Finnish Climate Fund

The Finnish Climate Fund is a state-owned special-purpose company established to combat climate change, promote low-carbon industry, and advance digitalization. Based in Helsinki, Finland, the fund plays a crucial role in accelerating the transition to a carbon-neutral society by providing strategic financing for innovative climate solutions. Its mandate extends to fostering the growth of new technologies and business models that have significant potential for emission reductions and the promotion of the circular economy. The fund acts as a catalyst, bridging the gap between promising climate innovations and their market deployment.

The fund's investment strategy focuses on solutions that offer substantial climate benefits, either through direct emission reductions or by enabling a more sustainable economy. They primarily invest in companies and projects that are beyond the early-stage research phase but require significant capital to scale up their operations or commercialize their innovations. The Finnish Climate Fund provides various forms of financing, including capital loans, equity investments, and guarantees, tailoring its approach to the specific needs of each project. They often co-invest with other private and public investors, aiming to leverage additional capital and expertise.

The typical financing provided by the Finnish Climate Fund ranges from approximately $5.4 million to $21.6 million per project, though they are flexible and can consider both smaller and larger commitments based on the project's scope and impact potential. By the end of 2023, the fund had made 28 investment decisions, committing a total of €154.5 million towards various climate-focused initiatives. These investments span a wide array of sectors, including renewable energy, sustainable industrial processes, circular economy solutions, and digital technologies that support climate action. Their strategic capital aims to de-risk pioneering projects and accelerate their journey towards commercial viability and widespread adoption, thereby contributing significantly to Finland's climate targets and global sustainability efforts.