NordenBladet — The Ministry of Economic Affairs and Employment has adopted new decisions concerning investment aid for projects that rapidly phase out the use of coal energy. Three projects in Espoo, Kirkkonummi and Vaasa received EUR 22,829,282 in aid in total.

The Ministry granted EUR 7,715,880 to four projects to phase out the use of coal in December 2020. In total, the seven projects received EUR 30,545,162. Applications are no longer accepted. In accordance with the Act approved in 2019, coal-fired power and heating generation will be banned as of 1 May 2029. According to the Government Programme, companies and communities that phase out the use of coal by 2025 can receive separate incentives to fund investments replacing coal. The supported projects will reduce the energy use of coal by more than 1,700 GWh per year and fossil CO2 emissions by more than 660,000 tonnes per year.

“Support for phase out the use of coal has been an excellent way of accelerating the transition to zero-emission heat and electricity production. The three sites now being supported, will use heat pumps, waste heat and biomass to replace coal even before the statutory ban. At the same time, they are part of the transition from import-based fossil fuels to domestic renewable energy production”, says Minister of Economic Affairs Mika Lintilä.

The projects are part of broader plans to phase out the use of coal on an accelerated timetable in certain areas receiving aid. The recipients of aid will also implement other measures to phase out coal by 2025.Projects in Espoo, Kirkkonummi and Vaasa receive aid to replace coal Aid was granted to two projects that will introduce non-combustion-based technologies in district heat generation technologies and the use of biomass in power and heat generation, respectively.  Fortum Power and Heat Oy received EUR 6,196,000 to construct a 20 MW air to water heat pump plant in Espoo’s Kera. The plant would be connected to a low temperature heat network in the Kera area and the Espoo district heating network.

Fortum Power and Heat also plans to recover heat from data centres in its district heating network areas in Kirkkonummi and Espoo. These projects received EUR 8,234,000. In the first phase, the company plans to construct 60 MW heat pump plants that will utilise waste heat.  Vaasan Voima Oy plans to build a combined heat and power plant, which is connected to a heat storage and uses biomass, in Vaasa. The aid granted for the project totals EUR 8,399,282.

Projects to utilise waste heat and to replace coal in district heat supported in December 2020In December 2020, four projects in Espoo, the Turku region and Vaasa received aid. The supported projects by Fortum Power and Heat Oy, Turun Seudun Energiantuotanto Oy and Vaasan Sähkö Oy involve combining a large-scale air to water heat pump with district heat generation and utilising waste heat in district heat generation.

District heating in transition with the use of new technologies and waste heat on the rise
The ban on coal energy will increase the need for emission-free forms of generation. Pöyry investigated the use of coal energy in Finland in 2018, on behalf of the Ministry of Economic Affairs and Employment. According to the report, significant amounts of coal were used for heating not only in Espoo, Vaasa and Turku, but also in Helsinki, Vantaa and Lahti in 2016. The coal plant in Lahti was closed in 2019 and Vantaa has announced it will discontinue the use of coal energy in 2022.

To phase out coal, energy companies have received incentives, in particular, for the use of non-combustion-based technologies in heat generation. Of district heating generation, renewable fuels accounted for around 42% and waste heat for 11% in 2020. The structures in the heat generation sector are in transition and there is a need for industrial-scale solutions, for example, to utilise waste heat in district heating.

NordenBladet — The aim of the new centre of expertise for social enterprises is to increase the number of social enterprises in Finland and to promote the employment of people with partial work capacity at the same time. From 2 July to 31 August 2021, the Ministry of Economic Affairs and Employment will organise a call for applications for a discretionary government grant to establish a centre of excellence and for its network-based activities.

The centre’s tasks include the following:to create national advisory and guidance services specialising in social enterprisesto systematise the collection of data and statistics on social enterprisesto increase the business skills and competence of social enterprises based on the effectiveness of their activitiesto increase the scaling-up of social innovationsto find ways for social enterprises to gain access to the marketto develop national models for the employment of people with partial work capacity.

