Factsheet for measure
FI-2021-16/2093
–
Updated
– measures in Finland
Business Finland and Recovery and Resilience Facility funding
RFF-rahoituskokonaisuus Business Finlandissa
Background information
Through EU's support instrument RFF - Recovery and Resilience Facility (RRF), Finland will be granted approximately €2 billion to support sustainable growth and recovery. In Finland, the funding will be used to boost competitiveness, investments, competency of the workforce as well as research and innovation.
In Finland, the state-owned innovation and internationalisation service provider Business Finland is responsible for granting €530 million of this funding.
The guiding document for this funding is the Sustainable Growth Programme for Finland.
Content of measure
The RFF- funding administrated by Business Finland supports Finnish companies' research and innovation activities and promotes sustainable development.
Business Finland's RFF-funding divided into several separate instruments. These include for instance targeting companies developing and manufacturing batteries, health and wellbeing technology, circular economy, sustainable and digital growth of the tourism industry and support for the creative sector.
The eligibility criteria for RFF-funding is that the measure funded through RFF shall follow the "Do No Significant Harm Principle". In other words, measures that are expected to cause significant harm on climate, hinder circularity etc. cannot receive funding through RFF.
Some parts of the funding have already opened, some will open in 2022 and 2023.
Updates
The following updates to this measure have been made after it came into effect.
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28 November 2024
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Business Finland has continued to administer RFF funding in 2024.
The supplementary call for projects that promote the development of low-carbon hydrogen production and storage as well as carbon capture and utilisation is open for applications between 5 November 2024 and 10 January 2025. The funding call is targeted at large companies in the energy technology sector and energy-intensive industry and their supplier networks, as well as operators in the SME sector that commercialise innovations. There are no restrictions on company size, and the aid is not limited to specific regions or sectors. A total of approximately €65 million has been budgeted for the funding call.
The funding call is part of Finland’s Recovery and Resilience Plan, which was amended in June 2024 following the assessment that Finland would likely not be able to meet the targets in the original plan.
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Use of measure
Between 2021 and 2023, almost €317 million worth of funding have been granted through the scheme. The biggest portion (31.6%) to leading companies, as a challenge for them to solve significant future challenges and to increase their research, development and innovation investments in Finland, according to the Business Finland website.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Applies to all businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
EU (Council, EC, EP)
Public support service providers
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European Funds
National Recovery and Resilience Facility
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Peak or cross-sectoral level
Involvement
According to the Finnish Sustainable Growth Programme, the social partners' were consulted during the design phase. There is no information available in regards to whether the consultation concerned the RFF-funding as a whole or whether the individual components of the funding were discussed.
Views and reactions
During the planning stage, the Confederation of Finnish Industries EK stressed the need to focus on innovation and renewing the economy, not just recovery. Hence, the funding should focus on innovations and boosting companies' competitiveness.
Akava, the Confederation of Unions for Professional and Managerial Staff in Finland, criticised in August 2021 the Government's plan to cut funding from research. Akava stressed that RRF-funding cannot be used to replace the regular research funding.
Sources
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08 October 2020: EU:n elpymispaketi ja Suomen kestävän kasvun ohjelma [EU's recovery package and Finland's sustainable growth programme]
(ek.fi)
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27 May 2021: Suomen kestävän kasvun ohjelma: elpymis-ja palautumissuunnitelma [Finland’s Recovery and Resilience Plan]
(julkaisut.valtioneuvosto.fi)
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25 August 2021: Määräaikainen rahoitus ei korvaa pitkäjänteisiä panostuksia tutkimukseen [Temporary funding does not replace long-term investments in research]
(akava.fi)
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08 September 2021: Business Finland ja Suomen kestävän kasvun ohjelma [Business Finland and Finland's sustainable growth programme]
(www.businessfinland.fi)
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05 July 2023: Business Finland (2023) Funding granted database
(tietopankki.businessfinland.fi)
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16 May 2024: Finland updates Recovery and Resilience Plan to secure EU funding
(vm.fi)
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04 November 2024: LOW CARBON HYDROGEN AND CARBON CAPTURE 2024
(www.businessfinland.fi)
