This Decision is addressed to the Republic of Finland.

4.The release of instalments in accordance with the financing agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Finland has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the RRP. In order to be eligible for payment, Finland shall complete the milestones and targets no later than 31 August 2026, subject to the entry into force of the legal commitments referred to in paragraph 1.

3.The pre-financing shall be released subject to the entry into force of, and in accordance with the financing agreement. Pre-financing shall be cleared by being proportionally deducted against the payment of the instalments.

2.The Union financial contribution shall be made available by the Commission to Finland in instalments in accordance with the Annex. An amount of EUR 271 094 341 shall be made available as a pre-financing payment, equal to 13 % of the financial contribution. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

1.The Union shall make available to Finland a financial contribution in the form of non-repayable support amounting to EUR 2 085 341 084. An amount of EUR 1 660 743 618 shall be available to be legally committed by 31 December 2022. If the update provided for in Article 11(2) of Regulation (EU) 2021/241 results in an updated maximum financial contribution for Finland that is equal to or more than EUR 2 085 341 084, a further amount of EUR 424 597 466 shall be available to be legally committed from 1 January 2023 until 31 December 2023. If the update provided for in Article 11(2) of Regulation (EU) 2021/241 results in an updated maximum financial contribution for Finland that is less than EUR 2 085 341 084, the difference between the updated maximum financial contribution and the amount of EUR 1 660 743 618 shall be available to be legally committed in accordance with the procedure set out in Article 20(8) of Regulation (EU) 2021/241 from 1 January 2023 until 31 December 2023.

The assessment of the RRP of Finland on the basis of the criteria provided for in Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the RRP, the arrangements and timetable for the monitoring and implementation of the RRP, including the relevant milestones and targets, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.

(57)This Decision should be without prejudice to the outcome of any procedures relating to the award of Union funds under any Union programme other than the Facility or to procedures relating to distortions of the operation of the internal market that may be undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override the requirement for Member States to notify instances of potential State aid to the Commission under Article 108 of the Treaty,

(56)Finland has requested pre-financing of 13% of the financial contribution. That amount should be made available to Finland subject to the entry into force of, and in accordance with the agreement provided for in Article 23(1) of Regulation (EU) 2021/241 (the 'financing agreement').

(55)The support to be provided is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 2020/2053. The support should be paid in instalments once Finland has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the RRP.

(54)In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the maximum financial contribution for Finland is to be updated by 30 June 2022. As such, in accordance with Article 23(1) of that Regulation, an amount for Finland not exceeding the maximum financial contribution referred to in Article 11(1), point (a), of that Regulation should be made available now for a legal commitment by 31 December 2022. Where necessary following the update of the maximum financial contribution, the Council, on a proposal from the Commission, should amend this Decision to include the updated maximum financial contribution, calculated in accordance with Article 11(2) of that Regulation, without undue delay.

(53)The estimated total cost of the RRP of Finland is EUR 2 094 687 000. As the RRP satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241 and, furthermore, as the amount of the estimated total costs of the RRP is higher than the maximum financial contribution available for Finland, the financial contribution allocated for Finland's RRP should be equal to the total amount of the financial contribution available for Finland.

(52)Following the positive assessment of the Commission concerning the Finnish RRP with the finding that the RRP satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V to that Regulation, this Decision should set out the reforms and investment projects necessary for the implementation of the RRP, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the RRP in the form of non-repayable financial support.

(51)To ensure ownership by the relevant actors, it is crucial to involve all local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the RRP.

(50)In order to increase the national ownership of the plan, Finland has consulted a wide range of stakeholders and other interest groups during the preparatory phase of the RRP. The consultations were conducted in various formats, including regional and thematic events to inform the participants about the preparation of the plan and to gather stakeholder views regarding the required funding priorities and the content of the plan. A wide range of actors were invited to the events, including representatives of regional councils, cities, social partners, industry and business organisations, non-governmental organisations and educational institutions.

(49)The RRP includes measures to enable Finnish companies to participate in potential Important Projects of Common European Interest (IPCEI) in the areas of micro-electronics and renewable hydrogen. The objective of the investment in cyber security research is to create a multilingual platform for developing and teaching cybersecurity skills that can be used across all Member States.

(48)In accordance with Article 18(4), point (g), of Regulation (EU) 2021/241, for investments in connectivity infrastructure, development environments for 6G, artificial intelligence and quantum computing, as well as investments in cyber security exercises and trainings, the plan indicates that a risk assessment and risk management plan are prepared for each project and that security risks are addressed throughout the project’s life cycle. The plan also indicates that the realisation of cyber security requirements will be ensured for the products and services associated with the project, and that possible certification systems will be used, if necessary. Security requirements will be ensured in public procurement procedures and, where necessary, personnel and company security clearance procedures will be applied. For connectivity investments, the plan describes the national legislative framework, which takes into account the EU’s toolbox for secure 5G networks. For instance, devices that may endanger national security may not be used in critical parts of the communication networks.

(47)The plan contains a series of measures that are expected to contribute to addressing the challenges in the area of gender equality and equal opportunities for all. These include employment and labour market reforms dedicated to developing more integrated services, which are available and accessible to all and address the needs of disadvantaged groups, including people with partial work capacity, people who are difficult to employ and migrants. Provisions are also made for vulnerable groups in the context of the reform of the social and health care system. Measures that address partial work capacity, especially measures to support mental well-being, are expected to contribute to gender equality. Other measures, including the acceleration of digitalisation and improving regional availability of high-speed broadband connections, aim at facilitating location-independent work making it easier for women and men to reconcile work and family life.

(46)The RRP of Finland presents a comprehensive and balanced package of reforms and investments. Measures within components are mutually reinforcing, with all components including a set of well-balanced reforms and investments. Furthermore, the link between reforms and investments is well established and measures reinforce and complement each other and help address the identified challenges. Measures are consistent with the relevant national policy frameworks and strategies, such as the government programme and the National Energy and Climate Plan. Measures proposed within components do not contradict or undermine each other’s effectiveness, nor have any inconsistencies or contradictions between different components been identified.

(45)In accordance with Article 19(3), point (k), of and Annex V, criterion 2.11, to Regulation (EU) 2021/241, the RRP includes to a high extent (Rating A) measures for the implementation of reforms and public investment projects that represent coherent actions.

(44)A milestone should ensure that a repository system for monitoring the implementation of the plan is in place and operational before the submission of the first payment request to the Commission. The system should include, as a minimum, the following functionalities: (a) collection of data and monitoring of the achievement of milestones and targets; (b) collect, store and ensure access to the data required by Article 22(2), point (d) of Regulation (EU) 2021/241. A dedicated audit report on the system should be undertaken to confirm the functionalities of the repository system.

(43)The Ministry of Finance should ensure the fulfilment of the control and audit obligations stemming from Regulation (EU) 2021/241. The control and audit function includes a clear and appropriate segregation of tasks within the Ministry. The actors responsible for controls should have the legal empowerment and administrative capacity to exercise their foreseen roles and tasks. Overall, the control system and other relevant arrangements, including the set-up of a new repository system for collecting, storing and making available data on final recipients, are assessed as adequate with respect to preventing, detecting and correcting corruption, fraud, conflict of interest when using the funds under the Facility and to avoid double funding with other Union programmes.

(42)The plan describes, in an appropriate way, the system put in place for its implementation, control and audit. The control and audit system is based on robust processes and structures. Part of the structure is newly established. The Ministry of Finance should have the overall responsibility for the implementation of the plan and should rely on other implementing ministries and bodies for operational and administrative aspects. The Ministry of Finance should be supported by the Technical Secretariat charged with ensuring the monitoring of the plan’s implementation. The division of tasks between the Ministry of Finance and other relevant ministries is clear and their roles and responsibilities are adequately delineated. A milestone should require the entry into force of a national law establishing the legal mandates for the bodies involved in the coordination, monitoring, control and audit of the implementation of the Finnish RRP. The milestone should be fulfilled before the first payment request is submitted to the Commission.

