WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.8
16 November 2011 
 (11-5227) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 
of the GATT 1994 and Article 25 of the Agreement 
on Subsidies and Countervailing Measures 
 
EUROPEAN UNION 
 
Addendum 
 
 
 The following addendum to the notification of  the European Union relates to subsidy 
programmes of Finland . 
 
_______________ G/SCM/N/220/EEC/Add.8 
Page 2 
 
 
   
FINLAND 
 
TABLE OF CONTENTS 
 
Page 
 
I.  AID TO SMALL AND MEDIUM-SIZED ENTERPRISES ................................................. 3  
A.  STATE AID FOR THE INTERNATIONALISATION OF SME S ........................................................... 3  
B.  LOAN PROGRAMME FOR SME S (FINNVERA PLC ) ....................................................................... 3  
C.  DEVELOPMENT LOAN PROGRAMME FOR SME S (FINNVERA PLC ) .............................................. 4  
D.  ENTREPRENEUR LOAN (FINNVERA PLC ) ..................................................................................... 5  
E.  ENVIRONMENT LOAN PROGRAMME FOR SME S (FINNVERA PLC ) .............................................. 6  
F.  GUARANTEE PROVISION AID ...................................................................................................... 7  
G.  RESCUE AND RESTRUCTURING AID TO SMALL AND MEDIUM -SIZED ENTERPRISES  ................. 8  
H.  DEVELOPMENT SERVICES FOR SME S ......................................................................................... 9  
II.  AID FOR RESEARCH AND DEVELOPMENT ................................................................. 10  
A.  AID FOR PROMOTING R&D&I .................................................................................................. 10  
III. REGIONAL AID .................................................................................................................. .. 11 
A.  BUSINESS DEVELOPMENT AID .................................................................................................. 11  
B.  REGIONAL TRANSPORT SUBSIDY  .............................................................................................. 12  
C.  ACCELERATED REGIONAL DEPRECIATION  ............................................................................... 13  
D.  GRANT FOR INVESTMENTS (ÅLAND ) ........................................................................................ 14  
IV.  AID IN THE FIELD OF ENERGY ...................................................................................... 15  
A.  ENERGY GRANTS  ...................................................................................................................... 15  
B.  AID MEASURES CONNECTED TO ENERGY TAXATION  .............................................................. 16  
C.  DIFFERENTIATED TAX RATE FOR ELECTRICITY CONSUMED BY INDUSTRY  ............................ 17  
D.  AID MEASURES CONNECTED TO BIOFUELS  .............................................................................. 17  
E.  AID MEASURES CONNECTED TO BIOFUELS  .............................................................................. 18  
F.  ENERGY TAX REFUND FOR ENERGY INTENSIVE ENTERPRISES  ................................................ 19  
G.  WASTE OIL MANAGEMENT FINANCED BY WASTE OIL CHARGES  ........................................... 20  
V.  AID FOR CHIPPING OF ENERGY WOOD ...................................................................... 21  
VI.  AID FOR BIOENERGY PRODUCTION ............................................................................ 22  
VII. OTHER SUBSIDIES .............................................................................................................. 23 
A.  INNOVATION AID SCHEME FOR THE FINNISH SHIPBUILDING INDUSTRY  ................................. 23  
B.  TRAINING AID IN ÅLAND  .......................................................................................................... 24  
C.  AID IN THE FIELD OF RURAL DEVELOPMENT  .......................................................................... 24   G/SCM/N/220/EEC/Add.8 
 Page 3 
 
 
  I. AID TO SMALL AND MEDIUM-SIZED ENTERPRISES 
A. STATE AID FOR THE INTERNATIONALIZATION OF SME S 
1. Title of the subsidy programme 
 
 State aid for business internationalization of SMEs. 
 
2. Period covered by the notification 
 
 2009 - 2010. 
 
3. Policy objective and/or purpose of the subsidy 
 
 The subsidy is granted to SMEs for development of their promotion, marketing and 
internationalization skills. The purpose of the subsidy is to increase the number and growth of the exporting SMEs in Finland.  
 
4. Background and authority for the subsidy 
 
 Ministry of Employment and the Economy (Innovation Department). 
 (Act on Discretionary Go vernment Transfers 688/2001) 
 
5. Form of the subsidy 
 
 Grant. 
 
6. To whom and how the subsidy is provided 
  The state aid for businesses internationalization is provided to Finnish SMEs on an application to Ministry of Employment and the Economy. 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The total amount of grants in 2009 was MEUR 19.6  The total amount of grants in 2010 was MEUR 26.0 
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 There are no time limits attached to this programme. 
 9. The trade effects of the subsidy 
  No effects on international trade. 
 
