. Tilastokeskus mw Statistikcentralen Finland's Natural Resources and ’ Statistics Finland the Environment

Appendix 3 of the Government proposal for the 1995 budget

SVT

Environment 1995:1B ¡ijjjl Statistics Finland Finland's Natural Resources and the Environment

Appendix 3 of the Government proposal for the 1995 budget

SVT

Environment 1995:1B

M arch 1995

Helsinki 1995 Inquiries: SVT Official Statistics of Finland

Jukka Hoffren Leo Kolttola +358 0 17 341

Cover: ROVASEUTU

Helsinki

Appendix 3 of the Government proposal to Parliament for the 1995 budget

The Government has not discussed the Appendix. It is intended as background mate­ rial to the budget proposal. Preface

Finland’s Natural Resources and the Prime Minister, with Heikki Sourama Environment is an offprint of Appendix 3 of (Ministry of Finance), Veikko Marttila the Finnish Government’s 1995 budget (Ministry of Agriculture and Forestry), proposal. It was compiled by Statistics Fin­ Erja Fagerlund (Ministry of Trade and In­ land. The editors were Jukka Hoffren and dustry), Jarmo Muunnan (Ministry of the Leo Kolttola. Environment) and Leo Kolttola (Statistics The work was directed by a team chair­ Finland) as members. Jukka Hoffrén (Sta­ ed by Juha Kuisma, Special Advisor to the tistics Finland) served as secretary.

Statistics Finland, March 1995

Heikki Salmi, Director General

0 Statistics Finland 3

Introduction

The parliamentary debate on the 1994 State Together with other participating count­ budget proposal revealed the need to coor­ ries, Finland is committed to complying dinate decision-making regarding the envi­ with what was decided at Rio and to wor­ ronment and society. Such an approach is king towards achievement of the targets set. hindered by the fragmentary and incomple­ With the extensive cooperation required in te nature of our knowledge of the interacti­ view, a Finnish National Commission on on between the environment, nature and Sustainable Development, with the Prime the economy. Enough is nevertheless Minister as chairman, was set up in Finland known for us to produce the first overall in summer 1993. The working committee review of the subject. includes five other ministers besides the Pri­ The UN Conference on Environment me Minister, and comprises 40 members in and Development held in Rio de Janeiro in all from various sectors of Finnish society. 1992 was the largest meeting ever held at The Commission is dealing progressively Head of State level in the organization’s with the sustainability of operations in key history. One of the outcomes was Agenda areas. 21, an extensive action programme em­ A central issue at the Rio Conference bracing all sectors of society, intended to was the inclusion of sustainable develop­ bring to a halt, and even reverse, many of ment, the environment and natural re­ the trends threatening the Earth. The sources in all decision-making in every sec­ Conference also witnessed the signing of tor and at every level of society. The State the first worldwide environmental agree­ budget proposal is the main guideline for ment on slowing down climate change and the public sector. This Appendix to that on protecting biodiversity, and ratified proposal is an attempt to monitor imple­ principles concerning sustainable develop­ mentation of the Rio principles. ment of forests.

¡¡¡¡¡I Statistics Finland 5 Contents

Introduction...... 5

1. The economy and the environment...... 7 Sustainable development...... 7 Integration of environmental policy and other socio­ economic policy in decision-making...... 8 Instrum ents...... 8

2. Industry...... 10 Investment in environmental protection ...... 10 Environmental technology ...... 11 Forest industry ...... 11

3. Forests ...... 12 Timber resources and use of fo rests...... 12 Forests as carbon dioxide s i n k s ...... 13 Biodiversity...... 14 Nature reserves...... 14

4. Energy ...... 16 Use of e n e rg y ...... 16 Atmospheric pollution and acidification ...... 17 Sulphur dioxide emissions ...... 19 Emissions of nitrogen oxides ...... 19 Greenhouse g a s e s ...... 20

5. T ran sp ort...... 22

6. A griculture...... 25 Environmental im pacts...... 25 Environmental subsidies ...... 25 Marketable eco-benefits...... 26

7. Identifying sustainable structures...... 27

Appendix: Most important agreements on the conservation of natural resources and the environment to which Finland is sign atory...... 28

6 ¡¡¡¡¡I Statistics Finland / The economy and the environment

Sustainable development

Sustainable development means that watch Institute. It was largest in the early economic and social development is re­ 1980s, since when it has declined. The conciled with the terms set by natural re­ table assumes that the future total cultiva­ sources and their cycles in such a manner ted area will be the same as the 1990 area. that nature and the premises for human In 2025 that area per capita would then be development are preserved for future ge­ only a third of what it was in 1950. nerations. It stresses systems maintaining natural life as the foundation of economic development. Formulated as rules for using natural resources, sustainable development means 1. World population and cultivated area per that: capita - reserves of nonrenewable natural re­ P o p u la tio n Cultivated area sources should not be depleted more b illio n h a /c a p ita rapidly than the renewable natural resources and technologies replacing 1950 2,5 0,24 them can be developed and introdu­ 1990 5,3 0,13 ced; 1992 5,5 0,13 - renewable natural resources are ex­ 2000 6,2 0,11 ploited within the productivity li­ 2025 8,5 0,08 mits of nature without destroying its biodiversity; and - the load aggravating the state of the environment may not exceed the ca­ Finland has 0.62 hectares of arable land pability of the environment to receive and 3.95 hectares of forest per capita. Fin­ and neutralize it. land has almost five times as much arable The most serious obstacle to sustainab­ land per capita as the world on average, le development is the explosive increase in and the discrepancy is growing rapidly. population, which may well more than Finland’s natural population growth double from its present 5.7 billion before will probably start to decline at the end of growth comes to a halt. When that will the millennium. Migration both to and happen, and how high the peak will be, from Finland will be affected by interna­ are open to conjecture at present. Estima­ tional trends. Accelerating desertification tes suggest that the Earth can produce and other environmental degradation cau­ food for a population of 11 billion. sed by climate change will increase migra­ The following population figures were tory pressures both directly and indirecdy. presented at the UN population and deve­ Climate change will also alter the structu­ lopment conference held in September res of the world economy and trade in an 1994. The cultivated area figure is taken unprecedented fashion. from Vital signs published by the World­

