There is already an urgency to support investments in the green transition

A good bet is the government’s decision to support clean industry investments in Finland with tax exemptions. However, it is not enough to reverse the trend of Finnish companies deciding to invest billions in green transformation investments and jobs abroad.

The Finnish government aims to achieve carbon neutrality by 2035. It is one of the most ambitious climate policy goals in the world. Finland has an excellent foundation for the green transition. We have clean and competitive electricity, good electricity infrastructure and electricity transmission.

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However, two major global trains are speeding by rather than waiting for passengers, increasing their speed and importance: climate change and competition. Climate change is already here and we cannot afford economic growth based on excessive consumption of natural resources and fossil fuels.

International competition for green change Investments are at a rapid pace, and Finland has already lost billions of dollars in investments. and jobs.

At the moment, the EU has fewer support packages, for example, behind the scenes. Biden It gave the US a head start on the EU by signing the largest climate package in the country’s history, amounting to almost 400 billion (inflationary relief). paths. The law has already attracted companies to the US. At the moment, Europe’s competitiveness is actually weaker than that of the US, and is not enhanced by sticky regulation.

For Finland, it is about competition within the EU. For example, in Sweden, infrared green change is weaker than in Finland, but not their capital. Regarding the green transition, our neighbor Sweden has thought in detail about how much added value we can get from production.

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Support activities – Investment, regulation and innovation – to get on the green train needs to happen now. We should primarily invest in technologies that are already viable, such as clean electricity and its rational use.

For example, the hydrogen industry may need life-cycle support if the role of the entire value chain is not carefully considered. Green transition investments must be profitable so that tax funds are not poured into a black hole.

On the other hand, competitiveness in terms of profitability is essential and is significantly affected by restrictions, which affect not only investments but also market demand. Creating a level playing field among operators outside the EU and within the EU is key for companies to have a level playing field.

For example, from the point of view of green steel and the environment, the EU’s carbon capping mechanism is a positive signal, although its actual impact in terms of carbon leakage can only be assessed later.

You need to invest in the innovation front Mostly for innovations based on circular economy and conservation of natural resources. Industrial investments can achieve significant benefits in terms of mitigating climate change, but it is also important to ensure that new innovations are introduced into the investment pipeline.

Research, development and innovation investments play a key role in the development of next-generation competitive technologies and solutions for the market.

Industrial investment curves are often over 20 years, so the technologies of 2050 are being built today. Green transition not only preserves existing jobs but also helps create new ones.

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The transition towards a fossil-free society is already underway for the benefit of people, society and the environment. It’s about whether we’re on the train, in control of it, or falling off the board. The stakes are high in anything from staying on a platform to catching a train.

Juha ErkilaInnovation Director, Outokumpu

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