B. L
OAN PROGRAMME FOR SME S (FINNVERA PLC )  
1. Title of the subsidy programme 
 
 Loan programme for SMEs. General block exemption Regulation (GBER), de minimis  aid 
and 5.6.2009-31.12.2010 Temporar y Union framework for State aid measures to support access to G/SCM/N/220/EEC/Add.8 
Page 4 
 
 
  finance in the current financial and economic cr isis (N224/2009, max. 500,000 €). Soft loans for 
investments and working capital for SMEs.  
 2. Period covered 
  2009 - 2010 
 
3. Policy objective and/or purpose of the subsidy 
 
 Aid for SMEs: access to risky loans on a reasonable interest rate level. 
 4. Background and authority for the subsidy 
  The authorisation to grant these loans is decided annually in the State budget. 
 
5. Form of the subsidy 
 
 Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy. 
 
6. To whom and how the subsidy is provided 
 
 The subsidy is granted to manufacturing and service enterprises and tourism industry by 
Finnvera plc (state-owned specialised financing company). Subsidy element is in availability and in interest rate of the loans. 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 In 2009 the amount of aid was       MEUR  24.7  
 - including temporary aid (N224/2009)  MEUR    6.2 
 In 2010, the amount of aid was   MEUR  13.4  - including temporary aid (N224/2009)    MEUR    8.3 
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 Indeterminate. The subsidy is given during the maturity, which is 5-10 years. 
 9. The trade effects of the subsidy 
  No effects on international trade.  
C. D
EVELOPMENT LOAN PROGRAMME FOR SME S (FINNVERA PLC )  
1. Title of the subsidy programme 
 
 Development loan programme for SMEs. General block exemption Regulation (GBER), de minimis  aid and 5.6.2009-31.12.2010 Temporary Union fr amework for State aid measures to support 
access to finance in the current fi nancial and econom ic crisis ((N224/2009, ma x. 500,000 €). Soft loans 
for product development and managerial skills.  
2. Period covered 
 
 2009 - 2010.  G/SCM/N/220/EEC/Add.8 
 Page 5 
 
 
   
3. Policy objective and/or purpose of the subsidy 
 
 Aid for SMEs. 
 
4. Background and authority for the subsidy 
  The authorisation to grant these loans is decided annually in the State budget. 
 
5. Form of the subsidy 
 
 Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy. 
 
6. To whom and how the subsidy is provided 
 
 The subsidy is granted to manufacturing and service enterprises and tourism industry by 
Finnvera plc (state-owned specialised financing company). Subsidy element is in availability and in interest rate of the loans. 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 In 2009 the amount of aid was    MEUR  0.9  - including temporary aid (N224/2009)     MEUR  0.1 
 In 2010, the amount of aid was    MEUR  0.3 
 - including temporary aid (N224/2009)     MEUR  0.1 
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 Indeterminate. The subsidy is given all the years to maturity, usually 5 years. 
 9. The trade effects of the subsidy 
  No effects on international trade.  
D. E
NTREPRENEUR LOAN (FINNVERA PLC )  
1. Title of the subsidy programme 
 
 Entrepreneur loan. General block exemption Regulation (GBER), de minimis  aid and 5.6.2009-
31.12.2010 Temporary Union framewor k for State aid measures to s upport access to finance in the 
current financial and economic crisis (N224/2009, max.  500,000 €). Soft loans for entrepreneurs when 
establishing an enterprise. 
 
2. Period covered 
 
 2009 - 2010 
 
3. Policy objective and/or purpose of the subsidy 
 
 Aid to new enterprises (entrepreneurs). 
 G/SCM/N/220/EEC/Add.8 
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  4. Background and authority for the subsidy 
 
 The authorisation to grant these loans is decided annually in the State budget. 
 
5. Form of the subsidy 
  Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy. 
 6. To whom and how the subsidy is provided 
  The subsidy is provided to persons who start a new manufacturing, service or tourism enterprise. 
It is granted by Finnvera plc (state-owned specialised financing company). Subsidy element is in 
availability and in interest rate of the loans. 
 7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
  
 In 2009 the amount of aid was    MEUR  1.8  
 - including temporary aid (N224/2009)     MEUR  0.5 
 In 2010, the amount of aid was    MEUR  1.8  - including temporary aid (N224/2009)     MEUR  1.1 
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 Indeterminate. The subsidy is given during the years to maturity, i.e. 10 years. 
 
9. The trade effects of the subsidy 
 
 No effects on international trade  
 
E. ENVIRONMENT LOAN PROGRAMME FOR SME S (FINNVERA PLC )  
1.  Title of the subsidy programme 
 
 Environment loan programme for SMEs. Ge neral block exemption Regulation (GBER), 
de minimis  aid and 5.6.2009-31.12.2010 Temporary Union fr amework for State aid measures to support 
access to finance in the cu rrent financial and economi c crisis (N224/2009, max. 500,000 €). Soft loans for 
environmental investments.  
2.  Period covered by the notification 
 
 2009 - 2010. 
 
