Agreements offer many benefits for Finland
Meeting EU obligations cost-effectively
The Energy Efficiency Agreements play a key role in implementing Article 8 of the EU Energy Efficiency Directive (EU) 2023/1791 and in meeting Finland’s nationally binding final energy savings obligation.
The agreement scheme combines voluntary participation with quantitative targets, annual reporting, calculation of savings and implementation support. It engages a broad group of companies and municipalities in long-term energy efficiency work in a way that allows the results to be monitored and used as part of Finland’s implementation of its EU obligations.
In Finland, the agreements support the fulfillment of obligations under other directives—in addition to the EU Energy Efficiency Directive—and promote the achievement of the targets set therein.
The administrative costs to the state for maintaining the agreement system are relatively modest. When planning the national implementation of the EED, it was estimated that meeting the requirements through an obligation scheme based on legislation and regulations would require many times more resources.
Electrification on the rise
Electrification became more widespread towards the end of the agreement period across all sectors covered by the energy efficiency agreements, particularly in the energy sector. Of the energy sector companies responding to the 2025 survey on corporate energy futures, over 50% reported having already replaced the use of fuels or primary heat with increased electricity use.
Energy efficiency moves us in the right direction
In addition to improving energy efficiency, the agreement system has a broad impact on other socially important trends.
Energy efficiency measures significantly reduced emissions between 2017 and 2025. By the end of 2025, the energy efficiency measures implemented during the period had cut annual carbon dioxide emissions by as much as 4 million tonnes.
During the 2017–2025 period, Finland’s energy system made great strides towards low-carbon operation.
As emission-free energy production becomes more common and electrification progresses, emission reductions will naturally decrease; however, the importance of energy efficiency will not disappear – quite the opposite. Efficient energy use remains important, as all forms of energy production have environmental impacts.
The importance of energy efficiency is also being highlighted in new ways as the energy system undergoes electrification. Efficient energy use lowers energy costs for businesses and consumers, supports competitiveness, and helps make effective use of clean electricity generation and grid capacity. Energy efficiency can reduce the demand for energy and power; combined with demand-side flexibility, it can alleviate pressure on generation and grid capacity and strengthen the reliability of the energy system.
A well-prepared network implemented a record number of measures during the energy crisis
The importance of the network built around energy efficiency agreements became strikingly evident during the 2022 energy crisis. The 2022 energy crisis demonstrated that energy efficiency agreements are more than just a single policy instrument.
Over the years, a network comprising thousands of experts responsible for energy management has formed around these agreements; this network enabled the rapid sharing of information, best practices, and practical solutions during the crisis. Existing high levels of energy expertise helped companies and municipalities respond quickly to the exceptional situation.
In 2022, nearly 5,600 new measures to improve energy efficiency were implemented—a record number. Approximately 45 percent of the measures implemented were operational in nature, such as adjustments to settings and operating schedules. This share is more than double that of previous years.
Strong expertise helped us through the crisis
“Long-term work on energy efficiency provided us with a solid foundation for responding to the energy crisis. Thanks to energy audits, we had a comprehensive overview of our property portfolio, which made it easier to identify the most impactful energy-saving measures. Effective cooperation with property maintenance teams enabled the rapid implementation of these measures across our properties.”
Accelerating the clean transition
The agreement encourages participants to adopt new technologies and make investments; this helps create a market for energy-efficiency solutions and supports clean growth in Finland. Participants implemented a total of approximately 34,500 energy-efficiency measures. About three-quarters of these required investment. Between 2017 and 2025, the companies and municipalities participating in the agreement invested over €2.1 billion in energy efficiency.
The state has provided funding for many new, innovative energy solutions. In addition, participants have been able to apply for funding for conventional energy-efficiency investments.
The purpose of state financial support is to facilitate investments that would not otherwise take place.
According to a study published by the Ministry of Economic Affairs and Employment in 2020, energy aid has enabled energy efficiency investments that otherwise would not have been implemented in the same form. 80% of the funding recipients would not have carried out the project at all, or would have implemented it in a significantly different way, had the aid been 20% lower.
A key role in the clean transition
“Increasing energy efficiency plays a key role in the clean transition. Market-based implementation within the framework of energy efficiency agreements makes it possible to maintain a stable investment environment that fosters innovation.”
