The environmental legal framework and key pieces of environmental legislation in Finland include the Environmental Protection Act (527/2014 Ympäristönsuojelulaki), Nature Protection Act (9/2023 Luonnonsuojelulaki), Section 20 of the Finnish Constitution (713/1999 Perustuslaki), which establishes general environmental responsibility.

In addition to the above, Land Use Act (1329/1999 Alueidenkäyttölaki), Building Act (751/2023 Rakentamislaki) Water Act (587/1999 Vesilaki), Mining Act (621/2011 Kaivoslaki), Land Extraction Act (555/1981 Maa-aineslaki), Forest Act (1093/1999 Metsälaki), Waste Act (646/2011 Jätelaki), and Climate Act (423/2022 Ilmastolaki) constitute the key environmental legislation in Finland.

Finland, as an EU member state, adheres to EU environmental directives, regulations, and policies, demonstrating a commitment to harmonizing its environmental practices with the broader European Union objectives and contributing to collective efforts in addressing environmental challenges.

Finland’s environmental administration consists of central, regional and local administration.

Central government environmental regulatory authorities include the Ministry of Environment. In addition to the Ministry of Environment, the other Ministries, Finnish Environment Institute, Finnish Safety and Chemicals Agency (Tukes), Metsähallitus, National Land Survey of Finland and Finnish Transport Infrastructure Agency carry out central regulatory administrative work in the field of environment.

Six Regional State Administrative Agencies (AVI) and 15 Centres for Economic Development, Transport, and the Environment (ELY Centres) serve as regional administrative authorities in Finland. The AVI Agencies are the permit authorities for permits pursuant to the Environmental Protection Act and the Water Act.  The ELY Centres are the supervisory authorities. In the Åland Islands, these duties are performed by the State Department of Åland (Statens ämbetsverk på Åland).

Municipal environmental protection authorities are responsible for certain environmental permitting, registration, notification and supervisory tasks. Regional councils are responsible for regional land use planning, preparing certain regional programs and other regional plans.

Furthermore, the 21 wellbeing services counties operating in Finland must integrate sustainable development into their strategies and take sustainability criteria into account in their procurement processes.

Most activities that may involve pollution or otherwise affect the environment or nature require a permit under various legislation. A permit under the Environmental Protection Act is required for operations that cause a risk of environmental pollution.   The Land Use Act (Alueidenkäyttölaki) and the Building Act (Rakennuslaki) require permission for a number of activities affecting the ground such as i.a. building, changes to existing buildings and installations, changed use of buildings and material interventions to terrain. The new Building Act (751/2023) has entered into force on 1.1.2025. Measures that affect the water resources, such as hydropower installations, require permits under the Water Act (Vesilaki). In addition to the above, there are specific permit and notification requirements under the Land Material Act (Maa-aineslaki), the Mining Act (Kaivoslaki) and the Forest Act (Metsälaki), among others. In addition to permit requirements, many activities are subject to registration and notification procedures.

Environmental permits are sectoral in nature: a need for a permit as well as granting a permit is decided by the competent authorities based on the applicable law and no permit replaces another.

In principle, all environmental permits can be transferred from one operator to another. The transfer is made by notification to the authority and taking into consideration the content of the permit. If the permit to be transferred has required a guarantee from the operator, the transferee must provide a guarantee to replace the previous guarantee.

In principle, application documents relating to environmental permits are public. The right to appeal against decisions on environmental permits is available to the applicant and, in general, to interested parties and environmental organisations. The normal appeal route in environmental matters is from the Vaasa Administrative Court to the Supreme Administrative Court after the appeal has been granted. However, a government issued decision is appealed directly to the Supreme Administrative Court. The Act on Administrative Proceedings (808/2019) is the main law applicable.

The requirement for environmental impact assessment is found in several laws. The primary law is the Environmental Impact Assessment Act (252/2017, YVA-laki).  Annex 1 under the law lists the projects that must always be subject to an EIA procedure. In addition, the procedure may be applied on a discretionary basis to projects that may have significant environmental effects comparable to those on the list. The decision of Centre for Economic Affairs, Transport and the Environment (ELY Centre) on requiring the assessment procedure may be appealed. Annex 2, among other aspects, includes a requirement to take biodiversity into account when assessing the characteristics of a project.

