BY THE OPTIMIST DAILY EDITORIAL TEAM

In a remarkable step toward a fossil-free future, Finland effectively phased out coal as a source of electricity generation—four years ahead of its 2029 target. The closure of the Salmisaari coal plant in Helsinki on April 1 marks the latest and most symbolic milestone in the country’s transition to renewable energy. Coal now contributes to less than one percent of Finland’s energy mix.

Helen, the utility company behind the Salmisaari plant, cited a combination of policy, innovation, and investment in clean technologies as the driving forces behind the shift. “We have been able to improve our competitiveness by investing in the flexibility of the energy system in line with our strategy and shifting our production to green solutions,” said Helen CEO Olli Sirkka. “This way, we can operate more profitably with lower customer prices.”

Wind energy powers the way forward

The replacement of coal with renewable energy has been nothing short of transformative. Since 2020, wind power capacity in Finland more than doubled and now provides a quarter of the country’s electricity. During the same period, coal generation dropped by 73 percent—from 2.44 terawatt hours to just 0.67.

This dramatic pivot reflects a clear national priority: cleaner air, lower emissions, and energy independence. As Minister of Climate and the Environment Sari Multala emphasized, “In 2019, Parliament nearly unanimously passed the law to ban the use of coal for energy within ten years. At that time, the target seemed challenging, but now that it has been met ahead of schedule, passing the law appears very far-sighted.”

Government policies and financial backing have paved the way. A 22.8 million euro funding round in 2021 was specifically designed to accelerate innovative energy technologies. Wind energy alone is projected to drive 26 billion euros of investment and account for 44 percent of all green industry expected in Finland in the near future.

Lower emissions, lower costs, greater resilience

The shift to renewable energy has created benefits that go beyond the environment. Electricity prices are down, and the country’s energy independence has strengthened, which is particularly important given its past reliance on coal imports from Russia. “Imported fossil energy has been replaced with cleaner solutions that reduce climate emissions, while consumers benefit from lower energy prices,” said Minister Multala.

Helen’s success story is emblematic of a broader trend: that clean energy can also be cost-effective. According to CEO Sirkka, the clean transition has supported both profitability and energy affordability. “Our success is an excellent indication that, at best, the clean transition, cost efficiency, and Finland’s security of supply can go hand in hand.”

The role of civil society and a call to keep going

The campaign to end coal use in Finland has been decades in the making. Civil society group Coal-Free Finland played a crucial role, pushing for the closure of Salmisaari and other coal-burning plants. “Closing down the Helsinki coal plants will cumulatively reduce Finland’s total emissions by 5 percent,” said Executive Director Minna Sumelius. “This is a clear demonstration of the transformative power of the climate movement.”

While Finland is on the cusp of a fossil-free power system, campaigners urge further ambition. Concerns remain over the ongoing use of biomass and the delayed development of the Olkiluoto 3 nuclear plant. “The right way to finish the job isn’t with biomass that can pollute as much as coal, nor with delayed, ridiculously expensive nuclear projects,” said Cyrille Cormier of Beyond Fossil Fuels. “It’s by doubling down on rapidly scalable renewables and clean flexibility.”

A global signal of what’s possible

Finland’s rapid transition aligns with broader momentum. Fourteen OECD countries now operate coal-free power systems, and thirteen more are aiming for phase-outs by 2030. The Powering Past Coal Alliance, co-founded by the UK and Canada, has grown to 180 members, representing 84 percent of OECD and EU governments.

“Finland’s case confirms that accelerating the shift from coal to clean energy is in countries’ self-interest, as it increases energy security and fuels economic growth,” said Julia Skorupska, head of the PPCA Secretariat. With new climate targets due in 2025, Finland’s leadership offers a blueprint for nations ready to turn bold climate goals into reality.