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Since 2016, the International Energy Agency’s (IEA) in-depth country policy reviews focus on key energy security challenges in fast-changing global energy markets as well as on the transition to clean-energy systems. This latest update on Finland’s energy policies therefore offers insights into three special focus areas – bioenergy, transportation, and combined heat and power (CHP) production.With abundant forest resources, Finland is a global leader in developing second-generation biofuels. This report examines the impacts of greater biofuel use on sustainability and the country’s carbon sink, and it offers perspectives for Finland’s potential for innovation in heavy duty, aviation and maritime transport.The country has aligned its climate and energy policies within a robust policy framework and set ambitious climate targets for 2030, such as cutting oil consumption in half and achieving 30% of renewables in transport by 2030. As the power sector is largely decarbonised, transport is a key sector for the country’s ambitious national climate targets.Finland has been a leader among IEA countries in public and private spending on energy research, development and demonstration. A longer-term policy framework for 2050 will be pivotal to guide investments in clean energy technology innovation, a critical factor for reaching decarbonisation goals.The report looks at the challenges Finland faces and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.

While Finland’s foreign-born population remains small by international standards, growth has been amongst the fastest in the OECD. Finland’s foreign-born population have lower employment rates than native-born Finns, and women, in particular, are struggling to integrate and face incentives to stay in the home. Indeed, the employment gap among those arriving from outside the European Union is among the largest in the OECD. This risks long-term implications for the integration of their children, many of whom are struggling to thrive in the Finnish school system. Large inflows of asylum seekers in 2015 put integration squarely on the agenda, and Finland developed a number of innovative integration policies in response. Yet, numbers have since fallen dramatically, raising questions of how to respond to the needs of a large cohort without scaling up the integration system on a permanent basis. This review, the second in a series on the skills and labour market integration of immigrants and their children, provides an assessment of these and other challenges. It includes a holistic assessment of Finland’s integration services – such as the new modular integration training, and the Social Impact Bond – as well as challenges related to settlement, early labour market contact and workplace segregation. An earlier review in the series looked at integration policies in Sweden (2016).

Denmark, Finland, Iceland, Norway and Sweden, commonly known as the Nordic countries, have been leaders in the development of modern family and gender policy, and the explicit promotion of gender equality at home, at work, and in public life. Today, on many measures, they boast some of the most gender-equal labour markets in the OECD.This report shows that improvements in gender equality have contributed considerably to economic growth in the Nordic countries. Increases in female employment alone are estimated to account for anywhere between roughly 0.05 and 0.40 percentage points to average annual GDP per capita growth – equivalent to 3 to 20% of total GDP per capita growth over the past 50 years or so, depending on the country.The Nordic countries are closer than most to achieving gender equality in the labour market. But the last mile may well prove to be the longest one. To make further progress, a continued assessment of the effectiveness of existing public policies and workplace practices is needed. Only with resolve and a continued focus can Nordic countries ensure that men and women contribute to their economies and societies in gender equal measure. 

Under Action 14, countries have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The minimum standard is complemented by a set of best practices. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' stage 1 peer review report. This report reflects the outcome of the stage 1 peer review of the implementation of the Action 14 Minimum Standard by Finland.

The Nordic region is at the forefront of the global growth of electric mobility. The Nordic Electric Vehicle Outlook (NEVO) aims to identify and discuss recent developments of electric mobility in the five Nordic countries: Denmark, Finland, Iceland, Norway and Sweden. The report assesses the current status of the electric car market, the deployment of charging infrastructure, and the integration with the electricity grid at country level. It analyses the role of European, national, and local policy frameworks in supporting these developments. The analysis also provides insights on consumer behaviour and includes an outlook on the progress of electric mobility in the Nordic region up to 2030. NEVO has been developed in co-operation between the International Energy Agency (IEA) and Nordic Energy Research. It builds on the long-standing IEA engagement in the area of electric mobility, including the co-ordination of the Electric Vehicles Initiative (EVI) and the hosting of the Hybrid and Electric Vehicle Technology Collaboration Programme.