Eco-Innovation in Finland

Eco-innovation in Finland

EIO Country Profile 2018-2019

Eco-Innovation Observatory

The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation and circular economy information, gathered from across the European Union and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development. The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as: “Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”. To find out more, visit www.eco-innovation.eu and ec.europa.eu/environment/ecoap

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.

1 Eco-Innovation Observatory

Country Profile 2018-2019: Finland

Author: Dominik Beckers

Coordinator of the work package: Technopolis Group Belgium

1 Acknowledgments This document has been prepared with the kind support and advice of Kari Herlevi, Project Director – Circular Economy, Sitra.

A note to Readers Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Union. A number of companies are presented as illustrative examples of eco-innovation in this report. The EIO does not endorse these companies and is not an exhaustive source of information on innovation at the company level.

This brief is available for download from https://ec.europa.eu/environment/ecoap/country_profiles_en

1 Table of contents

Summary …………………………………………………………………………………………………………….. 2 Introduction ...... 3 1 | Eco-innovation performance ...... 4 2 | Selected circular economy and eco-innovation areas and new trends .. 8 3 | Barriers and drivers to circular economy and eco-innovation in Finland 11 4 | Policy landscape in Finland ...... 13 REFERENCES ...... 19 ANNEX: Policy strategies and instruments ...... 23

1 Summary

Finland continues to distinguish itself as a leading nation in the field of eco-innovation. Its high performance is mirrored in its status as one of the leading eco-innovation countries of all 28 EU Member States (MS) according to the latest Eco-Innovation Index published in 2019 only trailing Luxembourg, Sweden and Denmark. Finland’s composite eco-innovation score of 137 exceeds the EU average by 37%. In particular, the country’s sub-indices of eco-innovation outputs, socio-economic outcomes and eco-innovation inputs stand out as leading components of Finland’s eco-innovation landscape. Resource efficiency, on the other hand, continues to be one of Finland’s major concerns and stresses the importance of improving the relevant structures. The potential of the circular economy is widely recognised and has been addressed in an update to the nation’s circular economy strategy. Similarly, the bioeconomy enjoys ever- increasing attention. In fact, bioeconomy can be considered the backbone of the entire Finnish economy, as is demonstrated by the overall output volume of more than EUR 70 billion p.a. Upcoming trends can furthermore be identified within the wider realm of digitalisation, which is approached as an inherently cross-cutting domain represented by Artificial Intelligence or Cleantech, for instance. The latter continues to be one of Finland’s key competences as the Nordic nation consistently ranks among the world’s leading innovative cleantech nations. Relevant endeavours have been reinforced through the National Energy and Climate Strategy, which was initially launched in 2014 and updated in 2017, as well as the recent governmental programme. To deliver expected benefits and capitalise on the potential of eco-innovation, Finland is especially keen to enable uncomplicated and efficient entry for eco-innovators, enabled through funding for open innovation and co-creation, for instance. Moreover, the economy and its actors can rely on a strong and solid eco-innovation technological innovation system which drives technological sustainability and availability. Similarly, the human resource and capital structure and the society as a whole can be considered educated, qualified and generally supportive towards eco-innovation in its different shapes and facets. Somewhat surprisingly, however, environmental sustainability appears to be more of a secondary consideration in the context of eco-innovation exploitation or investment. Another contradicting factor, already identified in the previous edition of the Eco-Innovation Observatory, is represented by cuts in overall public spending on research and development (R&D) and research and innovation (R&I). This continues to indicate a less coherent and clear vision of and commitment to research, development and innovation (RDI), which had previously been one of the trademarks of Finland’s innovation landscape. The abovementioned low level of resource efficiency is not helped by the fact that the share of environmental taxes in Finland continues to be rather low. In addition, Finland shares the fate of most other nations and experiences uneven development across the country, which also affects the dynamics driving eco-innovation. Further barriers are an insufficient presence of, and focus on, non-technical skills, internationalisation, commercialisation of innovation, entrepreneurial experimentation and risk-taking readiness in Finnish business- and academia- related spheres. Nonetheless, the Finnish government can be considered supportive of eco-innovation and circular economy. In fact, despite the aforementioned lack of capacity to commercialise innovation, a piloting culture has been actively promoted which has made the country one of the leading testbeds worldwide. Moreover, public procurement has been a widely embraced vehicle of mainstreaming eco-innovation, and is addressed at national and sub-national level.

2 Introduction

The Finnish economy has taken further steps towards full recovery from the economic crisis and has made considerable progress in reference to previous reports. However, the decline of traditional industries and continuously poor internationalisation of Finland’s economic and knowledge base, and issues concerning the commercialisation of innovation, continue to restrict the entire economy and hence also eco-innovation and the circular economy in Finland. The Nordic nation’s vulnerability to external shocks is furthermore documented by the fact that it suffered from the EU’s sanctions against Russia (Societe Generale, 2020). In a similar vein, R&D and R&I spending has continued to decrease. Nonetheless, Finnish authorities aim to become a global leader in eco-innovation and circular economy by 2025 (Halme, et al., 2017), and adopt similarly leading positions in the fields of bioeconomy, cleantech, digitalisation and further sustainable and environmentally friendly solutions to the economy. Several further obstacles can be identified that threaten Finland’s goals. One of the most significant challenges is the ongoing poor resource efficiency of the entire economy. This deficiency becomes ever more apparent regarding the country’s broad use of natural resources, which, to a certain degree, are respected and included in the current roadmap to an efficient Finnish circular economy (Sitra, 2016 & 2019). Targeting structural changes therefore appears to be inevitable. On a broader and more contextualised level, achieving greenhouse gas (GHG) emission standards and further environmental targets agreed at an EU-wide level forms the backdrop against which all measures are to be executed. Achieving such targets enjoys highest priority throughout the EU (EC, 2017). The impacts of climate change are already noticeable in Finland, as they specifically affect the sensitive Northern environment. Further environmental problems are represented by the excessive eutrophication in Finland’s inland waters and the Baltic Sea, (too) high levels of nutrients on agricultural land, high levels of material and energy consumption, high levels of greenhouse gas emissions, and a generally large ecological footprint (Lyytimäki, 2016). It is therefore rather puzzling that environmental taxation is an evidently under-developed and under-represented tool, and environmentally harmful subsidies remain in place to this day (Yrjö-Koskinen, et al., 2019). On a more immediate level, the COVID-19 outbreak, which was in full effect at the time of writing, has hit the Finnish economy significantly. Forecasts estimated that the economy as a whole will shrink by about 5.5% in 2020 alone, while the unemployment rate is expected to go up to 8%. Moreover, all general government sectors are forecasted be in deficit in 2020, which adds up to a deficit of about EUR 16.6 billion (Ministry of Finance, 2020).

