The green transition is making great strides in the Nordics, and Finland is one of the leading countries in promoting the energy transition. As ways of advancing the transition, Finland has made record-high investments in green transition projects and made the official processing of permit applications more flexible.
26.5.2023
Green transition is progressing but the permit system is lagging behind
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There are currently several planned emission-free energy projects in Finland – and they are often unprecedented in the energy industry. For example, the production of wind power is being moved from land to sea, and green hydrogen is expected to provide solutions for the needs of energy production in traffic and industry, among others.
However, the regulation and permit systems have not managed to keep up with the pace. As the need of and demand for the green transition is great, projects will advance even if the permit system or regulation is not ready. For example, investors, developers and decision-makers are currently interested in the production of green hydrogen, but the reform of the Industrial Emissions Directive, which is being prepared in the EU, will most likely not be ready before the first hydrogen production plant projects have permits.
The situation forces companies to be creative and adapt to uncertain circumstances. It is possible that an appropriate permit system does not yet exist for the project or investment. As a result, project developers have a greater responsibility and role in designing and leading the permitting process.
Companies need to have a creative strategy, keep a cool head and find a strategic partner that provides them with business-friendly and solution-oriented thinking as well as experience in advancing new innovations.
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Latest references
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Castrén & Snellman acted as legal advisor to Coöperatieve Rabobank U.A. in its capacity as sole lender and hedging bank providing senior financing to Olana Energy for a Battery Energy Storage Systems (BESS) portfolio in Finland. Our advice included preparing a legal due diligence report on the projects as well as advising on the negotiation of the various finance and project agreements. Olana Energy is a management-owned fast-growing independent power producer with an international pipeline of over 1 GW. The diversified portfolio of assets ranging from 5 to 30 MW reinforces the Finnish grid at a granular level.
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Castrén & Snellman was commissioned by the Ministry of the Environment to carry out a study on how the Circular Economy Act could be used to promote circular economy aspects in public procurement. Our report provides valuable information to the working group tasked with preparing the new Circular Economy Act. The report includes an overview of relevant strategies, action programmes and policies, a look at relevant legislation and case law, an assessment of the current state of circular economy procurement and examples of integrating circular economy aspects into public procurement from around the world. We end the report with concrete conclusions and a proposal for a new circular economy provision with justification. The proposal aims to maximise the regulation’s effectiveness and minimise any adverse side effects. The final report is available on the Circular Economy Act project’s Gateway to Information (in Finnish). The study was carried out by Anna Kuusniemi-Laine, Sanna Aalto-Setälä, Lotta Huhtamäki, Marja Ollila, Laura Vuorinen, Paavo Heinonen and Anna Ylitalo.
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Castrén & Snellman acted as legal advisor to Suomen Aurinkovoima Oy and its owners in a financing tender process and a financing arrangement implemented with Danske Bank to secure financing for the company’s future solar park projects. Suomen Aurinkovoima, established by Oulun Seudun Sähkö, Oulun Energia, Vantaan Energia and Savon Voima, is a company focused on increasing domestic solar power. The company manages solar park projects from planning to implementation and maintenance, and its goal is to build dozens of new solar parks across Finland by 2030.
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