3. Policy objective and/or purpose of the subsidy 
  Aid to SMEs: to promote environment protection, energy saving, circulation of raw materials etc.  
4. Background and authority for the subsidy 
 
 The authorisation to grant these loans is decided annually in the State budget. 
  G/SCM/N/220/EEC/Add.8 
 Page 7 
 
 
  5. Form of the subsidy 
 
 Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy  
6. To whom and how the subsidy is provided 
  The subsidy is granted to manufacturing and service enterprises and tourism industry by 
Finnvera plc (state-owned specialised financing company). Subsidy element is in availability of the loans and in interest rates. 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 In 2009 the amount of aid was    MEUR  1.6   - including temporary aid (N224/2009)      MEUR  0.7 
 In 2010, the amount of aid was    MEUR  0.3 
 - including temporary aid (N224/2009)      MEUR     0  
8. Duration of the subsidy and/or any other time limits attached to it 
 
 Indeterminate. The subsidy is given all the years to maturity, usually 5-10 years. 
 
9. The trade effects of the subsidy  
 
 No effects on international trade. 
 
F. GUARANTEE PROVISION AID  
1. Title of the subsidy programme 
 
 Guarantee provision aid. General block exemption Regulation (GBER), de minimis  aid and 
5.6.2009-31.12.2010 Temporary Union fr amework for State aid measures to  support access to finance in 
the current financial and economic cr isis (N224/2009, max. 500,000 €).  
 
2. Period covered 
 
 2009 - 2010. 
 3. Policy objective and/or purpose of the subsidy 
  Aid to SMEs  
4. Background and authority for the subsidy 
  Finnvera grants guarantee provision aid to the certain guarantees that are granted in eligibility 
area of  EU's structural funds. Decisions are made by Finnvera Plc. Budget of  the guarantee provision aid 
is decided regionally yearly basis and aid is partially financed by the European regional development 
fund. 
 5. Form of the subsidy 
  Subsidy in guarantee provision  G/SCM/N/220/EEC/Add.8 
Page 8 
 
 
  6. To whom and how the subsidy is provided 
 
 The subsidy is provided to SMEs with the guar antee decision as a reduction of provision. The 
loan is granted from the bank. 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 In 2009 the amount of aid was    MEUR  1.4  
 - including temporary aid         MEUR  0.4 
 In 2010, the amount of aid was    MEUR  9.6  - including temporary aid         MEUR  5.9 
  
8. Duration of the subsidy and/or any other time limits attached to it 
 
 There are no time limits attached to this programme.  
 9. The trade effects of the subsidy 
  No effects on international trade.  
G. R
ESCUE AND RESTRUCTURING AID TO SMALL AND MEDIUM -SIZED ENTERPRISES  
1. Title of the subsidy programme 
 
 Rescue and restructuring aid to SMEs (N 58/2004). 
 
2. Period covered 
 
 2009-2010. 
 
3. Policy objective and/or purpose of the subsidy 
 
 Aid to SMEs. 
 4. Background and authority for the subsidy 
  Rescue and restructuring aid is granted to SMEs in order to turn  around enterprises in difficulty. 
The aid is granted in compliance with the guidelin es of European Commission concerning aid for 
enterprises in difficulty. 
 5. Form of the subsidy 
  Loan, guarantee, reduction of interest, abatement of debts. 
 
6. To whom and how the subsidy is provided 
 
 SMEs in difficulty in compliance with the definition of European Commission. 
 7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The total amount of grants in 2009 was MEUR 0  G/SCM/N/220/EEC/Add.8 
 Page 9 
 
 
   The total amount of grants in 2010 was MEUR 0.2 
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 The scheme will expire in 2012. 
 
9. The trade effects of the subsidy 
 
 No effects on international trade. 
 
H. DEVELOPMENT SERVICES FOR SME S  
1.  Title of the subsidy programme 
 
 Development programmes for SME's.  
2. Period covered by the notification 
 
 2009 – 2010. 
 
3. Policy objective and/or purpose of the subsidy 
 
 The purpose is to support development of SME' s business activities a nd personnel skills.   
 4. Background and authority for the subsidy 
  - Development Services for SME's Act 971/2004 
 - Act on the Public Employment Service 1295/2002 
 5. Form of the subsidy 
  Price subsidy (the reduction of the participation fee)  
6. To whom and how the subsidy is provided 
 
 The subsidy is targeted to the personnel of SME's 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 16.2 million euro, aid intensity approximately 60% per company in the year 2009   
 26.97 million euro, aid intensity approximately 60% per company in the year 2010 
 
8. Duration of the subsidy and/or any other time limits attached to it 
  
 Indeterminate. 
 
9. The trade effects of the subsidy. 
 
 No effects on international trade. 
 G/SCM/N/220/EEC/Add.8 
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  II. AID FOR RESEARCH AND DEVELOPMENT 
A. AID FOR PROMOTING R&D&I 
1. Title of the subsidy programme 
 
 Aid for promoting R&D. 
 
2. Period covered by the notification 
 
 7.5.2008 – 31.12.2013. 
 
3. Policy objective and/or purpose of the subsidy 
 
 Aid for research and development. 
 4. Background and authority for the subsidy 
  Legal basis: Council of State decision on 30 Ap ril 2008 on financing of research-, development- 
and innovation activities (298/2008); in force from 7 of May 2008. 
 
