NordenBladet — Minister of Foreign Affairs of Sweden Ann Linde, who is the OSCE Chairperson-in-Office in 2021, has appointed Ambassador Mikko Kinnunen to serve as the Special Representative of the OSCE Chairperson-in-Office in Ukraine and in the Trilateral Contact Group. Kinnunen will take up his duties on 1 August. Mikko Kinnunen. Photo: Petri Krook.The Trilateral Contact Group (TCG), formed in 2014, is a permanent consultation process with an aim to facilitate implementation of the Minsk agreements and to support finding a diplomatic resolution to the conflict in Eastern Ukraine. The Trilateral Contact Group has four Working Groups focusing on security, political affairs, economic affairs and humanitarian issues.Mikko Kinnunen is currently Political Director (Director General for Political Affairs) in the Ministry for Foreign Affairs. He joined the Foreign Ministry in 1996 and has worked, among other things, as Director of the Unit for Security Policy and as Finland’s first Ambassador for Countering Hybrid Threats. In 2009–2013, Kinnunen served as Finland’s Ambassador in Kazakhstan and Kyrgyzstan. He has also worked in the Embassies in Moscow and Washington DC and at the Permanent Mission of Finland to the United Nations in New York.In the OSCE role, Kinnunen will succeed Swiss Ambassador Heidi Grau.

Source: Valtioneuvosto.fi

NordenBladet — Two informal meetings of competitiveness ministers will discuss the development of the European Research Area (ERA) and the importance to EU competitiveness of the circular economy, creativity and digitalisation. The meetings will be held in Slovenia.Discussion at the meeting of competitiveness ministers responsible for research and innovation will be based on a communication published by the European Commission last autumn that noted an undesirable trend in research and innovation investment by EU countries. The aim is to increase the share of research and innovation investment as a percentage of total European Union GDP from the current 2.19 per cent to 3 per cent.Finland supports Commission proposals to strengthen the ERA, and concerning the 3 per cent research and innovation expenditure target. Finland also considers it important to create an open internal market for research and innovation in Europe, with improved mobility of information, expertise and researchers. These objectives should be supported at both EU and national level.Finland will be represented at the research and innovation meeting to be held on 19 July by Raimo Luoma, Permanent Secretary at the Ministry of Economic Affairs and Employment.Circular economy and digitalisation crucial to the industry of the futureThe importance to EU competitiveness of the circular economy, creativity and digitalisation will also be discussed at a meeting of competitiveness ministers responsible for the internal market and industrial policy.Finland supports the reform of manufacturing towards a climate-neutral model that is competitive and based on a circular economy. A circular economy creates business opportunities and opens up markets for high-quality recycled materials, clean technology and innovation. Finland similarly stresses the importance of digitalisation in reforming manufacturing, and the need to improve the digital skills of the workforce.The upcoming meeting will address the potential of digitalisation, the circular economy and creativity through two example sectors: textiles and energy-intensive manufacturing. Finland applauds the choice of textiles as a key value chain targeted by circular economy measures. Innovations related in particular to manufacturing environmentally friendly bio-based and recycled fibre offer new types of business opportunity.Finland notes that measures are needed to decarbonise energy-intensive sectors. The sectoral low-carbon roadmaps drawn up in Finland are examples of measures that an energy-intensive industry can take to pursue ambitious climate goals while ensuring international competitiveness. One important measure is to ensure the availability of com-petitively priced low-emission electric power.Finland will be represented by State Secretary Ville Kopra at the meeting to be held on 22 July.