3 1 | Eco-innovation performance

The analysis in this section is based on the EU 28 Eco-innovation Index (EcoI Index) for the year 2019. The Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. EcoI Index is a composite index that is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes Figure 1 EU28 Eco-innovation Index 2019, composite index

Source: EIO, 2019

4 Finland in 2016. Finland’s index score of 0.89 lies well above the EU average of 0.48, and is only surpassed by Germany’s equivalent. • Socio-Economic Outcomes This category takes into account the eco-industries’ exports and employment, as well as the value added in environmental protection and resource management activities in the country. Similarly, high values can be seen for Finland’s socio-economic outcomes from its eco- innovations, for which the index shows a score of 191. This number is only paralleled by Luxembourg. In particular, the Nordic nation’s employment figures in eco-industries as a share of total employment across all companies (5.18%), as well as the generated turnover in eco- industries in 2017 as a share of total revenue across all companies (5.03%), not only represent leading figures, but also demonstrate a considerable improvement over previous years. On the other hand, however, Finland’s exports of products from eco-industries measured in percentage of total exports continues to be the most pronounced deficiency within the realm of socio-economic outcomes. Its volume is approximately 20% below EU average. • Eco-Innovation Inputs This category considers the share of the government’s environmental and energy R&D appropriations and outlays, R&D personnel and researchers, as well as the value of green early-stage investments in the country. As in previous years, Finland’s score as regards eco-innovation inputs stands out as one of the country’s key characteristics, albeit to a relatively lesser magnitude than in previous years. The according score of 142 puts the nation fourth in this respect behind Germany, Luxembourg and Sweden, while exceeding the EU average by 42%. Finland’s performance in the category of eco-innovation inputs can be traced back to a multitude of specific factors. For instance, the average volume of green early-stage investments between 2016-2019 (investments per capita of USD 111) is amongst the highest throughout all EU MS for which data is available, however, has slightly decreased relative to its 2014-2017 equivalent of approximately USD 113 per capita and even more so when using 2012-2015 as a reference timespan (USD 150). Finland’s share of R&D personnel and researchers as regards total national employment for 2018 (2.09%) exceeds the EU average by about 41%, and has been largely constant since 2013 (2.1% / 2016: 1.99%). An opposite trend can be seen in the nation’s GDP share of public environmental and energy R&D outlays. While exceeding the EU average of this measure by 73% in 2016, it precisely matched it in 2018. • Eco-Innovation Activity This category includes the implementation of resource-efficiency actions and sustainable products among SMEs, as well as the number of ISO 14001 certificates in the country. Finland’s leading position in eco-innovation is furthermore manifested in its activities, which, unlike the previously mentioned categories, are only slightly above EU-average performance; The score of 103% is only 3% above said average. In terms of specific measures, the overall volume of ISO 14001 registered organisations per million population by 2018 is represented by a count of 266, which is higher than the corresponding number of 258 in 2016, and is double the EU average. Below-average scores could be identified for the implementation of sustainable products among SMEs as a percentage of enterprises in 2017, with an index score of 0.49, which is 0.04 points below the EU average of 0.53. In a similar vein, the implementation of resource-efficiency actions among SMEs lags behind the EU mean (index score of 0.60 for Finland vs. 0.79 for the EU overall).

5 • Resource Efficiency This category reflects the material, water and energy productivity in the country, as well as the GHG emissions intensity. The most pronounced comparative deficiency of Finland’s eco-innovation landscape is represented by the country’s resource efficiency. In fact, Finland lies 52% below the EU average in this respect and is only trailed by Bulgaria, Estonia and Poland, finding itself at a similar level to Greece or the Czech Republic. Similar to previous years, the main challenges remain material productivity (approximately 82% below EU-average) and energy productivity (around 95% below average). Somewhat more promising figures can be identified regarding greenhouse gas emissions intensity, expressed in CO2 emissions as a measure of GDP, where Finland lies only 14% below EU average.

Figure 2 Five components of the Eco-innovation index for Finland, 2019

Source: EIO, 2019

Figure 3 All indicators of the Eco-innovation index for Finland, 2019

Source: EIO, 2019

7 2 | Selected circular economy and eco- innovation areas and new trends

Assessments that estimate the potential of the circular economy for Finland’s overall economy with a volume of about EUR 2 to 3 billion in added value potential by 2030 remain valid and realistic to this day. Similarly, also the anticipated potential of the circular economy to provide more than 75,000 new jobs within the same time period (Wijkman & Skanberg, 2015) is reasonable. Finnish authorities claim to have realised this potential and therefore set the target of making Finland a global leader in the circular economy by 2025 (Sitra, 2016). Several institutions and authorities have followed suit and incorporated an according doctrine, which has expressed three main functional ambitions and goals for achieving the goal set out. Firstly, the establishment of comprehensive circular economy solutions aimed at company and export growth enjoys specific attention. An increasingly global focus and alignment stands out as a primary trend. Secondly, ensuring domestic market functionality, aiming at enabling an operative functional environment is expressed as a further priority. Thirdly, the establishment of more practical, streamlined and easily applicable means of implementing and approaching the circular economy are to be noted as further trends (Sitra, 2016). Several implications emanate from these aspirations. Accordingly, the Ministry of Agriculture has clearly defined six major change factors and domains in the context of circular and bioeconomy which are expected to play a pivotal role in the upcoming decade. Said factors are captured by the buzz words i) climate change, ii) fast development of technologies, iii) competition for depleting natural resources, iv) transition of the global economy, v) change in values and attitudes as well as vi) population structure and urbanisation (Ministry of Agriculture and Forestry, 2018). In addition, the achievement of abovementioned aspirations is intended to be channelled and focussed towards five main circular economy and eco- innovation areas, which are captured by the notions of i) sustainable food system, ii) forest- based loops, iii) technical loops, iv) transport and logistics, and v) common or joint action (Rajantie, 2017). The Finnish bioeconomy currently accounts for more than 12% of added value of the Finnish national economy, with more than 300,000 employees who collectively recently generated an output of more than EUR 70 billion p.a. A total of about EUR 6.4 billion was invested into the bioeconomy in 2017. The aforementioned considerable focus on the export sector is reflected also in this context as said exports account for about one quarter of the entire volume of the bioeconomy domain. Particularly the forest-based sector adds value to the economy (EUR 9.1 billion in 2018), but also construction (EUR 4.4 billion) and food (EUR 3.9 billion) are to be highlighted (Sauvula-Seppälä, 2019). In fact, Finland stands out as one of the globally most active countries in the field of forest-based bioeconomy, which, however, needs to be considered in light of the fact that the European Forest Institute has its headquarters in the Nordic nation. Nonetheless, this bioeconomy subsector appears to be a major backbone of the whole Finnish economy and is increasingly driven by intensified life cycle thinking of actors (Husgafvel, et al., 2018). Considering these dynamics transformative or even revolutionary, however, would be far-fetched and arguably misleading as the bulk of innovation in the Finnish forest-based bioeconomy continues to emerge from “business-as-usual” development rather than more radical approaches (Korhonen, et al., 2018). This is reflected in several assessments which point at the missed potential of focussing on higher-value-adding activities than those currently engaged in (VTT, 2018). The subsequent non-optimal degree of

