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Finnish Climate Policy - Ilmasto

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Finnish climate policy – towards a low-carbon and energy-efficient future Ministry of the Environment, Ministry of Agriculture and Forestry and Ministry of Employment and the Economy 2015 1 PART I Principles of climate policy PART II Sector-specific mitigation of climate change PART III Impacts of climate change and adaptation to them 2 PART I Principles of climate policy 3 Why do we need climate policy? The target is to keep the earth’s average temperature from rising more than 2°C YK:n ilmastosopimus Climate change is a global problem, and active, shared measures should be Kioton pöytäkirja taken to mitigate it. Sitoutuneiden maiden päästöt alle by 43% since The carbon dioxide content of the atmosphere haskattavat increased 15 the % maailman kasvihuonekaasupäästöistä 1750. The reason for this is use of fossil fuels and deforestation. As a consequence of the rise in carbon dioxide content, the atmosphere 1. velvoitekausi 2. velvoitekausi has already grown warmer by 0.85 degrees compared to the preindustrial era. The oceans have become warmer, snow and ice cover have decreased, and sea 1992 1997 2005 2008 2012 levels have risen.The effects are already seen on all the continents. Climate policy helps in mitigating global warming and adapting to the effects of climate change. Finland’s national climate policy is closely linked to kansainvälinen 2020 the international agreements on climateUusi change and the shared sopimus climate policy 2015 of the EU. Part I: Principles of climate policy 2020 2020 4 Finland’s goal is to reduce greenhouse gas emissions 80–95% compared to 1990 levels by 2050 To achieve this goal, significant and comprehensive societal measures are required, especially concerning energy production and consumption. Source-specific greenhouse gas emissions in Finland between 1990 and 2012 million tonnes CO2e.* 80 1990 emission level 71.6 Mt CO2e -80–95% Million tonnes CO2e 60 40 20 0 20 50 40 20 30 20 20 20 12 20 10 Part I: Principles of climate policy 20 00 20 90 19 Waste management Agriculture Industrial processes Energy production and consumption *Carbon dioxide equivalent is a quantity used in climate science describing the amount of any greenhouse gas emissions in CO2 units. Source: Statistics Finland and MEE/ Energy and Climate Roadmap 2050 5 Finland has an active role in climate policy INTERNATIONAL LEVEL United Nations’ Framework Convention on Climate Change, 1992 Kyoto Protocol, 1997 Objective: United Nations new climate change agreement 2015 EU L EVEL LL EV EL Part I: Principles of climate policy ERNATIONA TION NA A EVEL NATIONAL LEVEL National climate and energy strategies (2001, 2005, 2008, 2013) Government Foresight Report on Long-term Climate and Energy Policy (2009) Energy and Climate Roadmap 2050 (2014) Climate Change Adaptation Plan 2022 (2014) Climate Change Act (2015) National legislation and other policy instruments, programmes INT LL EU LEVEL Ratification of the Kyoto Protocol and the EU’s internal distribution of responsibility (effort sharing) The EU’s shared and coordinated policies Monitoring system for greenhouse gas emissions EU climate and energy package until 2020 EU climate and energy targets until 2030 Energy roadmap 2050 LOCAL LEVEL municipalities civil society 6 All countries to be included in the new climate change agreement United Nations Framework Convention on Climate Change Kyoto Protocol 1992 1st commitment period of Kyoto 2008 1997 2nd commitment period of Kyoto 2020 2012 New international agreement 2020 2015 The United Nations Climate Change Conference in Paris 12000 10000 8000 6000 4000 2000 0 tonnes CO2e/ capita million tonnes CO2e Total emissions of countries in 2011 (incl. land use sector) Greenhouse gas emissions of countries per capita in 2011 China USA EU28 India Russia 20 15 10 5 0 China USA EU28 India Russia *Carbon dioxide equivalent is a quantity used in climate science describing the amount of any greenhouse gas emissions in CO2 units. PART I: Principles of climate policy   Source: World Resources Institute 7 Finland supports the climate measures of developing countries Climate finance is a key question in international climate change negotiations. The purpose is to share the expenses caused by climate change. This also generates innovations and business. Finnish climate finance 2013 57% GATION MITI gy olo Wa ter meth o ds Renewable energy ffi rce e u o s Re cien spo n a r dt rt an on i t c tru ergy s n e en l o b a C w Rene s ion ation tat Cult iv rs th e Fo res tat ion te c hn ea W AD AP TA TIO N 43 % Weather stations cy Reso u PUBLIC FINANCE €92 million rce e ffi cienc y PRIVATE FINANCE* Estimated €400 million – €1.5 billion *Private climate finance includes those direct investments by Finnish companies, such as renewable energy projects in developing countries, which the state has intitiated with support from Finnfund, for instance. PART I: Principles of climate policy   Source: Ministry for Foreign Affairs, Ministry of Employment and the Economy, the Ministry of the Environment 8 Path to the Paris Climate Change Conference in 2015 6.3. 