(41)In accordance with Article 19(3), point (j), of and Annex V, criterion 2.10, to Regulation (EU) 2021/241, the arrangements proposed in the RRP and the additional measures contained in this Decision are adequate (Rating A) to prevent, detect and correct corruption, fraud and conflicts of interests when using the funds provided under that Regulation, and the arrangements are expected to effectively avoid double funding under that Regulation and other Union programmes. This is without prejudice to the application of other instruments and tools to promote and enforce compliance with Union law, including for preventing, detecting and correcting corruption, fraud and conflicts of interest, and for protecting the Union budget in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council.

Protection of the financial interests of the Union

(40)Finland has provided individual cost estimates for all components of the RRP, relying on a number of sources to justify the costs of investments and reforms. These include past calls for projects in similar sectors or with similar characteristics, procurement contracts referring to similar services or past investments of similar nature, government impact assessments, academic studies and other external references, including on sectorial investment needs, provided by international organisations. On the basis of the provided documentation, the methodologies used to calculate the costs of most of the measures in the plan are deemed reliable and constitute sufficient grounds for a positive assessment of their reasonability and plausibility. However, the evidence submitted to underpin the methodologies could in some cases be more granular and provide more comprehensive costing information, in particular as regards some horizontal investment schemes. Finally, the estimated total cost of the RRP is in line with the principle of cost-efficiency and is commensurate to the expected national economic and social impact.

(39)In accordance with Article 19(3), point (i), of and Annex V, criterion 2.9, to Regulation (EU) 2021/241, the justification provided in the RRP on the amount of the estimated total costs of the RRP is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(38)Member States should ensure that financial support under the Facility is communicated and acknowledged in line with Article 34 of Regulation (EU) 2021/241. Technical support may be requested under the Technical Support Instrument established by Regulation (EU) 2021/240 of the European Parliament and of the Council to assist Member States in the implementation of their RRPs.

(37)The milestones and targets defined in Finland’s RRP are realistic and the proposed indicators for the milestones and targets are relevant, acceptable and robust. They are sufficiently clear and comprehensive to ensure that their completion can be traced and verified. Moreover, the sequencing of milestones and targets allows for appropriate monitoring of progress in achieving the plan’s objectives and for scheduling of payments. Milestones and targets are also relevant for measures already completed which are eligible under Article 17(2) of Regulation (EU) 2021/241. The satisfactory fulfilment of these milestones and targets over time is required to justify a disbursement request.

(36)The Ministry of Finance of the Republic of Finland will be responsible for coordinating the implementation and monitoring of the plan. It has clearly assigned responsibilities and an adequate structure for the implementation of the plan, the monitoring of the progress and reporting.

(35)In accordance with Article 19(3), point (h), of and Annex V, criterion 2.8, to Regulation (EU) 2021/241, the arrangements proposed in the RRP are adequate (Rating A) to ensure effective monitoring and implementation of the RRP, including the envisaged timetable, milestones and targets, and the related indicators.

(34)The strong investment support included in the RRP for the green transition should further boost new and innovative low-carbon solutions for the economy. This should accelerate the growth of emerging sectors, further creating opportunities for economic growth. The plan's focus on investments in digitalisation across many sectors is expected to raise productivity in the long term. The lasting impact of the RRP can also be enhanced through synergies between the RRP and other programmes, including those financed by cohesion policy funds, in particular by addressing territorial challenges in a substantive manner and promoting a balanced development.

(33)The implementation of the measures included in the RRP is expected to bring about structural changes to the public administration that should improve its effectiveness and efficiency. A reform of energy taxation is expected to contribute to a structural greening of tax policy in Finland. Reforms in active labour market policies, in accordance with the Nordic model of employment services should contribute to raising labour supply and improving the employability of jobseekers and under-represented groups in the labour market. The reform of social and healthcare services is expected to increase Finland's resilience in the long term.

(32)In accordance with Article 19(3), point (g), of and Annex V, criterion 2.7, to Regulation (EU) 2021/241, the RRP is expected to have a lasting impact on Finland to a large extent (Rating A).

(31)The reforms and investments in the RRP are expected to contribute to the digital transition in Finland in many areas, by supporting the digitalisation of businesses, in particular SMEs, and of the public sector, fostering cyber and information security, and supporting research and innovation in key technologies, including semi-conductors, artificial intelligence and 6G. Digitalisation is also addressed as a cross-cutting theme by using digital solutions as part of other measures to help reach climate and environmental objectives, including the digitalisation of transport and energy infrastructure. Likewise, there is a strong emphasis on digital health solutions, ranging from the use of data analytics to improve diagnostics to investments in e-health to ensure continuity of care.

(30)The measures in the RRP contribute to addressing Finland's challenges related to the digital transition. In particular, while Finland's digital connectivity is overall well-advanced, digital infrastructure is lacking in rural areas. The support for high-speed broadband connectivity should help improve access to high-speed connections in sparsely populated areas, with benefits for productivity and maintaining economic activity in those regions. To address the shortage of skilled workers in the Information and Communication Technology (ICT) sector, despite the overall high level of digital skills among the Finnish population, the RRP contains measures to increase the availability of study places in areas relevant to the ICT sector and to reform the continuous learning framework, as well as strengthening the promotion of digital skills.

(29)In accordance with Article 19(3), point (f), of and Annex V, criterion 2.6, to Regulation (EU) 2021/241, the RRP contains measures that contribute to a large extent (Rating A) to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 27,0% of the RRP’s total allocation calculated in accordance with the methodology set out in Annex VII of that Regulation.

(28)Investment in renewable energy technologies constitutes a large part of the measures supporting the climate objectives. Other significant measures that support climate or environmental objectives are provided by investments in decarbonising industry, reducing emissions of the building stock, reducing emissions in the transport sector and increasing recycling and reuse rates. A package of R&D&I investments to support the green transition is also included in the RRP.

(27)Reforms and investments are expected to make a significant contribution to advance the decarbonisation and energy transition objectives of Finland as set out in the National Energy and Climate Plan 2030 (NECP 2030), thereby contributing to the Union’s climate target. A significant number of measures included in the RRP support the climate objective while a large number of measures also aim to contribute to the environmental objective, including biodiversity. Furthermore, some of the measures contributing to climate change mitigation may also be beneficial to the preservation of biodiversity, as climate change is one of the main threats to biodiversity. The implementation of these measures is expected to have a lasting impact, notably by contributing to the green transition, the enhancement of biodiversity, and environmental protection.

(26)In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to Regulation (EU) 2021/241, the RRP contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 50,1% of the RRP's total allocation calculated in accordance with the methodology set out in Annex VI of that Regulation. In accordance with Article 17 of that Regulation, the RRP is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(25)Particular attention has been paid to measures whose impact on environmental objectives warrants close scrutiny. Finland’s RRP includes several broad investment schemes, whose compliance with the principle of ‘do no significant harm’ cannot be established prior to their implementation phase. This is particularly the case for strategic support schemes covering installations under the EU Emissions Trading System as well as other broad support schemes including energy infrastructure investments, support to hydrogen and carbon capture and utilisation, and the R&D&I investments in support of the green transition. The eligibility criteria for upcoming calls for projects should exclude harmful activities and require that only activities that comply with EU and national environmental legislation can be selected. The verification of the ‘do no significant harm’ compliance of the investments should be made binding through a milestone linked to the launch of each call for projects.

(24)The RRP ensures for each reform and investment that no significant harm is done to any of the six environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, namely climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. Finland provided justifications in accordance with the 'do no significant harm' technical guidance of the European Commission (2021/C 58/01) for all measures included in the RRP. Where needed, Finland has proposed mitigating measures or included specific elements in the design of the measures to avoid significant harm, which should be ensured through relevant milestones.

(23)In accordance with Article 19(3), point (d), of and Annex V, criterion 2.4, to Regulation (EU) 2021/241, the RRP is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in the RRP does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council (the principle of 'do no significant harm').

(22)The RRP is expected to positively contribute to cohesion and convergence by addressing existing regional differences in provision of services. Improved cohesion shall be achieved mainly through more integrated public employment services, extension of the integrated work capacity and mental health services to new regions, and strengthening of the integrated one-stop-shop youth services in municipalities.