In addition, the Land Use Act (132/1999 Alueidenkäyttölaki) and the Building Act (751/2023 Rakentamislaki) require the environmental impacts of a plan to be surveyed and considered, including urban, social, cultural and other impacts, to the necessary extent taking into account the purpose and function of the plan.

Furthermore, a strategic environmental assessment (SEA) is carried out for certain plans and programmes of authorities under the Act on the Assessment of the Environmental Impact of Plans and Programmes of Public Authorities (200/2005 SOVA-laki). The SEA is made by the authority preparing the plan or programme. In addition, the environmental impact assessment of the protection of Natura 2000 sites is based on the Nature Protection Act. The contact authority is in general the regional Centre for Economic Affairs, Transport and the Environment (ELY Centre) and for nuclear energy projects the Ministry of Economic Affairs and Employment.

The EIA procedure includes the following simplified steps: the preparation of an assessment programme and an assessment report, information and consultation on the assessment programme and report examination by the contact authority of the information contained in the assessment programme and the assessment report and of the opinions and comments received during the consultations, and the opinion of the contact authority on the evaluation programme.

The assessment report and reasoned conclusion will be attached to the application for an environmental permit for the project. The reasoned conclusion will be included in the permit decision and the permit will consider the results of the consultations on the assessment report. The decision of the environmental permit may be subject to an appeal.

The project developer will be responsible for the costs of the assessment and the fee charged by the contact authority for the assessment programme and the assessment report.

The liability for contamination of soil and groundwater is regulated in the Environmental Protection Act (527/2014 Ympäristönsuojelulaki). The polluter is primarily responsible for cleaning up contaminated soil and groundwater. The obligation to clean up soil and groundwater does not require negligence or intent.

Also, other party than the primary polluter may be liable for the cleaning up of the contaminated soil or groundwater. Firstly, the holder (in practice the owner) of a property may be liable if the primary polluter cannot be contacted, identified, or held liable for the cleaning of the soil or groundwater, and if the contamination has occurred with the consent of the holder of the property or the owner knew or should have known of the condition of the property when the property was acquired. The owner’s liability to clean up the soil is limited to the extent that is not manifestly unreasonable.

Ultimately, if the owner of the contaminated property cannot be obliged to clean up the contaminated soil according to the above mentioned, the municipality must determine the need for soil decontamination and clean up the soil. If the soil contamination occurred in previous decades, the basis for liability may in some cases be different from the above, as liability is determined based on the legislation in force at the time of the contamination.

Soil and groundwater must be cleaned up to a state where it cannot cause harm to health or harm or danger the environment. The assessment of the need for remediation shall consider the current and future use of the contaminated site, its surroundings and groundwater, and the potential risk or harm to health or the environment arising from the contamination.

If waste or other substances that could cause pollution have been discharged into the soil or groundwater, the person responsible must immediately inform the supervisory authority (ELY Centre). The ELY Centre will take a decision on the notification, which may include necessary provisions regarding the clean-up or e.g. monitoring. It should be noted that the clean-up operation itself may also require an environmental permit. If the party responsible for the clean-up does not voluntarily undertake the clean-up measures, ELY Centre may issue an order and use an administrative penalty as a remedy.

If there is reason to suspect contamination in soil or groundwater, the party who would be responsible for the clean-up (see chapt. 4.1) must investigate the contamination of the site and the need for clean-up. The report must be submitted to the supervisory authority (ELY Centre).

If the person responsible for the clean-up fails to fulfil his obligation to carry out the investigation, the supervisory authority (ELY Centre) may order the party responsible for the clean-up to fulfil the obligation.

In the event of a change of ownership situation, liability for environmental contamination on the property is transferred to the new owner or possibly tenant if he knew, or should have known, of the contamination when he acquired the site. Therefore, the Environmental Protection Act requires the transferor or lessor of the land to provide the new owner or tenant with available information on the activities carried out on the site, the wastes or substances that may cause or have caused soil or groundwater contamination, and any investigations or clean-up operations carried out on the site. This information is not required to be provided to authorities as such. See also Chapt. 4.2.

According to the Environmental Protection Act, if waste or other substances that could cause pollution have entered the soil or groundwater, the polluter must immediately inform the supervisory authority (ELY Centre or environmental protection authority of the municipality).

