FINLAND Trends and Developments Contributed by: Kari Marttinen, Laura Leino, Outi Iso-Markku and Tuuli Pohjonen, Erottaja Attorneys Ltd
Driving the Green Transition Through Legislative Reform Finland’s green transition remains central to its legisla- tive and political agenda, reflecting broader European and global efforts toward sustainability and climate neutrality. The current government’s programme out- lines an ambitious plan to reshape the national econ- omy into a low-carbon, sustainable model. Energy security and the resilience of energy networks have also emerged as key themes in Finland’s strategy for a secure and sustainable economy. Several legislative initiatives have already been imple- mented to support this agenda, including the estab- lishment of a new permitting authority and the stream- lining of permitting processes, set to begin from the start of 2026. To promote these changes, significant reforms are planned for the Land Use and Building Act, as well as waste legislation, aligning Finland’s environmental objectives with national and interna- tional commitments. The country is also home to numerous hydrogen, data centre and battery projects, underscoring its commitment to clean energy innova- tion and industrial decarbonisation. Reforming regional administration and permitting Recognising the importance of efficient permitting for investment and clean economy development, the Finnish government has introduced a comprehensive reform of regional state administration. Environmental projects often require multiple permits from various authorities under separate legislative frameworks, resulting in fragmented and time-consuming proce- dures. The reform aims to streamline these processes, reduce delays and create a more predictable regula- tory environment for operators and investors. At the heart of the reform is the establishment of the Finnish Supervisory Agency ( Lupa- ja valvontavirast o, LVV), a new national permit and supervisory authority that will consolidate responsibilities previously held by Regional State Administrative Agencies ( aluehallinto- virasto , AVI) and Centres for Economic Development, Transport and the Environment ( elinkeino-, liikenne- ja ympäristökeskus , “ELY Centres”). The LVV will oversee permitting, supervision and guidance duties under key environmental laws, including the Environmental Pro- tection Act, Water Act, Waste Act, EIA Procedure Act,
and Nature Conservation Act. Municipal authorities will, however, remain responsible for minor environ- mental permits. In parallel, the ELY Centres will be restructured into regional units known as Economic Development Centres, which will focus on strengthening biodiver- sity and improving the state of the environment and water bodies through programme and project-based work, while also advancing climate action within the frameworks of EU funding and regional development. Streamlining permitting and EIA procedures A key element of the reform is the integration of vari- ous permit application processes to accelerate and simplify permitting of industrial, infrastructure and energy projects. The introduction of a single-window approach ( yhden luukun periaate ) will allow multiple permit applications for the same project to be pro- cessed jointly. This model enables consolidated hear- ings and decisions, replacing the current system of separate proceedings and permit decisions. The reform also addresses longstanding challenges in the environmental impact assessment (EIA) process, particularly its expanding scope and the excessive level of detail often required in related documentation. Its overarching aim is to streamline the EIA process so that it will be more effectively focused on the signifi- cant environmental impacts of projects, thereby accel- erating proceedings and reducing the administrative burden on both project developers and environmental authorities. The reform promotes closer integration of EIA and permitting procedures, expanding the use of joint hearings for EIA reports and permit applications. Joint hearings will apply to projects or modifications where both the EIA report and environmental or water permit applications are pending simultaneously. While consolidation remains voluntary, developers may still conduct EIA separately or in conjunction with land use planning. Additionally, the general principle of conducting Natura assessments as part of the EIA procedure will be reinforced, with separate assess- ments permitted only for specific reasons. These changes are expected to improve predictability for developers and reduce delays in project execu-
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