$ Statistics Finland 7 Integration of environmental - through taxation, fees and assistance, - by increasing environmental awareness policy and other and socio-economic policy in - by promoting international coopera­ tion. decision-making The rights, practices and standards created through legislation, together with A working connection between environ­ restrictions on emission quotas, have been mental and other socio-economic policy is the traditional means used to take environ­ the key to achieving sustainable develop­ mental costs into account in economic de­ ment. By taking the environment into ac­ cisions. Efforts have increasingly been count in the policy-making of different made to find more flexible instruments, fields, we can influence and preempt the such as taxation, marketable emissions li­ underlying causes of environmental prob­ cences, eco-labelling and voluntary agree­ lems. Moreover, practical implementation ments. of environmental policy can be promoted by Finland already has a wide variety of ensuring that the decisions reached are not instruments for the economic regulation overly at odds with the other aims of society. of environmental protection, for instance, Integrated environmental and other socio­ taxes on commodities harmful to the envi­ economic policy also increases well-being by ronment, the various tax subsidies and gra­ improving the environment and making sus­ ded taxes affecting the environment in tainable development more readily at­ different tax schemes, certain administra­ tainable. tive and municipal fees, financial subsidies Many different sectoral policies, e.g. in and deposit schemes in recycling arrange­ transport, energy and agriculture, affect the ments. environment. If sectoral policy is restricted The most important of the economic in scope and not geared to the overall bene­ instruments involve tax subsidies. Central fit of society, it will present a risk to both the to the introduction of environmental taxes environment and the economy. is the regulatory effect of the tax relative All sectoral policies apply financial sup­ to its fiscal effect. When regulation works port systems, based on targets for areas as it should, the tax does not produce such as regional development, competiti­ revenues for the state, nor does it have any on and equality. Further, current price re­ effects on the national economy other lations between natural resources and than indirectly through its impact on commodities do not reflect the values of sustainable development. It is essential that subsidies and incentives should be Diagram 1. related to actions to promote sustainable Hierarchy of instruments development to avoid inefficiency and en­ Strategies of society vironmental problems. Legislation, rights, prohibitions Regulation of standards Environmental taxes Instruments Marketable quotas Eco-labels Corporate strategy Government can improve the state of the environment: - through legislation, - through planning and other admini­ strative actions, e.g. the practice for assessing environmental impacts,

8 0 Statistics Finland economic activity. When the regulatory Measures to achieve cost efficiency effect is not particularly strong, the envi­ have to be implemented where they cause ronmental tax produces revenues for the the lowest costs. Finland has already taken state together with opportunities to lower a step in this direction by investing in some other tax, while retaining the total environmental cooperation with countries tax burden unchanged. in Central and Eastern Europe (CEE). As The fuel tax, revised in 1993-94, has the need to implement environmental po­ both fiscal effects and effects regulating licies in this way grows in the future, we environmental protection. The regulatory shall have to look into all possible ways of targets are particularly clear in the progres­ arranging the necessary funding. sion in the basic tax on transport fuels. The Excessively high environmental taxes extra tax determined according to the can impair the international competiti­ carbon and energy contents of the fuel also veness of the fields hit the hardest. That is has a regulatory effect on fuel choices in why a very rapid shift in the focus of energy production. The extra tax is, how­ taxation is not possible. In the long term, ever, clearly fiscal, as the tax bases cannot however, a consistent and predictable en­ be set very high in Finland alone without vironmental policy will be converted into endangering the external balance of the industrial competitiveness. economy and employment.

2. Environmentally related State taxes and fees. Million FIM

1993 1994 1995 R B BP

Disposable drink-carton tax 36 36 36 Fertilizer tax 516 470 - Pesticide fee 6 6 6 Electricity tax 656 70 - Fuel tax 8 404 9 980 12 500 Oil waste tax 21 22 20 Car and motorcycle tax 1 609 1 720 3 030 Charter flight tax 111 120 - Water protection tax 2 2 2