5. Form of the subsidy 
 
 Grants and soft loan.  
 6. To whom and how the subsidy is provided 
  The subsidy is provided for enterprises on the basis of applications. The normal maximum aid 
intensity is 100% for basic research, 50% for industrial research and 25% for experimental research. 
These maximum levels can be raised up to 75% in industrial research and experimental research. 
(Council of State Decision 298/2008).  
 
 The subsidy is granted by the Finnish Funding Agency for Technology and Innovation (Tekes)  
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 In 2009, the commitment amount of grants was:  
 - for R&D&I activities      MEUR  204.7   - for young innovative enterprises    MEUR    16.5  
 - SME for Innovation advisory and support services  MEUR      2.4  
  the commitment amount of loans  MEUR 96.1 (aid element MEUR 15.6)  
 
 In 2010, the commitment amount of grants was: 
 - for R&D&I activities      MEUR  190.5  
 - for young innovative enterprises    MEUR    19.5   - SME for Innovation advisory and support services  MEUR      1.2  
 - remedy for a serious disturbance in the economy   MEUR    15.7  
  the commitment amount of loans MEUR  155.8 (aid element MEUR 22.2)  
  G/SCM/N/220/EEC/Add.8 
 Page 11 
 
 
  8. Duration of the subsidy and/or any other time limits attached to it. 
 
 The subsidy programme will be in force till 31 December 2013.  
9. The trade effects of the subsidy 
   No effects on international trade. 
 
III. REGIONAL AID 
A. B
USINESS DEVELOPMENT AID 
1. Title of the subsidy programme 
 
 Business Development aid. 
 2. Period covered by the notification. 
  2009 – 2010.   
3. Policy objective and/or purpose of the subsidy 
 
 Regional aid. Aid to SMEs. 
  
4.  Background and authority for the subsidy 
 
 The legal background: 
 Act: Laki valtionavustuksesta yritystoiminnan kehittämiseksi (1336/2006). The Act entered into 
force on 18 June 2006. 
  Government Decree: Valtioneuvoston asetus val tionavustuksesta yritystoi minnan kehittämiseksi 
(675/2007), including later amendments. 
  The aid is granted by the Ministry of Em ployment and the Economy and The Centres for 
Economic Development, Transport and the Environment (ELY Centres). 
 5.   Form of the subsidy 
  Grant.  
6.  To whom and how the subsidy is provided 
 
 Subsidies can be granted for following purposes: 
 
 Investments: 
 
 Subsidies can be granted to enterprises for carrying out investments of material and immaterial nature. Subsidies can be granted to small and medium-sized enterprises in the whole country. Subsidies 
can be granted to large enterprises in developm ent regions only, and only for special reasons.  
  Other development measures: 
 G/SCM/N/220/EEC/Add.8 
Page 12 
 
 
   Subsidies can be granted to small and medium-sized enterprises for taking development 
measures (improving business mana gement skills, development of products and production methods, and 
other marked development of business activities).   
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 
 The amount granted in 2009 was MEUR 82.6  The amount granted in 2010 was MEUR 89.1 
 
8. Duration of the subsidy and/or any other time limits attached to it.   
 Until 31 December 2014.  
 9.  The trade effects of the subsidy 
  No effects on international trade.  
B. R
EGIONAL TRANSPORT SUBSIDY  
1.  Title of the subsidy programme 
 
 Regional transport subsidy. 
 2.  Period covered by the notification 
  2009 - 2010. 
 
3.  Policy objective and/or purpose of the subsidy 
 
 Regional aid (SMEs) 
 4.  Background and authority for the subsidy 
  Transport of goods in Finland, which start from regions with less than 12.5 inhabitants per km2: 
Lapland, North Ostrobothnia, Kainuu, North Karelia an d South Savo, are eligible for subsidy. In addition 
to that the subsidy is granted in the region of North Savo, the region of Saarijär vi-Viitasaari, the region of 
Kaustinen and within the former municipality of Ulla va as de minimis -aid on basis of the Commission 
regulation (EC) No 1998/2006.  
 
 Ministry of Employment and the Economy is re sponsible for the subsidy programme. The aid is 
granted by the regional Centres for Economic Development, Transport and the Environment 
(ELY-Centers). 
 
 The legal background: 
  Government Decree (21/2009). 
 
5.  Form of the subsidy 
 
 Grant paid semi-annually on basis of applications and evidence. 
  G/SCM/N/220/EEC/Add.8 
 Page 13 
 
 
  6.  To whom and how the subsidy is provided 
 
 The subsidy can be granted for transports in Finland starting from the place of processing of 
products that have been processed by small or me dium-sized companies within the regions mentioned 
under 4. The subsidy will be granted to the party that has paid the transport fare to the carrier. Subsidies 
are not being granted to the followi ng sectors: primary production of th e products referred to in Annex I 
to the Treaty establishing the European Community, coal  industry, shipbuilding, steel industry, synthetic 
fibres industry. The amount of transport subsidy is 7 – 29% of the transporting costs.   
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The actual payments in 2009 were MEUR 9.1  
 The actual payments in 2010 were MEUR 5.9  
 
8.  Duration of the subsidy and/or any other time limits attached to it 
 
 Until 31 December 2013.  
 
