Environmental law and practice in Finland: overview

Environmental legislation

Finland has adopted a comprehensive regulatory framework on environmental issues. Although mostly regulated through national legislation, a large part of Finnish environmental legislation is from EU law either as directly applicable law or through implementation of EU law.

The key national legislation and main environmental regimes in Finland are:

Key regulatory authorities

The main body that develops environmental policy and drafts environmental legislation is the Ministry of the Environment. Other relevant ministries with adjacent competencies are the:

There are several competent authorities that enforce environmental legislation. Generally, the competent supervisory authorities are the regional Centres for Economic Development, Transport and the Environment (Elinkeino- , liikenne- ja ympäristökeskus) (ELY-keskus), and the municipalities.

The competent permitting authorities for environmental permits are the Regional State Administrative Agencies (Aluehallintovirasto) (AVI) and the municipalities.

Municipalities and in some cases the Regional Councils are responsible for preparing and passing planning and zoning decisions. They have wide discretional powers to decide whether to approve or reject a plan. In addition, municipalities function as the main permit authorities for construction permits, and other land use and building permits.

Other sector specific competent authorities include the:

Generally, environmental legislation is strictly enforced by the competent authorities as usually by law they must take enforcement action. However, some discretionary powers exist. There has been recent public debate about the lack of resources available to the authorities, and in some cases this lack of resources has been blamed for causing prolonged procedures. However, generally the authorities carry out their duties in an efficient manner.

The competent authority intervenes if operations cause a threat to human health or to the environment, or if the operations otherwise breach applicable law. If an unlawful operation comes to the attention of the competent authority, it usually intervenes by:

Finnish environmental NGOs enjoy and actively use broad legal rights of appeal in environmental protection and nature conservation matters:

In addition, NGOs generally have a right to participate in public hearings for land use and planning issues and actively participate in lobbying various legislative processes.

Integrated/separate permitting regime

The Environmental Protection Act governs an integrated permit regime for emissions into air, water and/or soil and the generation of waste. However, an environmental permit does not necessarily cover all activities on site or even all emissions from the site/operations.

Under certain circumstances the permit process for a water permit under the Water Act is integrated with the permit process for an environmental permit.

Single/separate permits

The permissions and permits below are not generally covered by an environmental permit, and companies must apply for a separate permit:

Permits and regulator

Operations that lead or may lead to environmental pollution and that are listed in the Environmental Protection Decree (Ympäristönsuojeluasetus) generally must have an environmental permit. In practice all major industry sectors are included, and so must apply for a permit.

Environmental permits are issued by the Regional State Administrative Agencies (for larger operations) and the municipal environmental authorities (for smaller operations).

The permit procedure includes a public hearing during which stakeholders (that is, the neighbours, other affected citizens and NGOs) are invited to submit their comments and objections. In addition, municipalities affected by the environmental impacts of the project and relevant specialised authorities are also requested to submit statements to the permit authority.

After collecting sufficient information, the competent permit authority considers the permit application and either denies or issues the permit under conditions that the operator must comply with.

Length of permit

In practice, an environmental permit is generally issued for a specified time period, after which it must be reviewed or renewed. The duration of the permit varies on a case-by-case basis. However, it is seldom valid for more than ten years.

Under certain circumstances a competent authority can revoke a permit. This decision can be appealed.

Restrictions on transfer

Environmental permits can generally be transferred to a new operator, provided the new operator fulfils the requirements for obtaining a permit (that is, is able to operate the site in a manner consistent with the specific conditions in the permit and applicable rules and regulations).

Penalties

If the operator does not comply with the permit conditions, the competent authority can intervene by urging compliance. Where the operator is operating without a valid environmental permit, the competent authority can either require them to immediately submit a permit application or demand that operations stop until a permit is obtained.

The competent authority can issue administrative orders with a threat of interruption, penalty payment, and/or remediation or other measures at the expense of the defaulting operator. In addition, the defaulting operator can be prosecuted under the Penal Code.

Depending on the gravity of the punishable offence, criminal sanctions for environmental offences include:

Tort liability can also be a consequence of non-compliance, if damage has been caused.

Permits and regulator

Prevention of water pollution is generally part of the integrated environmental permit. Water permits are normally required for construction or other operations (such as, dredging, drainage/ditching, damming, abstraction of water and construction of piers, bridges or hydropower plants), that is, effects on water bodies other than polluting effects.

