NordenBladet — The working group on peat, which was appointed by the Ministry of Economic Affairs and Employment, submitted its report to Minister of Economic Affairs Mika Lintilä on 31 March 2021. The report includes measures to improve the situation of peat industry operators as demand for energy peat declines sharply due to the emission allowance prices rising much faster than previously forecast.

The working group also proposes measures to ensure the security of supply in a situation where the use of peat for energy could fall by as much as 70% by 2025, as per some forecasts. According to the Government Programme, the energy use of peat is to be cut by at least half by 2030.

The transition should take place in a way that is fair and just, both regionally and socially, and that does not jeopardise the security of supply in terms of electricity and heat in Finland. The working group also explored ways in which peat, instead of burning it, could be used for innovative products with higher added value.  “The peat industry is in a difficult situation as the demand for energy peat falls dramatically due to the rising allowance prices. The working group was able to work and cooperate well. In response to the mandate, we highlight 26 measures, which focus on urgently improving the situation of peat industry operators. I hope that during the further preparation the measures will form a mutually supportive package capable of meeting the challenges. This, of course, requires political decisions,” says Timo Korhonen, Chair of the working group.

“According to the Government Programme, the reduction in peat energy use should take place in a way that is fair and just, both regionally and socially, and that does not jeopardise the security of supply in terms of electricity and heat in Finland. The working group is now proposing solutions for this recklessly rapid change to limit the damage to the peat industry. I will submit these proposals to the Government for deliberations,” Mika Lintilä says. “Ensuring the production and availability of horticultural and bedding peat is of paramount importance. For example, the production chains of wood tree seedlings and horticultural production are based on the use of peat-based substrates. In domestic animal production, bedding peat also plays a key role in maintaining animal welfare and production hygiene, and reduces the need for antibiotics,” Minister of Agriculture and Forestry Jari Leppä says.

Different ministries will now evaluate the proposals.Proposals to improve the situation of peat industry operators As the fastest and most effective measure to improve the situation of peat industry operators, the working group proposes a one-off package for them to close down their operations. In this context, consideration would be given to compensation paid in part by the State to peat producers for unsold stock; acquisition of privately owned or leased peat production areas for use by Metsähallitus; appointment of a working group to determine the level of compensation for the disposal of peat production machinery and equipment; an adjustment allowance paid to an operator who discontinues peat production, and preparation of an early retirement pension for older peat industry operators.

The second set of proposals relates to the controlled transition of peat industry companies to new business activities. According to the working group, these proposals would be less effective than the first set of proposals, but could be funded from the EU’s Just Transition Fund. These measures would include supporting new business opportunities for peat industry operators; regional measures focusing on regional vitality, promotion of employment and prevention of exclusion; a programme ‘From peat to bioeconomy, nature management and multisectoral entrepreneurship’ for peat industry operators; financial advice and support to peat industry operators; rehabilitation of personnel of peat companies; and State support for peat industry operators who are at risk of losing real property, including homes, due to bankruptcy.

Proposals relating to security of supply in energy
The proposed measures aim to maintain the possibility of producing energy peat during the transition period as, according to the working group, the use of peat as fuel should be reduced at a moderate rate during the transitional period in order to prevent a risk to security of supply. Expert consultations have clearly demonstrated that peat and wood are needed to ensure security of supply in heat production in the next few years. Other proposals related to security of supply include the definition of the minimum use of peat in energy production in different plants and its development in 2020–2030 and beyond, as well as an annual estimate of the amount of use and production required for security of supply. In addition, it is proposed that the lower limit for the tax-exempt use of peat per plant be raised from 5,000 MWh to 10,000 MWh, which would mean that only the part of production exceeding that level would be taxable. In addition, the floor price mechanism would be supplemented with a flexibility mechanism, where the tax on energy peat would be inversely dependent on emission allowance prices. As the amount of energy peat decreases in the next few years, the need for wood will grow substantially. The working group therefore proposes measures to ensure the availability of domestic forest chips, to encourage district heating companies to better prepare for exceptional situations affecting security of supply, to examine the feasibility of increasing the compensation for security stockpiling of peat, to secure areas for production of horticultural, bedding and energy peat, to examine the use of biocarbon as a fuel for security of supply and to promote non-combustion-based solutions.

