The Finnish government revealed plans on Monday about how the EU coronavirus crisis stimulus funding will be put to use.
Half of Finland's share of a nearly three-billion-euro Recovery and Resilience Facility will go towards helping the country make a "green transition" from reliance on fossil fuels while one-quarter of the funding will be used towards digitalisation, according to the Ministry of Finance.
According to current estimates--and pending Parliamentary approval of the arrangement--Finland is to receive a total of around 2.9 billion euros out of the EU's 750-billion-euro stimulus package over the next few years.
According to the Minister of the Environment and Climate Change, Krista Mikkonen (Green), the green transition funding would be the largest single climate investment that Finland has ever made.
Meanwhile, funding will help to increase funding in research, development and innovation by around 700 million euros, the government said.
In total, Finland can receive about 3 billion in grants. The country's contribution to the package will be around 6.6 billion euros during the years 2028-2058.
Reforms and development
Minister of Finance, Matti Vanhanen, who presented Finland's Sustainable Growth Programme plans at a press conference on Monday, said the focus of the investments have more to do with reform than crisis recovery.
"The government's programme for sustainable development aims for many positive effects for both the environment and people. Emissions will be reduced, our competitiveness and everyday life will improve throughout the country," Vanhanen said.
According to estimates presented by Vanhanen, the green transition funding would help the country reduce its annual greenhouse gas emissions by three million tonnes, or roughly six percent of its emissions.
The finance minister said that the stimulus package would also help to increase Finland's GDP by half a percentage point during 2021-2023, adding that investments made possible by the package would mobilise more than three billion euros towards private investments.
Still needs approval
Finnish Parliament has not yet approved the stimulus package plans. Last month, Prime Minister Sanna Marin's (SDP) government won a confidence vote over the recovery package plans, a motion tabled by some opposition parties.
The Finns Party, Christian Democrats and Movement Now said at the time it was not in the country's best interest to take part in the stimulus package.
Like other EU states, Finland is facing an EU deadline at the end of April to present plans on how plans to use the funds. EU countries will jointly approve the plans of each member state.
The EU Commission has urged Finland and many other countries to focus on fewer but more effective projects.
The EU has said just over a third of the recovery funds should be used toward curbing climate change and that no money could be spent on efforts that were detrimental to climate goals.
The Finnish government noted that while the preliminary total of the EU's Recovery and Resilience Facility would be approximately 2.1 billion euros during 2021-2023, the actual final sum would not be known until the summer of 2022. It said the figure would be affected by the performance of the economy during this and next year.
Plans could still change
There are plans to invest in digital technologies, for example within the rail transport sector, which "will enable more efficient use of rail capacity, reduce disruption and improve safety," according to a finance ministry statement issued Monday.
The programme will also help to bring high-speed internet connectivity to areas which do not receive such service, according to the ministry.
"The plan as currently presented can still be changed. The government aims to make it as effective as possible and to work transparently and in consultation with the different stakeholders. We welcome feedback and comments on the detailed programme now published," Vanhanen said in the ministry statement.