31.3. Large economies are requested to report those climate measures to which they will commit in Paris 1.–11.6 Climate change negotiations in Bonn 31.8.–4.9. Climate change negotiations in Bonn 1.10. 19.–23.10. 1.11. 30.11.–11.12. PART I: Principles of climate policy   The EU reports the emission reduction commitments to which it will commit in Paris (Finland included in the EU commitment) Deadline for reporting the national climate measures Climate change negotiations in Bonn UN synthesis report on the sufficiency of emission reduction commitments for keeping to the target of 2 °C (commitments sent by 1 October) The United Nations Climate Change Conference in Paris, where the new agreement will be signed 9 The EU has committed to reducing its greenhouse gas emissions at l e a s t -20% -40% -80–95% by 2020 PART I: Principles of climate policy   by 2030 by 2050 10 EU’s climate and energy targets for 2020 and 2030 2020 Reducing greenhouse gas emissions -20% compared to 1990 levels 20 % The share of renewable energy to Improving energy efficiency 20% of final energy consumption compared to the estimated development in 2007 2030 at l e a s t -40% compared to 1990 levels to 27 % of final energy consumption 27% compared to the estimated development in 2007* *Indicative target PART I: Principles of climate policy   11 What is included in the EU’s emissions trading system? Emissions reduction targets for sectors covered by the emissions trading system and sectors not covered. Emissions trading -21% production of electricity and district heating, metal processing industry, pulp and paper industry, chemical industry, air traffic and construction industry by 2020 The emissions reduction target of the EU’s emissions trading system compared to 2005 levels Approximately half of Finland’s emissions were covered by the emissions trading system in 2013. PART I: Principles of climate policy   Not included in emissions trading transportation, some agricultural emissions, use of fuels for the heating of buildings and for transportation, agriculture, and waste management -16% by 2020 The emissions reduction target for Finland’s emissions from sectors not covered by the emissions trading system, compared to 2020 levels. Source: Statistics Finland 12 Million emission units* MtCO2 The number of emission allowances decreases annually in the EU’s emissions trading system Emission level 2005 2 500 -43% 2 000 1 500 1 000 500 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Current emission ceiling The new emission ceiling agreed in the EU’s 2030 package *1 emission unit = 1 tonne of carbon dioxide PART I: Principles of climate policy   Source: EEA 2014 13 Emissions reduction targets and measures are integrated with several other policy targets Security of energy supply Competitiveness Reduci n g green Securing food production PART I: Principles of climate policy  Affordable housing Developing new business opportunities house g Improving air quality as emis Efficiency of transport sions Securing ecosystem services 14 Finland has decoupled greenhouse gas emissions from economic growth Greenhouse gas emissions have decreased in Finland while the gross national product has increased. Some of the production causing greenhouse gas emissions now takes place abroad, however, and imports have grown. On the other hand, some of Finland’s emissions are generated in the manufacturing of products for export abroad. For example, our paper industry produces paper for 100 million people. 200% Gross domestic product (comparison reference 2010 prices), year 1990 = 100 150% 1990 level 100% Greenhouse gas emissions of production 50% 1990 1995 2000 2005 2010 PART I: Principles of climate policy Source: Statistics Finland  15 PART II Sector-specific mitigation of climate change 16 Most of Finland’s greenhouse gas emissions are generated by energy production and consumption Emissions can be reduced in all sectors by switching from fossil fuels to emission-free energy sources, by improving energy efficiency and by carbon sequestration. Energy production 35% Total emissions in 2013: 63.2 million t of CO2e Domestic transportation 19% Industrial production and construction 14% 77% Energy production and consumption includes electricity and heat production utilised by industry Other energy* 9% Waste management 4% 9% Industrial processes 10% Agriculture *For example, heating of buildings, agriculture, forestry and fishing industries and associated machinery used in the sectors, other uses of fuel and fugitive emissions of fuels, for example. Carbon dioxide equivalent is a quantity used in climate science describing the amount of any greenhouse gas emissions in CO2 units. PART II: Sector-specific mitigation of climate change  Source: Statistics Finland 17 Energy production and consumption In order to achieve the emissions reduction targets, a transition to a zero-emission energy system by 2050 is needed. Energy must also be used more efficiently. 