In the case of environmental accidents, the primary responsibility for rescue operations lies with the rescue authority of the area concerned. The environmental authority of the municipality should also be contacted. The Centre for Economic Development, Transport and the Environment (ELY Centres) investigates the cause of contamination, assesses the impact of environmental damage and need for clean-up, and may take part in preventive work. See also Chapt. 4.2.

The polluter is primarily responsible for cleaning up contaminated soil and groundwater as public liability. This liability may transfer to the new owner if the new owner knew, or should have known, of the contamination when the site was acquired. The seller of the land must provide the new owner with available information on the activities carried out on the site, the wastes or substances that may cause or have caused soil or groundwater contamination, and any investigations or clean-up operations carried out on the site.

The transfer of liability depends therefore on the contract(s) and other documents between the previous and subsequent owner(s). Private parties affected by historical contamination may seek compensation through civil actions against the party responsible for the contamination, depending on what was agreed in the purchase contract regarding responsibility for costs and losses caused by possible contamination of soil or groundwater. This may include the previous owner(s) if they are found to be at fault. If the soil contamination occurred in previous decades, the basis for liability may in some cases be different due to the legislation in force at the time of the contamination.

General waste legislation includes the Waste Act (646/2011), which was comprehensively reformed in 2021, and Waste Decree (179/2012). The legislation covers all waste except certain special types of waste such as radioactive waste, which are covered by separate, specific laws. Waste Act implements several key EU waste directives, but in some cases Finnish laws include stricter standards and limits than those applied in the EU. The aim of the Waste Act and its accompanying regulations is to reduce waste and increase re-use and recycling. Waste of different types and qualities must be sorted and collected separately for recycling. Separately collected waste may not be landfilled or incinerated. Waste management activities require an environmental permit under the Environmental Protection Act. The environmental permit usually requires a security to ensure proper waste management, e.g. in the event of closure of the activity.

The waste holder must organise the management and disposal of waste. The waste holder means the producer of the waste, the owner of the property or any other person in possession of the waste According to the Waste Act, waste may only be handed over to an operator who on the basis of an authorisation or entry in a waste management register under the waste legislation, is entitled to receive the waste in question; or on the basis of an environmental permit under the Environmental Protection Act or registration in an environmental protection information system under the same Act, is entitled to receive the waste in question.

Waste may also be handed over to a recipient who is not required to be approved, marked, authorised or registered if the recipient has sufficient expertise and financial and technical capacity to organise waste management.

The responsibility of the waste holder for organising waste management ceases and is transferred to the new holder when the waste is handed over to the recipient referred to above. Responsibility does not pass to a carrier who merely transports waste on behalf of another person.

Where waste is handed over to a recipient other than those referred to above, the responsibility for organizing waste management shall be borne by both the new holder and the previous holder. The carrier must deliver the waste to a place designated by the waste holder or the authority. If the waste is not accepted, the carrier must return the waste to the original holder, who must take it back.

Producer responsibility for waste management applies to around 50 000 Finnish manufacturers, importers, packers and distance sellers. Producer responsibility applies to the following products: Batteries and accumulators (including those inside vehicles and electrical equipment), cars, packaging, paper and paper products, tires, electrical and electronic equipment, and single-use-plastics products.

The manufacturers, importers, distance sellers and packers of the above-mentioned products have an obligation under the Waste Act, but also a right, to organise the disposal of their products when they are discarded. Producer responsibility covers the collection, transport, and waste treatment/recycling of the products. Parallel collection and reception systems may only be set up in cooperation with the producer. Producers such as manufacturers, importers or packagers of certain single-use plastic products pay municipalities for the costs of cleaning up litter caused by their products and for the costs of litter prevention like the costs of organising waste management.

The responsibility for conducting asbestos surveys and handling asbestos discoveries falls on the party undertaking a construction project, usually the property owner, whether an individual or organization.

The use of asbestos was banned in Finland in 1994. Therefore, the law requires that an asbestos survey must always be carried out before starting any project involving demolition work in a building completed before 1994. If asbestos is found, renovation work should be done by a licensed asbestos contractor for affected areas. If the asbestos is intact and no renovations are planned, removal isn’t required.

Companies undertaking asbestos removal must be licensed, listed in the Asbestos Removal Licence Register maintained by the Public Regional Administrative Agency (AVI). The Act on Certain Requirements Concerning Asbestos Removal Work (684/2015) and Government Decree on the Safety of Asbestos Work (798/2015) establish guidelines for worker qualifications, removal procedures, and safety measures to protect against asbestos exposure hazards.