Source: Valtioneuvosto.fi

NordenBladet — European Commission published new EU Forest Strategy on 16 July 2021, aiming for better coordination on forest-related initiatives as well as increasing the cooperation of Member States on forests. The Strategy highlights climate and biodiversity targets, which are important also for Finland. The strategy has evolved towards more balanced version during the preparation by the Commission, leaving however room for improvement in the initiatives to follow. Multiple details in the strategy are stepping over the competence of Member States on forests, and the economic and social aspects present smaller role than other aspects.Forests and the forest sector are crucially important for Finland: 73 % of Finland’s land area is covered by forests, Finland has over 660 000 private forest owners, forest industry products represent 20 % share of exports and forest carbon sinks cover 30-50 % of emissions from other sectors. Forests and wood-based products play an important role in achieving the ambitious climate targets set by the Finnish government as well as contributing to well-being of the whole society.Thus, the EU Forest Strategy is very important document for Finland. Finland has emphasized national competence of Member States in various statements, as well as sustainable forest management, which takes all aspects of sustainability into consideration referring to balancing the ecological, economic, social and cultural aspects.The newly published strategy does not recognize the opportunities of forests to provide economic welfare clearly enough. In addition, the significance of forests as part of the solution towards bio- and circular economy, receives only little attention. The strategy includes several propositions, which belong to Member States’ competence.-The new EU Forest Strategy has evolved in better direction than was anticipated from leaked information. Unfortunately, the competence of Member States has still not been fully respected. The Commission proposal goes too far into details of forest management and wood markets. However, it is good that the strategy recognizes some elements of economic importance of forests, in addition to environment and climate aspects, which are important. The follow-up work has to strictly respect the competence of Member States and target to even more balanced approach on sustainability, Minister of Agriculture and Forestry Jari Leppä states.The strategy emphasizes the importance of forests on mitigating and adapting to climate change as well as halting the biodiversity loss. Targets related to climate and biodiversity are also important to Finland, and Finland is taking action to reach these targets. Voluntary protection programme METSO, which is targeted to private forest owners in Finland, is addressed as good practice example in the strategy to enhance biodiversity.Positive elements in the strategy include highlighting the role of long-lived wood products and wood construction as part of climate solution. Companies and consumers all over the world need also short-lived and recyclable wood products, and bioenergy is responsible for remarkable part of the renewable energy production in Finland and Europe. Leaked version of the strategy proposed minimizing the production of short-lived wood-based products and bioenergy. In the final version, the importance of these products is recognized better, but not fully. Several restrictions for bioenergy use are proposed.-It is good, that in the end the Commission acknowledged the need for forest management and use of industrial side streams in various forms. However, there is also room for improvement. Wood-based products and wood energy are needed in our daily life and to replace products produced from fossil raw materials and energy. If these products are not produced in the EU, they will be produced outside EU, minister Leppä summarizes.Market demand for small diameter wood for energy and processing encourages forest owners to manage their forests and especially to perform forest management thinnings. Active forest management is important to maintain forest growth, carbon storage and vitality. This ensures that forests produce also high quality wood, which is needed for long-term products. Wood is directed to proper use by market price, which is more flexible solution than EU regulation on wood bioenergy. Research and development to enhance both long and short-lived wood products towards greater added value is one of the long term focus areas of Finland. Forest policy belongs to the competence of Member StatesForestry is based on local conditions and knowhow in each Member State and forest policy belongs to the competence of Member States according to the EU treaties. Both Member States and European Parliament expressed this view clearly during autumn 2020. The EU Forest Strategy has been prepared without usual inclusion of Member States in the process. Strategy highlights respecting the subsidiarity principle and Member States’ competence, but in many part it crosses over the competence of Member States.– Preparation of the strategy did not include considerations of the Council and the Parliament. The published strategy calls for respecting the subsidiarity principle and competence of Member States. We will closely follow, that this will indeed take place. We are prepared to continue the cooperation on forests, but it is pre-conditional that forest policy remains in the hands of Member States. Many details in the strategy refer, that this is not obvious, minister Leppä states.
EU has competence in energy, climate, agriculture and environment sectors, which affect forests. However, regulation on other sectors should not go so far, that it starts to dominate the functioning of other sectors. Regardless, in addition to strategic targets, the forest strategy includes multiple details and guidelines, which anticipate implementation of EU biodiversity strategy, renewable energy directive, LULUCF directive, sustainable finance directive and common agricultural policy.-Prohibition of clear-cutting is not included in the strategy and EU does not have the authority to set one. The strategy recognizes the definition of sustainable forest management developed by FOREST EUROPE ministerial conference. Continuation of this work must happen in the framework of this cooperation. I am very cautious towards propositions on new definitions and legislative proposal on forest information, minister Leppä comments. The strategy includes legislative proposal for EU act on forest monitoring, reporting and data collection in 2023. Despite earlier information, the strategy does not include initiatives on EU-level forestry planning, but includes requirement to prepare strategic plan for forests at national level. 
The strategy proposes to develop new criteria and indicators for forest management and defining thresholds especially on ecological aspects. FOREST EUROPE ministerial conference has worked already 30 years to develop criteria and indicators for sustainable forest management, together with Member States, Commission, researchers and stakeholders. This cooperation should be continued, and not start a parallel process for EU. Setting the thresholds should belong to the Member States also in the future.Finland is already advanced in sustainable forest management and efforts continueFinland is one of the forerunners in sustainable forest management as well as related research. The foundation relies in national forest inventory, which has continued already 100 years. As part of the implementation of the national forest strategy and government climate programme for the land-use sector, dozens of projects are on-going to improve climate, biodiversity and economic aspects of forestry. The EU Forest Strategy is communication by the Commission, which is not binding for Member States as such. However, it guides the preparation of EU regulation, and it is therefore especially important for forested countries like Finland. Member States will prepare their views on the strategy during autumn 2021 with the lead of Slovenian presidency. European Green Deal: Commission proposes new strategy to protect and restore EU forests (Comissions press release 16.7.2021)Further information Marja Kokkonen, Senior Ministerial Adviser, tel. +358 0()29 516 2444, forename.surname(at)mmm.fiElina Warsta, Ministerial Adviser, tel. +358 (0)29 516 2102, forename.surname(at)mmm.fiMatias Kallio, Special Advisor to the Minister, tel. +358 (0)50 471 4505, forename.surname(at)mmm.fiTeppo Säkkinen, Special Advisor to the Minister, tel. +358 (0)50 516 2868, forename.surname(at)mmm.fi

