Modelling Pathways to a Low Carbon Economy for Finland

Concretizing the roadmaps outlined for moving to a low carbon economy by 2050 into detailed policies is a challenging task. Using ETSAP-TIAM as the central modeling tool, we have analyzed the implications of low carbon policies within Europe, with a special focus on the Finnish energy system. The main objective of the work was to identify cost-effective pathways for moving into a low carbon economy by 2050, by creating a set of different storylines for the future society and economy. The analysis involved also linking the energy system model to an applied general equilibrium model and a forest sector partial equilibrium model for estimating the impacts on the overall economy as well as land-use change and forestry. The scenario results indicate that Finland has good opportunities for achieving its low carbon targets by 2050 due to its large natural resources. The major uncertainties are related to the application of carbon capture and storage (CCS) and possible sustainability criteria for biomass.