Most of renewable energy in Finland is bioenergy

Renewable energy sources mean wood-based fuels, other fuels of plant or animal origin, biogas, biodegradable fractions of fuels derived from recycling or wastes, hydropower, windpower, solar energy and geothermal heat.

In 2024 renewable energy sources accounted for 42 % of the total energy use in Finland. For several years the use of energy from renewable sources was higher than the use of fossil fuels and peat in total. In Finland most of the renewable energy is bioenergy, i.e. energy produced from different kinds of biomasses.

The use of renewable energy sources has increased, but significant amounts of fossil fuels such as oil, coal and natural gas are still being used to generate energy.

Targets for renewable energy set in the National Energy and Climate Strategies

The targets and means for increasing the share of renewable energy are specified in the National Energy and Climate Strategies. 

The Government submitted the latest national Energy and Climate Strategy to Parliament as a report in December 2025. In line with the Government Programme, the strategy accelerates the clean transition, reduce greenhouse gas emissions and strengthen carbon sinks.

The detailed actions of the strategy will ensure the secure supply of reasonably priced clean energy for the needs of industry, businesses and households alike. The aim is to create a predictable operating environment that attracts investments and supports the growth of Finland’s clean economy by promoting the development and export of domestic technology while also increasing Finland’s carbon handprint.

The strategy was prepared under the leadership of the Ministry of Economic Affairs and Employment in cooperation with several ministries and research institutes. The EU’s REPowerEU funding was used to conduct an extensive KEITO study (‘New measures and scenarios for national energy and climate policy’) as a background for the strategy. The study was drawn up in coordination with the Medium-term Climate Change Policy Plan (KAISU), which is the responsibility of the Ministry of the Environment. KAISU covers emission reduction measures in the non-emissions trading sector, i.e. the effort sharing sector, which respond to EU obligations and the targets set in the Climate Act.

The strategy also includes an emission debt reduction programme in line with the Government Programme and measures to develop the calculation and monitoring of carbon sinks and carbon reservoirs so that decision-making can be based on a more reliable and transparent knowledge base.

Together with the Government’s industrial policy report, the Energy and Climate Strategy forms a comprehensive action plan to promote a carbon-neutral society and, later, a carbon-negative society in a way that does not increase the everyday costs for citizens unnecessarily, diminish the competitiveness of businesses or raise the costs of agriculture. 

Read more: Press release December 2025

Wood-based fuels are an important source of bioenergy in Finland

Wood-based energy, i.e. wood-based fuels, are the most important source of renewable energy in Finland. In 2023 (preliminary data) they accounted for 66 % of renewable energy.

In Finland wood-based energy is mainly generated from side streams of forest industry and forest management. The side streams of wood processing industry, i.e. black liquor, bark and sawdust, have for a long time been utilised for energy production. In the same way, logging residue and small-diameter wood harvested in connection with removals and forest management works, i.e. forest chips, are used to produce electricity and heat. Considerable amounts of fuelwood and pellets are used in private households as well. Besides all this, many wood products and wooden structures can be utilised as energy at the end of their lifecycle. Of the wood-based fuels, the share of black liquor has grown the most in recent years as the production of pulp has increased. Wood-based fuels indeed have an important role in Finnish energy production: today, they are the largest individual source of energy, i.e. they account for a larger share of our total energy use than oil or coal. In 2023 wood-based fuels accounted for 28 % (preliminary data) of the total energy use and they were the most commonly used source of energy in Finland.

Dry arable biomass with high cellulose content - reed canary grass, straw and sorting residue from cereal production - can be burned as such or mixed with other fuels. Animal manure can also be used for energy e.g. by gasifying it into biogas. Biogas can be produced from various types of biomass by digestion in anaerobic conditions. The biodegradable fractions of fuels from recycled and waste material are also classified as bioenergy. For example, waste oil from fish processing and food industry leftovers can be processed into energy. All this means that bioenergy can be produced from many types of biomass and by using many different techniques.

Related topics

Wood fuels in energy generation
Sustainability criteria for biomass (new EU Renewable Energy Directive)
Preparation of the Climate Plan for the Land Use Sector

Related links

Total energy consumption by energy source (Statistics Finland 2.7.2024)
Eurostat renewable energy statistics
Projects on bioenergy in Projectnet 
Renewable energy in Finland (Ministry of Economic Affairs and Employment)