If an operation requires both an environmental permit and a water permit, the permit processes are integrated.

The Regional State Administrative Agency is the competent authority for water permits and the integrated procedure.

Prohibited activities

Causing groundwater or marine pollution (beyond the Finnish exclusive economic zone) is strictly prohibited and under the Council of State Decree on Dangerous and Hazardous Substances for the Water Environment (Valtioneuvoston asetus vesiympäristölle vaarallisista ja haitallisista aineista), discharging certain hazardous substances into water bodies is banned and/or severely restricted.

Clean-up/compensation

Under the Act on Remediation of Certain Environmental Damages, the competent authority can order clean-up of or compensation for surface water pollution.

For groundwater pollution, the competent authority can require clean-up under the Environmental Protection Act. In addition, if the action causing the pollution is contrary to the conditions under the issued water permit, the competent authority can also require clean-up or compensation under the Act on Remediation of Certain Environmental Damages.

For tort liability a plaintiff can claim damages from the polluter under the Act on Compensation for Environmental Damage.

Penalties

Penalties are similar to the integrated permit system (see Question 5).

Permits and regulator

Air emissions under the integrated permitting regime of the Environmental Protection Act are covered by the environmental permit (see Questions 4 and 5).

For installations within the EU ETS, operators must apply for an emissions permit for greenhouse gas emissions.

Prohibited activities

If the operation is covered by an environmental permit, air pollution levels are generally controlled by setting appropriate emission limit values. Emitters not required to apply for an environmental permit must still refrain from causing air pollution contrary to nuisance law.

Penalties

See Question 5, Penalties.

Reducing greenhouse gas emissions

The main national targets regarding greenhouse gas emission reductions are based on the requirements of the Kyoto Protocol as well as relevant EU legislation:

Under these rules Finland must reduce its greenhouse gas emissions over the period 2008 to 2012 down to the level they were in 1990. In addition, by 2020 Finland should have reduced its greenhouse gas emissions in the sectors not included in the EU ETS by 16% from 2005 levels.

Increasing the use of renewable energy

Under Directive 2009/28/EC on the promotion of the use of energy from renewable sources (amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC) (RES Directive), Finland must increase the gross consumed proportion of energy from renewable sources to 38% by 2020. In 2005, the proportion of renewable energy sources in Finland was 28.5%.

Although the RES Directive only requires that the proportion of energy from renewable sources in all forms of transport by 2020 constitutes at least 10% of overall transport energy consumption, Finland has set a national target of 20% for biofuels. The intention is that a large portion of this biofuels target can be reached through the use of second generation biofuels that are counted twice for the purposes of establishing whether the set target has been reached.

Finland has implemented a feed-in tariff scheme for renewable energy power production. The scheme encompasses electricity generation from wood biomass, wind power and biogas. Electricity generation can be feed-in tariff eligible for a maximum of 12 years.

Capacity thresholds and/or limits can be included in the feed-in tariff scheme. Limits are different for wood biomass, wind power and biogas power plants. The feed-in tariff is calculated as the difference between EUR83.50 per MWh and the market price of electricity. Until the end of 2015, the tariff for wind power is EUR105.30 per MWh. For cogeneration of heat, a cogeneration premium of EUR20 per MWh (wood biomass) and EUR50 per MWh (biogas) is paid. Power plants that use only wood chip (that is, wood biomass that has been supplied directly from the forest) are subject to a different calculation methodology for the feed-in tariff based on the price of an EU emission allowance (EUA). Wood chip power plants are not entitled to a cogeneration premium.

Increasing energy efficiency

The Ministry of Employment and the Economy administers a voluntary energy efficiency agreement programme, which runs from 2008 to 2016. The programme's aim is to implement a non-binding energy saving target of 9% by 2016 or 17.8 TWh.

Finland has implemented Directive 2002/91/EC on the energy performance of buildings (Energy Performance Directive) through national legislation for energy performance certificates and air-conditioning and cooling. An energy performance certificate must be obtained when the building or premises within the building is taken into use, sold or leased.

According to Directive 2010/31/EC on the energy performance of buildings (a recast of the Energy Performance Directive), EU member states must ensure that:

The Finnish building regulations must be followed when new buildings are constructed and when significant renovation of existing buildings takes place. Building regulations contain requirements for energy efficiency and are updated from time to time.

