On 25 May 2022, Parliament approved the government proposal for the new Climate Change Act (government proposal HE 27/2022 vp). The Act is to enter into force on 1 July 2022, and it will repeal the Climate Change Act (609/2015) that has been in force in Finland since 2015. Both the current and the new Climate Change Act set targets and establish a framework for the planning of climate policy in Finland and the monitoring of its implementation.
7.6.2022
New Climate Change Act Aims at Carbon Neutrality
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Planning system for climate policy
The new Act provides for a climate policy planning system, which determines the reduction targets for greenhouse gas emissions, the goals for the strengthening of carbon sinks and adaptation to climate change, and the measures required to reach these goals and targets in different administrative branches. The goal for strengthening carbon sinks was added to the new Act as a new element.
In accordance with both the current and the new Climate Change Act, the planning system includes a long-term climate change policy plan, a medium-term climate change policy plan and a climate change adaptation plan. In the new Climate Change Act, the planning system is supplemented with a climate plan for the land use sector to be prepared at least every other electoral term.
New climate objectives
The new Climate Change Act also lays down provisions on new climate objectives. The target of the Act and the climate policy planning system laid down in the Act is to make sure that Finland reaches carbon neutrality by 2035. Carbon neutrality means that greenhouse gas emissions are at most as high as their removals.
The new Climate Change Act also includes new emission reduction targets for 2030 and 2040. The objective is to reduce the greenhouse gas emissions of the effort sharing and emissions trading sector by at least 60 per cent by 2030 and at least 80 per cent by 2040 compared to 1990 levels.
In the new Climate Change Act, the 80 per cent emission reduction target set for 2050 in the current Climate Change Act was updated so that the target is to reduce emissions of the sectors by at least 90 per cent by 2050 but aiming at 95 per cent compared to 1990 levels.
Act to be supplemented
The Ministry of the Environment is preparing an amendment to the Act that will introduce a new obligation to prepare climate policy plans on a municipal, county or regional level. The Act will also be supplemented with a provision on the basis of which the Government’s decisions based on the Climate Change Act can be appealed to the Supreme Administrative Court. Parliament has required the Government to submit a proposal regarding the said amendments by the end of November 2022.
Climate Change Act guides administrative measures
The current and new Climate Change Act concern the planning of climate change policy in Finland and the monitoring of its implementation, i.e. the tasks of the authorities. We are closely monitoring the further preparation of the amendment to the new Climate Change Act as well as the impacts of the tightening climate objectives on substantive legislation directly guiding the operations of companies.
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Lenders and Export Credit Agencies – EUR 514.4 million green project financing for Easpring Finland New Materials’ CAM plant
We acted as Finnish law legal adviser to the lenders and the export credit agencies in connection with the EUR 514.4 million green project financing for the development and construction of Easpring Finland New Materials Oy’s cathode active material (CAM) manufacturing plant in Kotka, Finland. The borrower, Easpring Finland New Materials Oy, is a joint venture owned by Beijing Easpring Material Technology, Finnish Minerals Group and LG Energy Solution. The financing was provided by six international commercial banks, with Société Générale acting as financial adviser and mandated lead arranger together with Natixis as co-mandated lead arranger, and DNB, ICBC, ING and Standard Chartered participating as lenders, with support from the export credit agencies Finnvera and Sinosure. The project represents a significant milestone for Finland and the European battery value chain by strengthening Europe’s domestic supply of cathode active materials, a key component in lithium-ion batteries for electric vehicles and energy storage applications. Once the first phase of the project is operational, the Kotka facility is expected to produce approximately 60,000 tonnes of cathode active material annually, making it one of the largest CAM production plants in Europe and supplying leading battery manufacturers across Europe.
Case published 21.7.2026
Delta Capacity – Acquisition of BESS Project
We acted as Finnish legal advisor to Delta Capacity in connection with its acquisition of the ready-to-build Karppio battery energy storage system (BESS) project from Helios Nordic Energy. The acquisition was made and the project will be implemented together with Strioga Family Foundation. The Karppio BESS project is located in Teuva, Finland, and has a capacity of 125 MW / 300 MWh. Delta Capacity will lead the remaining development of the project through to commissioning, planned for 2027, and will serve as long-term asset manager. Delta Capacity is a Swiss-based developer of utility scale battery storage systems. The acquisition adds to Delta Capacity’s growing Nordic portfolio.
Case published 20.7.2026
Oomi Solar – Sale of a Solar Power Plant and Battery Energy Storage Project
We advised Oomi Solar Oy on the sale of a solar power park and battery energy storage project to Tuulipolar Oy. The transaction concerned a 24 MWp solar power plant and a 36 MW / 70 MWh battery energy storage system (BESS) to be constructed in Tornio. Tuulipolar Oy will act as the owner and operator of the plant, while Oomi Solar Oy will be responsible for its design and construction. The project will form the world’s northernmost industrial hybrid power plant, contributing to Finland’s green energy transition by increasing renewable energy production and electricity storage capacity in Northern Finland. The hybrid solution enables optimization of production as well as active participation in electricity markets and reserve services, improving the project’s profitability and supporting the balance of the electricity system year-round. Electricity production from the hybrid plant is expected to begin in 2028. Oomi Solar Oy is a Finnish renewable energy expert with experience from nearly 200 MW of installed solar capacity. The company helps businesses and communities accelerate the green transition by offering comprehensive solutions, including solar power plants, energy storage systems, and related lifecycle services from project development to maintenance. Oomi Solar Oy employs more than 20 energy professionals and delivers solar power projects across Finland. The company’s vision is to be Finland’s most desired partner for solar energy and energy solutions.
Case published 5.6.2026
Nscale – Data centre project
Castrén & Snellman advised Nscale, a European AI infrastructure company, in connection with its planned data centre project in Harjavalta, Finland. The facility will be located in the Sievari industrial area. Castrén & Snellman’s advisory role encompassed the negotiation and execution of a site securing and development agreement (SSDA) with Fortum, as well as the preliminary land sale process for the Sievari site with the Town of Harjavalta. Under the SSDA, Fortum supports the advancement of Nscale’s project development, including grid connection design and permitting.
Case published 15.4.2026