Climate change The government has run into a dispute over the EU’s forest policy – that is what it is about

Policy|Climate change

Controlledxen EU Committee of Ministers boat On Wednesday, Finland opposes the Commission’s proposal on the climate criteria for a sustainable financial classification system, ie the so-called taxonomic regulation.

However, the government is completely divided on what is important for Finland. Greens and the Left Alliance recorded their dissenting views and criticized the government’s line exceptionally at Question Time on Thursday.

The Treasury minister Annika Saarikko (Central) was first strongly criticized by the Prime Minister Sanna Marinia (sd) and then apologized for his words.

What exactly is it about?

What does the Sustainable Finance Rating System include?

European the union is currently laying down rules for the environmental classification of investment sites, also known as taxonomy.

The purpose is to create guidelines to help investors determine which investment target is green and which is not. The aim is to get more private capital for climate action. Investors are also looking for sustainable properties and expect better returns from them than from climate-weaker properties.

EU countries adopted the so-called taxonomy regulation as early as June 2020. At the same time, they empowered the Commission to issue separate regulations defining precise criteria for the sustainability of projects and investments.

The Commission has already adopted the first regulation, which the Finnish Government therefore objects to. There will also be another regulation defining, among other things, which projects are environmentally sustainable.

The Commission will also shortly outline whether nuclear power and natural gas can be classified as sustainable.

How does Finland react?

Finland the government eventually ended up opposing the first regulation, especially because of its forest rules. The decision is quite exceptional, as Finland has generally supported the EU’s climate guidelines.

The Center and the NCP oppose the guidelines because they believe that the EU makes it difficult for the forest sector to operate and interferes in too much detail with Finland’s right to decide on its forests. According to the Greens, classification criteria are an important way for financial markets to identify climate-friendly projects.

The government’s line was finally decided by the Prime Minister Sanna Marin (sd). The Sdp based its position on, among other things, Sweden’s negative position and ambiguities in the requirements of the act, the interpretation of which is still controversial.

The announcement by the center also had an effect opposes the proposal in Parliament together with the opposition. The positive position of the government would therefore have finally disappeared in Parliament.

What happens next?

Government the position will next go to a large parliamentary committee, where Finland’s position will eventually be formed. EU member states have three options: vote yes, no or abstention.

From the point of view of the implementation of the policy, Finland’s position is probably not important, as the majority of EU countries are probably in favor of the policy. In the EU, the matter will be decided on 8 December.

The next delegated regulation being prepared by the Commission will also tighten up the rules on forests. As it defines environmental criteria, its practical impact is even greater. It is therefore expected that the political debate around the issue will continue.