Background
19.6.2023
Latest news in climate law: the appeal concerning the sufficiency of the state’s climate actions ruled inadmissible by the SAC
Related services
Finland’s new Climate Act entered into force in July 2022. Amendments to the Act were approved in December 2022, and on 1 January 2023 the Climate Act was amended with provisions that concern appealing decisions made thereunder.
On 28 November 2022, before the amendments entered into force, the Finnish Association for Nature Conservation and Greenpeace Norden filed an appeal to the Supreme Administrative Court, requesting that the Finnish Government’s decision on the Annual Climate Report 2022 be revoked and sent back to preparation. This was the first time the sufficiency of the state’s climate actions was challenged in court in Finland. According to the NGOs, the Government had failed in its duty to take the necessary additional actions in terms of carbon sinks to ensure the realisation of the targets set out in the Climate Act.
Supreme Administrative Court ruled the appeal inadmissible
Under its decision of 7 June 2023, the Supreme Administrative Court (SAC) dismissed the NGOs’ appeal.
The SAC examined the admissibility of the appeal very broadly, referring for example to the Finnish constitution. While the SAC ended up ruling the appeal inadmissible, it stated, among other things, that assessing the legality of the Government’s decision-making as intended by the appellants could be examined by the court in such a case that failure to make a decision would lead to an outcome contrary to the Climate Act or that the Government’s actual actions would show that it has no intention of making appropriate decisions in order to achieve the goals and obligations required by the Climate Act in a sufficiently short time frame.
The SAC further stated that the appealability of the Annual Climate Report should not be assessed differently based on the regulation on appeals under the amended Climate Act.
Case law regarding climate actions likely to be specified in future
It is noteworthy that pursuant to the SAC’s decision, the passiveness of the Government could be examined by the court in the abovementioned situation. Furthermore, the decision of the SAC was reached only after a vote. The minority of the formation of the court found the Government decision to be admissible for appeal. Therefore, it is to be expected that the sufficiency of the Government’s climate actions will be challenged in Finnish courts again.
See also:
Latest news in climate law: Climate Act amended and Finland’s first climate litigation case filed
Latest news
Latest references
Fortum – AI workshop
We delivered two AI workshops for Fortum Corporation’s Mergers and Acquisitions team, with both legal and business professionals participating. The sessions combined fundamental AI principles with custom use cases for commercially available AI tools tailored to Fortum’s needs. We also presented a bespoke solution merging AI with a script-based tool developed by our Legal Tech team, enabling a more automated way of working. Our experts conducted the training drawing on their legal background and leading experience in this emerging field of legal technology. Participants particularly appreciated the clarity and relevance of the implementations demonstrated. ‘C&S delivered an excellent, well-structured series of workshops, with directly applicable takeaways,’ says Sabina Hautaviita, Legal Counsel for M&A at Fortum.
Case published 9.3.2026
VR – Supreme Court decision clarifies working time practices
We successfully represented VR Group before the Supreme Court in a case concerning the meal break practice of commuter train drivers. On 6 February 2026, the Supreme Court ruled in VR’s favour (decision KKO:2026:12), confirming that VR had the right to amend the commuter train drivers’ meal break practice in 2021 by rendering the break unpaid in accordance with the applicable collective agreement. This decision clarifies the interpretation of collective agreements and employment legislation as well as the limits of the employer’s right to direct work. Over 250 commuter train drivers challenged the unpaid meal break practice which VR introduced in April 2021. Before the change, meal breaks had a long history of being paid. The change was based on the train drivers’ collective agreement, which allows for meal breaks to be organised either as paid or unpaid time. The Supreme Court ruled that the scheduling and managing of breaks falls within the core area of the employer’s right to direct work. This increases the threshold for an established practice becoming a binding condition for the parties. Merely following a practice consistently and over a long period of time does not make the practice binding; instead, the employer’s intent to commit to the practice must be clearly evident from the employer’s conduct or other circumstances. As both alternatives – paid and unpaid – for organising meal breaks had been retained in the collective agreement despite other amendments over the years, it could not be considered that VR had intended to commit to the paid break practice and waive its right to direct work as regards break scheduling. It was also significant that the employment contracts explicitly referred only to the collective agreement as regards working time. The Supreme Court deemed that the employees’ paid meal break was not an established term of employment and that VR was entitled to change the practice based on the collective agreement. The employer had the right, by virtue of its right to direct work, to unilaterally change the meal break practice by choosing to apply the other arrangement permitted by the collective agreement.
Case published 3.3.2026
CapMan Growth – Investment in Kuntokeskus Liikku
We are assisting CapMan Growth in its significant investment in Kuntokeskus Liikku, a Finnish gym chain known for its high-quality self-service facilities and excellent value for money. The investment will further strengthen Liikku’s position as a market leader and support the continued execution of its growth strategy. Liikku is one of Finland’s leading fitness chains, with more than 70 locations across the country serving nearly 90,000 members. The company’s concept is to offer high-quality self-service gyms at an exceptionally competitive price point which, combined with strong operational efficiency, provides a solid foundation for profitable growth. The company’s main shareholder is COR Group, a long-time partner of CapMan Growth, and a Finnish health and wellness conglomerate known for active ownership and long-term value creation. CapMan Growth is a leading Finnish growth investor that makes significant investments in entrepreneur-led growth companies with a turnover of €10–200 million. CapMan Growth is part of CapMan, which is a leading Nordic private equity investor engaged in active value creation work. CapMan has been listed on the Helsinki Stock Exchange since 2001.
Case published 27.2.2026
Terrafame – Environmental and water management permit processes concerning the company’s entire operations and the KL1 side rock area
Castrén & Snellman successfully assisted Terrafame Ltd in environmental and water management permit processes concerning the company’s entire operations and the KL1 side rock area, on which the Supreme Administrative Court issued its decision on 12 February 2026 (KHO 366/2026 and 367/2026). The changes made to the decisions of the Vaasa Administrative Court as a result of Terrafame’s appeals, enable the company to implement its new strategy and develop its operations as planned. The decisions of the Supreme Administrative Court brought the nearly ten-year-long permit process to a close.
Case published 20.2.2026