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Increase in the use of biofuels the most cost-effective way for Finland to achieve the goals of the EU's 2030 Climate and Energy Package
Date:6/17/2014

ount the results of the of the energy system modelling.

"Generally speaking, the impact of the action package appears to remain moderate with regard to the national economy, if the goals set for Finland can be achieved primarily through the increased use of biofuels. Our calculations are based on the biofuels used being produced from domestic wood based raw materials. The assumption was that biorefineries would increase Finland's refinery capacity, which would open up possibilities for an increase in the export of refined petroleum products," says Docent Juha Honkatukia, Research Director at VATT. The proposed climate policy will increase pressure for an EU-level price increase, and it would reduce the purchasing power of households.

"In the different scenarios, the purchasing power of households in Finland would reduce by around 0.3 to 1 per cent, and the trade balance would shrink by a couple of hundred million euros. In the scenario, employment would reduce by 0.1 to 0.4 per cent, depending on the development of real wages and the assumed emissions goal," Honkatukia says. "Finnish GDP would reduce by around 0.7 per cent at most."

"Finland has plenty of wood raw materials and top-level know-how for the production technologies of 2nd generation biofuels. The forest industry has already announced significant investments in next-generation pulp plants, into which the production of bio-refining products could also be integrated," Koljonen says. "We extensively utilised VTT's top-level know-how in different fields in the project. The significance of research and development activities is central in combating global warming."


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Contact: Tiina Koljonen
tiina.koljonen@vtt.fi
358-503-599-549
VTT Technical Research Centre of Finland
Source:Eurekalert

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