Climate finance

Central government climate finance comprises government appropriations, tax reliefs, state guarantees for loans, and equity investments, loans and leasing operations of state-owned companies. Central government climate finance complements private funding and can also be used to close possible funding gaps. The funding enables to make climate-smart actions economically profitable and accelerate the introduction of new technologies.

ACE LIFE project and climate funding

The ACE project to boost climate solutions, funded from the EU LIFE programme, is implemented in 2024–2030. The aim is to support the achievement of Finland’s carbon-neutrality target with a particular focus on emissions from the effort sharing sector. In this project, the Ministry of the Environment is responsible for the package of measures concerning climate finance. The aim is to promote the effective targeting of central government climate finance, support the application for external funding, boost the upscaling of climate innovations, and find solutions to challenges related to climate finance together with various stakeholders. 

The Ministry of the Environment has published a report on development proposals for more effective climate finance. The Economic Development Centre of Inland Finland is preparing a tool for assessing the climate impacts of the projects to be funded. The network of experts on climate finance supports this work. The project includes the provision of up-to-date information on climate finance and support in the application for funding for new projects from external sources. The Tiina and Antti Herlin Foundation will develop a model for upscaling climate innovations.

• Read more about the ACE project | carbonneutralfinland.fi
• Report: Development Proposals for More Effective Climate Finance (in Finnish) | Institutional Repository for the Government Valto

Funding opportunities

The Ministry of the Environment is promoting more effective utilisation of the already available funding channels for climate investments and projects. The ACE project maintains up-to-date information on the funding opportunities. This information is available in the financial information service of Motiva. The project also provides information on the support services for funding and on successful investments. 

• Funding information service (in Finnish) | Motiva
• EU funding advisory service | Business Finland

The ACE project will offer support for coordination, concept development and communication when applying for external project funding. The focus is on projects that are large in the Finnish scale, such as LIFE. The project will also formulate ready-made project concepts to be used in the future applications for funding. These project concepts will be presented in ACE webinars. 

• EU LIFE programme (in Finnish)

Network of experts on climate finance

In the ACE project, an informal network of experts on climate finance has been set up that includes representatives of government ministries, agencies and the finance sector. The network brings together expertise from the public and private sector, promotes the development of climate finance and formulates policy recommendations for targeting the funds. The network supports the measures of the ACE project by offering extensive expertise for the preparation processes.