8 innovation results in a lock-in also in technological systems which, in turn, slows down the emergence of alternative and more innovative technological solutions (Luhas, et al., 2019). Another area of interest in the field of circular economy and eco-innovation which has been of uncontested importance is represented by the branch of cleantech. Finland’s share in the global cleantech market exceeds the 1% mark, which is about twice as much as the Nordic country’s contribution to global GDP. Yet, albeit continuing to be of major importance, no fundamental changes can be identified compared to previous years. The most recently available employment figures from 2017 of around 50,000 in the cleantech sector in Finland have not been followed up on yet, which means that the projected additional 40,000 jobs in this domain by 2020 cannot be verified. Similarly, the government’s aims to increase turnover figures of Finnish cleantech companies to EUR 50 billion within the same time period (Cleantech Finland, 2018) cannot be checked. What can be said with more certainty, however, is that Finland continues to be amongst the most innovative cleantech nations in the world, solely trailing Denmark (Sworder, et al., 2018). This innovative drive is mostly effectuated through small- and medium-sized manufacturing businesses, which dominate in this particular respect. However, Finland’s cleantech sector also faces several challenges and shortcomings. For instance, the commercialisation of innovations as well as the ease of attracting new investments have been singled out as critical points, which may have a more noticeable impact in the long-run (Lukkarinen, et al., 2018). Moreover, concerns about the EU’s and national authorities’ ability to steer and guide the business environment in a manner that enables efficient local operations have been voiced, too (Husgafvel, et al., 2018). Digitalisation in general, and not just exclusively within the context of cleantech, is clearly considered a cross-cutting topic and treated as such. In fact, digitalisation is perceived in a relatively all-encompassing manner by Finnish authorities which also include Artificial Intelligence, Blockchain or Data Optimisation in their interpretation. This cross-cutting block is believed to be particularly present and effective in the domains of i) bioenergy, ii) waste-to- value, iii) smart grids, iv) energy storage as well as v) smart buildings. An effective application of these forms of digitalisation is intended to benefit the economy in its entirety, but also create social and environmental benefits (Saren & Tielinen, 2019). The latter, environmental considerations, is particularly scrutinised through Climate-Change-Mitigating (CCM) Technologies. In Finland, innovation in such technological forms is specifically focussed on processing goods, energy and buildings, as most patents have been filed in these domains. However, the presence of CCM technologies appears to be subject to a noticeable degree of regional disparity as more urbanised areas (e.g. Helsinki-Uusimaa) clearly show more innovation activity in this respect than rural ones, even though concerned environmental assets are predominantly to be found in the latter (Tanner, et al., 2019).

Solar Foods: Solar Foods produces “food out of thin air” by using only air, water and electricity to create an entirely novel kind of nutrient-rich protein. The startup company, which has made use of the dense and advanced cleantech expertise structure in Finland as well as specific concepts developed by NASA, thereby redefines the basics of food production and cuts usual dependencies on agriculture, weather or the climate. Recently, Solar Foods introduced “Solein” to the market, a “unique single-cell protein born from […] a bioprocess of electricity and air. Its fully natural fermentation process is similar to the production of yeast, resulting in the purest and most sustainable protein in the world.” It is expected that the price of this and further proteins in the making will be competitive compared to sources such as soy protein. Having been founded as recently as 2017, the startup already managed to raise funds of a volume of more than EUR 2 million to this day. Moreover, Solar Foods

9 has been featured widely across many different outlets and forums, amongst which The Guardian, Vice or The World Economic Forum can be found. • Keywords: renewable energy, food production, lifecycle production systems • Website: https://solarfoods.fi/#vision • Contact: Dr. Pasi Vainikka, [email protected]

source: Solar Foods source: Solar Foods

Teraloop: Teraloop is a cleantech startup based in Espoo, Finland. The company, which was founded in 2014, has developed an alternative model to electrochemical batteries for storing energy. This model comes in the shape of a mechanical flywheel in which rotational energy is stored. Produced devices are particularly intended to cater the needs of kinetic energy storage systems for industrial users and power-grid operators. Most recently, Teraloop has managed to raise EUR 2.4 million in funding from the EU’s Horizon 2020 SME programme, which will be used to develop a roadmap for the commercial implementation of its technology that currently finds itself in the piloting stage. • Keywords: energy storage, renewable energy • Website: https://www.teraloop.org/ • Contact: [email protected]

source: Teraloop source: Teraloop

10 3 | Barriers and drivers to circular economy and eco-innovation in Finland

Several components, which serve as either barriers or drivers to the circular economy and eco- innovation, can be identified in Finland. After years of recession, the Finnish economy seems to have recovered to a considerable degree, not at least thanks to eco-innovative solutions in, and approaches to the economy. The carefully weighed policy mix, which had been devised halfway through the past decade (Shakeel, et al., 2017), therefore appears to have had some impact, even though it needs to be stressed that the Nordic nation is still a fair shot from full recovery. Finland is especially keen to enable uncomplicated and efficient entry for eco-innovators. At the same time, the circular economy has been increasingly pushed into the mainstream through initiatives and support mechanisms. One of these support measures can be found in funding for open innovation and co-creation. In fact, around 40% of all government funding is channelled towards projects that promote sustainable growth and seek to decrease the use of natural resources (Saren & Tielinen, 2019). In a similar vein, special support is granted to investments with high risks and costs which promise to yield significant environmental benefits (Kujanpää, et al., 2018). Private investors are not to be forgotten in this context as they play a major role and form a major pillar of eco-innovation activity. Saunila et al. (2018) therefore conducted a case study in Finland examining the factors influencing green investment. It was found that economic and institutional sustainability and stability were the most significant drivers for investments. In addition, social sustainability stood out as a decisive factor influencing investment in green innovation, thereby highlighting the multifaceted dimensions eco-innovation is expected to cater in Finland. Somewhat surprisingly, however, environmental sustainability was not recognised as a distinctive driver of eco-innovation exploitation or investment. This, on the other hand, raises doubts regarding the intentions underlying according activities. Another contradicting factor, which had already been identified in the previous edition of the Eco-Innovation Observatory, is represented by cuts in overall public spending on R&D and R&I. This continues to provoke a less coherent and clear commitment to, and joint vision of RDI, which had previously been one of the trademarks of Finland’s innovation landscape (Halme, et al., 2017). Private investors are partially filling this gap, however, this is evidence rather of the (more) positive economic situation than a deeply rooted commitment to eco-innovation. In addressing this critical lack, experts’ opinions have been voiced, calling for an additional EUR 300 million for applied research and cooperation to be earmarked in the 2020-2022 timespan. This financial volume is considered the minimum needed to secure Finland’s competitive position vis-à-vis its rivals (Teivanen, 2019). In terms of technological sustainability and availability, the Finnish eco-innovation Technological Innovation System (TIS) has strong drivers particularly sourcing from knowledge development and diffusion. The system also features all-encompassing, highly-developed legitimation processes, which indicates capacity to implement fruitful reforms. On the other hand, entrepreneurial experimentation, market creation and exploitation as well as resource mobilisation are weak points that continue to distort TISs in Finland. The aforementioned path dependencies on more traditional sectors and solutions and resulting lock-ins are at play in this context. This ultimately draws a mixed picture for future developments in the Nordic nation’s TIS, not at least due to the aforementioned cuts in innovation funding which “have pushed many SMEs into a state of uncertainty” (Lukkarinen, et al., 2018).