As Finland is a Member State of EU, the EU regulations concerning product liability, such as REACH (The Regulation on the registration, evaluation, authorisation and restriction of chemicals (EC 1907/2006)) and CLP (Regulation on classification, labelling and packaging of substances and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006) are directly applicable.

The Chemicals Act is the key law implementing European Union chemicals legislation and certain national obligations concerning chemicals.

The TSCA is American regulation that is not directly applicable in Finland. However, the requirements of the TSCA must be complied with when importing Finnish products to the United States.

In addition, the Product Liability Act (694/1990, Tuotevastuulaki) regulates compensation for injury or damage caused by a product to a person or property meant for private use or consumption and primarily used for such purposes by the injured party.

The competent Finnish authority in product regulation is the Finnish Safety and Chemicals Agency (Tukes). The Finnish Safety and Chemicals Agency is a licensing and supervisory authority that promotes the safety and reliability of products, services and industrial activities.

Energy Efficiency Act (30.12.2014/1429) regulates the promotion of energy efficiency, energy audits to improve energy efficiency, cost-benefit analyses to promote efficient cogeneration of electricity and heat and the use of surplus heat, and the obligation of undertakings operating in the energy market to promote the efficient and economical use of energy in their customers’ activities.

The Energy Authority (Energiavirasto) is the competent supervisory authority regarding the energy audits and has the right to inspect the reports of the mandatory energy audit of the company and the target audit included. The energy audit report, the included target audit report and any other information required by the authority for its supervision shall be provided at the request of the Energy Authority. The energy audit and target audit reports shall not be older than four years.

According to the Land Use Act (132/1999) and the Building Act (2023/752) buildings must be designed and constructed in a way that uses energy and natural resources sparingly. Compliance with the minimum energy performance requirements shall be demonstrated by calculations.

In addition, the revised Energy Efficiency Directive (Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy efficiency and amending Regulation (EU) 2023/955) entered into force on 10 October 2023. Member States have until 11 October 2025 to implement it. Finland’s Ministry of Economic Affairs and Employment has established a working group to prepare the national implementation of the Directive.

The new Climate Act (423/2022) came into effect in July 2022. The previous Climate Act from 2015 was Finland’s first climate law. The Climate Change Act sets out national climate targets and a climate policy planning system, as well as related monitoring. The Climate Change Act imposes obligations to authorities. The measures are set out in plans drawn up by authorities in accordance with the Act. The Act does not set out measures or obligations to companies to reduce emissions or adapt to climate change.

The law includes Finland’s carbon neutrality target, which is set for 2035, emission reduction goals based on recommendations from the Finnish Climate Panel, and objectives to enhance carbon sinks. It establishes a planning system for climate policy, comprises four plans and an annual climate report to monitor emissions, assess progress towards reduction targets, and evaluate the need for additional measures. The law also sets out the division of responsibilities among authorities for climate policy planning and monitoring. Expert bodies are appointed according to the law, such as the Finnish Climate Panel and the Sámi Climate Council. Additionally, it addresses the consideration of Sámi rights and the fairness of climate actions, along with regulations concerning appeals.

Finland has committed to limiting the temperature rise to 1.5 degrees Celsius through the Paris Agreement.

Furthermore, The Environmental Protection Act will be amended to comply with EU regulations in relation to emissions and the amendments will enter into force on 1 January 2025 (see chapt. 3).

Finland’s emission reduction targets are -60% by 2030, -80% by 2040 and -90%, with a target of -95% by 2050 compared to 1990 levels. Finland should be carbon neutral by 2035 at the latest. The steering effect of the Climate Change Act is based on the climate policy planning system. The achievement of targets and the adequacy of measures will be monitored in the annual Climate Annual Report. Under the Climate Act, the climate policy consists of a long-term climate plan, an adaptation plan, a medium-term climate plan and a climate plan for the land use sector.

The Net-Zero Industry Act (NZIA), (Regulation (EU) 2024/1735 of the European Parliament and of the Council on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem) entered into force 20 June 2024. Finland’s Ministry of Economic Affairs and Employment has established a governmental working group to support the implementation of NZIA for the period of 1 July 2024 to 31 December 2025.

