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Published: 28 May 2008

Public sector environmental protection expenditure peaked in 2006

Public sector environmental protection expenditure grew significantly in 2006 when compared with previous years. The expenditure grew by as much as 14 per cent from the year 2005. The growth in environmental protection expenditure was strongest in the local government sector, where especially investments in waste and sewage management increased. This year the volume of municipal expenditure on environmental protection exceeded the corresponding expenditure item of central government. Revenue from environmental protection also grew slightly, which counterbalanced the increase in public sector environmental protection expenditure.

Public sector environmental protection expenditure totalled some EUR 1.2 billion in 2006. Slightly less than one-half, or EUR 580 million, of this expenditure was financed with revenue. The central government's share of the expenditure was 49 per cent and that of local government 51 per cent. The biggest part of the public sector expenditure, that is EUR 660 million, consisted of operating expenditure. Investments were made with EUR 230 million and grants for environmental protection amounted to EUR 320 million.

The operating expenditure of central government environment protection was EUR 270 million in 2006. This consisted mostly of administrative and acquisition expenditure. Central government paid out a total of EUR 320 million as investment and other grants, most of which went to agriculture as agro-environmental grants and the remainder went to enterprises. In addition to the above-mentioned subsidies, the central government was responsible for environmental research and development projects with a total value of EUR 200 million.

The operating expenditure of local government environment protection was roughly EUR 390 million in 2006. Of the municipal investments which totalled EUR 220 million, 98 per cent were allocated to sewage and waste management and only 2 per cent to other environmental protection and administration. The volume of municipal environmental protection investments can vary considerably from year to year. Municipalities are able to cover their operating expenditure and most of the environmental protection investments with their revenue from sewage and waste management. Central government grants pay for a part of the investments.

Public sector investment and operating expenditure in environmental protection 1994-2006

Does not include research and development, grants given or imputed items (interests and depreciations).

Source: Public sector environmental protection expenditure 2006. Statistics Finland

Director in charge: Ms Kaija Hovi

Inquiries: Ms Annika Miettinen +358 9 1734 3228, ymparisto.energia@stat.fi

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Appendix tables

• Environmental protection expenditure by public sector, 1994-2006 (28.5.2008)
• Environmental protection expenditure, 1994-20061) (28.5.2008)

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Last updated 28.5.2008