9.   The trade effects of the subsidy 
 
 No effects on international trade 
 C. A
CCELERATED REGIONAL DEPRECIATION  
1. Title of the subsidy programme 
 
 Depreciation allowance in development areas for SMEs. 
 2. Period covered by the notification. 
  2009- 2010.  
3. Policy objective and/or purpose of the subsidy 
 
 Regional aid for SMEs. 
 
4. Background and authority for the subsidy 
 
 Legal basis: Act 1262/1993 as amended by  acts 1736/1995, 32/1998, 1215/1998, 964/2000, 
901/2001, 914/2003, 979/2006 and 749/2008. The responsib le authority is the Ministry of Finance. 
 
5. Form of the subsidy 
  Tax benefit (accelerated depreciation). 
 6. To whom and how the subsidy is provided 
  The subsidy is granted in the national development areas I and II. Eligible sectors for this aid are manufacturing, hotel and lodging se rvices for their investments in buildings and machinery. From 1998 
onwards this aid has been granted only to small and medium sized enterprises and sensitive sectors of 
agriculture, synthetic fibres, the automobile industry, steel and shipbuilding have not been included. The G/SCM/N/220/EEC/Add.8 
Page 14 
 
 
  maximum depreciation rate is increased by 50 pe r cent (for machinery from 25% to 37.5 % and for 
industrial buildings from 7% to 10.5%).  
 7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The amount granted in 2009 was MEUR 0.5 
 The amount granted in 2010 was MEUR 0.5  
 Maximum possible aid intensity that, according to  the rules and conditions on which the subsidy 
is granted, can be obtained in favour  of any one project is 1 per cent. 
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 Indeterminate. 
 
9. The trade effects of the subsidy 
 
 No effects on international trade. 
 D. G
RANT FOR INVESTMENTS (ÅLAND ) 
1. Title of the subsidy programme 
 
 Grant for investments (Åland). 
 
2. Period covered by the notification 
 
 2009 – 2010. 
 3. Policy objective and/or purpose of the subsidy 
  Regional aid (investments in equipment and buildings).  
4. Background and authority for the subsidy 
  Company aid act of Åland (ÅFS 46/89). 
 5. Form of the subsidy 
  Grant.  
6. To whom and how the subsidy is provided 
 
 The aid is provided to SMEs. The subsidy is granted by the Government of Åland. 
 
7. The total amount or the annual amount budgeted  for the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year) 
 
 The annual amount of grants  committed in 2009 (average subs idy per unit) was MEUR 0.043 
 The annual amount of grants committed in 2010 was MEUR 0.267  G/SCM/N/220/EEC/Add.8 
 Page 15 
 
 
   
8. Duration of the subsidy and/or any other time limits attached to it 
 
 Indeterminate. 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy. 
  No effects on international trade.  IV. AID IN THE FIELD OF ENERGY 
A. E
NERGY GRANTS  
1. Title of the subsidy programme 
 
 Energy grants.  
2. Period covered by the notification 
 
 2009 - 2010. 
 
3. Policy objective and/or purpose of the subsidy 
 
 Promotion of energy conservation, energy effici ency and the use of renewable energy; reduction 
of negative environmental impacts associated with  energy production and usage and contribution to 
energy security and diversity of energy supply. 
 
4. Background and authority for the subsidy 
  Legal basis: Decision of the Council of State on the general conditions for awarding energy grants (29/1999) and since year 2007 Decree of th e Council of State on the general conditions for 
awarding energy grants (1313/2007). 
 5. Form of the subsidy 
  Grant.  
6. To whom and how the subsidy is provided 
 
 Subsidies can be granted to enterprises and communities on a case-by-case consideration. 
Subsidies are granted by the Ministry of Empl oyment and the Economy (Energy Department) and 
Centres for Economic, Development, Transport and the Environment (ELY Centres) on application and 
they are paid according to the progress of the project.  
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 In 2009 was MEUR 93.1 
 In 2010 was MEUR 52.8  
 G/SCM/N/220/EEC/Add.8 
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  8. Duration of the subsidy and/or any other time limits attached to it 
 
 The duration of the subsidy programme is five years (valid to the end of year 2012). The programme commenced in its present form in 1999.  
 
9. The trade effects of the subsidy 
  No effects on international trade.  
B. A
ID MEASURES CONNECTED TO ENERGY TAXATION  
1. Title of the subsidy programme 
 
 Aid measures connected to energy taxation. 
 2. Period covered by the notification 
  2009 - 2010.  
3. Policy objective and/or purpose of the subsidy 
 
 The general aim of the programme is environmental. The purpose is i.e. to promote the use of 
renewable energy. 
 4. Background and authority for the subsidy 
  Legal basis: Act 1260/1996. 
 
