Cleantech – a key driver for Finnish economy

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Posted on: 16 May 2013

Cleantech was one of Finland’s fastest-growing business sectors in 2012. Combined turnover for cleantech companies was EUR24.6 billion and annual growth 15 percent.

15 May 2013 Cleantech – a key driver for Finnish economy Cleantech was one of Finland’s fastest-growing business sectors in 2012 - a year of economic downturn. Combined turnover for cleantech companies was EUR24.6 billion and annual growth 15 percent, shows a survey by Cleantech Finland. The Finnish GDP diminished by 0.2 percent and the combined turnover for Finnish industrial companies diminished by 0.6 percent in 2012, according to Statistics Finland. “Finnish cleantech expertise is in high demand internationally, and Finnish companies have been quick to utilize the market potential," says Mari Pantsar-Kallio, Strategy Director for the Cleantech strategy program at the Finnish Ministry of Employment and the Economy. "There has also been strong governmental support to boost cleantech growth. Over recent years cleantech has been one of the few growth business areas in Finland in general, and one of the very few with annual growth of ten percent or more," Pantsar-Kallio says. The Cleantech Business in Finland 2013 survey is the fourth annual study mapping out the Finnish cleantech industry. In March – April 2013, 74 Finnish cleantech companies were interviewed by phone and key figures of 115 companies were researched. About 50 percent of the responding companies were small, 22 percent mid-size and 27 percet large. The total industry turnover excludes forestry and energy production. The survey was conducted by Pohjoisranta Burson-Marsteller. According to Santtu Hulkkonen, Executive Director of Cleantech Finland, cleantech has become a key driver for the Finnish economy. Furthermore, Finland has become a major player in the global cleantech market, with a market share of over 1 percent. “Finland’s share of the global GDP is approximately 0.4 percent, so relative to GDP we are one of the world’s leading cleantech nations,” Hulkkonen says. “Finnish cleantech companies expect strong growth also in 2013. Small companies in particular have terrific growth expectations - they predict as much as 29 percent sales growth for 2013.” China key growth market, energy efficiency key driver According to the survey, the Finnish cleantech business is strongly export-driven – the majority of cleantech companies get more than half of their turnover from abroad. In 2012 key export markets were Germany, China, Sweden, France and Russia. The most interesting growth markets in the next few years are China, Russia, Germany, Sweden and Brazil. “Finnish companies are also very interested in India and several EU countries. Also USA has maintained its position as an interesting market from year to year,” Hulkkonen says. Energy efficiency has traditionally been Finland’s key area of cleantech expertise. Now, 59 percent of Finnish cleantech companies work with energy efficiency solutions, and these account for more than a third of total industry turnover. Almost half of the companies also have operations in renewable energy production, transfer or distribution. “Finland is now reaping the benefits of having a cold climate and no natural fossil resources. For decades we have had to look for ways to decrease heating costs and find alternatives to fossil fuels. This expertise is now in high global demand,” Hulkkonen points out. Network of top cleantech companies and experts Cleantech Finland brings the best cleantech solutions and expertise to companies and public-sector organizations that have environmental or energy- efficiency problems that need solving. It also connects potential investors and partners with the best cleantech experts in the market. "For decades Finnish cleantech companies have solved environmental challenges making us global leaders in energy efficiency, clean industrial processes and bioenergy," says Santtu Hulkkonen. "Today, we offer you the best cleantech expertise. Problem solving is in our nature." See Solved. Related: Hydrogen to join electricity to cut traffic pollution Benefits from EU energy savings underestimated Self-healing power grids to become a reality Energy turn-around underway in Finnish households Arctic development - opportunities and challenges Finland updates its energy and climate strategy
Posted: 16 May 2013

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