Reducing emissions could have a direct financial benefit for Finnish municipalities, who could in future get cheaper financing than more polluting councils.
Finland’s local government could be further incentivised to fight climate change, if a plan from municipal funding body MuniFin is implemented.
Under the plan, municipalities that reduce their emissions could get cheaper loans.
The so-called “sustainable development loans” have lower interest rates in years when municipalities meet emission reduction targets. The financing model was created in collaboration with the Finnish Environment Institute.
Municipalities could seek a cheaper loan if they have a climate plan that was written during the current or previous council term. The discount on the loan depends on meeting the plan’s emission-reduction targets.
The current government, led by Petteri Orpo (NCP), announced in 2023 that it would abolish a rule requiring municipalities to write a climate plan, saying the decision would save some 2.8 million euros.
Applications for the loan can be made from Tuesday, 21 January.
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