5. Form of the subsidy 
 
 Grant. 
 6. To whom and how the subsidy is provided 
  The aid is granted for power plants producing el ectricity from wood forest chips, for small hydro 
power plants max 1 MVA, for wind power, for bio ga s as well as for recycled fuels. The aid is 
EUR 0.0069 per kWh for wind power and forest ch ips, EUR 0.0042 per kWh for bio gas and hydro 
power plants and EUR 0.0025 for recycled fuels.  
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The amount of aid in 2009 was MEUR 12.41 
 The amount of aid in 2010 was MEUR 12.57 (not  final amount, because grant can be applied 
until 30.6.2011). 
 8. Duration of the subsidy and/or any other time limits attached to it 
  Indeterminate.  
9. The trade effects of the subsidy 
 
 No effects on international trade.  G/SCM/N/220/EEC/Add.8 
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C. DIFFERENTIATED TAX RATE FOR ELECTRICITY CONSUMED BY INDUSTRY   
1.  Title of the subsidy programme 
 
 Differentiated tax rate for electricity consumed by industry.   
 
2.  Period covered by the notification 
 
 2009 - 2010. 
 
3. Policy objective and/or purpose of the subsidy 
 
 Subsidy to industry: to improve competitiveness of the industry wh en tax on electricity is levied 
in order to reach environmental and energy policy coals.  
4. Background and authority for the subsidy 
 
 The aid is granted by the district customs offices. 
 
5. Form of the subsidy 
 
 Differentiated tax rate. 
  6. To whom and how the subsidy is provided 
  Electricity is taxed on the basis of category II (industry) if it is used in the mining of minerals, 
industrial manufacturing and processing of goods or professional glasshouse cultivation. All other cases 
fall under category I.    
 Electricity tax rate: cent/kWh 2009  2010 
 - category I                    0.883  0.883  - category II                   0.263  0.263 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The amount granted in 2009 was MEUR 221.1   The amount granted in 2010 was MEUR 240.4 
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 2001 - 2011. 
 
9. The trade effects of the subsidy 
 
 No effects on international trade. 
 
D. AID MEASURES CONNECTED TO BIOFUELS  
1.  Title of the subsidy programme 
 
 Individual aid to Neste Oil Plc for pi lot manufacture of NExBTL biodiesel.   G/SCM/N/220/EEC/Add.8 
Page 18 
 
 
   
2.  Period covered by the notification 
 
 2009 - 2010. 
 
3. Policy objective and/or purpose of the subsidy 
  To enable testing of new eco-friendly biofuel.  
4. Background and authority for the subsidy 
 
 The relief is granted by the Ministry of Finance and it is paid by the district customs offices 
according to use of new biodiesel. 
 5. Form of the subsidy 
  Tax relief.   
6. To whom and how the subsidy is provided 
 
 Company which manufactures and delivers test fuel to be used has to pay excise duty on diesel 
oil (36.40 c/litre), but af ter the use company can apply refund 31 .94 c/litre. Maximum relief cannot be 
more than 7,154,560 euro, when fuel is used during period 1.7.2007 – 31.12.2010.     
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The amount granted in 2009 was MEUR 0.45  
 The amount granted in 2010 was MEUR 0.75 
 8. Duration of the subsidy and/or any other time limits attached to it 
  2007 – 2010 (fuel used 2007-2010 the refund ca n still be applied after 31.12.2010). 
 
9. The trade effects of the subsidy. 
 
  No effects on international trade. 
 
E. AID MEASURES CONNECTED TO BIOFUELS  
1.  Title of the subsidy programme 
 
 Excise duty exemption for biofuel granted to St1 Oy for ECO-100 project bio-ethanol 
production. 
 2.  Period covered by the notification 
  2009 - 2010.  
3. Policy objective and/or purpose of the subsidy 
 
 To enable testing of new eco-friendly biofuel.  G/SCM/N/220/EEC/Add.8 
 Page 19 
 
 
   
4. Background and authority for the subsidy 
 
 The relief is granted by the ministry of finance and it is paid by the district customs offices 
according to use of new bio ethanol. 
 
5. Form of the subsidy 
 
 Tax relief. 
  
6. To whom and how the subsidy is provided 
 
 Company which manufactures bio-et hanol to be used has to pay excise duty 62.70 c/litre when 
bio-ethanol is used to replace gasoline and 36.40 c/litr e when it replaces diesel oil. After the use company 
can apply refund according excise duties paid for this  test fuel. Maximum relief cannot be more than 
2,696,100 euro, when fuel is used during period 1.4.2009 – 31.3.2011.  
 7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 
 The amount granted in 2009 was MEUR - 
 The amount granted in 2010 was MEUR 0.07 
 8. Duration of the subsidy and/or any other time limits attached to it 
  2009 – 2011 (fuel used 2009-2011 the refund can still be applied after 31.3.2011) 
 
9. The trade effects of the subsidy 
 
 No effects on international trade 
 F. E
NERGY TAX REFUND FOR ENERGY INTENSIVE ENTERPRISES  
1. Title of the subsidy programme 
 
 Energy tax refund for ener gy intensive en terprises. 
 
