Energy production

Climate change has challenged energy production across the world. Most global energy production (electricity and heat) is still based on fossil fuels that emit greenhouse gases. However, a change for the better is already underway, and the share of renewable energy is growing significantly.

Climate change mitigation directs energy production

A major milestone was reached in December 2015 in Paris when the international community agreed to limit global warming to 1.5 degrees Celsius compared to pre-industrial levels.

In the EU, each member state has the right to its own energy production palette. However, targets have been set for reducing greenhouse gases, increasing renewable energy and improving energy efficiency to guide energy production and use. The emissions reduction target for 2030 is 55 % and the renewable energy target is 45 %.

96 %

Share of CO2-neutral electricity in electricity produced in Finland in 2035.

57 %

Share of renewable energy sources in electricity generation in Finland in 2025.

Finland has already almost reached its share of the 2030 renewable energy increase target (42 %) and emission reductions from energy production are progressing under the EU’s emissions trading scheme. In 2025, almost 96 % of the electricity produced in Finland was already CO₂-neutral, with renewables accounting for 57 % of electricity production. The share of climate‑neutral energy in district heating production also continues to increase. Fossil fuels and peat accounted for only 13 percent of district heating production in 2025.

The strength of Finland’s energy production has long been the diversity of its production mix – both in electricity and heat production. It should remain so even after fossil fuels are phased out. The energy industry is committed to a climate-neutral energy future by 2035.