The aim of the regulation is to accelerate the achievement of the EU’s climate and energy targets for 2030 and the transition to climate neutrality. The task of the working group is to coordinate the national implementation of the regulation and support the legislative preparation related to its implementation. The working group may consult key stakeholders as necessary to support its work. The working group may also convene sub-groups as appropriate, which may include other experts according to the thematic area and specific expertise.

Directive on Corporate Sustainability Reporting (Directive (EU) 2022/2464 of the European Parliament and of the Council amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting ‘CSRD’) and the European Sustainability Reporting Standards, ESRS (Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards) require companies in scope to report on their sustainability performance in a transparent and standardised manner. CSRD and the ESRS includes an obligation for the companies in scope to report on their climate transition plans. Companies must report on their climate transition plan or state when they will adopt one if it does not already exist. CSRD does not include a separate obligation to publish a climate transition plan.

The CSRD has been implemented in Finland by amending 11 laws, including i.a. the Accounting Act (1336/1997 kirjanpitolaki), the Auditing Act (1141/2015 tilintarkastuslaki) the Limited Liability Companies Act (624/2006 osakeyhtiölaki), the Co-operatives Act (421/2013 osuuskuntalaki), the Securities Markets Act (746/2012 arvopaperimarkkinalaki), the Act on the Financial Supervisory Authority (878/2008 laki finanssivalvonnasta) and the Trade Register Act (564/2023 kaupparekisterilaki). Reporting under Finnish law is therefore regulated as at Directive level, including reporting standards.

The ESRS have been incorporated by reference. Therefore, the disclosure obligations included in the ESRS are applied literally. This also applies to the requirement to disclose whether a company has a climate transition plan in place, or if not, the plan to adopt one.

The Corporate Sustainability Due Diligence Directive (“Directive (EU) 2024/1760 of the European Parliament and of the Council on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859 CSDDD���) entered into force on 25.7.2024.

The CSDDD requires companies under its regulation to create a climate transition plan in line with the Paris Agreement, which must be reported in accordance with the Corporate Sustainability Reporting Directive. Companies subject to CSRD are not required to have a separate climate transition plan because the CSRD requirements align with the CSDDD. Companies must ensure that their business model and strategy align with the common objectives agreed at EU level: transition to a sustainable economy, limiting global warming to 1.5°C, and achieving climate neutrality in accordance with the European Climate Law.

As an EU Member State, Finland will adhere to the CSDDD. EU Member States will have two years to bring into force the national provisions necessary to comply with the CSDDD. The CSDDD will be applied gradually from July 2027. The Ministry of Economic Affairs and Employment of Finland has established a working group for the national implementation of the CSDDD. The group’s task is to assess the need for national legislation required by the CSDDD and to prepare the necessary national regulations.

In Finland, the Consumer Protection Act (38/1978) regulates misleading claims made by companies, including misleading environmental claims. In addition, the Act on Inappropriate Business Conduct (1061/1978) bans the use of any claim that is misleading or false and may impact the demand or supply of a product or service. The relevant national authority in consumer protection is the Finnish Competition and Consumer Authority.

A study conducted in 2022 by The Finnish Environment Institute SYKE found that up to 56% of the environmental marketing claims were ambiguous or omitted information. The Finnish Competition and Consumer authority has, in fact, issued several decisions finding that companies had made misleading and false environmental claims.

As an EU Member State, Finland adheres to EU legislation regulating greenwashing and green claims.

The Directive on empowering consumers for the green transition (Directive (EU) 2024/825 of the European Parliament and of the Council of 28 February 2024 amending Directives 2005/29/EC and 2011/83/EU as regards empowering consumers for the green transition through better protection against unfair practices and through better information) came into force 26 March 2024. The Directive must be nationally implemented by 27 March 2026 at the latest, and the new provisions must apply from 27 September 2026. Finland’s Ministry of Justice has set up a working group to prepare the national implementation of the directive. The directive will be transposed into Finnish law by amending the Consumer Protection Act (38/1978).

The process of adopting the Green Claims directive is in the trilogue negotiation phase between the Council, Parliament and the Commission, where the final wording of the directive will be established. The directive is expected to come into force in 2025. Following its entry into force, there will be a period of 18 to 24 months during which the directive must be implemented nationally.

There are no specific arrangements in relation to anti-trust matters and climate change in Finnish law. However, EU level initiatives such as the Corporate Sustainability Due Diligence Directive may affect e.g. award criteria in public procurement.

