31/01/2024

Investments in the green transition require courage and cooperation

Something unique has been developing in Finland in the past few years: we have a large number of companies that have leveraged scientific research and high-level technical expertise to search for solutions to the energy transition and green transition. The companies have been in an experimental phase and built pilot facilities and factories.

Right now, they are ready to commercialise their operations and start production in an industrial scale, but the transition to larger markets requires considerable investments. Individual projects may need hundreds of millions of euros, and in order to get the funding, the companies have to look to domestic investors, the state as well as international investors.

So far the companies have managed to raise overall funding for their start-up phase operations by leveraging public funding as national and international development financiers have supported the companies’ innovations. The state’s private equity investing is streamlined and concentrated during the term of this Government. Despite the changes, it would be important for the Government to keep the energy transition and green transition on its list of priorities and to be willing to invest in scaling innovations.

Finland has every chance of attracting international investments and to become a leader in new energy solutions. The energy transition concerns and benefits many industries, and we are already close to being self-sufficient in electricity production. The security of electricity supply is at a high level, and the average price is moderate. In addition, the permitting process for green transition projects is being streamlined and the Government aims for a one-stop shop permitting system.

It is time to roll up our sleeves and to take Finnish energy solutions and green transition projects to the next level. Companies should be raising funding prominently in the international investment market as well. Attracting international funding can, however, require catalysis from the state, and these opportunities should now be seized efficiently and prudently.