18 Finland has a diverse energy system The diversity of energy sources improves the security of supply and enhances the opportunitites to work effectively in changing conditions. The share of renewables and other zero-emission forms of energy is high in Finland in international comparisons. Oil 23.1% Natural gas 7.8% Net imports of electricity 4.1% Peat 4.1% Hydro and wind power 3.5% Coal 11.0% Wood fuels, in total 24.7% Nuclear energy 18.0% Others 3.7% Total consumption* of energy in Finland in 2013 In total 381 terawatthours (TWh) *Total consumption includes the fuels utilised in energy production and processing as well as energy used directly in the final consumption, including transportation fuel and fuels utilised for heating buildings. PART II: Sector-specific mitigation of climate change   Source: Statistics Finland 19 Most of the energy in Finland is used in industry and for heating buildings Use of energy can be made more efficient in all sectors, especially in construction, housing and transportation. In Finland, the industrial sector is already quite energy efficient in its operations, and through this strong energy efficiency competence it is possible to develop and commercialise cleantech solutions. Others Heating of buildings 12% 46% 25% 16% Industry Transportation Sector-specific final consumption of energy in Finland in 2013 In total 308 terawatthours (TWh) The Others sector includes the use of electricity and fuel by households, the public and private service sector, agriculture and forestry, and in construction operations. PART II: Sector-specific mitigation of climate change  Source: Statistics Finland 20 Bioenergy accounts for 80% of Finland’s renewable forms of energy Finland is boosting its share of renewable energy by using more wood fuels, in particular. The goal is also to sharply increase the amount of electricity produced through wind power. Uusiutuvan energian Sources of renewable forms of energylähteet in 20132013 14% Small-scale use of wood 32% Wood fuels from industrial and energy production 11% Hydropower 33% Waste sludge from the wood processing industry The share of renewable energy in the final consumption of energy Share 2013  36.8%  Other bioenergy (e.g. transport biofuels) 4% Recycled fuel (bio) 2% Biogas 0.6% Heat pumps 4% Wind power 0.4% The EU’s objective for Finland 2020 PART II: Sector-specific mitigation of climate change   11% Others 38% Source: Statistics Finland, Eurostat 21 Bionenergy sources in Finland Forest residue Side streams and waste sludge from forestry Saw dust and bark from sawmills Electricity Heat Biofuels for transport and machinery Firewood Side streams from the food industry Biowaste Manure Energy plants and other vegetation biomass PART II: Sector-specific mitigation of climate change  22 The share of renewable forms of energy in Finland is one of the highest in the EU countries Share of renewable forms of energy in total energy consumption in 2013 34.8% Sweden Austria 29.6% Finland 29.2% 24.2% Denmark 14.6% Spain EU28 11.8% Germany 10.3% 9% France Great Britain 5% 0 20 hydropower PART II: Sector-specific mitigation of climate change  40 wind power 60 solar energy 80 bioenergy 100 others Source: Eurostat 23 Electricity produced in Finland has low emissions Greenhouse gas emissions in electricity production are caused by the use of fossil fuels and peat. The proportion of these in electricity production is globally around 68%, in the EU 49% and in Finland 33%. Sähköntuotannon ominaispäästöt Specific emissions of electricity production, gCO2/kWh* 0 200 400 600 800 1000 India China World USA Germany Great Britain EU28 Denmark Austria Finland France Sweden Norway PART II: Sector-specific mitigation of climate change  * Average value between 2010 and 2012 Source: International Energy Agency IEA 24 Transportation Transportation emissions are reduced by improving the energy efficiency of transportation and utilising renewable forms of energy or electricity instead of fossil fuels. 