Parties to UNFCCC/Kyoto Protocol

As an EU member state, Finland is a party to both the UNFCCC and the Kyoto Protocol.

Implementation

Legislative provisions of the Kyoto Protocol apply in Finland through an act of Parliament (Act 383/2002), while the flexible mechanisms of the Kyoto Protocol are enabled through the Act on the Use of the Kyoto Mechanisms, which lays administrative foundations for participating in the use of the mechanisms.

Detailed implementation of the UNFCCC and the Kyoto Protocol has also occurred through directly applicable or implemented EU legislation (see Question 8), and different national climate and energy strategies, which are, however, not legally binding.

The EU ETS applies to Finnish installations and under it a mandatory cap-and-trade system has been established. The EU ETS applies to certain heavy industries, energy production with a rated thermal input of at least 20MW and smaller combustion installations connected to the same district heating network. Aviation was included in the EU ETS as of the start of 2012 and until the end of 2012, only carbon dioxide emissions are covered. The scope of the EU ETS will extend in the third compliance period (2013 to 2020) to include new sectors and nitrous oxide and perfluorocarbon emissions from certain industrial activities.

Legislation for emissions trading in Finland consists of the Emissions Trading Act and the Act on the Use of the Kyoto Mechanisms. If an activity falls under the scope of the Emissions Trading Act, the installation must have an emissions permit. The Energy Market Authority is the competent authority to issue emissions permits.

Each year operators in the EU ETS must return emission allowances to cover their emissions and failure to comply results in a penalty.

Until the end of 2012, allowances are allocated for free based on historical emissions under the national allocation plan (NAP). The total volume of allowances issued in Finland during 2008 to 2012 is about 187.8 million allowances, which corresponds to 37.6 million tonnes of annual emissions.

The allocation rules have been changed and in the period 2013 to 2020 the allocation will be as follows:

Finland participates in the common auction platform of the EU, meaning that Finland does not organise its own individual auctions. Revenues generated from the auctioning of emissions allowances at the common auction platform are forwarded to EU member states participating in the platform.

Detailed provisions on the use of Certified Emission Reductions (CER), Emission Reduction Units (ERU) and other carbon credits under the Kyoto Protocol or other international agreements are currently unclear for the period 2013 to 2020 until the EU takes appropriate legislative action.

Scope

An environmental impact assessment (EIA) must be performed for projects if:

In addition to the general EIA legislation that applies to projects, public authority plans and programmes also require an EIA under certain circumstances. The most important ones are listed in a separate government Decree.

For planning decisions, municipalities are responsible for assessing the environmental impact of the plan under the land use and planning legislation. In addition to typical environmental impacts, impacts on the local economy must also be assessed.

If a project or plan may affect the nature conservation values of a Natura 2000 nature conservation site, the impact must be evaluated before the project or plan can be carried out.

Permits and regulator

The general EIA process for projects is two-phased. First, the project owner draws up an assessment programme that is submitted to the co-ordination authority (Centre for Economic Development, Transport and the Environment) to obtain the authority's statement on the programme. The second phase is the actual impact assessment phase, which ends in the submission of the assessment report by the project owner. The co-ordination authority also issues a statement on the report. In between preparation of the assessment programme and submission of the assessment report, stakeholder consultations and different environmental assessments are conducted.

The EIA is not a permit, but is usually essential to being issued a permit. Permits are not required to begin the EIA, as usually the EIA must be prepared and submitted to the permit authority together with the permit application. The EIA is used as a source of information on the environmental impacts of the project, in the permit process and the deliberations of the permit authority

Penalties

A project cannot be issued a permit before the EIA has been completed. Where a project does not require a permit but must perform an EIA, the competent authority (Centre for Economic Development, Transport and the Environment) can issue an administrative order compelling the project owner to stop implementing the project until the EIA has been completed.

Permits and regulator

The material duties and obligations for waste, handling of waste and waste management are set out in the Waste Act, which sets out both general and detailed duties.

Under Finnish law, institutional or commercial treatment of waste (including storing or disposing of waste) requires an environmental permit. Where operations only involve waste, the competent permit authority is the municipality. However, as waste is usually generated and handled in the course of other industrial activities that are subject to environmental permitting requirements, the environmental permit authority depends on which authority is competent to process the environmental permit for the industrial activity in question (see Question 5).