Total 11361 12 426 15594

R = revenue B = budget BP = budget proposal

tfjjf Statistics Finland 9 2 Industry

Investment in environmental protection

Finland’s total investments in environ­ talling new, or converting existing, electric mental protection measures by industry filters. amounted to FIM 1.8 billion in 1992. Of The biggest water protection invest­ this sum, FIM 1.2 billion, or 66.4 per cent, ments were in the pulp and paper industry. was spent on the control of atmospheric In 1992, these mainly focused on improve­ pollution. Investments in water protection ments in bleaching processes and wastewa­ came to FIM 0.5 billion, or 27.1 per cent ter treatment. Efforts were made to reduce of the total, and those in waste manage­ both water consumption and effluent ment, soil and groundwater protection to amounts. FIM 119 million, or 6.5 per cent. The most waste management invest­ Overwhelmingly the largest propor­ ments were made in the chemical indust­ tion of air protection investments was in ry, where recycling and recovery of chemi­ power plants, the bulk being for the cals was improved, and various protection construction of desulphurization plants. basins and silos were built. Combustion processes were improved to Investments in environmental protecti­ reduce emissions of nitrogen oxide, and on by industry in 1993 were probably lo­ particulate emissions were lowered by ins­ wer than in 1992.

Diagram 2. Investments in environmental protection by industry, 1992

Forest industry

Energy supply

Metal industry

Chemical and mineral industry

Other industry

0 100 200 300 400 500 600 700 Million FIM

10 ¡¡¡¡I Statistics Finland Environmental technology markets for consulting services in environ­ mental protection. Finnish industry’s main areas of environ­ mental expertise lie in wastewater treat­ ment and measuring techniques, and ways of raising the efficiency of the forest in­ Forest industry dustry and combustion technology. Demand for environmental technology Despite growing output, the pulp and paper on export markets will be promoted in the industry has consistently reduced its ef­ near future by the increasingly stringent en­ fluent volumes. Pulp industry sulphur emis­ vironmental legislation of Western indust­ sions have declined by over 85 per cent since rialized countries. After local authorities 1980. Expanding industry has, however, led and central government, the main clients of to an increase in nitrogen oxide emissions. enterprises supplying environmental tech­ The recovery rate of forest industry nology will be the paper, food and chemical waste is good. Over 95 per cent of the industries and energy production. wood waste of pulp and paper mills is used Industry is also investing heavily in the in energy generation ana pulp manufactu­ production of more environmentally sound re. The bulk of the wood waste from the consumer goods. These look likely to beco­ sawn goods and board industry serves as me quite a profitable business for firms in raw material and energy for pulp mills. the future. The aim of the EU environmen­ Biological wastewater treatment produ­ tal audit currently in preparation is to pro­ ces large amounts of sludge, of which half mote the voluntary contribution made by can be used as energy. Waste paper and businesses to environmental protection. board from the mills are also recovered The control of emissions from industrial en­ and reused. terprises and management of risks should Over 9 million tonnes of the just under then be improved by the companies’ own 10 million tonnes of paper and board pro­ efforts in a manner verifiable by outsiders. duced in Finland in 1993 were exported. In 2000, it is estimated that the value of Domestic consumption thus accounted products for environmental protection for under 10 per cent of production. Alt­ and 'environmentally sound’ products on hough Finland also imported waste paper, world markets will be FIM 2800 billion recycled fibre amounted to a good 5 per and on the Finnish market FIM 10 billion. cent of all raw materials used in paper and New markets for environmental technolo­ board manufacture. gy are also opening up in the countries of Finns consumed 196 kg of paper per Central and Eastern Europe (CEE) and in capita in 1993 and 90 kg of waste paper per the Far East. The EU assessment and eco- capita, or 46 per cent, was collected; 55 per auditing regulations guarantee burgeoning cent of recyclable paper was recovered.

0 Statistics Finland 11 3 Forests

Timber resources and use of forests

The forests are Finland’s most important Forest growth has continuously excee­ natural resource. In 1993, the value of ded harvesting. The total drain, which forest industry exports totalled FIM 48.3 comprises waste wood and natural drain as billion, and they accounted for 36.1 per well as net cutting, is thus clearly lower cent of exports overall. As Finland’s forests than the annual growth for pine, spruce are renewed relatively rapidly, we are well and broadleaves. In 1993, some 45 million placed to use them as required by the cubic metres of timber was felled for use principles of sustainable development. At by industry for general purposes, whereas the 1993 European forestry ministers’ growth was 80 million cubic metres. Fin­ conference, Finland undertook to engage land’s timber exploitation thus presents no in ecologically sustainable forestry and to danger to reserves, and in this respect we protect the diversity of its forests. adhere to the principles of sustainable de­ Finland has just under 26 million hec­ velopment in our forestry practices. tares of forest land, which is 87 per cent of In Finland, unlike in other countries, the total area of the country. There are private individuals constitute the largest more than 20 million hectares of forest soil group of forest owners. Thus responsibili­ proper, and the rest is low-productivity or ty for and authority regarding the state of waste land. The standing volume was forests are in their hands to a considerable 2010 million cubic metres at the end of extent. Private citizens own 56 per cent of 1993. commercial forest land, companies 8 per

