Annual Climate Report
Annual Climate Reports are prepared each year under the leadership of the Ministry of the Environment. They examine the general development of greenhouse gas emissions, and whether the planned measures are enough to meet Finland’s national climate targets and EU obligations. This page presents a concise summary of emissions trends and progress towards the targets in Finland.
According to the national Climate Act, Finland’s net emissions should be zero or negative by 2035. By 2030, the total emissions must be reduced by 60 per cent compared to the 1990 level. Finland’s obligations for the carbon sink in the land use sector and for emission reductions in the effort sharing sector are set at the EU level.
Finland’s net emissions decreased by six per cent in 2025
Finland's net greenhouse gas emissions – the sum of the emissions and the carbon sinks that sequester them – decreased by six per cent compared to the previous year. Emissions from the land use sector decreased from the previous year, but the sector is still a major emission source. Without the land use sector, the emissions fell by seven per cent and the clean energy transition is progressing fast. Emissions continue to fall especially in energy production.
These figures are based on instant preliminary data from Statistics Finland and they will be updated later.
- Emissions from the emissions trading sector decreased by 11%
- Emissions from the effort sharing sector decreased by 5%
- Emissions from the land use sector decreased by 14%
Trends in Finland's greenhouse gas emissions
According to the national Climate Act, Finland aims to be carbon neutral in 2035. This means that Finland’s emissions and sinks must be in balance, which means that greenhouse gas emissions are equal to the removals or lower. Reaching this climate neutrality target will require major additional measures. To reach carbon neutrality, emissions must be reduced in all sectors and carbon sinks must be strengthened in the land use sector. The Climate Act also sets emission reduction targets for the effort sharing and emissions trading sectors for 2030, 2040 and 2050. The Annual Climate Report analyses the progress towards these targets over a 15-year period. Combined emissions from the emissions trading and effort sharing sectors must fall by 60 per cent by 2030 and by 80 per cent by 2040 compared to the 1990 levels.
Emissions trading sector: Clean energy transition is progressing fast
In 2024, the emissions of the emissions trading sector fell by 11 per cent from the previous year. The sector made up a quarter of Finland’s net emissions. It includes large industrial and energy production plants, air transport within Europe and, from 2024 onwards, maritime transport within Europe and 50 per cent of maritime transport between the EU and non-EU countries.
The clean energy transition is making good progress: the use of coal for energy production ended in 2025 and the consumption of peat, oil and natural gas decreased as well.
The phasing out of fossil fuels has progressed fast especially in electricity production, where these have mainly been replaced by wind and nuclear power.
Effort sharing sector: Decrease in emissions from transport boosted emission reductions
Emissions from the effort sharing sector fell by five per cent from the previous year. The effort sharing sector comprises domestic transport (excluding air transport), agriculture, building-specific heating, waste management, non-road mobile machinery and F-gases, as well as small industrial and heat plants.
The trend in emissions from transport turned downward again, and there was also some decrease in the emissions from agriculture. F-gas emissions continue to fall. Emissions from waste treatment have decreased but emissions from waste incineration have grown due to the increase in the use of waste for energy.
With the measures that have been planned and the flexibilities, Finland will be able to meet the EU obligations for the effort sharing sector concerning the whole period 2021–2030 even if the emissions may exceed the quota in individual years.
Land use sector: Net sink has turned into a source of emissions
The land use sector comprises land use, land use change and forestry (LULUCF). According to instant preliminary data of Statistics Finland, the land use sector was a net source of emissions in 2025, with 9.4 million tonnes of CO2-equivalent.
The land use sector used to be a major net sink in Finland, but in 2018 and 2021–2025 the sector as a whole has been a net emission source. The net sink or net emission figure of the land use sector is obtained by adding up the sector’s emissions and removals.
Emissions from farmlands decreased and the carbon sink of wood products grew. Of the land use categories, forest land that used to be a carbon sink has become a source of emissions. New data shows that forest land has been an emission source since 2021. Forests have turned into a net source of emissions because the carbon sink formed by trees no longer offsets emissions from forest soils.
The current trend in the land use sector does not support the achievement of Finland’s climate targets. Effective additional measures are needed in the sector.
Monitoring of climate actions in previous years
According to the Climate Act, the Government submits the Climate Report to Parliament every year. Annual Climate Reports have been published since 2019.