Generally, the aim of the regulatory regime for waste is to minimise production of waste by industrial activities and households, and maximise recycling and re-use of waste. If generated waste cannot be recycled or re-used, other forms of re-use, such as incineration of waste for energy production must be favoured over landfill.

Statutory recycling targets are prescribed for certain waste categories and legislation prohibiting landfill of biodegradable waste is currently being drafted.

Prohibited activities

Littering is prohibited, as is dumping waste into the sea. In addition, waste disposal methods may be contrary to the general prohibition on soil and/or groundwater pollution, if these methods carry a risk of causing contamination.

Institutional or commercial treatment of waste (including storing or disposing of waste) without a valid environmental permit is prohibited.

Operator criteria

Operators who treat and transport waste must provide a financial guarantee to secure the appropriate waste management, supervision and measures required for terminating operations. In addition, a financial guarantee is generally required for production of waste electrical and electronic equipment (WEEE) and excavation waste for activities under mining and land excavation legislation.

Operators other than those engaged in landfill activities, international transportation of waste, WEEE production, and mining and land excavation may be exempt from providing a financial guarantee if the costs covered by the guarantee on termination of operations are minor in scale considering the amount and quality of waste and other aspects.

Generally waste operators must be:

Waste can also be delivered to a consignee who is not required to obtain the approval, environmental permit or registration, if that consignee has sufficient expertise and the financial and technical capacities for organising waste management.

Special rules for certain waste

There are special rules for hazardous waste and waste resulting from the excavation of natural organic or inorganic material occurring in the bedrock or soil, or from its storage, improvement or other processing.

In addition, Finland has implemented an extended producer responsibility scheme that encompasses:

In terms of this scheme, producers and importers of the products above are responsible for organising the waste management of these products when they are disposed of. Although an individual producer or importer could organise the waste management by itself, in practice the responsible parties together form associations that take care of the obligations.

Penalties

See Question 5, Penalties.

Prohibited activities

Producing, placing on the market and using asbestos and products containing asbestos, with few minor exceptions, has been prohibited in Finland since 1994, and restrictions on the use of asbestos have applied since 1977.

Currently, under Regulation (EC) 1907/2006 on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), producing, placing on the market and using asbestos and articles containing asbestos is prohibited with some limited national exceptions prescribed in Government Decree 647/2009. Use of buildings containing asbestos is generally exempted until the products containing asbestos reach the end of their service life.

Main obligations

In general, there is no direct obligation to remove asbestos that is lawfully contained in products or structures if the asbestos does not cause health or environmental hazards. However, there are particular rules on the decommissioning and demolition of buildings/structures containing asbestos and only explicitly authorised entrepreneurs are allowed to conduct these works.

Generally the operator/employer is responsible for work occupational safety, including mitigating hazards associated with asbestos.

Permits and regulator

As use of asbestos is prohibited, no permits are issued.

To decommission and demolish buildings and structures containing asbestos, the Regional State Administrative Agency must grant authorisation. The authorisation requires that the workers are qualified to carry out the asbestos work and that the applicable regulations are complied with.

Penalties

Using asbestos in violation of the law constitutes an offence or criminal act under the Penal Code. In addition, administrative sanctions may apply where there is violation of the asbestos and waste regulations.

Regulator and legislation

The Environmental Protection Act applies to soil pollution caused by an activity that took place on or after 1 January 1994. The Waste Management Act, although otherwise repealed, still applies to soil pollution caused by an activity that took place on or after 1 April 1979 but before 1 January 1994. In case law of the Supreme Administrative Court, the crucial fact has not been the individual event causing the pollution, but the fact that an activity that at some point caused pollution was carried out on or after the above dates, even if it could not be established that the actual polluting event took place on or after the above dates. Soil pollution caused by an activity that has completely ceased operating before 1 April 1979 is governed by inconclusive case law.

The Centre for Economic Development, Transport and the Environment and under certain circumstances, the municipalities, are the competent authorities to enforce remediation obligations, regardless of when pollution was caused. In certain cases the remediation requires an environmental permit. In these cases the competent permit authorities are the Regional State Administrative Agencies and, under certain circumstances, the municipalities.

Investigation and clean-up

If the soil is manifestly contaminated, the Centre for Economic Development, Transport and the Environment may order the party responsible for remediation to establish the size of the contaminated area and the need for remediation.

The Centre for Economic Development, Transport and the Environment will order remediation of contaminated soil if the party responsible for remediation does not take action voluntarily.