11 Nonetheless, the human resource and capital structure present in Finland demonstrates a solid base to nourish knowledge capital. Green occupations are numerically strongly represented in Finland with a count of 94,249 employees as of 2019, which represents 4.3% of the total number of employees. Differences in the share of concerned occupational forms across regions are rather minor, even though the total number of people working in green professions is highest in the urban core regions. Taking a slightly different angle towards professional green resources, a total of 54,785 people can be identified in the Finnish workforce who have enjoyed education that was either directly focussed on green skills or mediated more or less substantial parts of it (Østergaard, et al., 2019). Particularly the education base is of major relevance in the Nordic nation as more environmentally-friendly and life-cycle-conscious considerations have trickled down into the fundamentals of public education and are already communicated at a young age. This educational approach has been welcomed by many different parties, not at least by the business sector which believes that high-quality education is a pivotal prerequisite for future eco-innovation. However, it was also stressed that educational aims should be better designed to effectively meet the needs of companies (Näyhä, 2020). It needs to be pointed out that all potential measures and ambitions can rely on a generally aware and broadly supportive Finnish society. Finns display generally receptive attitudes towards environmental issues, the circular economy and eco-innovation, and are keen to adopt according tools, schemes or products. This general doctrine also extends towards businesses, which firmly believe to have the potential to be forerunners in eco-innovation and circular economy, and actively recognise the need of collaboration to fully exert such potential (Näyhä, 2019). Yet, particularly many smaller companies pointed at the lacking willingness to take risks, esteem for entrepreneurship and a fear of failure apparently deeply running through the Finnish society as a whole as major barriers holding back (more) excellent and distinctive innovations (Näyhä, 2020). This is reflected in non-optimal commercialisation and internationalisation rates of innovation, which continue to be a major obstacle. Hence, it appears that “turning circular economy into reality would require not only technological change but also a broader social understanding of the goals and the nature of the innovations as well as understanding of the direction of the change” (Lammi, et al., 2019). Natural resources are plenty and particularly to be found in the forest-based industry (see above). Another sector that ought to be accessed is the battery industry, which is believed to have a potential of EUR 250 billion in Finland. The Nordic nation sees itself properly equipped as it possesses all the resources (and know-how) needed to produce lithium-ion batteries, namely cobalt, nickel, lithium and graphite (Adolfsson-Tallqvist, et al., 2019). Nonetheless, the aforementioned poor resource efficiency that characterises Finland’s economy remains one of the biggest challenges, especially against the backdrop of a high presence of resource- and energy-intensive industries in Finland. This low performance in resource efficiency is not exactly helped by the fact that the share of environmental taxes in Finland continues to be rather low. While some 7% of tax revenues in Finland came from environmental taxes in 2016 (EU average: 6%), only 0.1% of Finnish tax revenues were based on natural resource-use and pollution (EU average: 0.2%), and the extraction of metals and minerals as well as water usage continue to be entirely exempted from taxes in the Nordic nation (Yrjö-Koskinen, et al., 2019).

12 4 | Policy landscape in Finland

4.1 Strategic policy framework The bioeconomy strategy, which has already been addressed in earlier stages of this report, represents a crucial political advance to boost eco-innovation in its entirety. Several goals have been formulated, which are – amongst others – rooted in the desire to gain i) new business opportunities from the bioeconomy, ii) a coherent policy environment, iii) a strong competitive operating environment and competence base, as well as iv) a boost of the digital society through spatial data (Bioeconomy Finland, 2018). Possibly the most central and widely-discussed strategy is represented by the Circular Economy Roadmap that was published in 2016. In this roadmap, it was clearly stated that Finland aims to become a global leader in the circular economy by 2025. The achievement of this and further aspirations is intended to be channelled and focussed towards five main circular economy and eco-innovation areas, which are captured by the buzz phrases i) sustainable food system, ii) forest-based loops, iii) technical loops, iv) transport and logistics as well as v) common or joint action (Rajantie, 2017). The ambition of the sustainable food system focus area is for Finland to achieve the status of a role model for and ambassador of sustainable food systems and according solutions. The created circular loop reaches from the primary, over the manufacturing, distribution and retail, to the consumer and use sphere, and ultimately aims at a more efficient and environmentally-friendly handling of bio waste and its transformation into e.g. biofuels and biofertilisers. More specific and micro-contextualised focus areas are represented by the ambition to create a market for organically recycled nutrients, or the minimisation of food waste by eliminating obstacles and creating incentives, for instance. The latter also is a step towards the EU target of reducing store and consumer waste by half by 2030. The goal of the forest-based loops focus area is for Finland to more effectively and efficiently use its forestry industry so as to become a leader in the field of circular bioeconomy. One of the specific implementation strategies foresees the intensified reuse of wood materials in high value-added products. Furthermore, the design of new commercial products, services or further models as well as an increased focus on digital solutions stand out as primary focus areas. It is stressed that public procurement is encouraged to promote the selection of wood-based products and those based on further renewable raw materials specifically when life cycle analysis demonstrates a sustainability advantage over more traditional and common forms. The promotion of technical loops is intended to enable Finland to gain a competitive advantage in the formulation and optimisation of the sustainable use of materials and products, thereby extending the length of the entire circular economy and updating the digital economy. For instance, a more pronounced focus on eco-design and environmentally-friendly design principles in the design and construction of concerned products enjoys distinct attention. Having similar efficiency principles in mind, transport and logistics loops are aligned so as to promote seamless and smart transportation solutions that represent an advancement towards fossil-free dynamics. Lastly, the general societal, economic, environmental and legislative nature of Finland’s aspirations with respect to eco-innovation are captured under the umbrella term common actions (Sitra, 2016). The circular economy strategy has recently been updated and adjusted in several regards so as to ensure Finland’s continuation on the path to becoming a global leader in the circular economy by 2025. This update, which builds upon the original publication, has formulated four strategic goals deemed to be of elevated importance to the Finnish economy and society (SITRA, 2019): • Renewal of the foundations of competitiveness and vitality, particularly focussing on solutions that boost the competitiveness of the economy and long-term sustainability