The working group also proposes an aid scheme for new peat-based products with higher added value in order to promote product development and exports. The use of new products will also help the ongoing use of horticultural and bedding peat and maintain energy peat as a fuel for security of supply. The package of measures also includes proposals for sustainable use of the peat production areas that will be dismantled and for products to replace peat used for other purposes besides energy.The working group states it has not been able to assess in detail the effects that the proposed aid measures would have on State aid. These issues need to be clarified in further political preparation. The same applies to the use of the EU’s Just Transition Fund.   The working group’s report contains three dissenting opinions and one supplementary statement.

NordenBladet — On 31 March 2021, Finland will participate in the IEA-COP26 Net Zero Summit, which will discuss measures to speed up the transition to clean energy as well as means for States to cooperate more effectively to reduce greenhouse gas emissions to net zero by 2050 in order to achieve international climate goals.

Finland’s representative at the virtual meeting will be Minister of Economic Affairs Mika Lintilä.

The summit precedes the publication of the special report “The World’s Roadmap to Net Zero by 2050” on 18 May, which the International Energy Agency (IEA) describes as the world’s first comprehensive roadmap towards zero emissions by 2050. The Summit will also serve as preparation for the Conference of the Parties (COP26) of the UN Framework Convention on Climate Change, which will be held in Glasgow in November. The meeting will be hosted by the IEA’s Executive Director Fatih Birol and the President of the COP26 Alok Sharma. Participants of the Summit include energy and climate ministers from more than 40 countries, whose gross domestic product and greenhouse gas emissions account for the majority of the world’s economy and emissions. A number of NGOs and companies have also been invited to the meeting.

At the meeting, Finland will participate in a thematic group that will consider ways to build international trust in order to achieve long-term climate objectives. According to Minister Lintilä, ambitious climate goals require rapid and determined implementation globally. In this, using all clean forms of energy, promoting new climate-friendly business opportunities and planning policies based on the best information available are key issues, Lintilä says. The Summit is also available on the following Twitter accounts: @IEA, @fbirol, @COP26 and @Alok_SharmaRDG

NordenBladet — A total of 327,100 unemployed jobseekers were registered at the Employment and Economic Development Offices at the end of February. This was 79,000 more than a year earlier. The number of unemployed jobseekers was down by 5,700 from the previous month.

The number of unemployed jobseekers also includes those fully laid off. These figures are from the Employment Bulletin of the Ministry of Economic Affairs and Employment.At the end of February, the number of people laid off was 72,600 in the whole country; a year-on-year increase of 47,700. The number of people fully laid off totalled 55,700, representing an increase of 36,900 from February the year before. The number of people fully laid off decreased by 2,100 from January.The number of long-term unemployed — that is those who had been unemployed without interruption for at least a year — amounted to 96,100, up 32,900 on the previous year. The number of unemployed jobseekers aged over 50 was 120,000, representing an increase of 26,500 on the year before.

The number of unemployed jobseekers aged under 25 was 38,800, representing an increase of 9,100 from February last year. Among unemployed young people, the period of unemployment ended within three months on average in 51.7% of cases between January and February, which is 12.3 percentage points less than the year before.Increase in new vacanciesThe number of new vacancies reported to Employment and Economic Development Offices during February totalled 78,700, or 5,100 more than in February the previous year. In all, the number of unfilled vacancies at Employment and Economic Development Offices in February amounted to 160,600, showing a decrease of 3,900 from last year.At the end of February, the number of persons covered by services included in the activation rate amounted to 115,200, down 4,000 on the previous year. These services include pay subsidies, labour market training, work trials and self-motivated studies.Statistics Finland: Unemployment rate 8.1%According to the Labour Force Survey issued by Statistics Finland, in February the number of people in employment was 6,000 less than on the previous year. The employment rate was 70.0%, which was 0.2 percentage points lower than in February the year before. According to the Survey, the unemployment total was 220,000, which is 35,000 more than a year ago. The unemployment rate was 8.1%, or 1.2 percentage points higher than the previous year.Press release on the revision of the Labour Force Survey: https://www.stat.fi/til/tyti/tyti_2020-12-22_uut_001_en.html