Source: Valtioneuvosto.fi

NordenBladet — On Friday 16 July 2021, the Ministry for Foreign Affairs repatriated two Finnish children and their mother from Roj camp in northeast Syria. All three persons are Finnish citizens. The children are under school age. They are now in the care of competent Finnish authorities.

Finnish authorities have a constitutional obligation to safeguard the fundamental rights of the Finnish children held in the camps as far as possible. The only way to safeguard the fundamental rights of children held in northeast Syria is to bring them to Finland.

The mother of the two children was also repatriated. It was not possible to repatriate only the children. In all official activities, priority has been given to the best interests of the child.

Approximately a dozen Finnish children and a few mothers remain detained in the camps in Syria. Approximately 900 EU citizens – 600 children and 300 women – are still in the camps. Nearly 62,000 people are currently kept in the camps: approximately 59,000 in Al-Hol camp and approximately 2,700 in Roj camp.

The camps in northeast Syria continue to constitute a serious, long-term security risk. The longer the children are kept in the camps without protection and education, the harder it will be to fight violent extremism and radicalisation.

The Ministry for Foreign Affairs intends to repatriate the Finnish children still detained in the camps as soon as possible.

NordenBladet — On Thursday 15 July, the President of the Republic appointed a new ambassador to Copenhagen and non-resident ambassadors to Liechtenstein and Bosnia and Herzegovina.The President of the Republic appointed Counsellor for Foreign Affairs Harri Kämäräinen to serve as Head of Mission at Finland’s Embassy in Copenhagen from 1 September 2021.