The discretionary government grant cannot be used to establish a new organisation or to finance permanent activities of an existing operator. Instead, the activities of the centre of expertise must be based on a network-like cooperation between existing operators.A grant of EUR 3 million is available for 2021–2023. The Act on Discretionary Government Transfers and EU rules on State aid regulate the granting of funding.

Centre will implement the strategy of social enterprisesIn its mid-term policy review in April 2021, the Government decided to establish a centre of expertise for social enterprises in Finland. At the same time, it adopted a strategy for social enterprises that will increase the number of and awareness on new social enterprises and develop their competences, especially in order to improve the effectiveness of their activities. One of the key objectives of the strategy is to employ people with partial work capacity and those who are otherwise in a difficult labour market position.

A social enterprise is a business model whose primary objective is to find solutions to a certain social challenge. Business activities should be profitable but value-based. The companies do not primarily aim to make a profit for their owners, but instead will direct the majority of their operating profits towards the social objective they have chosen. A social enterprise can be an association, foundation, limited liability company or cooperative.

According to a survey completed in 2020, there are approximately 1,700 social enterprises in Finland, more than half of which are organisations providing health and social services to the public sector. The combined turnover of social enterprises is almost EUR 5.8 billion and they employ more than 50,000 people.

NordenBladet — The Government proposed on 23 June 2021 that the President of the Republic approve the amendments to the Act on Environmental Protection in Maritime Transport on improving waste reception in ports.

A significant change is that, from now on, coastal and inland marinas with between 25 and 49 berths are also required to receive waste from vessels and draw up a waste management plan. Previously, the requirements applied to marinas with at least 50 berths. With these changes, the regulations will apply to hundreds more ports. At the same time, the scope of the law is expanded. The amended law will regulate ship-to-ship transfers of noxious and hazardous cargo and fuel deliveries. Previously, only transfers of oil cargo were regulated.

In addition, the Act on the Security of Certain Ships and Associated Port Facilities and on Monitoring Maritime Security, the Ship Register Act, the Act on the Technical Safety and Safe Operation of Ships and the Act on Marine Equipment will be amended as of 1 July 2021.

The purpose of the revised Act on Environmental Protection in Maritime Transport is to encourage recreational and commercial vessels to dispose of their waste regularly at ports. The regulation will reduce littering in the Baltic Sea and Finland’s inland waters as well as the discharge of plastics and nutrients into the marine environment. The Act on Environmental Protection in Maritime Transport has been amended to meet the requirements of EU Directive 2019/883 on ship waste.

The amendments concern small ports in particular, such as marinas for recreational craft with more than 25 berths, fishing ports, and ports used by connecting ferries and water buses. The regulations on commercial shipping remain largely unchanged, with the exception that waste reception requirements at commercial ports are specified.

Five key changes to waste reception in ports

1. From now on, all ports should have the capability to receive waste from vessels using the port. The size of marinas to which the regulations apply is lowered from 50 berths to 25 berths. Piers of private homes and holiday homes, landing places for boats, piers for connecting traffic to holiday homes, jointly owned shores and beaches, and piers of shops and restaurants are excluded from the regulations. The transition period for organising waste reception is until 30 April 2022.

2. Home ports are required to have reception facilities for oily and hazardous waste, mixed waste and human waste products. This corresponds to the current requirements for marinas with at least 50 berths. Guest harbours should have the facilities to receive mixed waste and human waste products. As is currently the case, port operators may agree with local service providers on the use of waste reception facilities.

3. The obligation to receive waste is extended to fishing ports and ports used by connecting ferries and water buses.

4. All ports must draw up a waste management plan for a period of five years instead of the current three years.

5. From now on, commercial ports are required to also receive biowaste, paper, cardboard and other municipal waste. Commercial shipping regulations, including the reporting of port data in the EU maritime data management system, the obligation of ports to provide vessels a receipt of delivered waste and exemptions granted to vessels are harmonised across the EU.

Enhancing monitoring of transfer of noxious cargo

In accordance with the MARPOL Convention for the Prevention of Pollution from Ships, the Act on Environmental Protection in Maritime Transport includes provisions on ship-to-ship transfers of oil cargo. From now on, national regulations will apply to transfers of all types of noxious and hazardous cargo, including biofuels, chemicals, waste and other noxious and hazardous cargo. Transfers are restricted to separately designated waters. An advance notice is required to allow the authorities to intervene in the transfer if necessary. The requirements also apply to ship-to-ship fuel deliveries in ports and at sea.

