy efficiency investments have also accelerated the introduction of new technology and created preconditions for clean growth in Finland. The emission reductions achieved by promoting energy efficiency have been considerable. 

Due to the growth in emission-free energy production, the emission reductions achieved through energy savings will decrease over time. However, energy efficiency remains an important means to save costs. Energy efficiency measures contribute to the effective use of the electricity generation and network capacity and reduce other environmental impacts of energy production. 

An active, competent and experienced network ensures continuity    

Over the years, a network of thousands of experts responsible for energy use has been created around the energy efficiency agreements. Their expertise in energy issues helped companies and municipalities to react quickly to the energy crisis of 2022. In 2022 alone, the companies and municipalities participating in the agreements implemented a record number of nearly 5,600 new measures to improve energy efficiency. 

The organisations participating in the agreements between the government and the sectors in 2017–2025 included the Confederation of Finnish Industries, Finnish Food and Drink Industries’ Federation, Finnish Energy, Chemical Industry Federation of Finland, Federation of Finnish Technology Industries, Finnish Forest Industries, Finnish Commerce Federation, Finnish Hospitality Association MaRa, Finnish Central Organisation for Motor Trades and Repairs, Association of Finnish Local and Regional Authorities, Finnish Association of Building Owners and Construction Clients, and Heating Energy Association LEY.

The new agreement period for 2026–2035 has already begun.

(Press release: Ministry of Economic Affairs and Employment, Ministry of the Environment, Energy Authority, Motiva)

Inquiries:
Ministry of Economic Affairs and Employment: Pia Kotro, Senior Specialist, tel. +358 295 047 229
Energy Authority: Tiina Sekki, Senior Specialist, tel. +358 295 050 200 
Motiva: Saara Elväs, Senior Expert, tel. +358 9 6122 5043