Kämäräinen will move to head the Embassy from the Ministry where he has worked as Roving Ambassador for South Asia (Pakistan, Bhutan, the Maldives and Sri Lanka) since 2018.

Kämäräinen has a varied career. In 2017–2018, he served as Senior Adviser in the Unit for South Asia. In 2021–2017, he was Head of Mission at Finland’s Embassy in Tehran. Before that, in 2010–2012, he worked as Director of Unit in the Department for Russia, Eastern Europe and Central Asia. Additionally, Kämäräinen has worked, among other things, at the Permanent Delegation of Finland to the OSCE and at the Mission of Finland to NATO. In 2003–2006, he worked as Political Adviser to the European Union Special Representative for the South Caucasus in Georgia, Armenia and Azerbaijan.

Kämäräinen joined the Ministry for Foreign Affairs in 1987. Kämäräinen holds a Diploma in translation studies and interpreting.In addition, the President of the Republic appointed Ambassador Valtteri Hirvonen, Head of Finland’s Mission in Bern, to serve as Non-resident Ambassador to Liechtenstein from 1 September 2021, and Ambassador Kalle Kankaanpää, Head of Finland’s Mission in Zagreb, to serve as Non-resident Ambassador to Bosnia and Herzegovina from 15 July 2021.

NordenBladet — In future, the rescue authorities may order, for example, owners of large shopping centres or hospitals to acquire and maintain equipment which ensures the operability of broadband services for public authority communications. The President of the Republic approved the legislative amendment on 15 July. The amendment will enter into force on 1 August 2021.

The Rescue Act has been updated in respect of the provisions on the operability of the public authority network. The legislative amendment will ensure the operability of broadband services for public authority communications at security-critical sites.

Orders issued by rescue authorities apply to the same properties as before The equipment used for public authority communications ensures particularly the communication of rescue services in rescue operations. For example, in large shopping centres and hospitals, the signal strength of the public authority network is weakened by the structures of buildings and the possible location of premises deep underground.

The legislative amendment will allow the rescue authorities to order the owner of the building or structure to acquire and maintain equipment which ensures the operability of broadband services for public authority communications. Compliance with the order can be ensured, if necessary, by issuing a notice of a conditional fine or a notice of enforced compliance.

The orders issued by the rescue authorities apply to the same buildings and structures as before. The owner of the building or structure remains responsible for the costs resulting from the equipment and its maintenance.

NordenBladet — On 15 July 2021, the President of the Republic approved legislation to curb rises in electricity distribution prices and cut the profits of distribution companies by amending the Electricity Market Act and the Act on the Supervision of the Electricity and Natural Gas Market. The Acts enter into force on 1 August 2021.

‘The legislative amendments will address distribution prices on a short notice.  Simultaneously, a reliable electricity system is secured. Reasonable electricity prices and good grid reliability must be balanced. It is important for citizens that the changes in distribution tariffs start to be apparent as early as next year,’ says Mika Lintilä, Minister of Economic Affairs. The amendment will cut the maximum permitted profit of distribution companies and limit the scale of price increases. Distribution companies’ reasonable rate of return on capital will be lowered to 4 per cent next year, from 5.73 per cent in 2020.

The Finnish Energy Authority has announced that it will begin reviewing regulation methods as soon as the law enters into force and aims to make the adjustments to the methodology for calculating network operators’ tariffs as early as the start of next year. ‘The Ministry estimates that distribution companies’ permitted profits will decrease by about 40 per cent from 2020 levels in 2022 to their lowest level ever. As early as next year, companies will be able to charge customers about 350 million euros less in tariffs than the previous year. This will be reflected in the prices to customers,” Minister Lintilä states.

The annual ceiling for increases to tariffs is nearly halved from 15 per cent to 8 per cent. This limits the scale of one-off price increases for customers. These legislative changes have been prepared with particular care to ensure that the requirements of national and EU legislation are met. The new regulation have a sustained and robust legal basis. The remedial measures can be enforced quickly.

