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Biofuels policy in Finland

General
The objective of the Finnish National Climate and Energy Strategy (2005) is that consumption of renewable energy should grow by at least one-fourth by the year 2015 and by at least 40% by 2025 such that renewable energy accounts for almost one-third of primary energy by 2025. The use of forestry chips, energy crop-derived biomass, biogas and small scale wood facilities should increase by approximately 65% by 2015 and by about 80% by 2025 as compared to 2003. In 2010, renewable electricity should account for 31.5% of total Finnish power consumption. Biofuels should account for 5.75% of road transport fuels in 2010.

Taxation of fossil fuels is in place as of 1990. The fuels have a tax which is based on the carbon content. In the beginning of 2008, levels of tax have been increased slightly. Fossil fuels used for electricity generation are not taxed, but an electricity tax is imposed on the consumption of electricity. In CHP, fuels used for heat generation are calculated by the amount of heat produced. Tax rates differ for industry and for private consumers. 

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Finland is 38% (in the year 2005 the share was 28.5%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

 

With the latest Finish National Climate and Energy Strategy (2008), the Government states that the objectives proposed by the EU for Finland regarding the reduction of emissions, promotion of renewable energy, or enhancing the efficiency of energy consumption, cannot be attained without new, prominent climate and energy policy measures.

The main focus of the strategy lies in the guidelines up to 2020, and the measures they require. Furthermore, visions up to 2050 have been presented in order to emphasise the long-term nature of climate and energy policy.

The objectives set by the Government for Finland entails halting and reversing the growth in final energy consumption so that, in 2020, final energy consumption is approximately 310 TWh (over 10% less than the strategyÕs baseline). The longer-term vision entails a further decrease in final energy consumption by 2050 of at least one third of the 2020 quantity. In order to attain these objectives, the efficiency of energy consumption must be enhanced, particularly in housing, construction and transport.

Renewable energy projections according to the National Renewable Energy Action Plan for Finland

The National Renewable Energy Action Plan (NREAP) for Finland was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 38% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (6610 ktoe, 62% of all renewable energy). Second important contribution is expected from hydropower (14.4 TWh or 1239 ktoe, 12% of all renewable energy). The third largest contribution is from biomass (renewable electricity) (12.9 TWh or 1110 ktoe, 10% of all renewable energy).

 

Wind power contributes with 2.5 GW (6.1 TWh). For solar photovoltaic the 2020 contribution is projected to be 10 MW. For solar thermal the 2020 contribution is projected to be 0 ktoe. The two most important biofuels are projected to contribute 430 ktoe (biodiesel) and 130 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 7.9 TWh (676 ktoe) and for biogas it is expected to be 0.3 TWh (23 ktoe). The consumption of renewable heat is expected to amount to 3940 ktoe for solid biomass and 60 ktoe for biogas. 

Renewable transport fuels: biofuels

The draft law on promoting the use of biofuels in transport was approved as proposed on 13 April 2007, and entered into force on 1 January 2008. The law obliges distributors of transport fuels to supply a minimum volume of biofuels annually for consumption. This minimum volume increases year-on-year so that in 2008 it will be at least 2% of the total energy content of biofuels, petrol and diesel supplied for consumption by a fuel distributor. In 2009 this share will be at least 4% and in 2010 and subsequent years it will be at least 5.75%, satisfying the reference figure for 2010 in Directive 2003/30/EC.

 

On 30 December 2010, the President approved an act amending the current and aforementioned act on promoting the use of biofuels in traffic. The new act entered into force in 2011 and the biofuel distribution obligation has now increased from 4 to 6 % for 2011–2014, followed by a phased increase to 20 per cent by 2020.

 
In the spring of 2007 Tekes, the Finish Agency for Technology and Innovation, launched the technology programme "BioRefine - New Biomass products". The programme will run from 2007 to 2012 and it has a total budget of EUR 137 million. The programme's specific objective is to significantly promote the development of second-generation biofuel production technology. The programme is also intended, among other things, to cover energy production as a by-product of biofuel production and bioenergy production associated with industrial processes in general.


Future programme changes expected
No information available.

Sources
Jussi Heinimö: IEA Bioenergy Task 40 ÒSustainable International Bioenergy Trade: Se-curing
supply and demandÓ Country report of Finland 2008, Lappeenranta University of Tech-nology, Department of Energy and Environmental Technology, Research Report EN-A 57, ISBN 978-952-214-613-7, August 2008

Ministry of Employment and the Economy, www.tem.fi (sourced August 2008)

Finnish Funding Agency for Technology and Innovation, www.tekes.fi (sourced August 2008)

Motiva Oy, www.motiva.fi (sourced August 2008)

Report of the Finish Ministry of Trade and Industry persuant to Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport in Finland, April 2007

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Entry into force on June 25th, 2009), download from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

 

Interactive EurObservÕER Database
http://www.eurobserv-er.org
Last update: July 2011

 



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