13 • Making a shift to low-carbon energy • Natural resources need to be regarded as scarcities and treated accordingly • Everyday decisions act as catalysts for change, aiming to effectuate a behavioural change in all aspects of everyday life (e.g. sharing, taxation). The amended communication on the circular economy in Finland has furthermore dwelled on the role and position of different relevant actor groups in greater detail (SITRA, 2019): • For the central government: To be more particular in how to address specific sectors and coordinate all efforts better and across entities to achieve a coherent approach • For towns and cities: To find different approaches to public procurement, industrial policy as well as land use and planning • For businesses: To include circular economy in their respective strategies and fully internalise according principles as well as to boost cooperation amongst companies • For citizens: To reflect on, and effectively change, habits and lifestyles and make more sustainable and circular choices. Another relevant strategy brought to the fore can be found in the cleantech strategy, which was published in 2014 and which goal is “to accelerate growth in Finnish cleantech business and to renew the traditional industry through innovations in clean technology”. Several goals that ought to be achieved by 2020 had been formulated, however, it cannot be seen yet whether such have effectively been achieved. Nonetheless, the following points capture the ambitions within the cleantech strategy as formulated in 2014 (Ministry of Employment and the Economy): • To double the cleantech domestic market to > EUR 20 billion • To raise the number of cleantech companies to > 3,000 • To create at least 40,000 jobs in cleantech in Finland. More recent insights can be gained from the Finnish National Energy and Climate Strategy, which was initially launched in 2014 and updated in 2017. The overarching aim is to reduce greenhouses gas emissions by 80-95% by 2050 (Kujanpää, et al., 2018). This goal is approached through several sub-aims: • The share of renewable energy ought to be increased to more than 50% of total energy generation during the 2020s • Particularly the production and technology of liquid biofuels and biogas ought to be increased, while fully avoiding coal • The use of oil ought to be cut by 50% within the current decade • The share of renewable transport fuels will be raised to 40% by 2030 • At least 250,000 electric and 50,000 gas-powered vehicles should be on the roads by 2030. Achieving these goals and fostering sustainable solutions is considered the basis of Finland’s welfare and economic competitiveness. Additionally, also the governmental programme developed as recently as 2019 in course of the newly devised government addresses many issues that can be attributed to the cadre of energy and climate strategies. According to Sanna Marin’s programme, Finland will be carbon-neutral by 2035 and become the world’s first fossil-free welfare society. This is expected to come along with changes in taxation schemes, amendments to the nature conservation legislation or more climate-friendly food policies, for

14 instance. To meet these aims, the Energy and Climate Strategy is currently being updated once more and expected to be published in its renewed form in 2021 (Ministry of the Environment, 2019). Finland has furthermore formulated a specific Forest Strategy that deals with the forest as an ecosystem itself as well as with its economic and social assets and the treatment of such. Originally approved in 2015, the vision of the three strategic objectives remained unchanged in the 2018 amendment to the strategy. Firstly, Finland wants to create competitive conditions for its forest-based businesses. Secondly, the Nordic nation wants to rely more heavily on renewed and diversified assets. Thirdly and finally, diversified and sustainable use of forest- based assets ought to be promoted. However, the 2018 update particularly stressed and assessed the measures needed for climate-proofing and safeguarding biodiversity. The two cross-cutting, and in the context of eco-innovation and circular most relevant topics, are Forest knowledge and the platform economy as well as Forest sector interaction and communication (Ministry of Agriculture and Forestry, 2018). The final strategy to be discussed with the scope of eco-innovation and circular economy is the Digital Infrastructure Strategy 2025. According to this strategy, “digital infrastructure promotes competitiveness and wellbeing by enabling the utilisation of, for example, data economy and artificial intelligence in both the private and public services.” The strategy also particularly elaborates on how it aims to support research and innovation and refers to a number of “of public sector-coordinated or publicly funded research and development projects under way related to digital infrastructure and digital services“ (Ministry of Transport and Communications, 2019). 4.2 Policy instruments, measures, programmes In addition to the previously stated support instruments, measures and programmes, several other notions can be highlighted in this respect and shed light on in a more particular manner, too. Generally speaking, the government is keen to support eco-innovation and circular economy, and particularly promotes a piloting culture, which has made Finland one of the leading testbeds for according innovations worldwide. A major vehicle of effectuating this ambition is represented by public procurement (Yrjö-Koskinen, et al., 2019). Even though no nationally binding principles for public procurement in Finland have been developed yet, several programmes and measures have been carried out in the past. For instance, Business Finland’s Smart Procurement programme, which was run from 2013-2016, activated the public sector to learn and implement practices of steering the overall annual national budget of €35 billion for public procurement towards more innovative spheres. The goals of this programme were to: • Create denser and more location-specific demand-supply networks • Engage SMEs more strongly in the public procurement process • Equip public authorities with skills and knowledge that promote innovation. While the programme is not considered to have met all goals and exerted its full potential, it can nonetheless be said that it serves as a crucial instance in advancing green public procurement in Finland (Romanainen, et al., 2019). This advancement is continued by KEINO, the competence centre for sustainable and innovative public procurement that was called into life in March 2018. KEINO not only prepares the knowledge base for according approaches to procurement, it also specifically assists public sector actors with the implementation of Green Deals (Ecopreneur, 2019). KEINO’s specific objectives for the 2018- 2021 time period include the increase of the share of innovative and sustainable procurements or an increased perception of public procurement as a managerial tool, to name a few (Ojala, 2019).