Diagram 3. Forest growth and total drain

100

12 £ Statistics Finland cent and the State 32 per cent. The value fect. In 1993 the amount of carbon fixed of privately owned forests is greater than in forest soil and vegetation was the these figures suggest, however, as they lie equivalent of 10,100 million tonnes of in the Best areas of southern Finland in carbon dioxide. terms of both yield and diversity; The Sta­ Forests fix carbon dioxide as long as te forests are mainly located in the less they are at the growing stage. Thereafter, productive areas of northern Finland. it is preserved in the trees, roots, humus Under 0.4 per cent of Finland’s forest­ layer and soil for decades. In naturally oc­ land is first clearcut every year and then curring forests and forests managed as re­ replanted. Other silvicultural measures quired by sustainable development, the such as thinning and seedling management carbon cycle is in balance in the long term. are conducted over barely 2 per cent of the Thanks to their age structure ana inten­ whole commercially exploited area. Pre­ sive forestry practices, Finland’s forests are sent cutting volumes do not in themselves currently in a stage of vigorous growth. present a threat to the state of our forests. Stands are being augmented continuously and represent a net carbon gain. In the past few decades, our forests have acted as a carbon dioxide sink from the atmosphere Forests as carbon dioxide to the biosphere. In the late 1980s, the annual net accumulation of carbon in Fin­ sinks nish forests corresponded to some 27 mil­ lion tonnes of carbon dioxide; at the same Finland’s forests are major carbon dioxide time, over 50 million tonnes of carbon sinks and contribute to preventing the in­ dioxide was released in emissions from tensification of the global greenhouse ef­ fossil fuels.

Diagram 4. Forest cutting

| 300000 + a> x

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992

I Clear cutting GH Other cutting

^ Statistics Finland 13 Biodiversity wood and rotten trees, which are impor­ tant for the existence of endangered spe­ Preserving biodiversity is important for cies, have been eliminated from the fo­ Finland to ensure that the sustainable use rests. To preserve their biodiversity, we of natural resources will be feasible in need good ecological management that years to come. Diverse nature adapts more retains a diverse variety of growing and quickly and more readily to rapid changes dead tree species appropriate for the forest in the state of the environment. It is also type. Practices favouring forest diversity important for our daily recreation needs are now becoming more common in Fin­ and to attract tourists. The objective of land. In the future, Finnish companies will protecting biodiversity is to preserve and, increasingly be competing on environmen­ if necessary, restore the natural variation tally aware markets with the ecologically in uniquely Finnish ecosystems, biotypes, sound production of timber. Added to organisms and their populations. which, environmental protection, rec­ O f the 42,000 organisms known in Fin­ reation and game management will be gi­ land, 17,000 were assessed in Finland in ven more prominence in the handling of 1991; of these, 1,692 species, or one in ten, commercial forests. were considered endangered. Deciduous woodlands and old-growth forests are im­ portant habitats of endangered species. The diversity of forests has been reduced by the Nature reserves cutting down of old-growth forests, draina­ ge, intensive forestry and excessively hy­ Merely reorganizing the way we treat our gienic management practices. As a result, commercial forests will not eliminate the commercially worthless tree species, dead risks posed to diversity. The only practical

Diagram 5. Implementation rate of protection programmes

National parks, strict nature reserves

Mire protection programme

Herb-rich woodland protection prog.

Bird sanctuary protection programme

Shore protection programmes

0 20 40 60 80 100 Procent 19 Implemented □ Not implemented

14 Statistics Finland way to preserve a suitable habitat for all of Lake Oulujärvi, a mere 0.25 per cent of species is to leave enough forests in a natu­ the country’s forests have been protected, ral state in different distribution areas and and of these only a third can be considered across the country. The main objectives of rimeval forests. Nature reserves have also nature conservation are the preservation een established on waste and low-pro­ of biodiversity with the needs of present ductivity forest land, so they do not pro­ and future generations and research in vide a very representative sample of Fin­ mind. To this end, nature reserves in land’s forest nature. 20,000 hectares of which indigenous nature will be preserved private land with a total purchase value of untouched have been established in Fin­ over FIM 2 billion have been placed under land. Features currently in particular need protection programmes ratified by the of protection are herb-rich woodlands, es- Government but not yet implemented. kers, shores and old-growth forests in pri­ Protected shores account for FIM 1 billion vate ownership. of this. Protection of old-growth forests got un­ During the last ten years, funds alloca­ der way in 1993. At the moment, 26,500 ted for the acquisition of nature reserves hectares of old-growth forests on State and compensations paid to landowners land have been protected in southern Fin­ have totalled almost FIM 800 million. land. Private forests in southern Finland With the current annual funds of FIM 100 have been surveyed, and 8,600 hectares million the implementation of protection were found to fulfil the criteria of old programmes already approved will take natural forests. Procedures to protect until 2010. Such slow implementation of them were put in hand in 1994. the programmes is financially damaging to Finland’s nature reserves are heavily the owners of the areas to be protected. concentrated in northern Finland. South

Diagram s. Funds for acquiring nature reserves and compensation paid for protected areas

□ Acquisition funds ■ Compensation paid

$ Statistics Finland 15 4 Energy

U se o f energy

The stucture of Finnish energy consump­ hin the limits dictated by the carrying ca­ tion has remained roughly unchanged for pacity of the environment and the long­ the last ten years. Combined consumption term sufficiency of our natural resources. of fossil fuels, i.e. oil, coal and natural gas, It also calls for the use of safe, efficient and accounts for some 47 per cent, nuclear economical energy systems which genera­ power and imported electricity jointly for te less pollution. 22 per cent, and domestic energy sources In connection with the 1994 State bud­ altogether for 31 per cent. get, Parliament amended the fuel tax, Finland’s domestic energy sources comp­ enacting a new tax on all primary energy rise various renewable natural resources - sources according to their energy content. though it should be added that peat renewal A tax was also levied on fossil fuels accor­ can take thousands of years - and certain ding to their carbon content, though this materials recovered from residues and waste. tax is not collected on wood, wind power The report on energy policy submitted or waste used for energy production. A to Parliament by the Government in au­ separate tax was levied on peat, depending tumn 1993 took the view that sustainable on its carbon content, and an additional development means ensuring that energy basic tax on nuclear power and imported production and consumption remain wit­ electricity.

