Finland Recycles Strategies
For years, the circular economy has been a key strategic objective for Finland. It is embedded in government programmes, national strategies, and flagship industrial policy initiatives. The stated goal is to build a carbon‑neutral circular economy society by 2035.
Yet the overall picture is contradictory.
Finland’s circular material use rate is low in EU comparison. Only a small share of the materials used in the economy and industry are returned to circulation as recycled raw materials. At the same time, material consumption per capita is among the highest in Europe. Our economy therefore continues to rely heavily on virgin natural resources, and the circular economy has not yet become a core structural feature of the economy, but rather a development path running alongside it.
National‑level actions
Finland does not lack policy initiatives aimed at promoting the circular economy. The Strategic Programme for the Circular Economy sets out a long‑term vision and indicators, such as increasing resource productivity and the circularity rate. Through the Circular Economy Green Deal model, companies and other actors are encouraged to commit to concrete actions via voluntary pledges.
Sector‑specific programmes have also been developed, for example to promote plastics recycling. What these efforts have in common is an attempt to steer the market gradually towards greater sustainability without sudden structural changes.
The overall approach, however, remains fragmented. Although there are numerous strategies and roadmaps, their combined impact has not yet resulted in significant changes in material flows. One illustrative example is that Finland will again pay €90 million to the EU this year for non‑recycled plastic packaging. This raises the question of whether the current instruments are sufficient and properly targeted in relation to the objectives set.
No shortage of pilots
The challenge is not a lack of expertise. Finland has strong innovation capabilities: high‑quality research and development, effective collaboration between companies and research institutions, and several solutions already recognised internationally. We have demonstrated the ability to develop new technologies, business models, and material solutions.
The core challenge lies above all in scale and in the incentives to adopt new innovations. Circular economy solutions too often remain as individual pilots or niche market applications that fail to scale into the economic mainstream at a level where their impacts would be visible in national material flows, investments, and productivity.
The EU is accelerating
Circular economy policy is, of course, not only a national issue. At the EU level, a new Circular Economy Act is being prepared, which is expected to tighten regulation particularly in the areas of waste, product design, and secondary raw material markets.
Increasingly, the circular economy is seen at EU level also as an instrument of industrial and competitiveness policy. Efficient use of materials, access to critical raw materials, and the reduction of dependencies have become geopolitical issues. This changes the tone of the debate: it is no longer merely an environmental action, but part of economic security. This is a conversation we would benefit from having more of in Finland as well.
For Finland, tighter EU regulation will inevitably require change, but it may also present an opportunity to position itself as a frontrunner—especially if national ambition is set high enough.
Political will is decisive
The coming years will be critical for circular economy solutions. As EU regulation tightens and global competition for resources intensifies, Finland faces a choice between two roles: adapter or frontrunner. Changing the current trajectory requires courage from both the state and the business sector. Above all, policy choices are needed that create sufficiently strong incentives to scale solutions—not merely to develop them.
The parliamentary elections to be held in just over a year provide a natural moment for political parties to demonstrate that the circular economy is more than a slogan in strategy documents. Concrete commitments on investment incentives, regulation, and public procurement will speak louder than any declaration. Finland has the expertise and the structures needed for leadership—but the missing piece is the political will to put them to use.
Salli Heiskanen
The author is a consultant at Blic.