Finland is taking a step towards attracting clean investments by providing tax relief to support the growth of green industries. Experts interviewed by HS have praised the decision, stating that it should have been made earlier. The director of green growth at the Confederation of Finnish Business, Ulla Heinonen, believes that competition with other countries is ongoing and that the sooner these investments can be brought back to Finland, the better.
The government has introduced a tax credit for large industrial investments leading to a zero-emission economy, with a refund of 20% of the total investment amount for projects whose investment decision is made by the end of next year, with a maximum tax credit of 150 million euros per project. This move is seen as a step in the right direction by experts who believe that Finland may need to react to this competitive challenge or risk losing out to other countries.
Paavo Järvensivu from the Bios research unit expressed disappointment that Finland has not taken an active industrial policy approach earlier. He believes that Finland’s political leadership has lacked a planned line to reform the industry to meet economic, ecological, and geopolitical goals. However, he sees the government’s decision as a positive step towards attracting clean investments and supporting green industries in Finland.
The coming months will determine whether Finland will attract factories using fossil-free energy such as battery production, clean steel, and hydrogen. If successful, this move could position Finland as a leader in sustainable industries and attract more investors looking for environmentally responsible opportunities.
