Energy Efficiency Agreements 2026-2035
Efficient energy use is crucial for advancing towards carbon neutrality. The Energy Efficiency Agreements play a key role in Finland’s energy and climate strategy and are the primary means of improving energy efficiency in the country.
The agreements serve as a voluntary mechanism chosen by the government and industries to meet the stringent and binding energy efficiency obligations set by the EU Energy Efficiency Directive, without the need for heavy regulatory measures or coercive legislation.
The goal is for the agreements to be as effective as regulatory measures but more flexible in implementation, thereby enhancing Finland’s competitiveness. The agreements guide industry, the energy and service sectors, the property sector, and the public sector towards more efficient energy use.
A Flexible Means to Fulfill EU Obligations
The Energy Efficiency Agreements are a key tool for Finland to meet its national targets under the EU Energy Efficiency Directive (EU) 2023/1791 by the end of 2030, including compliance with Article 8’s binding national energy efficiency obligation.
The agreements also support the implementation of the “energy efficiency first” principle and contribute to fulfilling other obligations set out in various articles of the directive, helping to some extent with the implementation of the Energy Performance of Buildings Directive (EPBD).
The agreements significantly contribute to achieving the EU-wide primary and final energy consumption targets set for 2030 under Article 4 of the directive.
The new ten-year Energy Efficiency Agreement period starting in 2026 will be the fourth consecutive cycle. These agreements have played a crucial role in Finland’s energy policy for nearly 30 years and have been a successful and flexible tool for implementing EU energy efficiency directives over the past two decades.
Background and Foundation of the Agreements
The agreements guide towards energy efficiency which reduces the energy consumption of products and services, as well as supporting energy-saving measures that reduce energy use compared to the current situation and future projections. Energy saving measures always improve energy efficiency.
A More Responsible and Energy-Smart Future
Efficient energy use is a responsible choice and one of the most effective ways to combat climate change. It also helps save costs and improves the profitability of operations.
Energy efficiency reduces climate emissions and accelerates the transition toward carbon neutrality, which Finland aims to achieve by 2035. Additionally, it strengthens Finland’s energy security and self-sufficiency while driving the clean transition and the growth of clean technology markets. On a broader energy system level, efficient energy use supports the cost-effective balance of energy supply and demand.
Continuous Improvement in Energy Efficiency
The agreements aim to guide companies and organizations toward continuous improvement in energy efficiency. Participants set a quantitative indicative energy-saving target for the agreement period 2026–2035, with an interim target for 2030, and implement measures to achieve these goals.
Various Forms of Support for Participants
Organisations participating in the Energy Efficiency Agreements receive extensive support, including information, guidance, and advisory services for implementing energy efficiency measures. The agreements also create a large national network of energy efficiency professionals.
Additionally, the government provides support for energy autists and supports case-dependently projects that promote the introduction of new technologies and operating methods. Those who have joined energy efficiency agreements can also apply for discretionary subsidies for energy-saving investments that meet the general conditions for energy aid for conventional technology.
Read more: Business Finland: Energy Aid
Impact a Prerequisite for Agreements
Participants in the agreements report annually on their energy efficiency measures and other activities aimed at improving energy efficiency.
The purpose of this reporting is to collect data on energy efficiency actions implemented in Finland and to track the energy savings achieved through the agreements. Finland uses this annual reporting when informing the EU about the realised energy savings, ensuring that voluntary agreements remain a viable policy instrument for meeting the binding national energy efficiency obligations set by the directive.
Maintaining high participation and achieving measurable results will continue to be essential to justify the use of voluntary agreements in implementing the directive.
To meet Finland’s strict national targets, it is vital that the agreements continue seamlessly from the beginning of 2026 and that energy savings start accumulating from the outset of the 2026–2035 period.
Energy Efficiency Agreement for Industries
The Energy Efficiency Agreement for Industries is an agreement between the government and sectors in industries on improving energy efficiency from 2026 to 2035.
The Ministry of Economic Affairs and Employment, the Energy Authority, and industry associations such as the Confederation of Finnish Industries (EK), the Finnish Food and Drink Industries’ Federation, the Finnish Energy Industries, the Chemical Industry Federation of Finland, the Finnish Forest Industries Federation, the Technology Industries of Finland, the Finnish Commerce Federation, the Finnish Hospitality Association (MaRa), and the Finnish Central Organisation for Motor Trades and Repairs are all committed to the agreement.
Companies join the Energy Efficiency Agreement for Industries by signing an accession document for their respective sector-specific action plan and committing to improving energy efficiency according to the specified measures and targets.
Action Plans:
- Energy-Intensive Industries – Confederation of Finnish Industries (EK)
- Energy-Intensive Industries – Finnish Forest Industries Federation
- Food Industry Action Plan
- Chemical Industry Action Plan
- Technology Industry Action Plan
- Wood Product Industry Action Plan
- Industry – General Action Plan
- Energy Sector Action Plan
- Motor Trades and Repairs Action Plan
- Commerce Sector Action Plan
- Hotel and Restaurant Sector Action Plan
- Service Sector – General Action Plan
Companies that do not have a sector-specific action plan join either the general industry or general service sector action plans.
Energy Efficiency Agreement for Public Sector
The Energy Efficiency Agreement for the Public Sector is an agreement between the Ministry of Economic Affairs and Employment, the Energy Authority, the Association of Finnish Local and Regional Authorities (Kuntaliitto), and the Joint Municipal Authority for Regional Facilities Management (Maakuntien tilakeskus Oy) for improving energy efficiency in the public sector from 2026 to 2035.
The agreement covers municipalities, cities, joint municipal authorities, wellbeing services counties, and state entities.
Compared to other agreements, the Public Sector Energy Efficiency Agreement also supports the implementation of public sector-specific obligations under the Energy Efficiency Directive. These obligations include leadership in energy efficiency, energy considerations in buildings and procurement, advisory services, communication, and the use of energy services.
Municipalities, cities, joint municipal authorities, wellbeing services counties, and state entities sign their own Energy Efficiency Agreement, in which they commit themselves to the actions and targets outlined in the Public Sector Energy Efficiency Agreement.
If an entity owns residential buildings, they are primarily included under the Property Sector’s rental housing action plan.
Energy Efficiency Agreement for Property Sector
The Energy Efficiency Agreement for the Property Sector is an agreement between the Ministry of Economic Affairs and Employment, the Ministry of the Environment, the Energy Authority, and the Finnish Property Owners (Rakli) to enhance energy efficiency in rental housing communities and commercial properties from 2026 to 2035.
Primarily, Rakli member companies can join the Property Sector Energy Efficiency Agreement. Additionally, municipalities participating in the Public Sector Energy Efficiency Agreement include their municipal rental housing and right-of-occupancy housing companies under the real estate sector’s rental housing action plan.
Action Plans:
- Commercial Properties Action Plan
- Rental Housing Properties Action Plan
The Agreements and Action Plans
Start preparing for accession now and be among the first to join. Explore the Energy Efficiency Agreements and your sector’s action plan (final drafts).
Note: Selected examples of the agreement documents will be made available in English at a later date. The official versions can be found on the Finnish-language site.
Accession to the new agreement period will be possible once the government and industry associations have signed the agreements in October 2025.
The implementation of the agreements will begin on January 1, 2026, and remain in force until December 31, 2035.
For more information: kysy@energiatehokkuussopimukset.fi