Yes. In November 2022, Greenpeace and the Finnish League for Nature Conservation appealed to the Supreme Administrative Court against the government’s inadequate climate action in its annual climate report.

The Supreme Administrative Court ruled by a vote that the procedural requirements were not met and dismissed the appeal as inadmissible. The Supreme Administrative Court held that the decision to issue the annual climate report is not an administrative decision that can be appealed. The court’s decision was also influenced by the principle that there is no right of appeal against the lack of action or an omission of public authorities.

In August 2024, six Finnish environmental and human rights organizations, including the Finnish Nature Conservation Union, Greenpeace, Amnesty International Finland, Climate Parents, the Nature Association, and Finnish Sámi Youth filed a lawsuit against the Finnish government in the Supreme Administrative Court. The organizations argue that climate change is significantly affecting the traditional ways of life of the indigenous Sámi people, threatening their culture. They claim that the government’s inadequate climate policies not only violate Finland’s own laws but also infringe human rights. The plaintiffs assert that the government’s insufficient climate actions, along with the failure to consider the unique position of the Sámi people in the development of land-use policies, breach the rights guaranteed to the Sámi under the Finnish Constitution and the 2022 Climate Act, which aims for carbon neutrality by 2035.

The Supreme Administrative Court of Finland rendered its decision on 8 January 2025. The court deemed the claim admissible; however, it dismissed the appeal.

The Supreme Administrative Court took into account the provisions of the Finnish Constitution on legal protection and the protection of human and fundamental rights, as well as environmental fundamental rights. It also took into account the provisions of the European Convention on Human Rights on the right to a fair trial and the protection of private and family life, as interpreted by the Grand Chamber of the European Court of Human Rights on April 9, 2024, in the case Verein KlimaSeniorinnen v. Swizerland. The Court found that the appellant associations had the right, in connection with the government’s decision to issue the annual climate report required by the Climate Act, to submit the government’s position on the need for additional measures in accordance with the Climate Act to the Supreme Administrative Court for evaluation.

The Supreme Administrative Court concluded that the statements contained in the Government’s annual climate report regarding the assessment of the need for additional measures could not be considered to be in violation of the Climate Act. The appeal was rejected.

The trend of climate litigation is to be followed. Finland may expect more climate-related court cases that indicate a need for stronger measures to combat climate change and achieve the targets set out in the Paris Agreement. However, there are currently no substantive national legislative reforms planned in relation to climate law.

Civil liability for environmental damage is governed by the Act on Compensation for Environmental Damage (737/1994, Laki ympäristövahinkojen korvaamisesta). In addition, there are specific provisions on compensation in certain areas, such as nuclear accidents, in specific legislation.

The person or body responsible for environmental damage is the one whose activities cause the damage. In addition, in the case of a transfer of a business, liability for the damage may pass to the transferee if the transferee knew or ought to have known of the damage at the time of taking over the activity.

The liability for damages of a member of the board of directors, a member of the supervisory board, the managing director and a shareholder of a limited liability company is governed by the Limited Liability Companies Act.

a) The primary liability for environmental damage lies with the company that caused the damage. It must compensate for the damage in full, in principle regardless of fault or negligence. Compensation is generally paid out of the liability insurance of the party that caused the damage.

b) The Finnish Limited Liability Companies Act confirms the legal personality of the company and clearly distinguishes the responsibilities of the company and its owners. Hence, the shareholders are not personally liable for the debts or damages of a company.

c) The company directors can be held accountable for environmental damage under specific circumstances. They are expected to comply with environmental laws and regulations, ensuring that their company’s actions do not harm the environment. Directors may be held liable if they are deemed operators of activities causing environmental harm or if they are found negligent or in violation of regulations. They have a duty to act in the best interests of the company and can be required to compensate for damages caused by intentional or negligent breaches of their duty. Collective liability applies to board members, meaning each member is equally responsible for decisions that cause harm. The Board of Directors has the right to bring actions for damages against directors within five years of the relevant financial year in which the decision, act or omission giving rise to liability occurred.

d) The parent company might be held responsible under certain circumstances if it is deemed to have had influence or control over the affiliate’s operations that led to the environmental harm.

e) There is currently no legislation regarding liability for other entities, e.g. banks.

f) As mentioned above, there is currently no direct legislation regarding liability for other entities.