(21)The RRP also aims to mitigate the backlog of care services caused by the COVID‑19 pandemic and to improve resilience of the social and healthcare system, hence strengthening institutional resilience, reducing vulnerabilities to shocks and contributing to the implementation of the European Pillar of Social Rights.

(20)The RRP contributes to the implementation of the European Pillar of Social Rights, including the principles on gender equality, equal opportunities, active support to employment, inclusion of persons with disabilities, and education, training and life-long learning, as well as other EU initiatives, such as the EU Skills Agenda, the EU’s flagship initiative Reskill and upskill, the Council Recommendation on Vocational Education and Training (VET) and Upskilling Pathways, and the Effective Active Support to Employment (EASE) Recommendation. The RRP is in line with the Youth Guarantee. In particular, the envisaged support of integrated employment, health, social and education services for young people is expected to help prevent social exclusion of young people and improve their employment prospects.

(19)Simulations by the Commission services show that the RRP, together with the rest of measures of the European Union Recovery Instrument, has the potential to increase the GDP of Finland by 0,4% to 0,6% by 2026, not including the possible positive impact of structural reforms, which can be substantial. The RRP includes a significant number of reforms and investments that are expected to promote smart and sustainable growth, in line with the European Industrial Strategy, to support the green and digital transitions, and to address the impact of the crisis whilst increasing Finland’s competitiveness and growth potential. The measures are also expected to tackle the shortage of skilled labour, address structural unemployment and support private investment and growth of SMEs. The substantial focus of the RRP on digitalisation should boost productivity growth and investment in innovation.

(18)In accordance with Article 19(3), point (c), of and Annex V, criterion 2.3, to Regulation (EU) 2021/241, the RRP is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of Finland, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

(17)The recommendations related to the immediate fiscal policy response to the pandemic can be considered to fall outside the scope of Finland's RRP, notwithstanding the fact that Finland has generally responded adequately and sufficiently to the immediate need to support the economy through fiscal means in 2020 and 2021, in line with the general escape clause of the Stability and Growth Pact. Moreover, the recommendation to make sufficient progress towards the medium-term budgetary objective in 2020 is no longer relevant, due both to the lapsing of the corresponding budgetary period and the activation in March 2020 of the general escape clause of the Stability and Growth Pact in the context of the COVID-19 crisis.

(16)The RRP has a robust focus on investments in research and innovation, the green and digital transition, the low carbon and energy transition, and sustainable and efficient infrastructure. Subsidy schemes aim at boosting investments in new clean energy technologies, promoting the use of low and zero emissions vehicles and decarbonising industry. Targeted measures support digital investments, including in digital infrastructure, microelectronics, 6G, artificial intelligence and quantum computing.

(15)The RRP is expected to contribute to the resilience of the social and healthcare system. The structural reform addressing the care guarantee as part of the social and health care reform coupled with substantial investments are expected to improve the equal access to and cost-effectiveness of social and healthcare services. The focus is primarily on changing patterns of health care, the provision of new, in particular digital, solutions, early problem identification, and the development of low-threshold social and health services. This is coupled with measures to improve cost-effectiveness through targeted digitalisation efforts, including enhanced data availability and evidence-based decision-making, as well as the use of e-health solutions. The RRP also aims to increase the number of higher education study places related to sectors affected by labour shortages. This is expected to contribute to addressing the shortage of health workers in the medium-term.

(14)The RRP contains several targeted reforms and investments to support employment and increase the employment rate by improving integrated services for the unemployed and the inactive as well as active labour market policies focused specifically on youth and people with partial work capacity. Measures are included to enhance skills for the labour market, especially in the context of the digital and green transition, including for those in under-represented groups with low skills.

(13)The RRP includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Finland by the Council in the European Semester in 2019 and in 2020, notably in the areas of skills, active inclusion, integrated services for the unemployed and the inactive, research and innovation, low carbon and energy transition and monitoring of household debt. The reforms and investments in the RRP also aim to contribute to the cost-effectiveness of and equal access to social and healthcare services. Moreover, measures to strengthen effective supervision and enforcement of the anti-money laundering framework are included.

(12)In accordance with Article 19(3), point (b), of and Annex V, criterion 2.2, to Regulation (EU) 2021/241, the RRP is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations addressed to Finland, including fiscal aspects thereof, or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

(11)The RRP is expected to positively contribute to cohesion and convergence by addressing existing regional differences in the provision of public services as well as remaining gaps in broadband access. Regarding the policies for the next generation, reforms and investments aim at supporting continuous learning, including through more integrated digital platforms and online services, and increasing higher education study places related to sectors affected by labour shortages.

(10)To promote smart, sustainable and inclusive growth, the RRP provides for measures to raise the employment rate, to attract international talent and to increase productivity. To mitigate adverse shocks and better respond to crises, the RRP contains actions to tackle the long standing issues of equal access to and cost-effectiveness of the social and healthcare system. The RRP comprehensively covers the digital transformation pillar in its different dimensions, with several components targeting the digital transformation directly or indirectly. While Finland is a world leader in the digital domain, the RRP is expected to address remaining gaps in digital infrastructure by improving and extending high-speed broadband networks. Moreover, reforms and investments are expected to support the digitalisation of businesses and the public sector, including in the area of social and health care, to enhance digital skills, foster research and innovation in digital technologies, support the development of cyber and information security, and invest in the digitalisation of rail services.

(9)With respect to the green transition pillar, a large number of measures throughout the RRP contribute to Finland’s objective of becoming carbon neutral by 2035. Such measures include notably reforms and investments boosting the share of renewables in the energy mix, decarbonisation of industry, reducing emissions of public and private buildings and promoting low-emission forms of transport.

(8)The RRP includes measures that contribute to all the six pillars, with a significant number of the RRP’s components addressing multiple pillars simultaneously. Such an approach helps to ensure that each pillar is comprehensively addressed in a coherent manner. Furthermore, given Finland's specific challenges, the particular focus on the green transition as well as on smart, sustainable and inclusive growth, along with the overall weighting across pillars, the RRP provides to a large extent a comprehensive and adequately balanced response to the economic and social situation.

(7)In accordance with Article 19(3), point (a), of and Annex V, criterion 2.1, to Regulation (EU) 2021/241, the RRP represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all of the six pillars referred to in Article 3 of that Regulation, taking the specific challenges faced by and the financial allocation for the Member State concerned into account.

(6)The implementation of the Member States' RRPs will constitute a coordinated effort involving reforms and investments across the Union. Through coordinated and simultaneous implementation and the implementation of cross-border and multi-country projects, such reforms and investments will mutually reinforce each other and generate positive spillovers across the Union. Therefore, about one third of the impact of the Facility on Member States' growth and job creation will come from spillovers from other Member States.

(5)The RRPs should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 (the 'Facility') and of the European Union Recovery Instrument set up by Council Regulation (EU) 2020/2094 in order to support the recovery in the aftermath of the COVID-19 crisis. They should promote the Union's economic, social and territorial cohesion by contributing to the six pillars referred to in Article 3 of Regulation (EU) 2021/241.

(4)On 27 May 2021, Finland submitted its national RRP to the Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. That submission followed a consultation process, conducted in accordance with the national legal framework, involving local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. National ownership of the RRPs underpins their successful implementation and lasting impact at national level and credibility at European level. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission has assessed the relevance, effectiveness, efficiency and coherence of the RRP, in accordance with the assessment guidelines set out in Annex V to that Regulation.

(3)The Council Recommendation on the economic policy of the euro area recommended to euro area Member States to take action, including through their RRPs, to, inter alia, ensure a policy stance which supports the recovery and to further improve convergence, resilience and sustainable and inclusive growth. The Council Recommendation also recommended euro-area Member States to strengthen national institutional frameworks, to ensure macro-financial stability, to complete the economic and monetary union and to strengthen the international role of the euro.