Key differences between Employment Service Statistics and the Labour Force Survey
This information is based on the Ministry of Economic Affairs and Employment’s Employment Service Statistics and the Labour Force Survey of Statistics Finland. The Employment Service Statistics of the Ministry are compiled on the basis of the information in the Employment and Economic Development Offices’ customer register, while the Labour Force Survey of Statistics Finland is based on sampling.In the Ministry’s Employment Service Statistics, people that are not in an employment relationship or employed in business are listed as unemployed. Persons fully laid-off but not full-time students are also categorised as unemployed in the Employment Service Statistics. The Labour Force Survey of Statistics Finland has a stricter definition of being unemployed: a person is unemployed if he or she has actively sought employment during the preceding four weeks and is available for work over the coming two weeks. The figures of the Labour Force Survey of Statistics Finland are internationally comparable and thus they are the official Finnish unemployment statistics.Further information on the differences in the statistics https://tilastokeskus.fi/til/tyti/tyti_2019-09-13_men_001_en.html

NordenBladet — The 2021 municipal elections will be held on Sunday 13 June 2021. The Act on the Postponement of the 2021 Municipal Elections entered into force today.

Election day is 13 June 2021. The advance voting period is from 26 May to 8 June in Finland and from 2 to 5 June abroad. This year, the advance voting period in Finland is longer than usual, two weeks, and municipalities have been granted support for the extra costs arising from the extension.

Candidate applications submitted earlier to the central municipal election boards are still valid. However, it is possible to make changes to the applications and submit new applications until 4 May.

NordenBladet — To halt the loss of biodiversity, both nature protection and nature management in commercial forests should be increased. This is the conclusion of a study published on 29 March, conducted by the Natural Resources Institute Finland, Metsähallitus, Pellervo Economic Research Institute, Finnish Wildlife Agency and Finnish Environment Institute.

The study was commissioned by the Government.Besides targets concerning the surface areas, halting biodiversity loss in a cost-effective way requires that we are capable of identifying the sites that at the moment are the best ones in terms of preserving biodiversity and, on the other hand, areas that are less significant for wood production that could be developed in a way that enhances biodiversity. A strong increase in the surface area protected and nature management in commercial forests would cause considerable costs to the State if compensations were also paid for nature management. Growth in the demand for wood at the same time would increase the costs even further, because higher wood prices would mean higher compensations to be paid to landowners for the protected areas.

The project ‘Cost-effective measures for halting biodiversity loss in forests’ (KEIMO), conducted as part of the Government’s analysis, assessment and research activities, analysed the economic and ecological impacts of a strong increase in forest protection and nature management in commercial forests and how these could be reconciled with a simultaneous increase in the demand for wood and felling operations. The EU Biodiversity Strategy 2030 also stresses the need to increase the surface areas protected and nature management in commercial forests to halt biodiversity loss and adapt to climate change

Nature management should be targeted to areas close to protected areas
The biodiversity of forests can be preserved more cost-effectively when the wishes of landowners are taken into account in nature management and measures are targeted to areas where the preconditions for them to succeed are in place. These include areas adjacent or close to areas that are already protected.“However, protection should also be targeted to heathland and peatland forests with an old-growth stand of significant nature value, as well as to favourably located sites with young stands or felling sites for nature management purposes where nature values are still evolving,” says Kimmo Syrjänen, Head of Unit at the Finnish Environment Institute.

The criteria and statistics related to nature management need to be developed further to enable better monitoring of the quality and volumes of nature management measures.Good forest management must support the reconciliation of biodiversity protection and wood productionIn the project six scenario calculations were made that differed from each other with respect to the increase in roundwood removals (72.4–80 million m3), surface area protected and nature management measures in commercial forests (retention trees, mix of deciduous trees and rotation period).

Based on the study, it is not possible to double the surface area of nature conservation areas in southern and central Finland, strongly increase nature management in commercial forests and raise roundwood removals to 80 million m3 at the same time if we also wish to preserve the future felling potential. In commercial forests the volume of the growing stock (amount of wood) stays about the same for the next 30 years in a scenario where protected areas and nature management measures increased as described above but there was no increase in roundwood removals. During the period covered by the study, an increase of roundwood removals to 80 million m3 alone had no impact on the growing stock volume, either.

The cost-effectiveness of preserving biodiversity is the weaker the higher the demand for wood is. There are two main causes for this: protection costs more if the price of wood is higher, and biodiversity leakage is also higher. This means that the increase in protection and nature management measures improves biodiversity in the sites concerned, but more felling is being done and more intensively elsewhere in commercial forests. A strong, simultaneous increase in protection, nature management measures and felling would lead to younger commercial forests and a considerable decrease in the growing stock volume over the next 30 years.