The provisions on criminal environmental liability for more serious offences are contained in the Criminal Code. A key question in relation to environmental criminal liability is often how negligent or intentional the situation may have been. The more serious offences in the Criminal Code generally require gross negligence.

In both asset sales and share sales, a buyer may assume there are no pre-acquisition environmental liabilities, if the seller does not inform the buyer of such or there are no findings in due diligence. In asset sale, the buyer may not claim a defect that he/she knew or must have known when acquiring the land, or that could have been discovered during an inspection of the property before the sale. The buyer is not obliged to verify the accuracy of the information provided by the seller on the property without a specific reason, nor to extend the inspection to matters which require technical or other non-standard measures to be clarified.

In addition, the buyer may be held responsible for environmental contamination of land caused by the actions of the seller. The liability may transfer to the buyer if the buyer knew, or should have known, of the contamination when the land as an asset was acquired. The seller of the land must provide the new owner with available information on the activities carried out on the site, the wastes or substances that may cause or have caused soil or groundwater contamination, and any investigations or clean-up operations carried out on the site. See also Chapt 4.4.

The transfer of liability depends on the purchase contract and other documents between the seller and buyer. The regulations regarding defects in the sale of real estate are provided in the Code of Real Estate (540/1995, Maakaari). In case of a defect in quality the buyer shall have the right to a price reduction or, in case of an essential defect, to cancel the sale.

In the case of a share sale, environmental liabilities of a company remain with the company, while in an asset sale, liabilities associated with transferred assets become the responsibility of the owner of the asset at the time the liability arose.

Before completing a transaction, it’s customary for the buyer to conduct due diligence on the target company to understand its risks and liabilities. Environmental due diligence is common practice, and the extent of environmental due diligence depends on the target of the transaction. Sellers provide documentation and warranties to assure buyers about the company’s condition and adherence to e.g. environmental regulations.

According to the Environmental Protection Act, the seller of land as an asset must provide the buyer with available information on the activities carried out on the site, the wastes or substances that may cause or have caused soil or groundwater contamination, and any investigations or clean-up operations carried out on the site.

The Environmental Damage Insurance Act (737/1994 laki ympäristövahinkojen korvaamisesta) was repealed by the Environmental Damage Fund Act (1262/2022 laki ympäristövahinkorahastosta) on 1 January 2025 and the Environmental Damage Insurance was replaced by the Environmental Damage Fund administered by the Ministry of the Environment. Damage caused before 1 January 2025 will continue to be handled by the Environmental Insurance Centre. Damage must be reported within a transitional period of five years, i.e. before 1 January 2030.

Compensations from the Fund will be paid for costs incurred from preventing environmental pollution and restoring polluted environments and for damage caused when compensation cannot be claimed from the liable party. Additionally, the Fund provides discretionary grants to entities responsible for organizing rescue services to support purchases aimed at preventing environmental damage.

The funds are collected from operators who cause the risk of environmental pollution. The measure includes a collection of environmental damage fees that are a form of environmental tax.

Compensation is paid from the environmental damage fund for the costs incurred in remedying or mitigating environmental pollution and the restoration of the polluted environment, as well as for the damage caused when the responsible party is insolvent, unknown or unreachable. In addition, a grant can be issued from the fund to partially cover the total costs of acquiring equipment used in rescue operations to combat environmental damage. These require approval through a transfer from the state budget.

The Environmental Damage Fund is part of the secondary compensation scheme, as it provides compensation for damages as well as for prevention and restoration costs, if the compensation cannot be collected in full from the legally liable party. In relation to securities, mandatory and voluntary insurance policies, and other statutory compensation mechanisms, the Environmental Damage Fund is always the last resort for paying compensations.

Finnish Environment Institute (Syke) produces open data and information for an ecologically, economically, and socially sustainable society.

Environmental data is accessible by utilizing web services, spatial datasets and satellite observations, as well as data stored in environmental information systems. Environmental data can also be viewed in various web map applications.

According to the Finnish Constitution, responsibility for nature and its diversity, the environment and cultural heritage belongs to all, and public authorities must strive to ensure that everyone has the right to a healthy environment and the opportunity to influence decisions affecting their living environment.