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Finland in the context of the European Semester. In particular, the Council recommended Finland to improve the cost-effectiveness of and equal access to social and healthcare services, address shortages of health workers, improve incentives to work, enhance skills and active inclusion, support employment and bolster active labour market policies, focus investment-related policy on research and innovation, green and digital transition, strengthen the monitoring of household debt and ensure effective supervision and enforcement of the anti-money laundering framework. Having assessed progress in the implementation of these country-specific recommendations at the time of submission of the recovery and resilience plan ('RRP'), the Commission finds that the recommendations on taking all necessary measures, in line with the general escape clause of the Stability and Growth Pact, to effectively address the pandemic, sustain the economy and support the ensuing recovery has been fully implemented. Substantial progress has been achieved with respect to the recommendation on taking measures to provide liquidity to the real economy, in particular to small and medium-sized enterprises.

(1)The COVID-19 outbreak has had a disruptive impact on the economy of Finland. In 2019, the gross domestic product (GDP) per capita of Finland was 139% of the Union average. According to the Commission’s summer 2021 forecast, the real GDP of Finland declined by 2,8% in 2020 and is expected to decline by 0,1% cumulatively in 2020 and 2021. Long standing aspects with an impact on medium-term economic performance include slow productivity growth, high investment needs in the green transition and in research and development, rising levels of household debt and the performance of the social and healthcare system.

Having regard to the proposal from the European Commission,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility and in particular Article 20 thereof,

Having regard to the Treaty on the Functioning of the European Union,

on the approval of the assessment of the recovery and resilience plan for Finland

on the approval of the assessment of the recovery and resilience plan for Finland

EUROPEAN COMMISSION Brussels, 4.10.2021 COM(2021) 624 final ANNEX

to the Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Finland {SWD(2021) 284 final}



ANNEX SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN 1.Description of Reforms and Investments PILLAR 1: Green transition supports economic restructuring and a carbon-neutral welfare society A. COMPONENT P1C1: TRANSFORMATION OF THE ENERGY SYSTEM Finland has set a target to become the world’s first fossil-free welfare society, reaching carbon neutrality by 2035. The overall goal of this component of the Finnish recovery and resilience plan is to contribute to achieving the carbon-neutrality objective by promoting the use of clean energy technologies. This component of the Finnish recovery and resilience plan includes investments covering the infrastructure required for the distribution of renewable energy, as well as the production of clean energy. Those investments shall be accompanied by reforms of the energy sector focusing on phasing out the use of coal for energy generation as well as a reform of energy taxation to promote the use of clean energy. A separate investment is included to support renewable energy in the autonomous Åland region. The component contributes to addressing Country Specific Recommendations on focusing investment on the green transition, in particular on clean and efficient production and use of energy (Country Specific Recommendation 3 2020), as well as on promoting investment in low carbon and energy transition (Country Specific Recommendation 3 2019). It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). A.1. Description of the reforms and investments for non-repayable financial support Reform 1 (P1C1R1): Significant reduction in the use of coal for energy by 2026 The Act on the Prohibition of the Use of Energy of Coal (406/2019) was adopted by the Finnish Parliament in 2019. This Act bans the use of coal as from 2029. Finland shall make efforts to promote the elimination of the use of coal within a shorter timeframe and shall aim for a reduction of the use of coal in energy generation between 40% and 80% by 2026 compared to 2019. Actions taken by Finland to support phasing out the use of coal in the energy sector include the integration of new electricity and heat production solutions into the energy system, energy transmission, and the availability of technologies to replace coal. The implementation of the reform shall be completed by 30 June 2026. Reform 2 (P1C1R2): Reform of energy taxation to take account of technological developments The objective of the reform is to change the existing taxation of different sources of energy. The amendment of energy taxation legislation (Act on Excise Duty on Electricity and Certain Fuels) shall contribute to the phasing out of fossil fuels by promoting electrification of industry and encouraging investment in low-carbon technologies. The reform shall also reduce the electricity tax for industry, mines, agriculture and data centres of more than 5 MW to 0,05 cent/kWh, i.e. the EU minimum, from 0,69 cent/kWh. The reform shall also phase out energy tax refund for energy-intensive industries by 2025 and increase the taxation of fossil heating fuels, including peat, from 1 January 2021 by EUR 2,7 per MWh. A study on the energy taxation of non-combustion heat production is ongoing. The study is expected to provide the basis for decisions on further measures for the taxation of the energy sector. Finland is expected to present legislative amendments to ensure that the changes are in force on 1 January 2022. The implementation of the reform was to be completed by 30 June 2021.

Investment 1 (P1C1I1): Energy infrastructure investments The objective of the investment is to enhance the framework conditions for attracting investment in clean energy, with a focus on energy system integration, energy storage and transport. The investment shall support projects that promote the construction of energy infrastructure with the following focus: I)electricity grids and electricity transmission capacity; II)investments to integrate energy systems and produce, transmit and utilise surplus and waste heat in district heating networks; III)transport of low-carbon gases, including hydrogen, biogas and biomethane. The selection shall be made according to various criteria such as their contribution to the decarbonisation of the energy sector and their feasibility in accordance with the set time frame. The support shall be granted under a new Government Decree to be adopted by 31 December 2021. It shall take the form of competitive calls under the responsibility of the Ministry of Economic Affairs and Employment and Business Finland, to be organised in several stages, with the aim of frontloading large investments. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use ; (ii) activities under the EU Emissions Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant Union and national environmental legislation can be selected. Selection criteria shall ensure that all projects contribute to the climate change objectives linked to intervention field 033 that has a 100% climate coefficient in accordance with Annex VI to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility . The implementation of the investment shall be completed by 30 June 2026. Investment 2 (P1C1I2): Investments in new energy technology The objective of the investment is to contribute to Finland’s goal to achieve carbon neutrality by 2035 by stimulating the introduction of new clean technologies for energy production and use. The support shall prioritise sectors where emission reductions are difficult and costly (‘hard-to-decarbonise sectors’). The investment shall provide support for large-scale projects in the demonstration phase with a priority on technical feasibility, with a particular focus on: I)offshore wind energy production; II)renewable fuels in transport (electric fuels and biofuels); III)non-combustion heat production such as geo-energy to replace the use of coal; and IV)other renewable energy projects such as large biogas transport projects using low-used inputs, large-scale solar energy projects and projects that promote energy storage. The selection shall be made according to various criteria including their contribution to the increase in the share of renewable energy and their potential contribution to the long term development and commercialisation of relevant technologies. Support shall be granted under a new Government Decree to be adopted by 31 December 2021. It shall take the form of competitive calls under the responsibility of the Ministry of Economic Affairs and Employment and Business Finland, to be organised in several stages with the aim of frontloading large investments. Under this measure, temporary staff may be hired to accelerate the environmental permitting and processing from 1 January 2021 to 31 December 2023. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in the terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected. Selection criteria shall ensure that all projects contribute to the climate change objectives linked to the intervention fields 032, 034bis0, 028 and 029 and 030bis that have a 100% climate coefficient in accordance with Annex VI to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility. The calls for tender shall be launched once the legislative framework for granting the support is in place. A first call for applications is expected to be organised during 2021.