Younger commercial forests would mean that in the long term there would not be enough domestic wood to meet the needs of the forest industry. Domestic wood can be replaced by imports, but this may have adverse impacts on biodiversity somewhere else. Increasing the growth of forests in areas other than those designated to protection or nature management e.g. by means of timely seedling stand management, fertilisation and bred seed and seedling materials would improve the possibilities to increase protection, nature management and felling at the same time. In the long term increase in afforestation would also contribute to this.

“We should bear in mind that scenarios are alternative images of the future, and it is unlikely that the targets for surface areas and roundwood removals presented in them would ever be realised as such. However, scenarios are a good tool for illustrating the challenges associated with preserving biodiversity and increasing wood production,” says Leena Kärkkäinen, Senior Scientist at the Natural Resources Institute Finland.

Voluntary protection measures are important, costs to State economy may be highFor the purposes of the study, the increase in the protected forest area took place on a voluntary basis and landowners received full compensation for the income losses, in accordance with the Forest Biodiversity Programme for Southern Finland. Preserving habitats that are important for game animals and forest bird species also promotes the wellbeing of forest ecosystems.

To double the protected area from the present in southern and central Finland by 2030, the funding of the Forest Biodiversity Programme for Southern Finland Metso should be increased by more than ten-fold to at least EUR 240 million a year. If nature management measures in commercial forests were also increased, the annual costs would rise to an estimated EUR 460 to 530 million. In addition, more resources would be needed for the administration that implements the protection.A strong increase in the protected area would not be possible without less strict selection criteria for the sites, which means that areas where nature values are still evolving would be protected. This would increase the number of sites offered for protection, as well as reduce the costs.

New instruments to enhance biodiversity needed
Cost-effective means to encourage forest owners to offering more sites for protection and interest them in nature management include enhanced communication on the Forest Biodiversity Programme for Southern Finland Metso and the Helmi programme concerned with the restoration of habitats. Area-related payments could provide better incentives to forest owners to preserving structural characteristics of forests that promote biodiversity. In addition, similar offsetting mechanisms could be developed for preserving biodiversity as have been introduced for offsetting greenhouse gas emissions.

NordenBladet — The actions through which the global campaign will promote gender equality in technology and innovations will be announced on a virtual forum held in Mexico. Finland holds a lead role in this work. The forum will be attended by Prime Minister Sanna Marin and Minister for Development Cooperation and Foreign Trade Ville Skinnari.

Coordinated by UN Women, the objective of the Generation Equality campaign is to accelerate the attainment of gender equality objectives worldwide. Last year, Finland was appointed to lead the Action Coalition that focuses on gender equality in the field of technology and innovations. The coalition will publish its concrete action blueprint in connection with the virtual forum held in Mexico.

The priorities put forward by Finland are strongly present in the action blueprint. The requirement for the elimination of gender-based online violence and creation of safe online environments for all is one of the main objectives of the global action plan.The blueprint will be published in a high-level panel discussion, attended by Minister for Development Cooperation and Foreign Trade Ville Skinnari as Finland’s representative. Prime Minister Sanna Marin will speak in the session discussing women’s leadership. Additionally, Johanna Sumuvuori, State Secretary of the Minister for Foreign Affairs, will attend the event to set up a group of friends of gender equality.

“Online violence and harassment are human rights violations and, as such, as reprehensible as any forms of violence taking place offline. Online harassment that targets women, girls and minorities in particular is also a real threat to democracy, as it restricts and hinders participation in social debate. We need global regulation, commitments and actions to eliminate online violence. Succeeding in this requires seamless cooperation between governments, companies and NGOs, to which the Generation Equality campaign offers an excellent opportunity,” says Minister Skinnari.

The action blueprints of five other Generation Equality Action Coalitions will also be published during the three-day event. The coalitions seek solutions to address issues related to gender-based violence, sexual and reproductive health and rights, economic justice, climate change and women’s leadership.The action blueprints will be implemented during the next five years in collaboration with governments, companies, organisations and youth movements.The preparatory phase for the Generation Equality campaign will continue for the rest of the spring and culminate in the high-level forum arranged in Paris from 30 June to 2 July 2021.For more information, please contact:Tanja Leikas-Bottà, Counsellor, tel. +358 50 4087110.