The description below outlines what kind of investment targets can receive funding from the Climate Fund and the criteria for the Fund’s investments.

Climate Fund investments in brief

The Climate Fund invests in large-scale climate and environmental projects in which the fund’s investment is crucial to enable the project’s realisation in the first place, on a larger scale, or earlier than it would with funding from elsewhere. If this kind of clear added value from the state’s participation cannot be identified from the investment, the Climate Fund will not take part in the project. 

As a state-owned special-assignment company the Climate Fund aims at fulfilling its task as efficiently as possible and creating societal impact instead of maximising its own revenue. In the long term the Climate Fund’s investments and funding must, however, be self-supporting when assessed as a whole. 

The Climate Fund focuses on capital loans as its primary funding instrument. In addition, investing in funds and expansion into debt instruments can be considered in certain cases.  The company also reserves the right to use other instruments permitted by its operational guidelines when necessary, but the company will not award direct grants. The Climate Fund can participate in investment projects led by either private or public actors, or public-private-partnerships.

Climate Fund's investment categories

The Climate Fund complements the state-owned innovation funding ecosystem with its three investment categories. The primary investment targets of the Climate Fund include industrial scale-ups of, for example, new technology demonstration projects, or pre-existing climate solutions into a commercial scale. The Climate Fund can also fund the development and commercialisation of a new digital climate solution, a feature that enables emissions reductions, or a data platform 

Facility investments and other climate infrastructure

Scaling up climate solutions to an industrial scale or infrastructure enabling the scaling up and commercialisation of climate solutions. 

Käyttöönoton skaalaus
Scaling up the deployment of climate solutions

Scaling up existing technology and/or business models, the commercial viability of which has often already been verified on a small scale, to a significant commercial scale.

digitaaliset alustat
Digital climate solutions

Development and commercialisation of a new digital climate solution, a feature that enables emissions reductions, or a data platform.

Criteria for Climate Fund investments

A three-stage assessment model and criteria created for investments is used to determine whether the Climate Fund participates in individual investment proposals. Each proposal is evaluated against these requirements based on the information provided by the client. The Climate Fund’s team supports the applicants in employing the criteria. 

The criteria and evaluation model consist of financial and other preconditions, cross-cutting impact goals and an investment proposal specific analysis. 

Every investment decision must pass the preconditions. If the preconditions are met, the final priorisation and selection of investment proposals will be made based on the impact criteria. Prioritisation is based on the assessment of emission reduction potential as well as productivity and business potential. In addition, other most relevant proposal specific aspects will be analysed such as natural resources and the circular economy, biodiversity impact, export potential, questions related to social justice or leveraging EU funding. 


  • Credible plan for repayment of the investment and return of capital
  • With Climate Fund’s investment the project will be realised in the first place, earlier or on a larger scale
  • Alignment with the “do no significant harm” principle

Impact Criteria

  • Emissions reduction potential
  • Productivity and business potential

Investment Proposal Specific Assessment

  • Natural resources and circular economy
  • Biodiversity impact
  • Export potential
  • Social justice
  • Leveraging EU funding
  • …and other relevant impacts

In addition, the Climate Fund’s assessment process examines the project’s alignment with the EU taxonomy.

More information regarding the Climate Fund’s investment criteria and earlier funding targets

Decision-making process

The Climate Fund’s Board of Directors makes decisions regarding the company’s investments. The Fund’s operational team prepares investment proposals to the Board in collaboration with the applicant and possible external evaluators. The Climate Fund’s Board meets monthly to evaluate how investments are advancing from the proposal stage towards more detailed analysis and investment decisions.

1. Identification and priorisation of funding targets
  • Presenting the funding target: Basic information about the potential investment provided using the web form
  • First discussion and priorisation: An overview on the preconditions and the impact criteria, as well as the status and timing of the total investment
2. Due Diligence analysis
  • DD stage 1: Business plan and the Climate Fund impact criteria
  • DD stage 2 : Finance, technology, tax, legal and impact model
  • DD stage 3: Finalisation of analysis and investment negotiations
  • The analyses are often supported by external experts.
3. Investment decision and execution

Approximately 10-15 investment decisions per year.

  • Finalising the documentation: Execution proposal and decision documentation
  • Investment decision: Made by the Board of the Climate Fund
  • Financial arrangements

Execution of transaction

4. Managing the portfolio target

Monitoring, reporting and management

Every investment decision proceeds from an initial overview towards a more detailed analysis. The Climate Fund’s Board of Directors evaluates the proposals in several phases during the process and makes the final decision. The investment process will usually take some months, after which the portfolio target is monitored throughout the funding period.