The implementation of the investment shall be completed by 30 June 2026. Investment 3 (P1C1I3): Investment and reform package in Åland The objective of the investment is to promote the production of renewable energy in the Åland autonomous region. The investment consists of support to the preparatory phase of an offshore wind power project and to solar energy production. The Åland government estimates that it shall take ten to fifteen years to complete the offshore wind power project as a whole. It is expected that the energy produced shall be mainly transferred to mainland Finland and/or Sweden, and thus to national distribution networks. The investment shall support the planning and preparation phase, which is expected to last until 2024. In its energy and climate strategy, Åland has set the target to build solar power capacity of 17 MW by 2030. The investment shall grant support for solar energy production projects promoted by companies, municipalities or communities. The projects shall be implemented between 2021 and 2025. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant Union and national environmental legislation can be selected. Selection criteria shall ensure that all projects contribute to the climate change objectives are linked to the intervention fields 028 and 029 that have a 100% climate coefficient in accordance with Annex VI to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility. The implementation of the investment shall be completed by 30 June 2026. A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Number Measure Milestone / Target Name Qualitative indicators (for milestones) Quantitative indicators (for targets) Indicative timeline for completion Description of each milestone and target Unit Base-line Goal Q Year 1 P1C1R1 - Transformation of the energy system – Significant reduction in the use of coal for energy by 2026 Target Reduction of 40% in the use of coal for energy by 2026 compared to 2019 Percentage 0 40 Q2 2026 The use of coal for energy in 2019 was 60 Petajoules. Consumption shall be reduced to at most 36 Petajoules by 2026. 2 P1C1R2 - Transformation of the energy system – Reform of energy taxation to take account of technological developments Milestone Entry into force of the Act on Excise Duty on Electricity and Certain Fuels Provision in the law indicating the entry into force of the Act Q2 2021 The amendment to the Act on Excise Duty on Electricity and Certain Fuels: - lowers the industrial electricity tax to promote the electrification of industry and heat production, - lowers the electricity tax for mines, agriculture and data centres of more than 5 MW - phases out the energy tax refund for energy-intensive industrial fuels - raises the tax on fossil heating fuels by EUR 2,7/MWh. 3 P1C1I1 - Transformation of the energy system – Energy infrastructure investments Milestone Publication of the first call for applications for energy infrastructure projects Publication of the first call for applications on the Ministry of Economic Affairs’ website Q4 2021 The funding guidelines (Energy Aid Regulation) shall enter into force, enabling the launch of the first competitive call for proposals for energy infrastructure investments, with terms of reference including eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 4 P1C1I1 - Transformation of the energy system – Energy infrastructure investments Milestone Award of all grants for energy infrastructure investments Notification of the award of all grants for infrastructure investments Q4 2023 The selection of all energy infrastructure projects shall be carried out in accordance with the criteria of the respective calls for proposals. All calls shall be based on the eligibility/selection criteria indicated in milestone 3, All funding award decisions shall be awarded to the project beneficiaries/applicants selected under the competitive calls for proposals enabling the start of the implementation of the selected projects. 5 P1C1I1 - Transformation of the energy system – Energy infrastructure investments Target Completion of the supported projects Number 0 4 Q2 2026 At least four projects shall be completed, as evidenced by project reports submitted by project beneficiaries. These shall correspond to a budgetary commitment of at least EUR 139 500 000 of the EUR 155 000 000 allocated to the measure. 6 P1C1I2 - Transformation of the energy system – Investments in new energy technologies Milestone Publication of the first call for applications for investments in new energy technologies Publication of the first call for applications on the Ministry of Economic Affairs’ website Q4 2021 The funding guidelines (Energy Aid Regulation) have entered into force, enabling the publication of the first call for proposals for investments in new energy technologies, with terms of reference including eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 7 P1C1I2 - Transformation of the energy system – Investments in new energy technologies Milestone Award of all grants for energy technology investments Notification of the award of all grants for energy technology investments Q4 2023 The selection of all projects related to new energy technologies shall be carried out in accordance with the criteria set out in the respective calls for proposals. All calls shall be based on the eligibility/selection criteria indicated in milestone 6. All funding award decisions shall be awarded to the project beneficiaries/applicants selected under the competitive calls for proposals, enabling the start of the implementation of the selected projects. 8 P1C1I2 - Transformation of the energy system – Investments in new energy technologies Target Completion of the supported projects Number 0 4 Q2 2026 At least four projects shall be completed, as evidenced by project reports submitted by project beneficiaries. These shall correspond to a budgetary commitment of at least EUR 144 900 000 of the EUR 161 000 000 allocated to the measure. 9 P1C1I3 - Transformation of the energy system – Investment and reform package in Åland Milestone Publication of the first call for applications for investment in renewable energy in Åland Publication of the first call for applications on the website of the Government of Åland Q2 2022 The first competitive call for proposals for investment in renewable energy in Åland has been published, with terms of reference including eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 10 P1C1I3 - Transformation of the energy system – Investment and reform package in Åland Milestone Completion of the supported projects Completed projects reports Q2 2026 All supported projects shall be completed in accordance with the eligibility/selection criteria set out in the calls for proposals mentioned in milestone 9, as evidenced by project reports submitted by project beneficiaries. These shall correspond to a budgetary commitment of at least EUR 2 430 000 of the EUR 2 700 000 allocated to the measure. B. COMPONENT P1C2: INDUSTRIAL REFORMS AND INVESTMENTS IN SUPPORT OF THE GREEN AND DIGITAL TRANSITION Finland has set a target to become the world’s first fossil-free welfare society, reaching carbon neutrality by 2035. Major challenges in reaching this goal include reducing emissions from industry and increasing the recycling rate. New low-emissions technology is often not yet competitive and its development needs to be accelerated. Finland needs to boost the circular economy to increase the sustainable use of resources and reduce pollution. The overall goal of this component of the Finnish recovery and resilience plan is to contribute to achieving the carbon-neutrality objective by supporting investment in technologies to reduce carbon emissions from industry, creating green jobs, investing in clean technologies and boosting recycling and reuse. The component includes investments focusing on the promotion of low-carbon technologies such as the generation of hydrogen, carbon capture and utilisation, replacing fossil fuels by electricity in industrial processes, and the promotion of re-use and recycling of key materials and industrial by-products. Those investments shall be accompanied by reforms of climate and waste legislation, including the necessary amendments to the Climate Act and to the Waste Act to provide a legal basis for the 2035 carbon-neutrality target and recycling objectives. The component contributes to addressing Country Specific Recommendations on focusing investment on the green transition, in particular on clean and efficient production and use of energy (Country Specific Recommendation 3 2020), as well as on promoting investment in low carbon and energy transition (Country Specific Recommendation 3 2019). It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). B.1. Description of the reforms and investments for non-repayable financial support Reform 1 (P1C2R1): Reform of the Climate Act and low-carbon industrialisation Finland has committed to updating the Climate Act to ensure the achievement of its carbon neutrality objective by 2035. The reform shall include the corresponding emission reduction targets for 2030, 2040 and 2050. The reformed Climate Act shall enable the use of climate plans to achieve the mitigation and adaptation obligations set out in the Act. The Finnish government shall submit its proposal for a revised Climate Act to Parliament by 31 January 2022, with entry into force expected by 30 June 2022. Finland has adopted thirteen industry-specific low-carbon roadmaps in autumn 2020. The road maps identify electrification of industrial processes, decoupling from fossil fuels and emission reduction measures based on low-emission solutions. Finland is expected to continue working with the industry to update the remaining road maps setting out sector-specific opportunities for industrial emission reduction. This shall include at least the four key energy intensive industries, namely the energy, chemical, forest and technology industries.

The implementation of the reform shall be completed by 31 December 2025.