Diagram 7. Consumption of primary energy, 1992

Other domestic (14.4%)

-Oil (29.4%) Peat (4.5%)

Hydro power (12.5%)

Imported electricity (6.8%) Coal (9.0%)

Natural gas (8.2%) Nuclear power (15.1%)

16 f j j l l Statistics Finland Digram 8. Sources of domestic energy, 1992

Hydropower

Forest industry waste wood, wood chips

Fuel peat

Fuel wood

Industrial waste wood

Blast furnace and coking plant gas

Industrial waste heat

Municipal waste, etc.

0 5000 1000 equivalent oil tonnes

The Government has approved an velopment considerations and the impact energy conservation programme aimed at on employment all argue for action to ensuring more efficient end-use of energy make bioenergy more competitive. by cutting specific consumption in va­ rious sectors by 10-15 per cent between 1990 and 2005. In April 1994, the Council of State Atmospheric pollution and decided on measures to promote the use of bioenergy. The aim is to increase con­ acidification sumption by at least a quarter (i.e. 1.5 million tonnes oil equivalent) by 2005. Both Finland’s own emissions into the air Finland uses a higher proportion of bio­ and transboundary airborne pollution fuels in total energy consumption than pose a threat to Finnish nature and, in the other industrial countries. Over 17 per long term, endanger sustainable use of na­ cent of the energy need is met using wood tural resources. It is only recently that rest­ and peat. However, a much higher yield of rictions on emissions have been introdu­ energy raw material could be gained from ced aimed at reducing the impact of our forests, peatlands and cultivated land. sulphur and nitrogen compounds, and of International trends will dictate any ozone and heavy metals released into the strengthening in the market standing of bio­ lower atmosphere. There continues to be energy. A far-sighted technology policy and widespread deposition in excess of the cri­ tax controls are also needed. Environmental tical load, which causes environmental da­ policy, reliable energy supply, regional de­ mage. The most dangerous acidification

iffll Statistics Finland 17 resulting from this deposition threatens In 1992, only 19 per cent of acid organisms in small waterbodies, forest la­ sulphur deposition and 15 per cent of nit­ kes and trees on poor quality land. So far, rogen deposition came from Finnish sour­ Finland’s forests nave not been very widely ces; 40 per cent of total sulphur emissions, damaged by acid deposition, but over the but only 19 per cent of nitrogen emis­ long term there is a danger of disturbing sions, remained in Finland, 22 per cent of the workings of micro-organisms in the sulphur deposition derives from Russia, soil. Diagram 9 shows the need to reduce Belorus and the Ukraine, and 45 per cent sulphur deposition in 1990, judged by the of nitrogen deposition from EU and EFTA critical load on lakes and forestland. The countries. Russia and its neighbours are calculation unit is a 1000th part of acid the recipients of 44 per cent of Finland’s equivalent per square metre per year. nitrogen emissions and 27 per cent of our sulphur emissions.

Diagram 10. Diagram 9. Origin of sulphur and nitrogen deposition in Need to reduce sulphur deposition Finland and movement of emissions from 1992.

meg/m2/yr = 1000th part of acid equivalent per sq.m per year

18 $ Statistics Finland Sulphur dioxide emissions second international sulphur protocol sig­ ned in Oslo. Current emissions are proba­ International conventions signed by Fin­ bly below maximum, but unless new acti­ land call for a radical decrease in various on is taken, they will certainly rise. emissions into air by the energy industry during the ’90s. By signing the interna­ tional sulphur protocol in 1985, Finland committed itself to cutting its sulphur Emissions of nitrogen oxides emissions 30 per cent on the 1980 level by 1993, and also stated that it would halve In the case of nitrogen oxides, Finland its 1980-level emissions by 1995. A reduc­ engaged, in the ’Sofia Protocol’ of 1988, to tion of more than 70 per cent had been stabilize emissions at the 1987 level achieved by 1992. This was made possible (270,000 tonnes of N 02) by 1994. The by changes in the structure of energy pro­ Government also announced that it would duction, less use of heavy fuel oil and cuts reduce emissions of nitrogen oxides 30 per in the sulphur content of fuels, combined cent on the 1980 level by 1998. Growing with improvements in processing techno­ traffic volumes and energy use increased logy. emissions of nitrogen oxides in the ’80s, In 1991, the Government also decided but the early ’90s again saw a decline in to draw up a 10-year programme aimed at emission figures because of the recession, cutting sulphur dioxide emissions 80 per improvements in power plant processing cent on the 1980 level. Finland committed technology and growing use of catalytic itself to the same goal in 1994, in the converters in cars.