2. Period covered by the notification 
 
 2009 - 2010. 
 3. Policy objective and/or purpose of the subsidy 
  The general aim of the programme is to relieve energy tax burden of enterprises which has to use 
very large quantities of energy in their production.  
 4. Background and authority for the subsidy 
  Legal basis: Act 1260/1996.  
5. Form of the subsidy 
 
 Excise duty refund. G/SCM/N/220/EEC/Add.8 
Page 20 
 
 
   
6. To whom and how the subsidy is provided 
 
 In a case where the excise duties paid by the company during the accounting period for 
electricity, coal, natural gas and tall-oil as well as light and heavy fuel oil, and the excise duties contained 
in the acquisition price of these products exceed 3.7 per cent of the company's value added during the 
accounting period, the company is entitled to apply on the exceeding amount for a refund of 85 per cent 
of the amount of the excise duties paid for the produc ts or the excise duties c ontained in their acquisition 
price.  Only the part exceed ing 50,000 euro of the thus calculated excise duty refund is  repaid. However, 
the maximum refund may be as high as the excise duties paid for electricity, coal, natural gas, and tall-oil 
or the excise duties contained in their acquisition prices.    
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
  
 The amount of aid in 2009 was MEUR 4.78 
 The amount of aid in 2010 was MEUR 0.17 (not  final amount, because refund can be applied 
until 30.6.2011) 
  
8. Duration of the subsidy and/or any other time limits attached to it 
 
 Indeterminate 
 9. The trade effects of the subsidy 
  No effects on international trade. 
 
G. W
ASTE OIL MANAGEMENT FINANCED BY WASTE OIL CHARGES  
1. Title of the subsidy programme 
 
 Waste oil management financed by waste oil charges.  
2. Period covered by the notification 
 
 2009 - 2010. 
 
3. Policy objective and/or purpose of the subsidy 
 
 Environmental protection. 
 4. Background and authority for the subsidy. 
  The Ministry of the Environmen t is the responsible authority. 
 
5. Form of the subsidy. 
 
 Grant. 
 6. To whom and how the subsidy is provided 
  The subsidy can be provided to enterprises, which have made a contract on waste oil management with The Ministry of Environment.  G/SCM/N/220/EEC/Add.8 
 Page 21 
 
 
   
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The amount of aid in 2009 was MEUR 0 
 The amount of aid in 2010 was MEUR 0  
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 Indeterminate. 
 9. The trade effects of the subsidy 
  No effects on international trade.  V. AID FOR CHIPPING OF ENERGY WOOD 
1. Title of the subsidy programme 
 
 Aid for chipping of energy wood. 
 2. Period covered by the notification 
  2009-2010.  
3. Policy objective and/or purpose of the subsidy 
  Environmental protection. By using wood for energy production we ca n decrease CO2 emission. 
If we use one solid cubic meter wood for energy it  means 0.6 tons CO2 re duction in CO2 emissions 
assuming that wood replaces oil. 
 
4. Background and authority for the subsidy 
 
 The aid for chipping of energy wood is one part of the aid scheme on the financing of sustainable 
forestry in Finland. The finance is provided fo r private forest owners. The wood which has been 
harvested while tending young stands or in connec tion of non–commercial thinning is collected and 
chipped for energy production. The applications on fina nce must be submit to the regional forest centres 
and these centres approve of the applications.  
5. Form of the subsidy 
 
 The subsidy is a grant 1.7 Euros per loose cubic meter. 
 
6. To whom and how the subsidy is provided 
  The subsidy can be provided for the private forest owners, the entrepreneurs or the forest owners' association if they do the chipping. 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The total amount of grants in 2009 was MEUR 1.8  The total amount of grants in 2010 was MEUR 3.0 G/SCM/N/220/EEC/Add.8 
Page 22 
 
 
    
8. Duration of the subsidy and/or any other time limits attached to it 
 
 The scheme will expi re 31 December 2012. 
 
9. The trade effects of the subsidy. 
  No effects on international trade.  VI. AID FOR BIOENERGY PRODUCTION 
1. Title of the subsidy programme 
 
 Aid for bio energy production. 
 2. Period covered by the notification 
  2009-2010.  
3. Policy objective and/or purpose of the subsidy 
 
 To increase bio energy production and to protect  environment: Aid for bio energy production is a 
discretionary aid. Budget is 5 million Euros/year. The main aim of this aid is to promote the construction 
of biogas plants in areas with high numbers of domestic animals and their consequent environmental 
impacts. Aid can be granted to companies, municipalities and other entities. 
 