Reform 2 (P1C2R2): Strategic promotion of the circular economy and reform of the Waste Act This measure consists of two reform elements. First, Finland shall implement the reformed Waste Act (646/2011), which is central to the regulation of the circular economy environment and the national waste plan. The reform shall include separate collection obligations for packaging and biowaste from households and businesses, packaging producers’ responsibility for the costs of packaging waste management, implementation of the Single-Use Plastics Directive and the obligation to separate collection of textile waste at regional reception points. The recycling rate of municipal waste shall be increased from the current 41% to 55% in 2025 and 60% in 2030. The recycling rate of plastic packaging shall be increased by 31%. Second, Finland shall promote the circular economy by means of a strategic programme for 2035, which sets concrete targets for the consumption of non-renewable natural resources, resource productivity and circular material use rate. This shall comprise a national framework programme, complemented by the promotion of voluntary sectoral agreements between municipalities, business and other stakeholders. The target is to have at least 2 key industry associations as well as at least 20 municipalities and cities join the agreement and commit to implementing measures that promote the objectives of the strategic Circular Economy Programme: to reduce the use of natural resources, increase the use of recycled materials and promote a low-carbon circular economy society. It shall also include the publication of “support scenarios” that shall assist in the identification of stakeholders’ most relevant measures to be taken under such agreements, in cooperation with relevant research institutes. The implementation of the reform shall be completed by 31 December 2024. Investment 1 (P1C2I1): Low carbon hydrogen and carbon capture and utilisation This investment aims to promote the development of the production and storage of clean hydrogen on a commercial scale. The investment contributes to Finland’s goal of achieving carbon neutrality by 2035. Finland has joined the potential Important Project of Common European interest (IPCEI) “European Clean Hydrogen Alliance”, which is currently under construction and has not yet been notified to the Commission. This enables Finnish companies to benefit from economic, research and industrial cross-border cooperation. The funding shall be allocated to support investments along the hydrogen value chain as well as in carbon capture, storage and recovery. Finland is expected to contribute through support to (i) producing low carbon 'green’ hydrogen, replacing the use of fossil fuels in heavy industries, (ii) capturing, storing and utilising CO2 and (iii) research related to hydrogen. In addition to the potential IPCEI, projects linked to European cooperation networks, such as Eureka, may be supported. No funding shall be allocated to production of hydrogen from natural gas. Under this measure temporary staff may be hired to accelerate the environmental permitting and processing from 1 January 2021 to 31 December 2023. In addition, support for certain domestic low carbon 'green’ hydrogen investments shall be granted under a new Government Decree to be adopted in 2021 (Energy Aid Regulation). It shall take the form of competitive calls under the responsibility of the Ministry of Economic Affairs and Employment and Business Finland, to be organised in one or several stages. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected. Selection criteria shall ensure that all projects contribute to the climate change objectives linked to the intervention field 032 that has 100% climate coefficient in accordance with Annex VI to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility. The first call for proposals shall be opened in 2021 and published on Business Finland website. The implementation of the investment shall be completed by 30 June 2026. Investment 2 (P1C2I2): Direct electrification and decarbonisation of industrial processes The measure shall promote the direct electrification and low-carbon industrial processes to reduce CO2 emissions in the industrial sector. The measure shall: I)improve energy efficiency by electrifying heat consumption and processes; and II)introduce hybrid solutions and utilise heat pump technology and surplus heat. The measure aims to support preparing the industry for the end of energy use of coal in 2029 and for at least half of the energy use of peat by 2030 by stimulating the replacement of the use of fossil fuels in industrial applications by electricity. Support shall be granted under a new Government Decree to be adopted by 31 December 2021. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in the terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use ; (ii) activities under the EU Emissions Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected. Selection criteria shall also ensure that all projects contribute to the climate change objectives are linked to the intervention field 024ter that has a 100% climate coefficient in accordance with Annex VI of the Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility. To this end, selected projects shall achieve, on average, at least a 30% reduction of direct and indirect greenhouse gas emissions compared to the ex-ante emissions. The first call for projects shall be opened as soon as the legislation is in place. The implementation of the investment shall be completed by 30 June 2026.

Investment 3 (P1C2I3): Re-use and recycling of key materials and industrial side streams The measure aims at promoting a circular economy that re-uses and recycles industrial side and waste streams and other key materials such as battery materials, plastics, textiles, packaging, electrical and electronic equipment, construction and demolition materials. Support shall be provided for: I)first commercial plants, pilot and demonstration plants; II)the introduction of new technologies in existing processes; III)digital platforms and service investments promoting re-use and recycling. At least EUR 30 000 000 of the envelope shall be directed to the promotion of the circular bioeconomy and at least EUR 30 000 000 of the envelope shall be directed to the promotion of circular economy solutions in the battery value chain. Competitive calls shall be organised by Business Finland in several stages in 2021. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use ; (ii) activities under the EU Emissions Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected. Selection criteria shall also ensure that all projects contribute to the climate change objectives linked to the following intervention field 045bis that has 100% climate coefficient in accordance with Annex VI to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility. To this end, selected projects shall enable at least 50%, in terms of weight, of the processed separately collected non-hazardous waste into secondary raw material. The implementation of the investment shall be completed by 30 June 2026. B.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Number Measure Milestone / Target Name Qualitative indicators (for milestones) Quantitative indicators (for targets) Indicative timeline for completion Description of each milestone and target Unit Base-line Goal Q Year 11 P1C2R1 - Industrial reforms and investments supporting the green and digital transition – Reform of the Climate Act and low-carbon industrialisation Milestone Entry into force of the revised Climate Change Act Provision in the law indicating the entry into force of the Act Q2 2022 The amendment of the Climate Act shall include: - emission reduction targets for 2030 and 2040 in line with the carbon neutrality path - updated 2050 targets - objectives concerning the land use sector and strengthening carbon sinks 12 P1C2R1 - Industrial reforms and investments supporting the green and digital transition – Reform of the Climate Act and low-carbon industrialisation Milestone Entry into force of the updated climate and energy strategy, medium-term climate change policy plan and sector-specific low-carbon roadmaps Publication of the strategy, plan and roadmaps on the websites of the Ministry of Employment and the Economy and the Ministry of the Environment Q4 2025 The climate strategies, plans and industry sectoral low-carbon roadmaps that are the most essential (the four key energy intensive industries are energy, chemical, forest and technology industries) for the implementation of the Climate Change Act shall be updated. The climate and energy strategy shall include policy measures and scenarios that aim to meet the climate and energy targets set by the EU for 2030 and the carbon neutrality 2035 target set in the Government Programme. 13 P1C2R2 - Industrial reforms and investments supporting the green and digital transition – Strategic promotion of the circular economy and reform of the Waste Act Milestone Entry into force of the main processes of the revised Waste Act Provision in the law indicating the entry into force of the revised Waste Act Q4 2024 The revised Waste Act (714/2021) shall include: 1) The national separate collection of biowaste in full operation in 2022. 2) producer responsibility for packaging waste and separate collection of packaging waste and textiles nationally fully operational in 2023. 3) The national separate collection of biowaste from new properties fully operational in 2024. The revised Waste Act shall empower the Finnish government to adopt new decrees including: (i) general recycling targets for municipal waste, which shall be increased from the current 41% to 55% in 2025 and 60% in 2030 and (ii) legally binding recycling targets for packaging waste producers, which shall increase the recycling rate of plastic packaging by 31%. 14 P1C2R2 - Industrial reforms and investments supporting the green and digital transition – Strategic promotion of the circular economy and reform of the Waste Act Milestone Adoption of the Government resolution on the implementation of the Strategic Programme for a Circular Economy Publication of the Government resolution (YM/2021/17) on the Government website Q2 2021 The Government resolution on the implementation of the strategic programme for a circular economy is adopted and includes the objective that the consumption of non-renewable natural resources shall decrease, and the sustainable use of renewable natural resources may increase so that the total consumption of domestic primary raw materials will not exceed the 2015 level by 2035. 15 P1C2R2 - Industrial reforms and investments supporting the green and digital transition – Strategic promotion of the circular economy and reform of the Waste Act Milestone Conclusion of a national agreement with key actors on a low-carbon circular economy The establishment of the contract framework for a low-carbon circular economy and an agreement has been concluded with key actors from industry and stakeholders Q2 2023 The new national contract framework for a low-carbon circular economy, supporting the strategic programme for a circular economy, shall be concluded and published on the website of the government of the Republic of Finland. The supporting scenarios for the use of natural resources shall be prepared in cooperation with relevant research institutes. The target is to have at least two key industry associations, as well as at least 20 municipalities and cities, to join the agreement and commit to implementing measures that promote the objectives of the strategic Circular Economy Programme. 16 P1C2I1 - Industrial reforms and investments in support of the green and digital transition – low-carbon hydrogen and carbon capture and utilisation Milestone Publication of the first national call for applications for the production and utilisation of low-emission hydrogen as well as carbon dioxide capture and utilisation Publication of the first calls for applications on Business Finland’s website Q4 2021 Launch of the first national call for applications for the production and utilisation of low-emission hydrogen as well as carbon dioxide capture and utilisation. The terms of reference of the call shall include eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 17 P1C2I1 - Industrial reforms and investments in support of the green and digital transition – low-carbon hydrogen and carbon capture and utilisation Milestone Award of all grants for low-carbon hydrogen and carbon capture and utilisation projects Notification of the award of all grants Q4 2023 The selection of all low-carbon hydrogen and carbon capture and utilisation projects shall be carried out in accordance with the criteria of the respective calls for proposals. All calls shall be based on the eligibility/selection criteria indicated in milestone 16. All funding award decisions shall be awarded to the project beneficiaries/ applicants selected under the competitive calls for proposals, enabling the start of the implementation of the selected projects. 18 P1C2I1 - Industrial reforms and investments in support of the green and digital transition – low-carbon hydrogen and carbon capture and utilisation Target Completion of the supported projects Number 0 5 Q2 2026 At least five supported projects shall be completed, as evidenced by project reports submitted by project beneficiaries. These shall correspond to a budgetary commitment of at least EUR 140 400 000 of the EUR 156 000 000 allocated to the measure. 19 P1C2I2 - Industrial reforms and investments supporting the green and digital transition – Direct electrification and decarbonisation of industrial processes Milestone Publication of the first call for proposals for direct electrification and low-carbonisation of industrial processes aimed at reducing CO2 emissions from industry Publication of the first call for applications on Business Finland’s website. Q4 2021 The amended funding guidelines (Energy Aid Regulation) have entered into force, enabling the launch of the first competitive call for proposals for direct electrification and low-carbonisation of industrial processes aimed at reducing CO2 emissions from industry. The terms of reference of the call shall include eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 20 P1C2I2 - Industrial reforms and investments supporting the green and digital transition – Direct electrification and decarbonisation of industrial processes Milestone Award of all grants for direct electrification and low-carbon industrial processes projects Notification of the award of all grants Q4 2023 The selection of all direct electrification and low-carbon industrial processes projects shall be carried out in accordance with the criteria of the respective calls for proposals. All calls shall be based on the eligibility/selection criteria indicated in milestone 19. All funding award decisions shall be issued to the project beneficiaries/applicants selected under the competitive calls for proposals, enabling the start of the implementation of the selected projects. 21 P1C2I2 - Industrial reforms and investments supporting the green and digital transition – Direct electrification and decarbonisation of industrial processes Target Completion of the supported projects Number 0 4 Q2 2026 At least four supported projects shall be completed, as evidenced by project reports submitted by project beneficiaries. These shall correspond to a budgetary commitment of at least EUR 54 000 000 of the EUR 60 000 000 allocated to the measure. 22 P1C2I3 - Industrial reforms and investments supporting the green and digital transition – Re-use and recycling of key materials and industrial side streams Milestone Publication of the first call for applications for investment projects promoting the reuse of waste materials and side streams. Publication of the first call for applications on Business Finland’s website Q4 2021 The Government Decree on Granting Aid to Businesses for the Promotion of the Circular Economy and Sustainable Green Growth (1197/2020) entered into force, enabling the launch of the first competitive call for proposals for investment projects promoting the reuse of waste materials and side streams. The terms of reference of the call shall include eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 23 P1C2I3 - Industrial reforms and investments supporting the green and digital transition – Re-use and recycling of key materials and industrial side streams Milestone Award of all grants to the re-use and recycling projects Notification of the award of all grants Q4 2023 The selection of all re-use and recycling of key materials and industrial side streams projects shall be carried out in accordance with the criteria of the respective calls for proposals. All calls shall be based on the eligibility/selection criteria indicated in milestone 22. All funding award decisions shall be issued to the project beneficiaries/ applicants selected under the competitive calls for proposals, enabling the start of the implementation of the selected projects. 24 P1C2I3 - Industrial reforms and investments supporting the green and digital transition – Re-use and recycling of key materials and industrial side streams Target Completion of the supported projects Number 0 10 Q2 2026 At least ten supported projects shall be completed, as evidenced by project reports submitted by project beneficiaries. These shall correspond to a budgetary commitment of at least EUR 99 00 000 of the EUR 110 000 000 allocated to the measure. C. COMPONENT P1C3: REDUCING THE CLIMATE AND ENVIRONMENTAL IMPACTS OF THE BUILDING STOCK Finland has set a target to become the world’s first fossil-free welfare society, reaching carbon neutrality by 2035. The overall goal of this component of the Finnish recovery and resilience plan is to contribute to achieving the carbon-neutrality objective by reducing the emissions of buildings over their lifecycle, with a particular focus on construction and on heating. The component includes investments to stimulate the replacement of oil-based heating systems in private and public buildings by heating systems based on low- or zero-carbon technology, and to promote the use of low-carbon methods in the construction sector. These investments shall be complemented by reforms that aim to reduce emissions in the construction of buildings and that phase out heating systems fuelled by fossil oil in public buildings by 2024 and completely by the beginning of the 2030s. The component contributes to addressing Country Specific Recommendations on focusing investment on the green transition, in particular on clean and efficient production and use of energy (Country Specific Recommendation 3 2020), as well as on promoting investment in low carbon and energy transition (Country Specific Recommendation 3 2019). It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). C.1. Description of the reforms and investments for non-repayable financial support

