The government has reversed its stance in the framework crisis and has decided to attract clean investments with tax relief. Experts interviewed by HS have praised the decision to support clean industrial investments in Finland with a tax break, stating that it should have been made earlier. Ulla Heinonen, the director of green growth at the Confederation of Finnish Business, believes that competition with other countries is ongoing, and the sooner these investments can be brought back to Finland, the better.
The coming months will determine whether Finland will attract factories using fossil-free energy, such as battery production, clean steel, and hydrogen. The government has decided to offer a tax credit for large industrial investments leading to a zero-emission economy, with a refund of 20% of the total investment amount for projects whose investment decision is made by the end of next year, with a maximum tax credit of 150 million euros per project. Paavo Järvensivu from the Bios research unit has expressed disappointment that Finland has not taken an active industrial policy approach earlier. He believes that Finland’s political leadership has lacked a planned line to reform the industry to meet economic, ecological, and geopolitical goals. Järvensivu sees the government’s decision as a step in the right direction, allowing the renewing industry to invest and compete against older, polluting industries.
Finland may need to react to this competitive challenge or risk losing out to other countries. The United States, Germany, and France provide support for such projects. Ulla Heinonen from the Confederation of Finnish Business notes that Finland may need to reflect on where it wants to be in