4. Background and authority for the subsidy 
  The aid is based on the national la w of state subsidies and it is notified to the Commission of the 
European Union after the Commission regulation (EC) No 800/2008 (dec laring certain categories of aid 
compatible with the common market in application of Articles 87 and 88 of the Treaty (General block 
exemption regulation)).  
5. Form of the subsidy 
 
 There are specific application periods for the aid.  So far, there have been two application rounds 
for biogas plant investments. Aid level is decide d after the application period and it depends on the 
amount applied and the money available.  
6. To whom and how the subsidy is provided 
 
 The aid can be provided for companies, municipalities and other entities. 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The total amount of budgeted for this aid ha s been 5 million Euros/year (2008-2010). In 2009 
there were no payments of this aid. In 2010 totally 260,098 Euros were paid to biogas plant investments. 
 8. Duration of the subsidy and/or any other time limits attached to it 
  The scheme will expire 31 December 2011.    G/SCM/N/220/EEC/Add.8 
 Page 23 
 
 
  9. The trade effects of the subsidy 
 
 No effects on international trade.  VII. OTHER SUBSIDIES 
A. I
NNOVATION AID SCHEME FOR THE FINNISH SHIPBUILDING INDUSTRY  
1. Title of the subsidy programme 
 
 Innovation aid scheme for the Finnish shipbuilding industry. 
 
2. Period covered by the notification 
 
 2009-2010. 
 3. Policy objective and/or purpose of the subsidy 
  Innovation aid may be granted for the indust rial application of innovative products and 
processes. These are technologically new or subs tantially improved products and processes when 
compared to the state of the art that exists in the shipbuilding industry in the EU. 
 4. Background and authority for the subsidy 
  The authorisation to grant this aid is decided in the Finnish legislation. Innovation aid scheme has been notified in the EU. The total amount of aid is decided in the State budget annually. 
 
5. Form of the subsidy 
  Direct grant.  
6. To whom and how the subsidy is provided 
 
 The aid is granted to the Finnish shipbuilding industry by Centre for Economic Development, 
Transport and the Environment for Southwest Finland. If the amount of the aid is over 
five (5) million Euros, the aid is granted by the Ministry of Employment and the Economy.    
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 In 2009 the amount was 0 MEUR.  
 In 2010 the amount of the Budget Authority wa s 20 MEUR.  The amount of the aid granted was 
4.5 MEUR. 
 
8. Duration of the subsidy and/or any other time limits attached to it 
  The subsidy period is from 10.9.2008 to 31.12.2011.  The subsidy can be used for a project which 
will be completed until the end of 2015.  
 
9. The trade effects of the subsidy 
 
 No effects on international trade. 
 G/SCM/N/220/EEC/Add.8 
Page 24 
 
 
  B. TRAINING AID IN ÅLAND  
1.  Title of the subsidy programme 
 
 Training aid in Åland. 
 
2.  Period covered by the notification 
  2009-2010.   
3.  Policy objective and/or purpose of the subsidy 
 
 Main objective is to increase the training of employees. 
 
4.  Background and authority for the subsidy 
 
 The annual budget of Government of Åland. 
 5.  Form of the subsidy. 
  Grant.  
6.  To whom and how the subsidy is provided 
 
 Granted to specific companies applying for a grant. 
 
7.  The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 The amount granted in 2009 was MEUR 0.35 
 The amount granted in 2010 was MEUR 0.36 
 8.  Duration of the subsidy and/or any other time limits attached to it 
  2013.  
9.  The trade effects of the subsidy 
 
 No effects on international trade.  
 
C. AID IN THE FIELD OF RURAL DEVELOPMENT   
1. Title of the subsidy programme 
 
 Investment aid for rural micro-enterprises (Rural Development Programme for Mainland Finland 
2007-2013: measures 123 Adding value to forestry products, 311 Diversification into non-agricultural 
activities and 312 Creation and de velopment of micro-enterprises). 
 
2. Period covered by the notification 
 
 2010. 
  G/SCM/N/220/EEC/Add.8 
 Page 25 
 
 
  3. Policy objective and/or purpose of the subsidy 
 
 The general strategy promotes the diversification of the rural economy by rural micro-sized enterprises that play a significant role in preventing unemployment and boosting the local and regional 
economy in general. The strategic target is to crea te new businesses, accelerate their growth and create 
jobs. 
 
4. Background and authority for the subsidy 
 
 Legal basis: Investment aid for rural enterprises is granted in accordance with axis 1 and 3 under 
Council Regulation (EC) No 1698/2005 and Commissi on Regulation (EC) No 1974/2006 laying down 
the rules for its implementation. The national impl ementation is based on the Act on Support for Rural 
Development (1443/2006) and Government Decree on  Support for Rural Enterprises (632/2007).  
 5. Form of the subsidy 
  Investment aid.  
6. To whom and how the subsidy is provided 
 
 Fifteen regional Centres for Economic Developm ent, Transport and the Environment receive the 
aid applications and grant the aid for the rural micro- enterprises. Centres for Economic Development, 
Transport and the Environment take into consideration the special characteristics of their region when granting the aid. 
 
7. The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 
 Expenditure in 2010 was as follows: 
 
 Measure 123 (Adding value to forestry products) 0.09 million Euros  Measure 311 (Diversification into non-agricultural activities) 0.10 million Euros 
  Measure 312 (Creation and development of  micro-enterprises) 0.64 million Euros 
   Grand total: 0.83 million Euros 
 
8. Duration of the subsidy and/or any other time limits attached to it 
 
 The rural development programme is valid until the end of the year 2013. 
 9. The trade effects of the subsidy 
  No effects on international trade. 
 
 
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