FinReform: a green transition model for Finland

Why it was set up

Climate change and climate policy affect the whole economy. Finnish ministries can assess single measures well. They lack a tool that shows the knock-on effects across sectors, and the effects on public finances and emissions.

The Ministry of Finance, the government working group on long-term growth (Room for Growth) and the National Audit Office of Finland all pointed to this gap. A Ministry of Finance working group reported in June 2026 that Finland cannot yet assess the economy-wide effects of climate change and the green transition well enough. It asked for better tools, more skills and lasting funding.

What it is

FinReform is a Finnish national project with its own funding. The model it adapts is GreenREFORM-EU. Finland’s Ministry of Finance took part in the TSI 2024 project and in Version 2.0. FinReform is a separate project.

The project is a pilot. It is meant to show what it takes to use GreenREFORM-EU in Finland, and which resources keep the analysis going.

What it sets out to do

• Build a modelling tool that assesses the economic effects of climate change and of the policy instruments used against it.
• Adapt GreenREFORM-EU to Finland and put it to use there.
• Make it possible to analyse, in one consistent frame, the measures, instruments and choices that the green transition needs.
• Show how climate actions and policy decisions affect the economy, emissions and the progress of the transition.
• Build joint learning between research institutes and ministries.

What the model covers

The Finnish model covers the whole economy: firms, households, the public sector, and imports and exports. It includes technologies that cut emissions, and the accounts for emissions. It can therefore estimate the economy-wide effects of measures such as technological change in the steel industry or the electrification of transport.

Timeline

• 2026 and 2027. The project period.
• Early in 2027. The first example calculations.

Who takes part

• Natural Resources Institute Finland (Luke). Coordinates the project.
• Finnish Environment Institute (Syke).
• VTT Technical Research Centre of Finland.
• Finnish ministries. Not partners. They take part at varying levels of collaboration, and as stakeholders.
• TAH Foundation. Funds the project. It is the first funding decision under the foundation’s new advocacy programme.

Results

The project has published no results yet. Analyses appear under Analyses when the Finnish partners publish them.

Read more

• TAH Foundation project page
• TAH Foundation article, “Could Finland learn better climate policy from Denmark?” (in Finnish)
• Ministry of Finance working group report, June 2026 (in Finnish)
• The TSI 2024 project, where Finland first used the model