According to the Act on the Openness of Government Activities (621/1999, julkisuuslaki) the official documents, including environmental data and documents, shall be in the public domain, unless specifically provided otherwise in legislation. The definition of a document under the Act is vast: a document is defined as a written or visual presentation, and also as a message relating to a given topic or subject-matter and consisting of signs which, by virtue of the use to which they are put, are meant to be taken as a whole, but are decipherable only by means of a computer, an audio or video recorder or some other technical device.

The Environmental Protection Act has been amended to comply with EU regulations and the amendments entered into force on 1 January 2025. The purpose of the amendment is to implement the EU regulations concerning fluorinated greenhouse gases and ozone-depleting substances. The F-gas regulation (EU) 2024/573 (Regulation (EU) 2024/573 of the European Parliament and of the Council of 7 February 2024 on fluorinated greenhouse gases, amending Directive (EU) 2019/1937 and repealing Regulation (EU) No 517/2014) was adopted on 7 February 2024 and started to apply on 11 March 2024.

Under the new regulation, any entity importing or exporting substances regulated by specific EU regulations or equipment containing such substances, as well as entities manufacturing, installing, or servicing such equipment, or performing other handling, distribution, or waste management of these substances, must, upon request, annually report to the Finnish Environment Institute (SYKE) information on the sale, use, import, export, recovery, and disposal of these substances.

In addition, Finland reports on the volumes of greenhouse gas emissions and progress made in climate policy both to the European Commission and to the United Nations Framework Convention on Climate Change.

Under sustainability reporting rules, companies covered by the Corporate Sustainability Reporting Directive are required to report according to the European Sustainability Reporting Standards, which also cover greenhouse gas emissions. The topical ESRS standards apply based on materiality analysis.

In recent years, there has been several reforms and updates concerning environmental law.

The comprehensive reform of the Waste Act (646/2011) and the related amendments to the Environmental Protection Act, the Chemicals Act, the Criminal Code and the Food Act entered into force on 19 July 2021. The legislative changes implemented new waste legislation adopted in the EU and e.g. increased recycling of waste.

Furthermore, in 2024 a chapter on conformity assessment bodies for batteries and accumulators was added to the Waste Act. Additionally, under the Waste Act, the waste holder is responsible for the waste management of municipal waste generated in connection with facilities and institutional housing that provide residential, social, and healthcare services.

In addition, amendments to the Waste Act are currently being prepared. The amendments concern the productisation of recycled materials. Under the proposal, the Waste Act would provide for a separate procedure whereby the holder of a substance or object could, upon application, obtain a case-by-case decision on the classification of a substance or object as a by-product or to cease classifying it as waste.

The Reformed Climate Act (423/2022), effective from July 2022, introduced key changes: a carbon neutrality target, emission reduction targets set by the Finnish Climate Panel, and a focus on strengthening carbon sinks. The Climate Act establishes a climate policy system, including an annual Climate Report to monitor emissions trends and assess progress. It also defines roles for public authorities, establishes expert bodies like the Finnish Climate Panel and Sámi Climate Council, and ensures consideration of Sámi rights and fairness in climate action.

The reformed Nature Protection Act (5.1.2023/9) enhanced protection for habitats, promotes voluntary ecological compensation, and elevates the role of the Finnish Nature Panel. Mining is banned in national parks and reserves, with stricter conditions elsewhere, while facilitating removal of invasive species.

The Reformed Mining Act (10.6.2011/621), also effective from June 2023, introduced changes such as a new reservation fee for exploration, tighter conditions for permit extensions, and requiring municipal approval for mining permits. It emphasizes consideration for other livelihoods, landscape, biodiversity, and environmental impact, and strengthens regulations on securities and mine closure.

The Land Use and Building Act (132/1999), formerly Maankäyttö- ja rakentamislaki MRL) has been reformed. The new Building Act approved by the Finnish Parliament entered into force on 1 January 2025 and the former Land Use and Building Act regulates only land use, while the name of the law changed to Land Use Act.

The Environmental Protection Act has been amended to comply with EU regulations and the amendments entered into force on 1 January 2025. The purpose of the amendment is to implement the EU regulations concerning fluorinated greenhouse gases and ozone-depleting substances. See also chapt 12.3.

The Environmental Damage Insurance Act was repealed by the Environmental Damage Fund Act on 1 January 2025 and the Environmental Damage Insurance was replaced by the Environmental Damage Fund administered by the Ministry of the Environment. See also chapt 11.

In addition to these, there has been and are forthcoming many EU level legislative initiatives in relation to environmental law and sustainability.