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Purpose of the grant for decarbonization and energy efficiency investments

Grants may be awarded for investment projects related to promoting decarbonisation and energy efficiency of industrial production processes and to promoting the transition to a climate neutral economy.

Purpose of the grant for decarbonisation and energy efficiency investments

Aid may be granted for investments that enable at least one of the following:

1. direct greenhouse gas emissions from the beneficiary’s industrial installation using fossil fuels as an energy source or raw material decrease by at least 40 per cent compared to the situation prior to the grant by electrifying production processes or by switching to renewable hydrogen or fuels produced from renewable hydrogen instead of fossil fuels. The grant may be awarded based on project-specific consideration for a maximum of 50 per cent of the eligible costs of the investments that reduce greenhouse gas emissions, other than those related to electrification, and 30 per cent of the eligible costs of investments related to electrification that reduce greenhouse gas emissions.
2. the energy consumption of the beneficiary's industrial installation decreases for the supported activity by at least 20 per cent compared to the situation prior to the aid. The grant may be awarded based on project-specific consideration for a maximum of 30 per cent of the eligible costs of investments to reduce energy consumption.

An industrial installation means:

1. for investments covered by the emissions trading scheme (ETS), a stationary technical unit in accordance with Article 3(e) of Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC that is related to industrial production activities;
2. for investments not covered by the emissions trading scheme, a technical unit comparable to a stationary technical unit referred to in point 1 that is related to industrial production activities.

The grant may not exceed EUR 200 million for the undertaking.

The installation or equipment financed with the aid must be completed and in operation within 36 months of the date on which the aid was granted. If the 36-month period is not observed, one per cent of the amount of the grant awarded shall be deducted when the grant is paid, for each full month exceeding the 36-month period, up to the total amount of the grant awarded. However, no deduction is made from the amount of the grant if the delay was due to an unexpected reason beyond the control of the beneficiary.

Purpose of the grant for investments in sectors strategic to the transition to a climate-neutral economy

Grants may be awarded for the following investments in sectors that are strategic for the transition to a climate-neutral economy:

1. production of relevant equipment for the transition to a climate neutral economy;
2. the production of key components designed and primarily used as direct input for the production of the equipment defined under 1); and
3. the production or recovery of related critical raw materials necessary for the production of the equipment and components referred to in 1) and 2).

Relevant equipment for the transition to a climate neutral economy means batteries, solar panels, wind turbines, heat pumps, electrolysers and equipment for carbon capture, usage and storage. Key components refer to those referred to in the Annex to Government Decree 2/2025. Critical raw materials mean critical raw materials referred to in Annex 4 to Commission Regulation (EU) No 651/2014.

Based on project-specific consideration, a grant may be awarded for a maximum of 15 per cent of the eligible costs, and the total amount of the grant may not exceed EUR 150 million for the undertaking in Finland. In the case of investments made in assisted areas designated in applicable regional aid map, the grant may, on the basis of project-specific consideration, be awarded for a maximum of 20 per cent of the eligible costs, and the total amount of the grant may not exceed EUR 200 million for the undertaking in Finland.

The conditions for granting funding are described in more detail in the Government Decree on aid to promote the decarbonisation and energy efficiency of industrial production processes and to promote the transition to a climate neutral economy (2/2025) and on the website.

Restrictions on the scope of the aid

The company is not entitled to a grant if:

1. the company or group to which it belongs is a firm in difficulty within the meaning of Commission Communication 2014/C 249/01 on State aid for rescuing and restructuring firms in difficulty outside the financial sector;
2. the company or group to which it belongs has been issued an outstanding recovery order based on a previous Commission decision declaring the aid unlawful and incompatible with the internal market;
3. the company or group to which it belongs is a credit institution or other financial institution;
4. the company, the group to which it belongs or the owner exercising effective control in the company or group are on the sanctions list of the European Union.

Applying for a grant

The grant is applied for before the start of works of the investment project. Start of works means either the start of construction works relating to the investment or the first legally binding commitment to order equipment or any other commitment that makes the investment irreversible, whichever is earlier. Buying land and preparatory works such as obtaining permits and conducting preliminary feasibility studies are not considered as start of works.

Applicant must submit a profitability calculation in Excel format along with the application form, which must correspond to the profitability analysis used in the company’s own investment decision-making process. The aim is to provide the most accurate and clear understanding of how the support and its level influence the company’s investment decision. Applicants are requested to justify the initial values and assumptions used in the calculation. Additionally, an overall financing plan for the investment is required.

A total of EUR 400 million in investment grants will be granted in the call.

The application period ends 14.3.2025. The application is submitted in Business Finland's Online service.

Funding terms and conditions for investment grants (pdf)