Improved cost-effectiveness of distribution network development with supervised plans
Besides keeping prices under control, the Government seeks to ensure good security of supply of electricity networks and the development of an energy system that serves the needs of the future.From now on, network operators must plan, build and maintain their grids in a way which ensures that the company delivers its service cost-effectively. Operators must compare alternative investments and consult customers during planning. The Energy Authority may order an operator to adjust its plans if the measures are not cost-effective. The legislative amendment seeks to ensure that, in addition to underground cabling, operators take all existing measures for upgrading networks, expanding capacity and improving security of supply into consideration more comprehensively.

Deadline for meeting requirements for security of supply extended until the end of 2036
The period for implementing the requirements on security of supply in electricity distribution is extended by eight years until the end of 2036, mainly for network operators in sparsely populated areas that are required to make major changes to their network structure in the 2020s. The change will effectively curb the need for price increases among 75% of all network companies with a total of 1.8 million customers. In exchange for delays in the service level, network customers receive better compensation for long blackouts.

Extending the deadline will enable the Energy Authority to begin examining the investment incentives of the regulation methods already during the current regulatory period. This also helps avoid premature investments in peripheral networks that would later prove unnecessary as alternatives to underground cabling currently under development become available for use in upgrading networks.

In addition, the legislative amendment gives consumers and energy communities the right to build direct lines across property borders to connect small-scale electricity generation to consumption point or the property’s network, without requiring the permission of the distribution network operator.

NordenBladet — The President of the Republic has approved the Acts supplementing the EU regulations on medical devices. The Acts will enter into force on 19 July 2021.

The Acts that are now about to enter into force are the new Medical Devices Act and the Act amending the current Medical Devices Act. In addition, technical amendments have been made to certain other Acts. The aim of the Acts is to improve the safety of patients and medical devices.

The new Medical Devices Act lays down provisions on the matters in respect of which the EU regulations require or enable the issuance of national provisions. For example, the Act lays down provisions on the powers of public authorities, the language requirements for documents, the obligations concerning healthcare, the annual fee charged from operators and the sanctions for breaches of legislation. The Act also contains provisions on clinical investigations and studies concerning the performance of medical devices.

The Act concerning in vitro diagnostic medical devices, i.e. medical devices used for the external examination of samples taken from the human body, will not be applied in full until 2022. Until then, Finland will apply the Directive on in vitro diagnostic medical devices and also the Directives on medical devices that preceded the relevant EU regulations, but only in certain cases in accordance with the transitional provisions of the EU regulations. For this reason, the current Medical Devices Act, which has implemented the said Directives, will remain partly in force.  However, the Act has been amended in many respects and its name has changed. The new name is the Act on Certain Medical Devices Specified in EU Directives.

NordenBladet — A total of 1,651 new COVID-19 cases were reported in Finland between 5 and 11 July. The number of cases has been increasing for the past three weeks. About 540 new cases were reported in the middle of June (14–20 June), after which the number of cases has approximately tripled.

The COVID-19 epidemic is now spreading among socially active young adults, for example at bars, restaurants and social events. As in the previous weeks, the highest number of infections was reported among 20–29-year-olds, who accounted for one third of all infections between 5 and 11 July. People aged 10–19 accounted for 25 per cent of all new cases, with most of these cases reported among people who had reached the age of 18.Currently, the estimated effective basic reproduction number is 1.0–1.25, with a 90 per cent probability. The rise in the number of infections among young adults between 5 and 11 July has led to an increase in the estimated basic reproduction number.

The percentage of cases where the virus was contracted abroad has halved compared to the previous week. In Finland, 12 per cent of the cases reported between 5 and 11 July originated from abroad, and the further infections resulting from them accounted for 3 per cent of all cases.