Penalties

The competent authority may issue administrative orders accompanied with a threat of interruption, penalty payment, or remediation order or other measure at the expense of the defaulting operator.

Liable party

The polluter must restore polluted soil to a condition that will not cause harm to health or the environment or present a hazard to the environment. The Government Decree establishes indicative concentration thresholds for several hazardous substances in soil.

Owner/occupier liability

If the polluter cannot be established or reached, or cannot be forced to fulfil its remediation duty, and if the contamination occurred with the consent of the occupier (owner or tenant, as applicable) or the occupier knew, or should have known, the state of the area when it was acquired, the occupier must restore the soil in so far as this is not clearly unreasonable. Where contamination occurred between 1 April 1979 and 31 December 1993, the owner/occupier can be liable regardless of knowledge or consent, as the Waste Management Act does not contain these requirements for liability.

Where the polluter or the occupier of the polluted area is not required to remedy contaminated soil, the municipality must establish the need for, and carry out, soil remediation.

Previous owner/occupier liability

A previous owner or occupier that did not cause contamination would probably not be liable for investigation and clean-up of contaminated land. However, this is not expressly regulated in the Environmental Protection Act or earlier legislation.

A previous owner or occupier that did cause contamination in the past would be liable as the polluter. This liability for remediation of contamination is not subject to a statute of limitation.

Limitation of liability

Liability for remediation of contamination cannot be effectively limited as against the authorities, if the authorities enforce the liability under the Environmental Protection Act or earlier legislation. In addition, there is no statute of limitation for the liability to remedy contaminated soil.

A party that is liable under the Environmental Protection Act or earlier legislation can attempt to secure recourse from another party through contractual indemnity in case liability under the Environmental Protection Act or earlier legislation is pursued by the environmental authorities.

Lender liability

Lender liability occurs under the Act on Compensation for Environmental Damage, which concerns tort law liability. According to the Act, in addition to the party causing environmental damage, liability for compensation also lies with a party who is comparable to the person carrying out the activity. In establishing whether a lender is comparable to the entity/person carrying out the activity, consideration is given to:

There is no Supreme Court precedent on this particular section of the Act, meaning that definite conclusions on its interpretation cannot be made. However, it is clear that lender liability is not automatic and a court would have to make an assessment of the role and actions of the lender before establishing liability.

There are no specific provisions regarding lender liability in relation to the Environmental Protection Act or its predecessors that concern the duty to remedy contamination.

Minimising liability

It is advisable to refrain from taking action that could lead to a situation that could be interpreted as the lender being comparable to the polluter within the meaning of the Act on Compensation for Environmental Damage.

If the polluter has caused damage, the party suffering damage can claim damages under tort law.

An individual with standing also has the right to petition the competent authority to take action in relation to soil or groundwater contamination.

Asset sale

Generally, a buyer does not inherit pre-acquisition environmental liability in an asset sale as an asset sale does not automatically transfer liabilities of the seller to the buyer. However, the purchaser is liable for environmental damage caused by the seller if all of the following conditions are met:

Generally, the same rules as described above apply to the obligation to remedy contamination in accordance with the Environmental Protection Act or earlier legislation. However, a major exception to the above is that a buyer runs the risk of inheriting pre-acquisition environmental remediation liability even if the contamination was not or should not have been known by the buyer at the time of the sale.

In addition, if the asset acquired is a contaminated plot/area, the buyer as the new occupier inherits the owner/occupier liability, unless the buyer leases the plot/area to a tenant, which in turn is liable based on occupier liability. As polluter liability is primary, if the seller is the polluter, the buyer's owner/occupier liability only takes effect if the seller cannot be forced to fulfil its remediation duty (see Question 15).

Share sale

Generally, a buyer inherits pre-acquisition environmental liability in a share sale. This is due to the fact that in a share sale the company (including its rights, duties and liabilities) is purchased.

Asset sale

Generally, a seller retains environmental liability in an asset sale, as the liabilities do not transfer to the buyer. Even in exceptional cases where the buyer inherits pre-acquisition liabilities in an asset sale (see Question 18), the seller retains its statutory liability.

If the seller is not the polluter and the asset in question is (only) a contaminated area or plot, the seller does not retain environmental owner/occupier liability over the contaminated area or plot.

Share sale

Generally, the seller does not retain environmental liability after a share sale (as the seller is not liable before the sale by merely owning the shares of the target company).

