Well prepared for energy transition
Finland’s energy mix is well diversified with renewables accounting for 42%, nuclear energy for 27% and fossil fuels and peat for 30% of the total energy consumption. In Finland, the share of renewable sources of energy is the second highest in the EU. Renewable forms of energy production surpassed the use of fossil fuels in the 2020s.
Finland is close to self-sufficiency in electricity production. Domestic production has increased significantly in the past few years and in 2023, it covered already 98% of Finland’s electricity demand. Electricity demand was largely covered by hydro power, wind power and nuclear power. Thus, 92% of Finland’s electricity consumption in 2023 was fossil-free.
Nuclear energy is an important part of Finland’s energy mix. The volume of nuclear power in Finland’s electricity production increased significantly in 2023 as the fifth reactor, Olkiluoto 3, was in use for the first full year. In 2023, the share of nuclear power of Finland’s total electricity consumption increased to 41% (from 30% in 2022).
Greenhouse gas emissions are steadily decreasing
According to preliminary data, in 2023 Finland’s greenhouse gas emissions decreased by 11% compared to the previous year. This was due to the above-mentioned changes in the structure of domestic electricity production, especially increased production of nuclear power and wind power, which enabled a decrease in energy-based greenhouse gas emissions by around 4.6 million tonnes of CO₂ equivalent in 2023.
Finland’s total emissions have fallen by 43 per cent from the comparison year 1990 and by 52 per cent from 2003, when emissions were at their highest during the 1990 to 2023 time series. Over the past five years, Finland’s total emissions have decreased by an average of 4% annually.
The energy sector was the largest source of greenhouse gas emissions in Finland, accounting for 70 per cent of total emissions in 2023. The sector’s emissions decreased by 4.6 million tonnes of CO₂ equivalent from the previous year. This was especially due to decreased use of hard coal and peat.
For more facts on Finland and energy, have a look at this short video (from 2022).
Further reading:
Finland is well positioned for green investments, an article by Chief Policy Adviser Janne Peljo in our Debt Management Annual Review 2023
Finland is firmly on the path towards green transition by Director General Riku Huttunen in our Debt Management Annual Review 2022
The Finnish Ruxit by Professor Veli-Pekka Tynkkynen in our Debt Management Annual Review 2022
Sources:
Official Statistics of Finland (OSF): Greenhouse gases [e-publication].
ISSN=1797-6065. Helsinki: Statistics Finland [referred: 11.11.2021].
Access method: http://www.stat.fi/til/khki/index_en.html
Official Statistics of Finland (OSF): Production of electricity and heat [e-publication].
ISSN=1798-5099. 2020. Helsinki: Statistics Finland [referred: 11.11.2021].
Access method: http://www.stat.fi/til/salatuo/2020/salatuo_2020_2021-11-02_tie_001_en.html