Reform 1 (P1C3R1): Reform of the Land Use and Building Act Finland shall adopt legislation to reform the existing Land Use and Building Act (132/1999) whose one aim shall be to reduce emissions from the entire life span of buildings, including construction, use, repair and demolition. The reform targets building developers, owners, designers, contractors, the material industry and authorities. The reform shall be implemented gradually starting in 2023, while the last regulations shall be adopted by 30 June 2026. After the reform comes into force, new construction shall be low carbon and renovations shall be carried out with low-carbon solutions. The implementation of the reform shall be completed by 30 June 2026. Reform 2 (P1C3R2): Action plan to phase out fossil oil heating Finlandhas adopted a target of phasing out the use of fossil oil heating in 2030. This reform measure shall enable Finland to establish an overview of buildings with fossil oil heating and their owners, emissions and energy consumption. Finland shall adopt an action plan with the aim to reach the target for phasing out oil heating by 2030. The action plan shall include instruments such as subsidies and grants, taxes and tax subsidies, information steering, regulatory steering, energy efficiency agreements, public procurement and financial instruments to achieve this target. Decisions on the use of new instruments or improvement of the existing ones are expected to be taken separately. The implementation of the reform shall be completed by 31 December 2025. Investment 1 (P1C3I1): Replacement of heating systems in buildings from fossil oil to low-carbon forms of heating The measure aims at supporting the phasing out of fossil oil based heating in Finland by the early 2030s. It thereby significantly contributes to achieving the EU’s 2030 climate targets at the national level. Two existing programmes that are in place since autumn 2020 shall be extended: first, grants for replacing oil heating in detached housing that are directed at replacing fossil oil based heating in detached residential houses and, second, grants for replacing fossil oil heating in buildings owned by municipalities, parishes and associations. The aid is targeted at owners of detached residential houses, municipalities, parishes and associations. For the scheme directed at replacing fossil oil based heating in detached residential houses, funding shall be provided in the order of application. Houses must be permanently occupied. The level of aid varies depending on the type of heating installed. For the scheme directed at replacing fossil oil based heating in buildings owned by municipalities, parishes and associations, the planned support ranges from 20% to 25% of the incurred investment costs. It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the heating systems replacing oil boilers shall not use fossil fuels as a heat source but rely on technologies such as air-water heat pumps, geothermal heat pumps and district heating. The renovation programme shall lead to a reduction on average of 1) at least 30 % in primary energy demand in detached residential houses and 2) at least 30 % in GHG emissions in buildings owned by municipalities, parishes and associations. Selection criteria shall ensure that all projects contribute to the climate change objectives are linked to the intervention fields 1) 025bis and 2) 024ter that have 100% climate coefficient in accordance with Annex VI to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility. The implementation of the investment shall be completed by 31 December 2023. Investment 2 (P1C3I2): Low-carbon built environment programme This measure consists primarily of a research, development and innovation programme that aims at accelerating the development and adoption of low-carbon solutions (such as operating models, products, materials) in the built environment. The measure contributes to climate change mitigation and promotes a low-carbon and circular economy, focussing on research and innovation, technology transfer and cooperation between research, business and local government. The following actions shall be supported: I)a grant support scheme for research, development and innovation to stimulate investment (at least EUR 32 million); II)procurement of knowledge base and assessment tools that support climate-friendly and low-carbon solutions in the built environment, including the possibility for investment support under the scope of the programme (at least EUR 4 million); and III) support to the development and coordination of joint business projects that aim to export low-carbon solutions in the built environment (at least EUR 2 million). Support shall be granted under Business Finland support programmes (i and iii above) (act 1146/2017, decree 1147/2017 and 1444/2014) and the Ministry of the Environment decree 1286/2015 and 688/2001 (ii above). Competitive calls shall be organised by Business Finland in several stages starting in 2021. The scheme builds on a pilot project (Kira-Digi programme, which was carried out from 2016 to 2019). The calls shall primarily target small and medium-sized enterprises, local authorities and research institutes. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected.