Most new cases caused by Delta variant
About 94,200 COVID-19 tests were taken between 5 and 11 July. The percentage of positive COVID-19 cases of all samples taken was 1.8 per cent between 5 and 11 July. This figure has tripled since mid-June when it was 0.6 per cent. In Finland, the infections caused by the Delta variant account for over 80 per cent of the positive test results that are analysed further. The COVID-19 variant is determined in about one in five positive samples. The fact that in recent weeks Euro 2020 football fans returning from Russia have accounted for a large percentage of genotyped samples may lead us to overestimate the percentage of cases caused by the Delta variant to some extent. The Delta variant was identified in about 90 per cent of the samples taken from people who had tested positive for COVID-19 at the eastern border or who had had contacts with someone based in or recently coming from Russia.

Need for hospital care has not increased at the same rate as the number of infections
The number of patients in hospital care has remained stable despite the growing number of new cases. Based on the information provided by the hospital districts, a total of 43 people were receiving hospital care due to the COVID-19 disease on 14 July 2021. Of them, 6 were inpatients in primary healthcare, 27 inpatients in specialised healthcare and 10 inpatients in intensive care. According to the forecast, the number of new periods in specialised healthcare and intensive care in Finland will increase slightly over the next week. About 63 per cent of the population in the country have received at least their first vaccine dose and 25 per cent their second dose.

On 14 July 2021, the total number of COVID-19-related deaths reported to the communicable diseases register was 978, while in the previous week it was 976.

NordenBladet — On Wednesday, the European Commission unveiled a major package of legislative proposals on climate that would reduce the EU’s net emissions by at least 55 per cent by 2030. The Fit for 55 package contains 13 legislative proposals, eight of which would strengthen existing legislative instruments and five that are completely new regulations.

“The EU climate package is a huge leap towards a climate-sustainable society built on clean transport, sustainable housing and new green jobs. The EU’s effective climate measures will also help us achieve our own climate neutrality target and will level the playing field within the EU. This package will ensure that all sectors in all Member States participate in combating the climate crisis,” says Minister of the Environment and Climate Change Krista Mikkonen.

The legislative proposals cover a wide range of sectors of the economy, including emissions trading reform, burden sharing between countries, energy efficiency, renewable energy, the role of the land use sector and carbon sinks, emission limits for cars, energy taxes and carbon duties. In the autumn, the Commission will also submit its proposal for revising the Energy Performance of Buildings Directive.

“During the Finnish Presidency, we agreed that the EU would aim for climate neutrality by 2050. Finland has already had a very active influence on the EU’s shared climate policy in general. Our goal is to make the EU the most competitive, socially integrated climate neutral economy in the world. We have also highlighted our national characteristics so that the Commission would be able to take them into account when preparing the package. There is still work to be done, but it is great that in the midst of the COVID-19 crisis, the Commission has succeeded in laying this extensive groundwork, which we can now begin negotiating,” says Minister for European Affairs Tytti Tuppurainen.

“In order to achieve the more stringent targets, we need a package that functions well and takes into account the need for major investments in low-carbon solutions and technologies. The industrial and energy sectors require large amounts of capital invested over the longer term. With this in mind, we need predictable regulation and technology-neutral funding. We also have to ensure that citizens are involved and that the changes are perceived as fair,” Minister of Economic Affairs Mika Lintilä emphasises. Finland will formulate its own positions on each of the thirteen legislative proposals during the autumn, once Parliament has also returned from holiday.

Finland stresses importance of strengthening emissions trading
In line with the Commission’s proposal, emissions should be reduced by 61 per cent by 2030 from the 2005 level in the emissions trading sector. The Commission proposes tightening the target for the emissions trading sector by reducing the amount of annual allowances more swiftly than previously planned, among other measures. At the same time, the free allocation of allowances would be reduced.

“The effectiveness of emissions trading has been improved in recent years, and it is important that we continue to strengthen its impact. The reforms now being proposed are steps in the right direction. At the same time, we need to remember that not all emissions are involved in emissions trading, and we also need robust national plans for climate neutrality,” says Minister of the Environment and Climate Change Krista Mikkonen.