15 Sub-national efforts are furthermore represented by the Network of Finnish Carbon-Neutral Municipalities (HINKU), which aims to engage municipalities to investigate new solutions to mitigating climate change. HINKU can be “framed as a strategic intermediary that works deliberately to achieve goals such as reduced GHG emissions and faster commercialisation of clean technologies, with simultaneous aims of creating more business and jobs” (Lukkarinen, et al., 2018). In general, Finnish cities and municipalities see strong potential in the circular economy concept and have devised many different tools and measures to follow up on their intentions. The most utilised tools are captured by i) land occupation and zoning, ii) promotion of industrial symbiosis as well as iii) green construction procurement. On the other hand, the most underutilised measures that show greater potential than currently exerted are represented by i) promotion of product repair, ii) reduce disposable product use as well as iii) waste management investment (Deloitte, 2019). Furthermore, it was found that municipalities are vertically integrated to higher levels of governance in the specific context of the circular economy through two major streams: (EU) funding and (national) intermediaries, such as HINKU (Beckers, 2019). With specific respect to the bioeconomy, the Finnish government has already implemented a multitude of measures and taken steps to achieve its bioeconomy targets. Some of these steps include the hosting of a national bioeconomy panel meeting twice a year or when needed, the definition of the Finnish bioeconomy priorities for the EU, a biomass atlas combining public data on biomass resources, or a communication and media action plan, for instance (Tasa, 2018). Similar to KEINO’s abovementioned goals, also the bioeconomy is expected to create denser and more locally-based value networks (Ahlqvist & Sirviö, 2019). Business Finland continues to be a highly active entity from which a multitude of different approaches to innovation emanate from. Several programmes, of which the Smart Energy Finland Programme will be shed light on in greater detail below, have been launched in the past years or are currently still ongoing. One of the most relevant of these programmes within the context of eco-innovation and circular economy is the Sustainable Manufacturing programme, which aims to bring about changes in business models that benefit both, the environment as well as the competitive edge of the businesses themselves. The key services offered by Business Finland entail the promotion and funding of innovation in Finland, attracting foreign experts or creating business opportunities for foreign companies in Finland (Mattila, n.d.). Business Finland’s Agrotechnology programme, which recently ended, targeted yet another part of the bioeconomy and particularly addresses lifecycle components by adopting a holistic point of view. Hence, agricultural machinery and solutions, solutions for livestock as well as forest and utility machinery are all elements that are claimed to have found due respect within the programme’s scope (Huhta-Koivisto, 2019). Another recently terminated programme is represented by BioNets, which set out to create new bioeconomy solutions, services and networks in Finland, and thus enhance innovative international businesses. In fact, several ecosystems, which are now orchestrated by private entities, have emerged from this programme and continue to leave their mark on the Finnish bioeconomy scene to this day (Savola, n.d.). Lastly, the Cleanweb programme (2016-2018) needs to be highlighted as it directly aimed to create rapidly scalable cleantech business operations and accelerate the market entry of SMEs in the sector (Suomi, n.d.).

European Days for Sustainable Circular Economy 2019, Helsinki: The European Days for Sustainable Circular Economy (EDSCE) were held in Helsinki within the cadre of Finland’s presidency of the Council in the second semester of 2019. The event consisted of three interlinked sub-conferences which focussed on different elements of the whole lifecycle of products (circular economy, manufacture, sustainable innovation). The aim of the EDSCE were to promote a low-carbon, climate resilient circular economy. Moreover, the event set out to generate new knowledge and activate a dialogue while providing fruitful networking opportunities for stakeholders of various backgrounds. The EDSCE 2019 were cooperatively organised by the Finnish Ministry of Environment, Business Finland as well as EIT Food, Raw Materials and Digital. Further co-organisers include SYKE or the Association of Technology Industries Finland, for instance. • Keywords: circular economy, sustainability, Council presidency • Website: https://edsce19.eu/ • Contact: [email protected]

Source: EU2019.FI @ Susanna Lehto source: Business Finland

Smart Energy Finland: The Smart Energy Programme Finland is organised by Business Finland and particularly focusses on technological and digital solutions to energy generation and consumption and their innovation. To boost the overall economy’s innovative edge in this domain, a total of €100 million in funds has been / will be made available to companies between 2017-2021. More specifically, the programme focusses – amongst others – on the entire value chain of energy systems, smart buildings as well as IoT, AI and digitalisation as horizontal cross- cutting issues. In fact, digitalisation is given highest attention to and claimed to be taken full advantage of. The programme ultimately aspires to boost companies’ growth, motivate the formation of startups, build up test platforms and attract international investment in Finland, for instance. • Keywords: renewable energy, energy transitions, smart energy • Website: https://www.businessfinland.fi/en/for-finnish- customers/services/programs/smart-energy-finland/ • Contact: Helena Saren, [email protected]

source: Business Finland

18 REFERENCES

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19 Tanner, A. N. et al., 2019. Regional Distribution of Green Growth Patents in four Nordic Countries: Denmark, Finland, Norway and Sweden, Copenhagen: Technical University of Denmark. Shakeel, S. R., Takala, J. & Zhu, L.-D., 2017. Commercialisation of Renewable Energy Technologies: A Ladder Building Approach. Renewable and Sustainable Energy Reviews, Volume 78, pp. 855-867. Kujanpää, L., Arasto, A., Ranta, T. & Pelkmans, L., 2018. Finland – 2018 Update: Bioenergy Policies and Status of Implementation, Helsinki: IEA Bioenergy. Saunila, M., Ukko, J. & Rantala, T., 2018. Sustainability as a driver of green innovation investment and exploitation. Journal of Cleaner Production, Volume 179, pp. 631-641. Halme, K., Saarnivaara, V.-P. & Mitchell, J., 2017. RIO Country Report 2016: Finland, s.l.: EUR 28485 EN. Teivanen, A., 2019. Finland’s Competitiveness Dented Severly by Cuts in Innovation Funding, Concludes Report. [Online] Available at: https://www.helsinkitimes.fi/finland/finland-news/domestic/16106-finland-s- competitiveness-dented-severely-by-cuts-in-innovation-funding-concludes-report.html [Accessed 21 February 2020]. Østergaard, C. et al., 2019. The Geographic Distribution of Skills and Environmentally Innovative Firms in Denmark, Norway, Sweden and Finland, Aalborg: Aalborg Universitet. Näyhä, A., 2020. Finnish forest-based companies in transition to the circular bioeconomy - drivers, organizational resources and innovations. Forest Policy and Economics, Volume 110. Adolfsson-Tallqvist, J. et al., 2019. Batteries from Finland, Helsinki: Business Finland. Lammi, M. et al., 2019. Turning Finland into a Country of Circular Economy: What Kind of a Process of Change Should We Seek?. Sustainable Design and Manufacturing, Volume 155, pp. 215-228. Näyhä, A., 2019. Transition in the Finnish forest-based sector: Company perspectives on the bioeconomy, circular economy and sustainability. Journal of Cleaner Production, Volume 209, pp. 1294-1306. Yrjö-Koskinen, E. et al., 2019. Aligning Fiscal Policy with the Circular Economy Roadmap in Finland, Helsinki: SITRA. Asikainen, A., 2019. Finnish Energy Transition – From Fossil- to Bioenergy and Bioeocnomy, Quebec: Natural Resources Institute Finland. Tasa, S., 2018. The Finnish Bioeocomy Strategy, Vienna: Ministry of Eocnomic Affairs and Employment of Finland. Ahlqvist, T. & Sirviö, H., 2019. Contradictions of Spatial Governance: Bioeconomy and the Management of State Space in Finland. Antipode, 51(2), pp. 395-418. SITRA, 2019. The Critical Move: Finland’s Road Map to the Circular Economy 2.0, Helsinki: SITRA. Ministry of Employment and the Economy, 2014. Government Strategy to Promote Cleantech Business in Finland, Helsinki: Ministry of Employment and the Economy. Ministry of the Environment, 2019. Government’s climate policy: carbon-neutral Finland by 2035. [Online] Available at: https://www.ym.fi/en-