Selection criteria shall ensure that all projects contribute to the climate change objectives are linked to the intervention fields 022 or 027 that have 100% climate coefficient in accordance with Annex VI to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility. The implementation of the investment shall be completed by 30 June 2026. C.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Number Measure Milestone / Target Name Qualitative indicators (for milestones) Quantitative indicators (for targets) Indicative timeline for completion Description of each milestone and target Unit Base- line Goal Q Year 25 P1C3R1 - Reducing the climate and environmental impacts of the building stock – Reform of the Land Use and Building Act Milestone Entry into force of the reformed Land Use and Building Act Provision in the law indicating the entry into force of the amendments to the Land Use and Building Act Q2 2026 The legislation based on the reformed land use and building act shall include limits on the carbon dioxide emissions of construction projects during the building’s life cycle. It shall also regulate the development of calculation methods and interoperable databases to enable low-carbon construction. 26 P1C3R2 - Reducing the climate and environmental impacts of the building stock – action plan to phase out fossil oil heating Milestone Publication of the action plan for phasing out fossil oil heating Publication of the action plan on the website of the government of Finland Q2 2022 The action plan shall set out all the necessary measures to support the phasing out of fossil oil heating in all buildings in Finland by 31 December 2030. 27 P1C3R2 - Reducing the climate and environmental impacts of the building stock – action plan to phase out fossil oil heating Target Reduction in the number of detached houses using separate oil heating Number 133 000 106 400 Q4 2025 Reduction in the number of detached houses that use separate oil heating from 133 000 in 2019 to 106 400 in 2025, representing a reduction of 20%. 28 P1C3I1 - Reducing the climate and environmental impacts of the building stock – Replacement of heating systems in buildings from fossil oil to low-carbon forms of heating Milestone Entry into force of the Government Decree defining the details of the aid scheme for detached houses Provision in the government decree indicating its entry into force Q4 2021 The government decree laying down the details of the aid scheme for detached houses shall enter into force, enabling the launch of the call for proposals for the replacement of fossil oil heating systems in detached houses (where intervention field 025bis applies) with low-carbon forms of heating. The decree shall lay down the technical requirements to ensure compliance with the 30 % average reduction in primary energy consumption. The terms of reference of the call shall include eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 29 P1C3I1 - Reducing the climate and environmental impacts of the building stock – Replacement of heating systems in buildings from fossil oil to low-carbon forms of heating Milestone Entry into force of the Government Decree or state budget decision defining the details of the aid scheme for other buildings (not detached houses) Provision in the government decree indicating its entry into force Q2 2022 The government decree or state budget decision laying down the details of the aid scheme for buildings owned by municipalities, parishes and associations (where intervention field 024ter applies) shall enter into force, enabling the launch of the call for proposals for the aid scheme supporting the replacement of fossil oil heating systems in buildings owned by municipalities, parishes and associations with low-carbon forms of heating. The decree and budget shall lay down the technical requirements to ensure compliance with the 30 % average reduction in greenhouse gas emissions. The terms of reference of the call shall include eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 30 P1C3I1 - Reducing the climate and environmental impacts of the building stock – Replacement of heating systems in buildings from fossil oil to low-carbon forms of heating Milestone Award of all grants for projects supporting the replacement of heating systems in buildings from fossil oil to low-carbon forms of heating Notification of the award of all grants Q4 2023 Notification of the award of all grants for projects supporting the replacement of heating systems in at least 14 600 buildings from fossil oil to low-carbon forms of heating. 31 P1C3I2 - Reducing the climate and environmental impacts of the building stock – Low-carbon built environment programme Milestone Publication of a first call for applications regarding support for a low-carbon built environment Publication of the call for applications Q4 2021 Launch of a first competitive call for applications regarding a low-carbon built environment programme on research and innovation, technology transfer and cooperation between research, business and local government. The terms of reference shall include eligibility criteria that ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 32 P1C3I2 - Reducing the climate and environmental impacts of the building stock – Low-carbon built environment programme Milestone Award of all grants and public contracts for projects in support of a low-carbon built environment Notification of the award of all grants and public contracts Q2 2024 The selection of all low-carbon built environment projects shall be carried out in accordance with the criteria of the respective calls for proposals. All calls shall be based on the eligibility/selection criteria indicated in milestone 31. All funding award decisions shall be issued to the project beneficiaries/ applicants selected under the competitive calls for proposals, enabling the start of the implementation of the selected projects. 33 P1C3I2 - Reducing the climate and environmental impacts of the building stock – Low-carbon built environment programme Milestone Completion of the supported projects Publication of the final report on completed projects Q2 2026 All supported projects shall be completed, as evidenced by project reports submitted by project beneficiaries. These shall correspond to a budgetary commitment of at least EUR 36 000 000 of the EUR 40 000 000 allocated to the measure. The report of the programme provides the key information on all supported projects, including the grants allocated to them and the costs of procurements and programme implementation. It shall also cover an assessment of the impacts on carbon dioxide emissions in the construction and real estate sector, as a result of the programme. D. COMPONENT P1C4: LOW-CARBON SOLUTIONS FOR COMMUNITIES AND TRANSPORT Finland has set a target to become the world’s first fossil-free welfare society, reaching carbon neutrality by 2035. As part of the transition to becoming carbon neutral by 2035, Finland has also set a target of halving greenhouse gas emissions from transport by 50% by 2030 compared to 2005. The overall goal of this component of the Finnish recovery and resilience plan is to contribute to achieving the transport emissions objective by reducing emissions in transport and promoting the use of carbon-free modes of transport. Currently, alternative motor vehicles account for only 2,3% of the passenger car fleet, whilst 48% of all public electricity charging and gas refuelling stations are located in the main metropolitan areas (Helsinki, Tampere, Turku). The component includes investments promoting the use of non-fossil private and public transport, including investment in charging and refuelling infrastructure for vehicles that use non-fossil fuels. Those investments shall be accompanied by reforms including a roadmap for stimulating the use of non-fossil transport and a revision of transport taxation. The component contributes to addressing Country Specific Recommendations on focusing investment on the green transition, in particular on clean and efficient production and use of energy (Country Specific Recommendation 3 2020), as well as on promoting investment in low carbon and energy transition (Country Specific Recommendation 3 2019). It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). D.1. Description of the reforms and investments for non-repayable financial support Reform 1 (P1C4R1): Roadmap to fossil-free transport Finland estimates that additional action is needed to reduce CO2 emissions in transport by an additional 1,65 megatonnes by 2030. Finland’s government adopted a Resolution on the roadmap for fossil-free transport on 6 May 2021, which presents measures to achieve the 2030 target and a path to emission-free transport by 2045. In the first phase, decisions shall be made on subsidies and incentives which will promote emission-free transport. Among the measures foreseen are the inclusion of biogas and electro fuels in the distribution obligation, support for public distribution infrastructure for transport electricity and gas, for private charging infrastructure for housing companies and workplaces as well as several purchase subsidies (all-electric cars, electric and gas-powered vans and trucks) and support for sustainable transport modes (cycling, walking, public transportation). The calculated emission reduction of these measures is at least 0,62 megatonnes (Mt). Investments foreseen under this component will support the implementation of this reform. Decisions on the financing of these measures will be under consideration in the government budget negotiation in the autumn of 2021. In addition, impact assessments on possible further measures shall be finalised by 31 December 2021. Measures to be asses