Policy implementation in Finland

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Note: This page is part of the EU biofuel policy tracker, created with content provided by the International Council on Clean Transportation

Implementation of the Renewable Energy Directive (RED) and Fuel Quality Directive (FQD) in Finland.

Policy implementation in EU countries
This page was developed with information supplied by ICCT, the International Council on Clean Transportation (http://www.theicct.org/).
EU biofuel policy tracker:
Implementation of the EU's Renewable Energy Directive (RED) and
Fuel Quality Directive (FQD) in
AustriaBelgiumBulgariaCyprusCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyLatviaLithuaniaLuxembourgMaltaThe NetherlandsPolandPortugalRomaniaSlovakiaSloveniaSpainSwedenUnited Kingdom
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  • Note: Information believed to be current as of 1 October 2011.


Overview of the EU Directives

Renewable Energy Directive (RED)

  • The Renewable Energy Directive sets mandates for the use of renewable energy in the European Union. This includes a mandatory target for European Member States that 10% of energy in land transport should be from renewable sources by 2020. This renewable energy could be in any form, such as hydrogen or electricity, but it is widely expected that the bulk of the target will be met by the use of biofuels. The Directive includes sustainability criteria (mirrored in the Fuel Quality Directive) that put a minimum threshold on the direct emissions savings from biofuels based on a lifecycle analysis methodology described in the directive, and define categories of high biodiversity and high carbon land that must not be converted for biofuels production. The Directive puts an obligation on European Member States to enforce both the overall targets and the sustainability conditions, and so the legal requirements on economic operators may vary from Member State to Member State. See Renewable Energy Directive.

Fuel Quality Directive

  • The Fuel Quality Directive includes a mandatory target that the carbon intensity of transport fuel supplied in Europe should be reduced by 6% in 2020 compared to the baseline. It is anticipated that the bulk of this saving will be achieved with biofuels, but electric vehicles and other low carbon vehicle technologies may also be important. There may also be recognition available for reduced emissions intensity from fossil fuel supply, such as by reduced flaring emissions. The 6% target is intended to be achievable by any economic operator supplying all of its mandated 10% renewable energy under the Renewable Energy Directive as biofuel with an average carbon saving of 60%. See Fuel Quality Directive.


  • Finland has partially fulfilled its obligation under the Renewable Energy Directive by implementing the Act on the Promotion of Renewable Energy Generation, which grants tax incentives to producers of electricity from renewable sources. Finland has a relatively high target for its share of total energy sourced from renewables by 2020 (38%), but already produced 28.5% from renewables in 2005.

Policy name(s)

  • The Act on the Promotion of Renewable Energy Generation (1396/2010) is currently in force and partly satisfies Finland's requirements under RED. [1]

Type of policy

  • Tax incentives are granted to qualifying producers of renewable energy. [1]

Implementing authority

Year introduced

  • 2010.


  • The Act on the Promotion of Renewable Energy Generation has been in force as of Jan 1, 2011. [1]

Scheme website


  • Finland's target for the share of total energy from renewable sources by 2020 is 38%. In 2005, the share of energy from renewables in this country was 28.5%. [2]

Legally obligated parties, opt-in parties and compliance pathways

  • No one is legally obligated to participate in this scheme at present. Produces of electricity generated from wind power, biogas, or wood-based biomass are eligible for the tax incentives under The Act on the Promotion of Renewable Energy Generation. [1]


Greenhouse gas emissions

Life-cycle analysis (LCA)


GHG emissions from ILUC

Mandatory environmental criteria on land types

Additional environmental and social reporting requirements

System for verifying carbon and sustainability claims

Reporting system

Double reward for cellulosic biofuels, use of wastes and residues

Eligible feedstocks

  • Biogas and wood-based biomass. [1]

Credit trading

Aviation and shipping


  1. 1.0 1.1 1.2 1.3 1.4 Renewable energy: challenges and opportunities for power producers International Law Office. 2011-10-17. Accessed on 2012-03-06.
  2. Finland's national action plan for promoting energy from renewable sources pursuant to Directive 2009/28/EC Finland Energy Department: Ministry of Employment and the Economy. 2010-06-30. Accessed on 2012-03-06.
Policy implementation in EU countries edit
European Union policy - European Biofuels Directive | EU member states biofuel targets
EU biofuel policy tracker -- Implementation of the EU's Renewable Energy Directive (RED) and Fuel Quality Directive (FQD) in:
AustriaBelgiumBulgariaCyprusCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyLatviaLithuaniaLuxembourgMaltaThe NetherlandsPolandPortugalRomaniaSlovakiaSloveniaSpainSwedenUnited Kingdom
Template for country information


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