Diagram 11. Sulphur emissions in Finland (1980 = 100)

¡¡¡¡¡I Statistics Finland 19 Diagram 12. Emissions of nitrogen oxides in Finland and target for 1998 (1980 = 100)

The committee set up to consider ways Finland signed the UN Convention on of reducing emissions of nitrogen oxides Climate Change in 1992 at the Conferen­ stated in spring 1990 that it was possible ce on Environment and Development in to achieve a reduction of only some 15 per Rio de Janeiro. This aims at the "stabiliza­ cent in emissions by technological means. tion of greenhouse gas concentrations in The protected 30 per cent cut thus calls the atmosphere at a level that would pre­ for new approaches to energy use and traf­ vent dangerous anthropogenic interferen­ fic restructuring. The target therefore ce with the climate system. Such a level looks unlikely to be reached, though emis­ should be achieved within a time-frame sions are expected to decline appreciably sufficient to allow ecosystems to adapt na­ during the present decade. turally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner." Initially, the aim is to halt further Greenhouse gases growth in greenhouse gas emissions by the year 2000, and then to regain the 1990 The mean temperature of the earth is cur­ level. rently expected to rise about four degrees For Finland, the most important green­ by 2100 unless there are radical changes in house gases are carbon dioxide emissions greenhouse gas emission trends. Experts from energy production, which account consider that, even if it were possible to for about 55 per cent of the total. Other halt growth in emissions, it would not be important gases are methane, nitrous oxi­ possible to entirely prevent further global de and chlorofluorohydrocarbons, i.e. warming. CFCs.

20 Statistics Finland The process of replacing energy pro­ wing exports in turn mean higher energy duction technology is a very slow one, so consumption, inevitably leading to more the carbon dioxide emissions being produ­ carbon dioxide emissions, as the Finnish ced in 2000 will largely derive from pro­ export industry is very energy-intensive. duction capacity that already exists or is Electricity imports will have to be repla­ now under construction. Electricity im­ ced by domestic production once present ports will also affect production capacity delivery agreements run out. This will add needs, energy use and emissions in the to domestic carbon dioxide emissions at year 2000. the end of the ’90s, at least insofar as the Carbon dioxide emissions are thought supplementary energy needed is not bio­ to have started rising sharply in 1993-1994 energy. with the revival of major industries. Gro­

Diagram 13. Carbon dioxide emissions from fossil fuels in energy production and consumption (1980 = 100)

tfjfi Statistics Finland 21 5 Transport

Traffic volumes started falling in the early new, cleaner fuel grades are also reducing ’90s after several years of expansion. In the nitrogen oxide, hydrocarbon and carbon ’80s, passenger traffic rose 30 per cent and monoxide emissions. On the other hand, goods traffic 20 per cent. The volume of an appreciable reduction in emissions of public transport remained practically sta­ nitrogen oxide, in particular, will require tic, but its relative contribution to total catalytic converters in private cars and passenger traffic fell. In the early ’90s, the new engine types in heavy vehicles, some­ figure was only 20 per cent. thing that can only be achieved as older Goods traffic declined over 10 per cent vehicles are replaced by new ones. Such in 1990-92, and road transports - at 67 per replacement of the vehicle stock will take cent of the total - by nearly the same over ten years, but by the end of the ’90s amount. Rail transports increased somew­ nearly all gasoline-fuelled cars should have hat. The emission limits on passenger cars, catalytic converters. Particulate emissions vans and heavy vehicles have been tigh­ will decrease after 1995, when restrictions tened appreciably in the ’90s in order to on heavy diesel vehicles come into effect. reduce the harmnil environmental impact Carbon dioxide emissions will decrease of road traffic. only if fuel consumption also decreases, Thanks to changes in fuels use, lead and otherwise these emissions cannot be emissions from gasoline-fuelled cars and reduced by technical means, so future sulphur emissions from diesel vehicles trends will depend directly on trends in have plummeted in the early '90s. The traffic volumes and structures.

Diagram 14. Trend in public transport and car use (1985 = 100)

— Cars ™ Public transport

22 Statistics Finland Diagram 15. Gasoline sales

3000

2500 g 2000 v .

| 1500 1 1000

500

0 -85 -86 -87 -88 -89 -90 -91 -92 -93 Leaded Unleaded

The most important increase in traffic links between them. Much more attenti­ volumes in the immediate future is expec­ on must be given in future to the ted to take place in transit traffic between economic potential and environmental Finland and Russia. The volume of road impact of transit traffic. In railway trans­ traffic from Finland to Russia rose tenfold ports, Finland’s role as an intermediary for between 1991 and 1993. Northern Euro­ traffic from both East and West is likely to pe is also coming to be a new market area be an important one at the end of the extending far beyond the old ’Nordic’ con­ decade. Renewal of the tracks between cept, in which Finland holds a much more Helsinki and St Petersburg and the Savo important position. Integrating Finland line (through east-central Finland) is thus into global traffic networks and European justified for both environmental and raw material chains will mean developing economic reasons. all the various forms of transport ancf the

