Ecological compensation

13) Examine the possibilities for applying ecological compensation proactively, in legislation on land use planning and in business sector projects.

Responsible institutions: Ministry of the Environment, Ministry of Transport and Communications, Ministry of Employment and the Economy

Schedule: 2013–2014

Status in 2018: Several research projects have focused on ecological compensation. In 2017, a report on ecological compensation ordered by the Ministry of the Environment was published. This report addressed the essential concepts and decisions of ecological compensation.

In 2018, the Government’s Analysis, Assessment and Research Activities has funded a project developing economic instruments for ecological compensation. The aim of the project is to propose legislative amendments in order to integrate the commitment to ecological compensation into the Finnish legislation. Furthermore, a report on the applicability of nature types for ecological compensation written by the Finnish Environment Institute was published in December 2018.  

A possible way to implement ecological compensation is to establish habitat banks. In 2014, Pellervo Economic Research published a report addressing the pros and cons and applicability of habitat banking in Finland. In 2016, the Finnish Environment Institute, the University of Helsinki, and the University of Jyväskylä commenced a multiannual research project on habitat banks.

Further information: Moilanen, A. & Kotiaho, J. 2017. Important operative decisions of planning biodiversity offsets. The Finnish Envronment 5/2017. (In Finnish with English summary.)

Kniivilä, M., Kosenius, A.-K. ja Horne, P. 2014. Habitat banking – the pros and cons and applicability to Finland (In Finnish with English summary). PTT Working Papers 161. 50 p.

The project Habitat Bank of Finland on Finnish Environment Institute's pages: