The success factors of the agreements

For decades, Finland has been raising energy efficiency levels through voluntary agreements. This agreement-based system has proven to be a successful way for Finland to achieve significant national results in energy efficiency.

Several factors contribute to the effectiveness and success of these energy efficiency agreements.

A long-term, voluntary approach to promoting energy efficiency

Finland has promoted efficient energy use through agreements between the state and various industrial sectors since the late 1990s. The first agreement period began in 1997, and the work has continued uninterrupted for nearly three decades. The fourth agreement period, covering the years 2026–2035, is currently underway.

This long-term effort has fostered strong cooperation and built expertise across various sectors. At the same time, results have improved from one agreement period to the next. The continuity of these periods ensures that energy efficiency efforts are not interrupted during the transition between periods; instead, the work and its ongoing development proceed seamlessly.

A flexible and cost-effective way to achieve results

Compared to legislation or other mandatory measures, a voluntary agreement offers companies and municipalities greater flexibility to improve energy efficiency based on their own specific circumstances.

A voluntary approach supports market-based solutions and the development of new operating practices. Participants can select the energy efficiency measures and investments that best suit their operations and are the most cost-effective, implementing them at a pace that fits their own activities.

By joining the agreement, participants commit to setting targets, planning and implementing measures, and monitoring the results achieved. From the state’s perspective, voluntary agreements provide a functional and cost-effective means of achieving both national and EU energy efficiency targets.

A shared goal strengthens commitment

Government authorities, sector associations and participating companies and municipalities work towards a shared goal. Nearly three decades of cooperation have built effective and trust-based relationships among the stakeholders involved. Cooperation, trust and shared responsibility are key strengths of the agreement scheme.

The work is supported by an extensive and active network. Companies and other organizations share information and experiences, learning from one another across industry boundaries. The network helps disseminate information on energy efficiency policy, as well as on practical solutions and best practices. Cooperation also fosters the emergence of new solutions and innovations.

Participants take ownership of improving their energy efficiency and commit to an indicative energy savings target with determination. In practice, participants integrate continuous improvement in energy efficiency into their action plans or existing management systems.

Reporting makes results visible

Participants report annually on their energy use and the energy efficiency measures they have implemented. The long-established reporting system provides reliable information on the measures implemented in Finland and the energy savings achieved.

Comprehensive monitoring and reporting enable Finland to use the Energy Efficiency Agreement Scheme to implement the binding energy savings obligation under Article 8 of the Energy Efficiency Directive. The system monitors the accumulation of energy savings at national level. It also enables participants to track the results of their own energy efficiency work and benchmark their performance against other organisations in their sector.

Practical support helps ensure success

The agreement scheme provides a wide range of support for implementing the agreements and continuously improving energy efficiency.

Participants receive expert advice and practical guidance and can take part in webinars, events, e-learning courses and joint projects. Regular communications support the work and keep participants up to date.

For example, in 2025, a total of over 200 companies and municipalities participating in the agreements received expert advice and guidance tailored to their specific needs during dedicated support meetings. In addition, nearly 40 events and webinars were organized in 2025, attended by a total of 2,500 experts working in the field of energy efficiency.

The aim of the support is to help participants identify and implement new energy-saving measures. At the same time, the network offers an opportunity to learn from the experiences of others and to share solutions and best practices that have proven effective in practice.

Financial support accelerates measures

Government energy aid has long supported the implementation of the Energy Efficiency Agreements and energy efficiency measures. Aid has been available for voluntary energy audits and, on a case-by-case basis, for energy efficiency investments. It has helped launch thousands of projects that might otherwise have been postponed or not implemented at all.

The prospect of investment support also encourages new organizations to join the energy efficiency agreements. Financial support helps translate commitment into concrete energy efficiency measures and measurable savings.

Success factors of the Finnish model