What happened
The Finnish Government has expressed support for reforming the EU emissions trading system. The government submitted a Union communication to Parliament on October 1, 2026, outlining its position on the Commission proposal for the reform of the Emissions Trading Directive.
The European Commission proposed the reform on July 17, 2026, with the aim of reducing emissions by 90% from 1990 levels by 2040. The government agrees with the proposal, but suggests some adjustments, such as maintaining a higher reduction factor in the early years to encourage investment in low-emission solutions.
The government also supports the use of international carbon credits, but believes they should be used as little as possible to ensure that climate actions and investments are primarily targeted within the EU. Additionally, the government is in favor of developing emissions trading as a market-driven system that promotes innovation and industry competitiveness.
The government also supports the integration of permanent carbon removals into the emissions trading system and the extension of emissions trading to maritime transport and municipal waste incineration. However, it does not support the expansion of emissions trading to aviation.