¡ ¡ ¡ ¡ ¡ i Statistics Finland 23 Diagram 16. Newly registered cars

200000

24 Statistics Finland 6 Agriculture

Environmental impact

A good three million hectares of Finland’s planted with trees. The variety of landsca­ land area, or 9 per cent, is farmland. Farm pe that used to be typical of the Finnish output derives mainly from animal hus­ countryside, and little details such as pat­ bandry and more than 80 per cent of the ches of forest, field borders and open wa­ total arable area (2.5 million hectares) is ters, are disappearing. As a result of loss of devoted to growing grass, fodder and feed habitats, some 300 animal and plant spe­ grain, and to cattle pasturage. About 10 cies that used to be part of the rural scene per cent of the cultivated area is used to are now under threat. grow cereal crops and the rest for vegeta­ bles and root crops. In the last few decades, it could be Environmental subsidies claimed that an excessive amount of ferti­ lizers and pesticides was used on this land, relative to the actual need for crops. Agri­ Finnish membership of the European Union culture has a particularly dramatic impact is a crucial factor in the future of farming on water eutrophication because of the here and will essentially influence the pro­ phosphorus load it generates. Nearly half duction methods used. In the Union, far­ of the phosphorus load on the country’s mers play a triple role, as producers of foods­ waterbodies and a third of the nitrogen tuffs, landscape managers and the sustainers load derive from farming. of rural communities. The support system The phosphorus and nitrogen load for agriculture will change dramatically, from agriculture is currently greater than making environmental protection one key that produced by industry and com­ basis for the grant of farm supports. munities combined, which has been great­ It is estimated that EU membership ly reduced in recent decades. Indeed, the will bring an increase in contract farming main focus of water pollution control is for the food industry and a decrease in shifting to attempts to reduce environ­ grain growing. Animal husbandry and mental pollution from farming. According grassland farming have better prospects to a target set by the Government in 1988, for retaining their production capacity. the phosphorus load from agriculture was The amount of land standing fallow will to be cut by a third 1995, and the nitrogen decrease once the size of farm subsidies is load was to be radically reduced. made independent of arable area. Agricul­ Species that thrive in a farm environ­ tural output is expected to follow a new ment enrich the otherwise limited overall course, aiming at greater product variety range of species in the northern coniferous less harmful to the environment. zone and the ecosystems thus formed re­ The total amount of various environ­ duce the diversity of natural habitat types. mental subsidies in Finland’s case come to Greater mechanization in the interests of ECU 270 million a year, or about FIM 1.7 efficiency, growing use of chemicals, drai­ billion. The EU’s contribution to funding nage of arable land and more specializati­ this is ECU 135 million, or 50 per cent, on have led to the formation of much leaving the remaining ECU 135 million to larger uninterrupted field areas. Pasturage be financed out of the State budget. The has also declined, and both meadows and accession agreement negotiated by Finland wastelands have been turned into fields or also requires national support to northern

^ Statistics Finland 25 areas to be allocated in a way that promo­ for measures connected with fallowing. In tes conservation of the environment. the southernmost support area where Environmental protection measures in ’mountain support’ is not paid, the farmer agriculture are based on a special program­ also engages to create ditch banks and pro­ me for rural areas drawn up by the Minis­ tective strips, and to take action to estab­ try of Agriculture and Forestry and the lish plant cover, manage landscape and Ministry of the Environment, which com­ preserve biodiversity. bines Government measures to reduce the harmful impact of farming. Farming met­ hods less harmful to the environment, such as reduced use of fertilizers, are also being promoted through a handbook sent Marketable eco-benefits out to all farmers. The old fertilizer tax intended to reduce the harmful environ­ As a result of deregulation of international mental impact of farming was abolished in trade and imports of foreign farm pro­ the summer of 1994, as part of the process ducts, Finnish agriculture will have to of adjustment to EU membership. compete specifically with the high, gua­ The aim of environmental subsidies to ranteed product quality that it can offer. agriculture is to place production on a The average heavy metal intake of people sustainable basis, while also preserving the in many industrial countries is 2-5 times preconditions for farming in the long term. the Finnish level. Concentrations of solu­ The load on surface and ground waters and ble lead and cadmium in Finnish farmland on the air will be reduced, harmful effects are also well below those in most other of pesticides will be decreased, biodiversi­ industrial countries. The fact that Finnish ty will be made a major concern, and the fertilizers use an extremely pure form of manmade landscape will be more carefully raw phosphate is one reason why Finnish managed. About one third of all farms are soil contains so little cadmium. Finland already covered by voluntary environmen­ also uses rather few pesticides, compared tal management plans, and in future these with several Continental countries, where will be integrated into subsidy systems for consumption is many times higher. In ad­ environmental and landscape conservation dition, 80 per cent of the pesticides used currently being drafted. There should be in Finland are herbicides, which decompo­ environmental management plans for all se rapidly in nature. farms by 1998. As well as this ecological advantage, Another goal of environmental subsi­ Finland has a relative advantage in any dies is to guide production methods so as attempts to exploit the environmental ’ed­ to ensure that the goals for environmental ge’ of its farm products commercially: our protection in agriculture are achieved, ability to document the properties, origin while also turning out pure, high-quality and production phases of our products. products. Most of the support, or nearly The importance of agriculture as the 80 per cent, comprises basic subsidies. source of renewable energy and industrial These are paid according to a regionally raw materials will increase in the long graduated system, being highest in the term. The competitive potential of these areas where agriculture is most dominant non-food products will increase once the and where the environmental problems industrialized world starts adding the costs are therefore greatest. These areas are of harmful environmental effects to the mainly in southern Finland. The basic sub­ prices of nonrenewable raw materials. sidy is paid throughout the country for the Plants where the energy economy of far­ environmental management programme ming and processing and the environmen­ for individual farms, for efforts to reduce tal impact are most advantageous are use of fertilizers and plant protectants, and ideally suited to such non-food purposes.