In addition, the monitoring of operators for compliance with the EU Sulphur Directive is enhanced. Sampling is extended to cover fuel deliveries and the authority to impose penalties is expanded to also include fuel suppliers that have provably supplied high-sulphur fuel in breach of the regulations.

The fee charged for discharges of oil is extended to also apply in inland waters. Previously, the fee could only be imposed for discharges that take place at sea.

Changes to ship security inspections

The Government proposed that the temporary amendments of the Act on the Security of Certain Ships and Associated Port Facilities and on Monitoring Maritime Security and the Ship Register Act due to COVID-19 be made permanent. In the future, security inspections required by the Act on the Security of Certain Ships and Associated Port Facilities and on Monitoring Maritime Security could also be carried out by certified inspection agencies. Previously, the right to perform inspections was restricted to the Finnish Transport and Communications Agency. The provisions of the Ship Register Act on copies of documents of titles and the deregistration of vessels are amended. From now on, vessels can be removed from the register based on a copy of the document of title, provided that the original title is submitted to the authorities retrospectively. At the same time, technical amendments are made to the Act on the Technical Safety and Safe Operation of Ships and the Act on Marine Equipment.

What next?

The President of the Republic is expected to approve the amendments to the Act on Environmental Protection in Maritime Transport, the Act on the Security of Certain Ships and Associated Port Facilities and on Monitoring Maritime Security, the Ship Register Act, the Act on the Technical Safety and Safe Operation of Ships and the Act on Marine Equipment on 29 June 2021. The amendments will enter into force on 1 July 2021.

Waste management plans by ports must be updated and approved by the authorities by 31 December 2022. The supervisory authority for recreational marinas and small fishing ports is the municipal environmental protection authority. The supervisory authority for other ports is the regional Centrefor Economic Development, Transport and the Environment.

The requirements for waste reception will be specified by a decree.

Enquiries:
Laura Sarlin, Senior Specialist, tel. +358 50 447 7597, laura.sarlin(at)lvm.fi, Twitter @SarlinLaura

NordenBladet — The International Year of Plant Health 2020 of the United National, declared on the initiative of the Finnish Ministry of Agriculture and Forestry, ended on Thursday 1 July with a closing ceremony organised in Rome via remote connections. Finland played an active role in organising the events of the year and promoting the objectives.

Despite the delays caused by the coronavirus pandemic, the events of the International Year of Plant Health 2020 have now come to conclusion. The purpose of the year, declared by the UN and led by the UN Food and Agriculture Organisation and International Plant Protection Convention, was to draw attention to the fact that by protecting plant health we can promote the eradication of hunger and poverty and objectives related to economic growth and environmental protection. The link between plant health and food security was also highlighted in many ways during the year.

Finland had been advocating the idea of an International Year of Plant Health since 2015. The initiative was officially approved by the UN in 2018 and the year started with festive ceremonies at the end of 2019. In October 2020 an International Plant Health Conference was to be held in Helsinki, but due to the pandemic this was postponed to the summer of 2021. In the end, the conference was organised as a webinar via remote connections.

The International Steering Committee that participated in organising the International Year of Plant Health was chaired by Ralf Lopian, Senior Specialist at the Ministry of Agriculture and Forestry of Finland. The Steering Committee had a key role in implementing the action plan of the year, creating dialogue among stakeholders and mobilising financial and political supports for the benefit of the year. Lopian was also active in organising many of the events of the theme year.

These events culminated in the webinars and closing ceremony organised this week. The high-level closing ceremony on Thursday 30 June was also attended by Minister of Agriculture and Forestry Jari Leppä. In his speech he stressed the comprehensive nature of plant health.“Our aim was to establish an understanding around the world that plant health is as important for the environment and livelihoods as human health is to the wellbeing of people — in other words, we wanted to point out that by protecting plants we are protecting life”, Minister Leppä said.