Asset sale

The seller commits a criminal offence if it relinquishes or rents real property without providing the new owner or tenant with information on the activity carried out on the property, and any wastes or substances that may cause contamination in the soil or groundwater. In addition, a seller may be liable towards the buyer for flaws in the real property (such as contamination), especially if the seller fails to disclose information at its disposal. The seller is not allowed to wilfully withhold clearly relevant information on the target, whether concerning real property or other property.

Due to the fact that the buyer usually requires warranties from the seller, it is in the seller's interest to disclose relevant environmental information in a regular due diligence process, and avoid contractual liability for breaching a warranty.

Share sale

See above, Asset sale.

Scope

The need for and scope of environmental due diligence is dependent on the target of the asset/share sale (that is, the anticipated environmental risks associated with the target) and should be assessed on a case-by-case basis. Factors affecting environmental risks include, but are not limited to:

If the target is an operating facility with an estimated environmental risk, environmental due diligence typically involves assessment of the target's compliance with applicable laws and regulations and the target's existing or contingent environmental liabilities.

Types of assessment

Environmental due diligence usually starts with a phase one desk review of disclosed data room information and publicly available information. Management interviews are also typically conducted. There can be cases where environmental risks are examined and assessed further in a phase two review, typically involving sampling of soil and/or groundwater on identified risk sites.

Environmental consultants

When environmental due diligence is considered necessary, an environmental consultant is usually engaged, especially if specific environmental knowledge is needed and the buyer does not have this expertise in-house.

The negotiations on assignment of an environmental consultant usually cover:

Asset sale

Generally, warranties are given unless it is clear from the nature of the business that there are no possible environmental risks or liabilities associated with the target. However, if the nature of the real estate or the business of the target calls for it, the content of the given warranty can be strengthened.

Typical environmental warranties generally cover the following issues:

Warranties may contain wording that excludes issues that a prudent buyer should have spotted in its due diligence of the data room material and/or the target.

Specific indemnities concern specific liabilities identified in the due diligence process that are not dealt with through the purchase price.

Share sale

See above, Asset sale.

Usually, the party providing the environmental warranty and/or indemnity requires a time limit and/or financial cap in the negotiations. The outcome of these negotiations depends on the particulars of each case.

Public registers

Public authorities collect and keep registers of various kinds of environmental information (including environmental permits and contaminated properties that have come to the attention of the authorities).

Third party procedures

Third parties have the right to obtain information from registers. A third party does not have to state any reason for requesting the information. Business secrets that have not entered the public domain must not be disclosed by the authorities to third parties.

Environmental auditing

Environmental auditing is voluntary. However, many companies have some form of environmental auditing system in place.

Reporting requirements

Usually, reporting requirements are set out in permits, and the operator must comply with the requirements.

If a substance that may cause contamination has entered the soil or groundwater, the polluter must notify the environmental authority immediately. Failure to notify is a criminal offence. Operators must make an emergency call in cases of serious accidents. There may be further reporting obligations established in permits and/or for especially hazardous operations.

For the purposes of supervision and enforcement, environmental authorities are generally entitled to:

Types of insurance and risk

There is no general obligation to obtain liability insurance. But certain operations that require a water permit, chemical permit or environmental permit must also acquire statutory environmental liability insurance. The obligation is, however, not comprehensive as it does not include activities associated with oil or oil products, or waste management activities that do not require an environmental or chemical permit for other reasons than the waste management activity.

Under certain circumstances, a specific oil pollution fund pays compensation for damage caused by oil pollution.

Obtaining insurance

Statutory environmental liability insurance is provided by insurance companies.

The main environmental taxes are waste tax and energy tax.

Tax liability

The waste tax is payable for landfill waste.

The energy tax includes:

In the general energy taxation scheme the tax is based on input. The energy tax is based on two components:

Tax rates

The waste tax rate is currently EUR40 per tonne and from the start of 2013 it will be EUR50 per tonne.

Current energy taxes include various tax rates for different forms of energy:

Where heat and power production is combined, the carbon intensity tax rate for heating fuels is halved.

The Environmental Protection Act is currently undergoing review. Due to the implementation of Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control) (Industrial Emissions Directive), the Environmental Protection Act is in need of renewal. However, the review process also concerns parts of the Act that do not need to be amended because of the Directive. The review process is expected to continue into 2013 and enter into force in 2013 or 2014.