25 Road transportation causes the majority of greenhouse gas emissions Approximately 90 per cent of domestic transportation emissions are caused by road traffic. If international transportation is examined, the amount of emissions caused by aviation and, in particular, shipping increases. The emissions of international transportation are not currently regulated by international agreements, and are not, therefore, officially monitored. Greenhouse gas emissions from domestic transportation in 2013 Rail traffic 1% Domestic air traffic 2% Waterway transport 4% Machinery 5% Road traffic 89% Passenger cars 53% 5% Passenger cars, buses, motorcycles and similar Vans and trucks 31% PART II: Sector-specific mitigation of climate change  Source: Statistics Finland 26 New alternatives to oil can be used as transportation fuels In transportation, fossil fuels can be replaced by, for example, electricity, hydrogen, liquid biofuels and renewable diesel, i.e. natural gas and biogas. Carbon dioxide emissions of passenger cars with different fuels (fuel emissions from production to use are included) 139 g/km Petrol 119 g/km Natural gas 102 g/km Diesel Flexifuel vehicles (high blend ethanol vehicle) 49 g/km Biogas 32 g/km Electric vehicle with a battery, average electricity 28 g/km 8% 17 g/km Renewable diesel/waste grease by 2015 Electric vehicle with a battery, renewable electricity 0 g/km 0 30 60 In its legislation, Finland is committed to the following percentages of biocomponents in road traffic fuels 90 120 g/km 150 20% by 2020 A so-called double counting will be taken into account *C category car, manufactured without performance data, Renewable Energy Directive 2009/28/EC PART II: Sector-specific mitigation of climate change  Source: VTT Technical Research Centre of Finland/ Nylund 2015 27 Construction and housing The emissions from the built environment are reduced by improving the energy efficiency of buildings, making the urban structure denser, and reducing emissions of transportation and housing. In addition, the production method of energy needed for the operations and housing of communities has a large impact on emissions. 28 To reduce emissions, the various levels, from the infrastructure planning to the user’s choices, must be taken into account The planning of sustainable, well-functioning communities is the basis for energy-smart housing. With regard to climate change, the most significant solutions related to land use are made in growing urban areas. Urban planning - Services nearby - Functional public transport - Local energy production PART II: Sector-specific mitigation of climate change Buildings - Energy efficiency - Maintenance and repair work Life-style and consumer actions - Use of buildings 29 Towards more energy-efficient buildings About 40% of Finland’s total energy consumption is attributable to buildings. They generate around 35% of greenhouse gas emissions, which can be reduced significantly by improving the energy efficiency of buildings. •Nearly zero-energy buildings by 2020 •Energy provisions for building renovation 2013 •Energy certificate in use since 2008 What is a nearly zero-energy building like? Healthy room microclimate warmth, humidity, sound, lighting, air quality Low heat loss good insulation, integrity and heat recovery of ventilation Low total energy consumption Efficient use of electricity and management of electricity’s peak consumption Use of renewable energy PART II: Sector-specific mitigation of climate change 30 In Finland, most of the greenhouse gas emissions of housing are caused by heating Approximately half of household emissions are caused by heating living spaces, a fifth by heating water and a third by lighting and other electricity consumption. Reducing emissions and energy consumption is, however, easy as even the smallest changes in routines and habits have an effect. 50% Heating 30% Lighting and other electricity consumption 20% Heating of water Distribution of household emissions in Finland. PART II: Sector-specific mitigation of climate change 31 Waste sector Greenhouse gas emissions caused by waste are reduced by improving the utilisation of waste and decreasing the quantity of waste transported to landfill sites. In recent years, emissions have dropped so swiftly that it could be called a success story. 32 In Finland, most of the greenhouse gas emissions from the waste sector are generated in landfill sites Only about three per cent of waste generated in Finland is municipal waste, but it accounts for nearly all of the greenhouse gas emissions from the waste sector. Greenhouse gas emissions of landfill sites in 2013 Construction waste 15% Industrial solid waste 17% Municipal solid waste 61% Industrial sludge 6% Municipal wastewater sludge 1% The proportion of landfill site emissions is 83% of the greenhouse gas emissions of the waste sector. Recovery of methane: 36 thousand tonnes PART II: Sector-specific mitigation of climate change Source: Finnish Environment Institute 33 In Finland, emissions from landfill sites have dropped radically Greenhouse gas emissions of landfill sites in total Mt CO2-e. The goal of 85% emission reduction in the waste sector will be achieved by 2050 through the current measures that restrict the disposal of organic waste in landfills. 