Phasing-Out Coal, Four Years Early

With the closure of a coal power plant in Helsinki, coal’s share in Finland’s electricity mix has dropped to less than 1%, putting the Scandinavian country on the brink of fully phasing out coal four years ahead of schedule.

“In 2019, Parliament nearly unanimously passed the law to ban the use of coal for energy within ten years,” states Finland’s Minister of Climate and the Environment, Sari Multala. “At that time, the target seemed challenging, but now that it has been met ahead of schedule, passing the law appears very far-sighted.”

In 2021, the government injected $25.9 million into innovative energy technologies and investments to secure the transition from fossil fuel energy sources to renewables. In Finland, wind power has more than doubled since 2020, supplying a quarter of the country’s energy. It has become the “biggest enabler of Finland’s economic growth”, according to a recent report from the Confederation of Finnish Industries. Indeed, it accounts for $30 billion or 44% of the green industry expected in the country soon. This clean trend led to the collapse of coal power – coal generation dropped by 73%, from 2.44 to 0.67 terawatt hours. Finland now only has two remaining coal-burning plants – the Salmisaari coal power plant was decommissioned on 1 April, contributing to just 0.8% of the country’s energy. Not only does stepping away from fossil fuels help reduce emissions and increase energy independence, but it also cuts customers’ electricity bills.