Minister Leppä recalled the strong role the Finnish Government has played in the promotion, organisation and implementation of the international year. “I am convinced that in 30 years the International Year of Plant Health will be remembered as a watershed moment for elevating plant health policies to the next level,” he said.In his own closing words Lopian suggested a World Plant Health Day to be celebrated every year.

“The International Year of Plant Health 2020 aptly demonstrated the profound impact plant health has on food security and biodiversity conservation and, consequently, it must be considered an essential and overarching objective in our efforts to achieve the targets of the UN Sustainable Development Agenda”, Lopian said.

Further information:
Senior Specialist at the Ministry of Agriculture and Forestry of Finland, tel. +358 40 596 5698

NordenBladet — Today, on 1 July 2021, the State of Finland acquired 48.5 per cent of Finnair Plc’s shares in the Finnish Aviation Academy Ltd.

It now owns 98 per cent of the company. Finnair had previously announced, based on a shareholder agreement, that it wished to relinquish its ownership. The State paid a total of EUR 8.15 million for the acquisition. The Government decided on the matter in its plenary session on 10 June 2021.

Prior to the transaction, the State and Finnair each owned 49.5 per cent of the Finnish Aviation Academy Ltd, while the City of Pori owned one per cent. In connection with the transaction, the City of Pori increased its shareholding to two per cent.

The restructuring in ownership will not have a direct impact on the company’s training activities.

The Finnish Aviation Academy provides training for professional aircraft and helicopter pilots.

Well-functioning air connections are vital for Finland’s trade and economy, and it is essential to ensure the availability of skilled pilots.

The Academy mainly receives its funding from a government grant paid by the Ministry of Education and Culture.

The amount of the grant for 2021 is approximately EUR 6.8 million. The Finnish Aviation Academy began its operations in Pori in 2002.

NordenBladet — On 28 June 2021, the state of Finland received a permission to publish its whole reply to the European Commission on Sanoma Media Finland Ltd’s complaint concerning the Finnish Broadcasting Company YLE. Until now, a summary of the reply has been made available to the public.

Due to EU legislation, correspondence with the Commission is, as a rule, confidential. On 3 June, Finland proposed to the European Commission that correspondence relating to the complaint be public. So far, the Commission has agreed that Sanoma Media Finland’s complaint, the Commission’s request for a reply and Finland’s reply to the Commission can be published.

The complaint submitted by Sanoma Media Finland Ltd to the European Commission concerns, in particular, the video-on-demand services and electronic learning content of YLE. Currently, YLE produces video-on-demand services and provides them in Yle Areena. In the complainant’s view, the services do not comply with EU state aid legislation.

According to the reply submitted by the state of Finland, the video-on-demand services and electronic learning contents are in accordance with the Act on the Finnish Broadcasting Company Ltd and the EU state aid legislation. For this reason, Sanoma’s complaint is, according to the reply, unfounded.

What next?

The EU Commission will assess, whether Finland’s replies are sufficient and will decide, whether any additional information should be requested from Finland. The processing of state aid matters in the EU may take several years and include many rounds of communication.

NordenBladet — The defence ministers of the JEF partner countries met in Helsinki on 30 June to 1 July 2021. They signed a political steering document guiding military activities, complementing the JEF Memorandum of Understanding adopted in 2018. In addition, ministers held scenario-based discussions on the decision-making mechanisms and conditions for cooperation in the JEF countries.

The ministers met for the first time since 2019, as a joint meeting could not be held last year because of the COVID-19 pandemic. Finland regards ministerial meetings as very useful and is in favour of annually organised meetings.According to Minister of Defence Antti Kaikkonen, organising the JEF meeting directly after Finland hosted a NORDEFCO meeting of Nordic defence ministers, Finland demonstrated how different defence cooperation arrangements support and complement each other.

One of the main forms of activities is joint exercises and operations in the partner countries. The cooperation framework for Joint Expeditionary Force activities can be used to support, for example, the operations of the UN, NATO or the EU. For each task and situation, an especially formed task force will be formed, and each partner country will decide independently on participation in line with its national legislation.