"The greatest expectations on the dramatically expanding environmental technology market are associated with preventing climate change and eliminating poverty through energy-efficient equipment, renewable energy and infrastructure expertise" says Riitta Larnimaa, a leading expert at the Confederation of Finnish Industries (EK).

Particularly rapid growth in environmental technology is predicted for developing countries, where strong economic growth will be accompanied by a growing demand for environmental expertise.

"Environmental technology is, however, no separate growth area; it is linked firmly with growth areas in other technology. For example, the construction of a new plant also includes the environmental perspective," Larnimaa points out.

Expertise in sustainable development

Over the years a great deal of expertise that supports sustainable development has been created in Finland. It has been exploited and can, in the future too, be exploited on export markets.

"These include monitoring and management systems, efficient industrial processes, climate and energy technologies and infrastructure expertise in its broad sense, covering areas such as water and waste water management, good administration, operating systems, health care services as well as transport and telecommunications expertise," Larnimaa says.

"Most of our expertise is important for preventing climate change. For example, in many process-industry solutions and in the fields of bioenergy and combined electricity and heating production we are among the best in the world."

Looking at international operations

It is said that exporting by Finnish environmental companies is not going well. The sector is also weakly represented in terms of international operations.
"The environmental market is subject to extremely tough competition. As a small country, we have too few domestic references for our expertise. Companies need support in their international operations. We are also unnecessarily modest in telling others about our expertise," Larnimaa reflects.

A small country must focus on something, because it cannot be good at everything. On the other hand, the ability to network is a strength for Finland.

"Although we are a networking nation, we must invest even more in networking. We must strengthen the expertise and address shortcomings together. Networking must not be exclusively domestic. It is imperative for the cooperation networks to be international."

Good environmental reputation

"Finland's reputation as an environmental country is good. We are a pragmatic nation that does what it promises and does not complain unnecessarily," says Riitta Larnimaa.

"Finns' relationship with Nature has always been strong. A good environment is a value in itself for us. That's a good launching pad."

"Finnish environmental technology and companies in the sector are fairly well known throughout the world, even if the Finnish connection is not always recognized. Finland's success in the environmental protection rankings is known by other players in the sector," Larnimaa stresses.

Emissions trading creates ceiling
Promise of new business activities

The emissions trading system throughout the EU is based on emission ceilings determined for energy production plants and industrial plants. If a company does not reduce its emission to the ceiling level, it can purchase emission rights from a company that has. The amount of emission rights varies from country to country. In Finland the system covers more than 500 production plants.

"We've done a lot to reduce greenhouse gases. Production plants are of a good standard and efficient in terms of energy consumption. Many plants are among the best in the world in terms of their emissions' level. Finland's climate target is, however, tough," Riitta Larnimaa says.

She goes on to say that a combination of these two factors - a tough target and good plants - includes a risk. "Companies that have already invested may be given a tougher obligation than their competitors in countries where not much attention has been paid to these issues yet. They may then have to pay for other companies' investments by buying emission rights. This will weaken the conditions under which our highly skilled basic industry operates."

It is also true that climate change and emissions trading will bring opportunities, for example, to technology companies. "Monitoring, reporting and verifying emissions in emissions trading will offer opportunities for companies that produce these services. There will also be a demand for emission rights' brokers." Larnimaa predicts.

Finns' relationship with Nature has always been strong.