The Finnish economy produces and consumes a high amount of different materials. The figure below shows Finland's consumption of raw materials from 2010 to 2021, taking into account the use of raw materials both within and outside national borders ("material footprint"). As the figure shows, the material footprint of Finland's annual consumption has been relatively stable at around 250 million tonnes per year. As an aside, in the trade balance of embodied materials, Finland is an importer of fossil fuels and metal ores and an exporter of biomass and non-metallic minerals. 

Figure. Consumption of raw materials in Finland's economy 2010-2021. Source: Savolainen et al. (2024).

The Government's report on material flows in Finland's national economy presents a more detailed analysis of the total use of raw materials in 2019. Of the total use, just under half (203 Mt) was exported and just over half (240 Mt) was used for domestic consumption. Of the domestic material consumption, 59% (143 Mt) was consumed for capital formation (in particular materials used in construction), 29% (70 Mt) for private consumption and 12% (28 Mt) for public consumption.

Even by European standards, Finland's consumption of raw materials is exceptionally high, as shown in the graph below. In the EU, the average material footprint has been around 14-15 tonnes per capita from 2010 to 2021, while in Finland it is up to three times higher (39-52 tonnes per capita). The high per capita material footprint in Finland is possibly explained by the high level of construction and the associated excavation works, the extensive road network in relation to the size of the population, the use of biomass and fossil fuels for heating, and the material consumption made possible by a high standard of living.

Figure. Material footprint (tonnes per capita) in Finland (dark blue) and on average in EU (light blue) in 2010-2011. Source: Savolainen et al. (2024). 

Challenges in reducing climate emissions

Finland's National Climate Act (423/2022) includes a target of carbon neutrality in 2035, meaning that the level greenhouse gas emissions to the atmosphere will then be at or below the level of removals from atmosphere. In addition, the Climate Act includes a target to reduce greenhouse gas emissions by at least 60% by 2030 and by at least 80% by 2040 (from 1990 levels).

In addition to national legislation, the EU obliges Finland to reduce emissions from the sectors not included in the EU Emissions Trading System (transport, agriculture, housing, services, waste management, small industrial and heating installations etc.) by at least 50% by 2030 (compared to 2005 levels), and to increase the net sink of the land use sector by 2.9 million tonnes (relative to the 2016-2018 average sink).

The figure below shows the evolution of Finland's total emissions from 1990 to 2023. Emissions from the emissions trading sector (power generation, large industrial installations and intra-European aviation) have fallen sharply over the last 15 years or so, driven by EU emissions trading. In the sectors outside the emissions trading system ("non-ETS sector"), emission reductions have been much smaller and further efforts are needed to meet reduction targets.

The most problematic issue for climate targets is the decline in the land use sink from around 2010 onwards. Part of the reason for the decline in the land use sink has certainly been the increased use of wood in thermal power plants in the 2010s to replace coal and peat, and the simultaneous decline in wood imports from Russia. To meet both national and EU climate targets, Finland will need to introduce significant additional measures, especially in the land use and burden sharing sectors. 

Figure. Development of Finland's total emissions 1990-2023. Negative values represent the net sink of the land use sector. From 2005 onwards, total emissions, excluding the land use sector, are split between the emissions trading sector and non-ETS sector. Source Siikavirta et al (2024).

Finland has externalised its environmental impacts

Globally, the greatest contributors to the loss of biodiversity are land and sea use. Vilma Sandström and her colleagues looked at the imports of agricultural products consumed by Finland between 1986 and 2011 and linked them to the loss of biodiversity caused by the use of cropland and irrigation water in different regions. The researchers took into account crops grown for food and animal feed, as well as crops grown for other uses (e.g. tobacco and rubber), but excluded the use of grazing land, the most extensive form of land use globally. 

Over the period studied, imports of agricultural products into Finland almost tripled to 2.36 million tonnes in 2011. 36% of the calories consumed by Finns came from outside the country's borders. Although Finland also exported agricultural products, the area under cultivation abroad was larger than the area under cultivation at home.

The following figure shows the area of cropland used for Finnish consumption and the associated biodiversity impacts in 2010. Approximately 40% of the cropland needed to produce the agricultural products consumed by Finns is located outside Finland, especially in other parts of Europe and in South America. 93% of the biodiversity impacts was located outside Finland's borders, especially in biodiversity-rich regions such as Brazil, India, Colombia and Indonesia, where it is linked to the threat of extinction caused by deforestation. Coffee, cocoa, sugar, rubber and soybean were among products with largest biodiversity impacts.

Figure. Imported cropland for Finnish consumption in 2010 and the associated biodiversity impacts as potentially disappeared global fraction of species. Source Sandstöm et al 2017, published with permission.

The irrigation of crops with water from rivers or lakes and from the ground water impacts biodiversity by causing wetland area loss and by reducing the productivity of natural vegetation. Less than 10 % of irrigation water consumed by Finland is used within the country's borders, since the local climate has (at least so far) allowed for mostly rainfed production.

More than 90% of the irrigation water consumed in Finland is therefore used outside Finland's borders, typically in drought-stricken regions such as the Mediterranean countries, South Africa and India (see figure below). 99% of the biodiversity impact caused by use of irrigation water use was outside Finland's borders. Individual products and production areas that had a particularly high biodiversity impact included citrus fruits imported from Spain, the USA and Egypt, and grapes imported from South Africa.

Figure. Irrigation water required by Finnish consumption in 2010 and the associated biodiversity impact. Source Sandström et al 2017, published with permission.

The state of nature in Finland

Although Finland is relatively biodiversity-poor compared to many other countries, at least 48 000 species inhabit the country. Of these species, 47% are sufficiently well known to be assessed for endangerment in the 2019 Red List of Threatened Species. Of the species assessed, 11.9% were considered threatened, meaning they are at risk of extinction unless threats to them are reduced or eliminated.

The majority of threatened species are found primarily in forests (31.2%) and in cultural and other human-altered habitats (24.4%). Overall, forests and cultural habitats contain the highest number of species, which partially explains the high number of endangered species. However, in relative terms, the highest proportion of threatened species is found in the fells, which account for only 3.6% of the total number of species assessed, but as many as 37.9% of them are threatened.

Changes in forest habitats have been the most important factor in the endangerment of species, and are the primary cause of endangerment for 733 species. The most common are regeneration and management activities causing loss of old growth forests, large trees and decaying wood. The second most common cause of species endangerment is the closure of open habitats, which accounts for endangerment of 639 species. Climate change is having a particular impact on the decline of fell species.

More material online (in Finnish)

For more information on endangered species, causes of threat and future threats, visit the Red Data Book online at https://punainenkirja.laji.fi/.

Lajien Punainen lista – katso, mitkä Suomen eläimet ovat vaarantuneet! | Luonto | yle.fi tells you about Finland's endangered vertebrates.

For reflection: an often-heard argument is that Finland's climate and environmental efforts are irrelevant because our emissions are small by global standards. What is your opinion?  You can share your reflections and discuss with other students on the page linked below.

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