4.0 3.5 1997 Waste Tax Act and a decision by the Finnish Government on landfill sites. 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1990 2000 2010 2020 year 2030 2040 2050 *Reduction calculation has not taken into account the carbon dioxide emissions created during the energy production when waste is utilised as fuel, as the energy produced with waste is used to replace energy produced with some other fuel and the net effect of the waste utilised as fuel on the greenhouse gas emissions is included in the emissions of the energy sector. PART II: Sector-specific mitigation of climate change Source: Finnish Environment Institute and SYKE 34 In Finland, less and less municipal waste ends up in landfills Landfill disposal of organic waste will be ended by 2016 and waste will gradually be utilised more as both material and energy. According to the data from early 2015, the goals set for 2016 will be exceeded. Distribution of municipal waste to utilisation and processing between 2006 and 2012 and the goal set for 2016 30 Goal for 2016 20 2013 21 2012 22 12 2011 22 13 2010 11 20 2008 24 2007 24 11 2006 24 9 PART II: Sector-specific mitigation of climate change 33 25 40 22 24 Utilisation as material, excluding composting and digestion 25 34 13 12 45 18 8 20 20 42 2009 0 30 46 17 51 12 53 9 40 58 60 Share of community waste, % Composting and digestion 80 Utilisation as energy 100 Disposal in landfill site Source: Statistics Finland and VALTSU 35 Agriculture and forestry Agriculture and forestry generate greenhouse gas emissions. On the other hand, forests and vegetation sequester a significant amount of carbon dioxide. By managing forests, ensuring good growth conditions of soil, and improving production methods, greenhouse gas emissions can be reduced and carbon sequestration by agriculture and forestry can be enhanced. 36 Agriculture and forestry: emissions and sequestration of greenhouse gases soil forest clearing fields PART II: Sector-specific mitigation of climate change field manure domestic animals machinery energy production wood construction and wood products 37 Forests and wood products can be used to sequester and store carbon Carbon sinks of forests refer to the difference between annually sequestered carbon by forests and carbon removals from them. At the the European scale, forest carbon sinks in Finland rank very high volume-wise. By using wood in products and as energy, greenhouse gas emissions and use of non-renewable energy can be reduced. Heathlands Forest carbon sinks WOOD PRODUCTS in total: -26.1 million t of CO2e in total: -4.4 million t of CO2e Mires Increment of the growing stock Removal of the growing stock -131.1 million t of CO2e. 104.6 million t of CO2e. Increase in storage -24.5 million t of CO2e. Removal of forest stock 20.1 million t of CO2e. -8.4 million t of CO2e. 8.8 million t of CO2e. CO2e = Carbon dioxide equivalent is a quantity used in climate science describing the amount of any greenhouse gas emissions in CO2 units. PART II: Sector-specific mitigation of climate change Source: Statistics Finland 2013 38 Forests sequester a large volume of Finland’s greenhouse gas emissions Million tonnes CO2e. All countries report on the impacts of forests and land use on climate under the international agreement on climate change. One inventory sector covers emissions resulting from land use, land use change and forestry (LULUCF). In Finland, forests sequester annually around 30–60% of greenhouse gas emissions. The most significant reason for the variations in the carbon sinks of our forests are the changes in the annual volume of felling. 90 80 70 60 50 40 30 20 10 0 -10 -20 -30 -40 -50 Greenhouse gas emissions (other sectors) Greenhouse gas emissions from the LULUCF sector minus the sinks, i.e. net sink Emissions minus net sinks + 1990 1995 2000 2005 2010 2012 CO2e. = Carbon dioxide equivalent is a quantity used in climate science that describes the amount of all greenhouse gas emissions produced by human actions. LULUCF= Land use, land-use change and forestry PART II: Sector-specific mitigation of climate change  Source: Statistics Finland 39 Sources of emissions from agriculture in Finland Most of the agricultural emissions come from the soil (e.g. from decomposition of organic matter and fertilisation). 