Round-table to discuss emission reductions, energy taxation

The Climate Policy Roundtable will hold its second meeting on Thursday, said a press release issued by the Ministry of the Environment.

The main topics on the agenda are emission reductions and the role of energy taxation in terms of achieving carbon neutrality. The meeting will be chaired by Prime Minister Sanna Marin.

According to the Annual Climate Report published in June 2020, the actions already taken or planned will not be sufficient for Finland to achieve carbon neutrality by 2035.

Earlier this spring the Government adopted a roadmap that will enable to reach the necessary emission reductions and meet the target

“To reach this target, contributions are needed from all sectors and operators. This is why it is so important to have this discussion at the Climate Policy Roundtable that is composed of a broad spectrum of stakeholders in society,” Prime Minister Sanna Marin said.

“At the climate meeting in Vuosaari last February the Government decided on a set of measures to catch up on emission reductions that are still lacking. The legislative proposals, tax reforms and action programmes related to this will be prepared during this and next year. These additional measures will also be included in the new Climate and Energy Strategy, Medium-term Climate Change Policy Plan and Climate Programme for the Land Use Sector,” said Krista Mikkonen, Minister of the Environment and Climate Change and vice-chair of the Roundtable.

Professor Jyri Seppälä from the Finnish Climate Change Panel will first tell about where we now stand in terms of emission reductions.

The energy tax reform that is now under preparation, combined with the EU-wide emissions trading, has a significant role in promoting the carbon neutrality target. The package includes a sustainable taxation roadmap that will promote the climate targets in a way that is cost-efficient and will speed up the transition away from fossil fuels while also taking social justice into account.

“The first guidelines for future energy taxation will be decided in the autumn budget session, and then the work will continue. Investments in emission reductions in the industrial sector require predictable taxation, which is why we must look beyond government terms when deciding on energy taxation. At the meeting our time horizon will be 10 to 15 years,” said Minister of Economic Affairs Mika Lintilä, who took over the second vice-chairmanship of the roundtable from Katri Kulmuni.

Leo Parkkonen, Senior Ministerial Adviser for Legislative Affairs at the Ministry of Finance will present keynote paper at the roundtable discussion.