With the new package, emissions from maritime transport, which are not currently regulated by the EU climate legislation, would also be included in the emissions trading scheme. The goal is for distributors of heating fuels for buildings and fuels for road transport to be included in a separate emissions trading scheme from 2026.“Winter navigation is an important national issue for Finland as an export country, and we will call attention to it in further discussions on emissions trading in shipping,” Minister of Economic Affairs Lintilä says.

Tightening country-specific emission reduction targets will be taken into account in national plan
The development of emissions in non-ETS sectors – agriculture, property-specific heating and transport – is regulated by a burden-sharing agreement that imposes a specific obligation on each EU Member State. As a rule, Member States’ obligations are based on their gross national income.

In its proposal, the Commission has set a target of 50 per cent emission reductions for Finland and five other EU Member States by 2030 compared to the 2005 level. This target will have an impact on the medium-term climate plan and the energy and climate strategy currently under preparation, which are due to be completed in autumn 2021.

The Commission’s proposal includes various flexibilities for promoting the cost-effectiveness of climate policy. The proposal also aims to establish links between sectors to ensure that the targets are met.

Reforms in the land use sector will bring transparency
In addition to emission reductions, achieving climate targets will require the strengthening of carbon sinks in the short and long term. The Commission proposes introducing national targets for increasing carbon sinks in the land use sector (LULUCF sector). In line with the proposal, the EU Member States should commit to increasing the carbon removals from sinks to a total of 310 million tonnes of carbon dioxide equivalent by 2030. According to the Commission’s proposal, the period 2021–2025 would still be subject to the current regulation. For 2026–2030, a quantitative target would be set for each Member State, along with the resulting trajectory to which the actual net emissions would be compared. In addition to strengthening carbon sinks, the reform would simplify the complex accounting framework currently in place and would increase the transparency of monitoring.A major reform included in the package is that agricultural emissions would be included as part of the land use sector from 2031. In line with the Commission’s proposal, this new AFOLU sector should be climate neutral in 2035. A more detailed legislative proposal on the AFOLU sector would be submitted in 2025.

Carbon border mechanism aims to prevent carbon leakage; car emissions will be reined in
The Commission is also proposing a new climate policy tool, the carbon border adjustment mechanism, which would prevent carbon leakage from the EU to countries with more lenient climate policies. The carbon border mechanism would apply to certain products entering the EU from third countries, such as steel and electricity. The amount of the carbon border mechanism would depend on the price of the EU emission allowance. The inclusion of electricity in the carbon border mechanism raises specific questions for Finland.

In addition, the Commission proposes tightening emission limits for new passenger cars and vans. This is also worthwhile in Finland’s view from the perspective of reducing transport emissions.Tightened limits would promote the electrification of transport in Europe.

More stringent requirements for renewable energy and energy efficiency
The package also includes a reform of the EU’s key energy legislation and would increase targets for renewable energy. The Commission’s proposal would see an overhaul of the Renewable Energy Directive, with the exception of individual articles. It would also expand the scope of the directive in relation to the use of renewable energy and hydrogen in industry and with regard to system integration, power purchase agreements and offshore wind power. The key themes for Finland in the reform are the heating and transport sectors and the use of forest biomass in energy production (including sustainability criteria). The targets for energy efficiency will be tightened by significantly limiting the current level of energy consumption by 2030 and by raising the annual savings target to almost double the current level.  In the future, public sector buildings will need to be renovated to nearly zero energy levels and the current number of renovations will need to be almost doubled.

What’s next?
The legislative proposals will now be submitted to the European Parliament and the Council for negotiations. The EU Ministers of the Environment will discuss the package for the first time next week at their informal meeting. Due to the number and scope of the legislative proposals, the negotiations are expected to last about two years.