Finland allocates EUR 40 million for low-carbon building solutions

Companies can now apply for financial aid via the Low Carbon Built Environment programme

On 23 August, the Finnish Ministry of the Environment revealed that it has collaborated with the government agency Business Finland to launch the Low Carbon Built Environment programme. With this scheme, the aforementioned bodies will allocate a total of EUR 40 million between 2021 and 2023 to promote low-carbon building solutions.

More specifically, Finnish companies and research organisations will have the chance to apply for financial aid for sustainable projects. In allowing them to do so, the Finnish government seeks to merge business with climate action. Minister of the Environment and Climate Krista Mikkonen highlighted the importance of this, noting:

“It’s time to make tackling climate change good business and building, a key part of the climate solution. Finnish companies have enormous potential to create new products, services, and practices that build a carbon-neutral circular economy. We want to harness that potential now.”

3 types of financing

It is important to note that the EUR 40 million will be distributed by both Business Finland and the Ministry of the Environment. Moreover, the programme will consist of three forms of financing.

First, Business Finland has set aside EUR 32 million to support research, development, and innovation. Of this EUR 32 million, EUR 2 million can be applied for in 2021, EUR 15 million in 2022, and EUR 15 million in 2032.

Second, Business Finland also has an “export support programme” whereby individuals can apply to receive EUR 2 million in 2022.

Third, the Ministry of the Environment will allocate a total of EUR 6 million to companies operating in Finland from 2021-2023. Individuals can submit an application for the first EUR 2 million in 2021.

Apply now

Applications for the 2021 financing are now officially open until 15 October. Those interested in receiving financial support in 2022 can also apply by 31 March. Funding will be available for projects with a completion date set for no later than December 2025. These projects may relate to construction, design, property, management, infrastructure, energy, digitalisation, etc.

According to the Finnish government, an information session will be held virtually on 27 August, where experts will discuss the different types of funding and answer people's questions. In this way, it will facilitate the application process and encourage more people to participate.

Funding for the Low Carbon Built Environment Programme comes from the EU recovery instrument (Recovery and Resilience Facility) that seeks to encourage growth and development post-COVID. With this new programme, Finland wants to promote climate action, increase the competitiveness of Finnish companies based on sustainable solutions, and support low carbon built environments.