26 ¡¡¡¡¡I Statistics Finland 7 Identifying sustainable structures

In terms of the environment, EU mem­ pulp and paper making using closed circu­ bership means both a new channel for lation systems, the sawmill and joinery watching over Finland’s interests and a industry and other industries relying on a strengthening of our relative competitive high level of environmental techniques edge. The environment programme adop­ and the best available technology. The full ted by the EU in 1992 declares that sus­ potential for eco-farming and food pro­ tainable development respectful of the en­ duction is as yet unexploited. vironment is the Union's main goal. Sec­ Decision-making on environmental tors with impact on environmental quality and other socio-economic policies can be which are particularly subject to EU scru­ integrated, thus ensuring that decisions are tiny are industry, energy supply, transport more effectively implemented without and communications, agriculture and tou­ increasing the costs involved. Environ­ rism. According to the subsidiarity princi­ mental management, environmental im­ ple, decisions on environment policy, too, pact assessment and integrated environ­ should be taken as close as possible to the mental and economic accounting collect people concerned, that is, by definition at together the information needed to take the national level. decisions. For this purpose data compilati­ Finnish values favour responsible con­ on and material on the environment must sumption and protection of the environ­ be upgraded to this end. There is a gro­ ment. In terms of natural resources and wing need in decision-making for indica­ the environment, structures that support tors and key parameters that demonstrate sustainable development can be found in the level of sustainable development ac­ many sectors in Finland. They include sus­ hieved. tainable forestry that ensures biodiversity,

¡ ¡ Ijjl Statistics Finland 27 Most important agreements on the conservation of natural resources and the environment binding on Finland

A greem ent Aim Implementation

Climate change To stabilize concentrations of Came into effect on August UN Framework Convention ongreenhouse gases in the at­1,1994. Climate Change, Rio de Ja­mosphere at a safe level. Ini­ neiro, 1992. tial aim to halve growth in greenhouse gases by 2000 and reachieve the 1990 level.

Substances that deplete theTo stop use of the substances. Use of halons prohibited ozone layer in the upper at­ first, as of January 1,1993. mosphere Montreal Protocol, 1990.

Sulphur emissions The long-term objective is to The emission reduction Oslo Protocol, 1994. ensure that sulphur deposi­target is expected to be ac­ tions do not exceed the criti­ hieved during 1994. cal loads in each area. The first step is to reduce the ex­ cess by 60 per cent bythe year 2000. To this end, Finland en­ gages to reduce sulphur emis­ sions 80 per cent on the 1980 level by 2000.

Emissions of nitrogen oxidesIn the protocol, Finland enga­In 1992, emissions of nitro­ Protocol concerning Controlges to freeze emissions of nit­ gen oxides had fallen of Emissions of Nitrogen Oxi­rogen oxide at the 1987 level about 5 per cent on the des on their Transboundaryby the end of 1994. In the dec­ 1987 level. Fluxes, Sofia 1988. laration, Finland announced its intention to reduce its emissions by 30 per cent on 1980 levels by 1998.

Volatile organic compoundsTo cut emissions of volatile The agreement has not yet (VOCs) hydrocarbons by 30 per cent taken effect, but Finland International protocol, Gene­on 1988 levels by 1999. has ratified it. va 1991.

2 8 f j t l Statistics Finland Agreement Aim Implementation

Biological diversity The Convention took effect in A national report asses­ Biological Diversity, Rio de Ja­December 1993. In Finland, at­ sing the state of biodiversi­ neiro 1992. tainment of its goals means ty in Finland was submitted taking biodiversity into ac­ at the end of 1994. An acti­ count in all economic and otheron programme is now activities and when assessing being drawn up to safegu­ the environmental impact of ot­ ard biodiversity. her projects. The Convention calls for more research into and monitoring of biodiversity.

Protection of the Baltic Aims include reducing the Targets will be integrated Helsinki Convention 1974 Hel-nutrient and heavy metal load into national legislation com recommendations 1980- on the Baltic and nondegrada-and programmes, into Wa­ Ministerial declaration 1988 ble or toxic substances by 50 ter Court decisions on indi­ Convention on the Protectionper cent by 1995. vidual cases and will be of the Marine Environment of pursued through economic the Baltic Sea Area 1992. instruments.

¡¡jjll Statistics Finland 29 *v Tilastokeskus ¡¡jm Statistikcentralen Finland's Natural Resources and 1 Statistics Finland the Environment

Appendix 3 of the Government proposal for the 1995 budget

SVT

Environment 1995:1B

Finland’s Natural Resources and the Environment is an offprint of Appendix 3 of the Finnish Govern­ ment’s 1995 budget proposal. It presents the sa­ lient features of sustainable development from Fin­ land’s point of view and the principles of economic and environmental interaction. It also reviews trends in the main sectors of the economy as they affect the environment. These sectors are industry, forests, energy, transport and communications, and agriculture. Finally, a list is given of the main con­ ventions on the protection of natural resources and the environment to which Finland is a signatory.

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