20 US/The_environment/Climate_and_air/CarbonNeutral_Finland_2035 [Accessed 21 February 2020]. Ministry of Transport and Communications, 2019. Turning Finland into the world leader in communications networks - Digital infrastructure strategy 2025, Helsinki: Ministry of Transport and Communications. Romanainen, J. et al., 2019. Programmes Changing Practices for Innovation: Evaluation of Smart Procurement, Built Environment and Witty City Programmes, Helsinki: Business Finland. Ecopreneur, 2019. Circular Economy Update: Overview of Circular Economy in Europe, Brussels: Ecopreneur. Ojala, E., 2019. Sustainable Public Procurement, Helsinki: Keino. Deloitte, 2019. The Circular City in Finland: How Finnish Cities are Promoting a Circular Transition, Helsinki: Deloitte. Beckers, D., 2019. The Role of Local and Regional Governance in Fostering the Circular Economy: The Multistakeholder Case of Uusimaa and Päijät-Häme, Finland, Lund: Lund University. Mattila, T., n.d.. Sustainable Manufacturing. [Online] Available at: https://www.businessfinland.fi/en/for-finnish- customers/services/programs/sustainable-manufacturing-finland/ [Accessed 07 March 2020]. Huhta-Koivisto, R., 2019. Finnish Agrotechnology - Innovative Solutions from Harshest Conditions, Helsinki: Business Finland. Savola, T., n.d.. Bionets-Business of the Future. [Online] Available at: https://www.businessfinland.fi/en/for-finnish- customers/services/programs/ended-programs/bionets/ [Accessed 07 March 2020]. Suomi, O., n.d.. Scalable Business Solutions from Cleanweb. [Online] Available at: https://www.businessfinland.fi/en/for-finnish- customers/services/programs/ended-programs/cleanweb/ [Accessed 07 March 2020]. Lorek, S. & Trotta, G., 2015. Consumers and Energy Efficiency - Country Report Finland. An inventory of policies, business and civil society initiatives, focusing on heating, hot water and the use of electricity., s.l.: EUFORIE - European Futures for Energy Efficiency. Official Statistics of Finland, 2017. Environmental and energy taxes. [Online] Available at: http://www.stat.fi/til/yev/index_en.html [Accessed 05 March 2018]. EC, 2017. Country Report Finland 2017, Brussels: European Commission. Lyytimäki, J., 2016. Environmental Protection in Finland: What is Finland Doing to Preserve its Wilderness?. [Online] Available at: https://finland.fi/life-society/environmental-protection-in-finland/ [Accessed 10 March 2018]. Societe Generale, 2020. Country Risk of Finland: Economy. [Online] Available at: https://import-export.societegenerale.fr/en/country/finland/economy-country- risk [Accessed 29 May 2020].

21 Ministry of Finance, 2020. Finnish economy hit hard by coronavirus. [Online] Available at: https://valtioneuvosto.fi/en/article/-/asset_publisher/10623/koronavirus-iskee- lujaa-suomen-talouteen [Accessed 29 May 2020].

22 ANNEX: Policy strategies and instruments

Table A1: National Policy strategies Name of the policy document Relevance for Relevance for Relevance for the Input and process targets Outcome and impact targets Relevant (strategy, action plan, roadmap) eco-innovation Circular innovation chain implementation or Economy governance system 1 Bioeconomy Strategy (2014) Dedicated focus Cross-cutting Cross-cutting • Outcomes (e.g. specific • Climate change policy Yes https://www.biotalous.fi/wp- on eco- goals mentioned above) targets content/uploads/2014/08/The_Finnish_Bioecon innovation • Activates (e.g. means • Energy-efficiency targets omy_Strategy_110620141.pdf how to achieve such • Resource-efficiency and goals) circular economy policy targets • Renewable-energy policy targets 2 Circular Economy Roadmap (2016, updated Dedicated focus Cross-cutting Cross-cutting • Outcomes (e.g. specific • Climate change policy Yes 2019) on eco- goals mentioned above) targets https://www.sitra.fi/en/projects/leading-the- innovation • Activates (e.g. means • Energy efficiency targets cycle-finnish-road-map-to-a-circular-economy- how to achieve such • Resource efficiency and 2016-2025/#what-is-it-about goals) circular economy policy targets • Renewable energy policy targets • Multi-sectoral policy analysis 3 Cleantech Strategy (2014, updated in 2017) Dedicated focus Cross-cutting Cross-cutting • Inputs (e.g. investment • Energy efficiency targets No https://ec.europa.eu/environment/ecoap/sites/ on eco- aims and general • Resource efficiency and ecoap_stayconnected/files/documents/govern innovation strategies) circular economy policy ment_strategy_to_promote_cleantech_busines • Outcomes (e.g. specific targets s_in_finland.pdf goals mentioned above) • Renewable energy policy • Activates (e.g. means targets how to achieve such • Technological innovation goals) 4 Energy and Climate Strategy (2014, updated Eco-innovation Reuse & Recycle Cross-cutting • Outcomes (e.g. specific • Climate change policy No 2017) included among goals mentioned above) targets https://tem.fi/documents/1410877/2769658/G other objectives • Activates (e.g. means • Energy efficiency targets overnment+report+on+the+National+Energy+an how to achieve such • Resource efficiency and d+Climate+Strategy+for+2030/0bb2a7be-d3c2- goals) circular economy policy 4149-a4c2- targets 78449ceb1976/Government+report+on+the+Na • Renewable energy policy tional+Energy+and+Climate+Strategy+for+2030. targets pdf

