Foreword

Since 1997, voluntary Energy Efficiency Agreements have been the primary means jointly selected by the Finnish Government and participating sectors to improve energy efficiency. Through the agreements, Finland has met stringent EU energy efficiency targets and binding obligations in a market-based, flexible and cost-effective manner.

The Finnish agreement scheme combines voluntary participation with quantitative targets, annual reporting, calculation of savings and implementation support. Compared with legislation or other mandatory measures, voluntary agreements give companies and municipalities greater flexibility to develop new operating practices that improve energy efficiency, based on their own needs and circumstances.

The 2017–2025 agreement period met the targets set for it. The new agreement period (2026–2035) has also made a promising start in addressing increasingly demanding challenges.

During the 2017–2025 period, the EU’s climate and energy targets became more ambitious and the importance of energy efficiency as part of the energy transition increased. The European Green Deal, Fit for 55, the European energy crisis caused by Russia in 2022, REPowerEU and the revised Energy Efficiency Directive adopted in 2023 placed efficient energy use in an increasingly central role. Over the years, the Finnish agreement scheme has nevertheless adapted successfully to changing requirements and increasingly ambitious targets.

In 2017–2025, the energy use of the broad group of organisations committed to the agreements – 780 companies and their sites, and 160 municipalities and joint municipal authorities – accounted for nearly 60% of Finland’s total energy use. During the period, participating companies and municipalities implemented approximately 34,500 energy efficiency measures, resulting in annual energy savings of more than 18.6 terawatt hours in Finland by the end of 2025. At the end of the agreement period, these measures reduced annual carbon dioxide emissions by approximately 4 million tonnes.

The more than EUR 2.1 billion invested in energy efficiency during the agreement period not only improved energy efficiency but also accelerated the deployment of new technologies and helped create the conditions for clean growth. The Government supported this development by granting nearly EUR 170 million in energy aid for investments promoting energy efficiency in 2017–2025.

The agreements have created a strong energy efficiency network in Finland that facilitates the sharing of lessons and best practices and fosters extensive cooperation. This skilled and committed community has firmly embedded energy efficiency in the management, investments and daily operations of Finnish organisations. Every megawatt hour saved, investment made and cost-effective operating practice adopted has contributed to strengthening Finland’s competitiveness, energy system and climate action.

During the new agreement period now under way (2026–2035), improving energy efficiency is essential for several reasons. Finland must meet increasingly ambitious energy efficiency targets and binding obligations. At the same time, society is moving rapidly towards a carbon-neutral future in which electrification is significantly changing the operating environment. Going forward, efficient energy use will also strongly support the appropriate and flexible use of existing energy production capacity, helping to manage the need for additional new capacity.

The scale of the challenge to improve energy efficiency is once again immense. However, through determined work and inspired by the successes of previous periods, we are confident that Finland can once again overcome the challenges ahead.