1. Soil N2O, CO2 2. Digestion by domestic animals CH4 3. Treatment of manure N2O, CH4 4. Liming and controlled burning N2O, CH4, CO2 5. Fuel consumption of agriculture CO2 CH4 = methane N2O = nitrous oxide CO2 = carbon dioxide PART II: Sector-specific mitigation of climate change   40 Food production and consumption and related climate measures in Finland Soil is managed carefully, for example The health of vegetation and animals by trenching and preserving organic is secured and the spreading of matter (M+A) detrimental invasive species is prevented (A) Plant varieties that are better adapted to the new conditions are bred, such as turnip rape and oilseed rape (A) Peatlands are cultivated in a climate-friendly manner (M+A) Energy efficiency is increased and fossil fuels are replaced with renewable energy (M+A) Nutrients in manure are recovered and nitrogen fertiliser is applied according to requirements of plants (M) Vegetables will be utilised more in diets (M) Food loss is reduced through the whole food system (M) M: Measure for mitigation of climate change A: Measure for adaptation to climate change PART II: Sector-specific mitigation of climate change   41 PART III Impacts of climate change and adaptation to them 42 Risks and opportunities of climate change in Finland Energy and industry - Securing the electricity supply in exceptional conditions - Risk management in changing water conditions + More hydropower and bioenergy Agriculture - Greater risk of diseases and pests - Extreme weather conditions cause harvest losses + New species and more bountiful varieties Game management and reindeer herding Biodiversity Forestry Tourism - The quantity and quality of reindeer food - Greater risk of parasite epidemics - Snow-free winters are a risk for animals that grow a winter coat - Increase in forest damage - Loss of frost makes felling more difficult + Trees grow faster Water resources Transportation - Effect of heavy rain on the usability of roads - Increased slipperiness External threats - Global economic disturbances - More frequent conflicts - Conflicts over natural resources - Environmental migrants - Higher risk of flooding - Leaching of nutrients increases - Changes in the quantity and quality of groundwater - Changes in the prevalence of plants and animals - Greater numbers of invasive species - Higher number of threatened species - Shorter winter tourism season + The popularity of summer tourism may increase Buildings and use of areas - More flooding from stormwater runoff - Exterior cladding affected by increased humidity and wind stress - Higher moisture content of soil lowers the carrying capacity Fish and fishing - Smaller fish stocks - Endangered species are threatened further The Baltic Sea - Rising sea level - Decrease in salt levels, eutrophication Health and wellbeing - Heat waves, heat islands of cities - Pollution of domestic water supply due to heavy rains - Changes in the prevalence of animal-borne diseases 43 Finland has many ways of adapting to and preparing for climate change With the help of carefully planned adaptation measures the negative effects of climate change can be mitigated while the beneficial effects can be utilised better. Agriculture - breeding plants and animals - improving the management of water resources - alarm systems for pests Energy - measures for improving the security of electricity supply Forestry - forest tree breeding - developing forest management - preparedness plans for forest damage Tourism - developing year-round tourism - developing tourist services Transportation - warning systems and communication - improving operations during disturbances - improving the maintenance of transport routes Floods - warning systems and communication -land use planning - flood embankments, protective structures Biodiversity - developing the network of conservation areas - preventing harmful invasive species Health and wellbeing - heat wave warnings - managing the quality of drinking water PART III: Impacts of climate change and adaptation to them   Source: How can we be prepared for inevitable climate change? (Ministry of Agriculture and Forestry /2011) 44 Extreme weather conditions have already caused plenty of costs in Finland Based on current experience, it pays to be prepared for extreme weather conditions. Droughts €100 million whole Finland 2002-2003 Forest damage caused by storms €120 million costs for electricity companies €48 million insurance compensations €102 million Hannu and Tapani storms 2011 Flooding €6 million Southern Ostrobothnia, 2012 Forest damage caused by storms over €60 million Eino storm 2013 Forest damage caused by storms around €40 million Seija storm 2013 Storms, over €100 million Flooding €20 million Flooding €0.9 million Gulf of Finland, 2005 PART III: Impacts of climate change and adaptation to them  Centre of Kittilä, 2005 Flooding €20 million Pori, 2007  Flooding €4.7 million Summer 2010 Vantaanjoki, 2004 45