Ilmastorahasto / Climate Fund

Funds Finnish climate transition efforts by financing emissions reduction and green industrial shifts across sectors.

Ilmastorahasto, or the Finnish Climate Fund, was Finland's wholly state-owned special assignment company under the Ministry of Economic Affairs and Employment. It was set up to finance climate action, low-carbon industrial change, and digitalisation that could cut emissions, and it operated as a state capital investor rather than a grantmaker. The fund was wound down in May 2024, and its functions are being folded into Finnish Industry Investment, or Tesi.

Its tools were equity investments and subordinated capital loans only. The state capitalised the fund with EUR 200 million, with a further EUR 100 million appropriation available through 2025, and the operating model aimed to lift annual deployment capacity toward EUR 130 million. Projects were expected to bring in other capital as well, because the fund could cover no more than half of total project financing.

The Climate Fund was most relevant to capital-intensive climate technologies that were ready for co-investment, including green hydrogen, CO2-based protein production, biomass for heavy industry, renewable power, and industrial efficiency upgrades. It did not operate a public grant route, and it was never intended to be the sole financier of a project. Its public value now sits in the climate-tech investment model it helped build before the wind-down.