23 Name of the policy document Relevance for Relevance for Relevance for the Input and process targets Outcome and impact targets Relevant (strategy, action plan, roadmap) eco-innovation Circular innovation chain implementation or Economy governance system 5 Forest Strategy (2017, updated 2019) Eco-innovation N/A Cross-cutting • Outcomes (e.g. specific • Climate change policy Yes https://mmm.fi/documents/1410837/200 included among goals mentioned above) targets 0444/Brochure_National_Forest_Strategy_ other objectives • Activates (e.g. means • Resource efficiency and 2025_updated_version.pdf/9e32e0b9- how to achieve such circular economy policy ee2a-b906-8222- goals) targets 8c3a7df5f7d0/Brochure_National_Forest_ Strategy_2025_updated_version.pdf

Table A2: Policy instruments and measures Category Name of instrument Overall relevance for eco-innovation Relevance for CE Relevance for the innovation chain

Direct financial support for eco-innovation

Grant funding Business Finland Funding for Research Eco-innovation included among other topics Cross-cutting Cross-cutting and Development (as well as as Bio and (if 2nd: Dedicated focus to eco-innovation) Circular Economy Programme) (https://www.businessfinland.fi/en/for- finnish- customers/services/programs/bio-and- circular-finland/)

Innovation vouchers Business Finland Innovation Voucher Eco-innovation included among other topics Cross-cutting Cross-cutting (https://www.businessfinland.fi/en/for- finnish- customers/services/funding/research- and-development/innovation-voucher/) NEFCO Loans and credits (https://www.nefco.org/) Dedicated focus on eco-innovation Cross-cutting Cross-cutting Publicly co-funded Finnvera Eco-innovation included among other topics Cross-cutting Cross-cutting venture capital funds (e.g. start-ups) (https://www.finnvera.fi/eng/)

Fellowships and postgraduate loans and scholarships

24 Category Name of instrument Overall relevance for eco-innovation Relevance for CE Relevance for the innovation chain

Equity financing from Finnvera’s Environmental Guarantee Dedicated focus on eco-innovation Cross-cutting Cross-cutting public banks (https://www.finnvera.fi/eng/products/ guarantees/environmental-guarantee)

Other (indicate)

Indirect support for eco- innovation

Tax incentives/relieves for Business Finland’s Young Innovative Eco-innovation included among other topics Cross-cutting Cross-cutting eco-innovation Company Programme (businesses, R&D activity) (https://www.businessfinland.fi/en/for- finnish- customers/services/funding/young- innovative-company-funding/) Tax Reliefs for Environmentally- Tax relief for consumers friendly Cars (based on CO2 emission) Eco-innovation included among other topics Cross-cutting Cross-cutting adopting/ purchasing (https://www.oecd.org/environment/o green utreach/EN_Policy%20Manual_Creating technology/products %20Market%20Incentives%20for%20Gr eener%20Products_16%20September.p df)

Taxation of Taxes related to environmental Eco-innovation included among other topics Cross-cutting Cross-cutting environmentally harmful resource use technologies Emission Taxes and Charges

Regulations, targets Environmental Protection Act Eco-innovation included among other topics Cross-cutting Cross-cutting Law on Promotion of Biofuels in Transport Energy and Eco-efficiency Standards in New Buildings

Green public procurement KEINO Dedicated focus on eco-innovation Cross-cutting Cross-cutting (https://www.hankintakeino.fi/en)

Demand subsidies (e.g. Purchase Incentive for Battery Electric Dedicated focus on eco-innovation Cross-cutting Cross-cutting eco-vouchers/subsidies Vehicles for green products)

25 Category Name of instrument Overall relevance for eco-innovation Relevance for CE Relevance for the innovation chain

(https://www.autotuojat.fi/en/current_ affairs/purchase_incentive_of_battery_ electric_vehicles)

Labeling, certification, Energy Efficiency Labelling Scheme Dedicated focus on eco-innovation Cross-cutting Cross-cutting standards (https://tem.fi/en/energy-labelling)

Debt guarantees and risk Finnish Guarantee Scheme to Improve Eco-innovation included among other topics Cross-cutting Cross-cutting sharing schemes Access to Finance for High-Growth Firms (https://ec.europa.eu/regional_policy/e n/atlas/programmes/2014- 2020/finland/2016fi16rfsm001) Training, advisory, information support, awareness raising

Technology transfer and Regional Centres for Economic Eco-innovation included among other topics Cross-cutting Cross-cutting business advisory services Development, Transport and the Environment (ELY) (https://tem.fi/en/ely-centres)

Business incubation/ Finnish Business Angels Network Eco-innovation included among other topics Cross-cutting Cross-cutting accelerations (https://www.fiban.org/accelerators.ht ml)

Eco-innovation The Circular Award (won by SITRA) Dedicated focus on eco-innovation Cross-cutting Cross-cutting challenges, prizes, awards (https://www.sitra.fi/en/news/eu- commission-follows-sitra-recipient- circulars-award/)

Training for companies, Circular Economy Business Course Dedicated focus on eco-innovation Cross-cutting Cross-cutting consumers, (https://www.sitra.fi/en/projects/circul ar-economy-business-course/) Public awareness Educational Basis Dedicated Focus on eco-innovation Cross-cutting Cross-cutting campaigns, platforms, and (http://www.stat.fi/tup/khkinv/luk outreach activities u9.pdf)

other

Collaborative platforms and infrastructure

26 Category Name of instrument Overall relevance for eco-innovation Relevance for CE Relevance for the innovation chain

Green Net Finland is a cleantech Clusters, networks, business network that brings together Dedicated focus to eco-innovation Cross-cutting Cross-cutting platforms (e.g. industrial the expertise and resources of Finnish symbiosis platforms) cleantech companies, scientific and educational institutions and public authorities. The thematic focus in cleantech is urban cleantech, comprising: smart and energy efficient construction and living, and circular economy in the urban environment. (https://gnf.fi/fi/)

Circular economy and carbon-neutral industry focus areas and related forums, platforms, experiments and initiatives by the Finnish Innovation Fund, Sitra. (https://www.sitra.fi/en/topics/a- circular-economy/) Dedicated support to new Biorukki Dedicated focus to eco-innovation Cross-cutting Cross-cutting research infrastructure (https://www.vttresearch.com/bioruuk (piloting facilities) ki-pilot-centre) other

About the Eco-Innovation Observatory (EIO)

The Eco-Innovation Observatory (EIO) is the initiative financed by the European Commission’s Directorate- General for the Environment. The Observatory is developing an integrated information source and a series of analyses on eco-innovation trends and markets, targeting business, innovation service providers, policy makers as well as researchers and analysts.

Visit EIO and DG ENV EcoAP website and register to get access to more information and to access all EIO reports, briefs and databases. www.eco-innovation.eu ec.europa.eu/environment/ecoap