FINLAND Law and Practice Contributed by: Kari Marttinen, Laura Leino, Outi Iso-Markku and Aino Lahti-Nuuttila, Erottaja Attorneys Ltd
carrying out the activity. As mentioned in 5.2 Liability for Historical Environmental Incidents or Damage , liability for compensation also lies with the person to whom the activity that caused the environmental dam- age has been assigned, if the assignee knew or should have known about the loss or nuisance (or the threat of such) at the time of the assignment. When allocating the liability under the Criminal Code, due consideration will be given to the position of the person, the nature and extent of the person’s duties and competence, and the person’s involvement in both the initiation and the perpetuation of the unlaw- ful situation. 6. Corporate Liability 6.1 Liability for Environmental Damage or Breaches of Environmental Law The Finnish legal system makes no explicit distinc- tion between corporate entities and natural persons. In Finland, as in many other countries, the “polluter pays” principle is the main rule. This means that a corporate entity can also be liable for environmental damages and breaches of environmental law. Moreover, Finland recognises the criminal liability of a legal person involved in an environmental crime. The corporate criminal liability applies irrespective of the liability of natural persons and a corporate fine may be imposed even if a natural person offender cannot be identified or will not be punished. The amount of a corporate fine ranges from EUR850 to EUR850,000 and the court has wide discretion as to how to calcu- late the amount of the fine. The fine will be imposed in proportion to the harmfulness and dangerousness of the offence and the size/financial standing of the liable corporation. In recent case law, the imposition of forfeiture orders – which require the surrender of proceeds derived from criminal activity – has grown in significance, potentially surpassing the impact of corporate fines as a deterrent. Furthermore, the obligations of the Environmental Pro- tection Act regarding environmental permits and the sanctions relating to possible non-compliance apply
especially to corporate entities (see 4.5 Consequenc- es of Breaching Permits/Approvals ). 6.2 Environmental Taxes The most relevant environmental taxes in Finland are: • excise duty on liquid fuels; • excise duty on electricity and certain fuels; • excise duty on beverage containers; • waste tax; • car registration tax; • annual vehicle tax; and • environmental liability contribution. Energy taxes, taxes on road transport, and so-called special environmental taxes and fiscal levies are considered as green or environmental taxes. In addi- tion to tax revenues, environmental taxes strengthen incentives for energy efficiency, energy savings and low-emission energy production. The accrual of envi- ronmental taxes and environmental charges consti- tutes approximately 5% (in 2023) of cumulative total revenue in Finland. There has been a slight decrease in accrual caused by the 5% decrease in energy taxes. The most significant environmental taxes (75% accru- al of all environmental taxes) are energy taxes, pre- dominantly consisting of excise taxes on liquid fuels and electricity and certain other fuels. The focus has been shifted to carbon dioxide tax, with the aim of taking the average emissions resulting from the fuel during its life cycle into consideration. Both registration-based car tax and annual vehicle tax take environmental factors into consideration, with CO₂ emissions affecting the level of tax. The accrual of car tax has fallen due to a decline in vehicle reg- istrations and an increase in the sales share of fully electric vehicles exempt from car tax. The Environmental Damage Fund took effect on 1 January 2025. The funds are part of the secondary environmental liability systems and they are collected as tax-like environmental liability contributions from operators whose activities might pose a risk of envi- ronmental pollution.
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