Finland Arctic Circular Innovation Program

The Arctic is changing fast. Mining, logistics, and bioeconomy operations in Finnish Lapland face a paradox: they’re resource-intensive industries operating in one of the world’s most fragile ecosystems. Waste from mining operations piles up. Diesel powers remote operations. Supply chains stretch thousands of kilometers. And all of this happens in territories where Sámi communities have lived for millennia, with rights and knowledge that must be respected.

Business Finland is offering €3.5 million per project to transform Arctic industries through circular economy and clean energy innovations. This program funds Finnish companies, municipalities, and research consortia developing zero-waste approaches, renewable energy systems, and sustainable practices that protect Arctic ecosystems while maintaining economic viability.

For Finnish organizations operating in or serving Arctic industries, this program provides non-dilutive funding (grants, not loans or equity) to pilot circular solutions, deploy renewable energy, and build partnerships with Sámi communities. The goal is proving that Arctic industries can operate sustainably—reducing emissions and waste while respecting Indigenous rights and fragile ecosystems.

What makes this program distinctive is its requirement for meaningful Sámi partnership and its focus on cold-climate solutions that can export globally. You’re not just greening your operations—you’re developing approaches that can work in Alaska, northern Canada, Greenland, and other Arctic regions worldwide.

At a Glance

What This Funding Covers

The €3.5 million supports comprehensive Arctic sustainability transformation:

Circular Process Integration (€1.6 million): Arctic industries generate waste that’s expensive to transport and dispose of. This component funds industrial retrofits turning waste into resources, digital twins modeling and optimizing resource loops, process redesign minimizing virgin material use, and equipment for on-site waste processing or recycling. Reduced waste means lower costs and environmental impact.

Renewable and Storage Systems (€1 million): Diesel is expensive in the Arctic and emits heavily. This funding supports hybrid energy systems combining wind, solar, and thermal storage, battery systems storing renewable energy for when it’s needed, heat recovery systems capturing and reusing waste heat, and smart energy management optimizing renewable use. Lower carbon intensity improves both sustainability and energy security.

Community Co-Innovation (€600,000): Arctic sustainability must respect Sámi rights and knowledge. This component funds living labs where Sámi enterprises and municipalities co-develop solutions, benefit-sharing arrangements ensuring Sámi communities profit from innovations, cultural safeguards protecting traditional practices and sacred sites, and capacity building for Sámi participation in circular economy. Shared ownership models build trust and legitimacy.

Monitoring and Certification (€300,000): Export markets demand verified sustainability claims. This funding supports lifecycle assessments quantifying environmental impacts, remote sensing monitoring Arctic ecosystems, third-party verification of circular and climate outcomes, and certification for export markets. Verified outcomes support premium pricing and market access.

Beyond the direct funding, selected projects get climate modeling and circular design support at the Arctic Research Centre, export advisory for Nordic, North American, and Asian cold-climate markets, IP strategy support for sustainable materials and clean energy technologies, and Indigenous partnership facilitation ensuring benefit-sharing and cultural safeguards.

Who Should Apply

This program is designed for organizations ready to transform Arctic industrial practices. You’re a good fit if:

You’re a Finnish Organization with Arctic Operations or Expertise: This includes companies operating in Lapland (mining, logistics, tourism, bioeconomy), municipalities managing Arctic infrastructure or services, research institutions with Arctic expertise, and consortia combining these actors. You must be Finnish-registered, but your solutions can serve global Arctic markets.

You Have Demonstrated Sámi Consultation: This isn’t optional. You need documented consultation with the Sámi Parliament, engagement with reindeer herding cooperatives if your work affects grazing lands, cultural impact assessments for projects in Sámi territories, and partnership agreements where appropriate. Projects that haven’t consulted Sámi stakeholders won’t be funded.

You Can Achieve Significant Emission Reductions: The program requires lifecycle emission reductions of at least 40% compared to baseline. You need baseline measurements of current emissions, technical plans showing how you’ll achieve reductions, lifecycle assessments quantifying impacts, and monitoring systems tracking progress. Vague sustainability claims aren’t enough—show specific, quantified reductions.

You Have Export Potential: Business Finland wants to support solutions that can scale beyond Finland. You need analysis of global Arctic markets (Alaska, northern Canada, Greenland, Russia, etc.), evidence that your solution works in cold climates, plans for adapting to different regulatory contexts, and export strategy. Solutions that only work in Finland are less competitive.

You’re Committed to Open Data Sharing: The program values knowledge sharing. You need plans to share data with Arctic research networks, publish technical lessons (while protecting commercial IP), participate in Arctic sustainability forums, and contribute to Arctic policy development. Organizations willing to share learnings strengthen the broader Arctic sustainability transition.

Insider Tips for a Winning Application

Link Circular Approaches to Sámi Livelihoods: The strongest applications show how circular economy creates tangible benefits for Sámi communities—employment in waste processing, revenue from traditional materials used sustainably, protection of ecosystems supporting reindeer herding, or preservation of cultural practices. Generic claims about “stakeholder engagement” aren’t enough—show specific, meaningful benefits.

Demonstrate Replicability in Other Arctic Regions: Business Finland wants solutions that can export. Show how your approach could work in Alaska’s mining sector, northern Canada’s logistics, Greenland’s fisheries, or other Arctic contexts. Provide market analysis, regulatory comparisons, and adaptation strategies. Solutions designed for global Arctic markets are more valuable.

Integrate Digital Monitoring: Arctic operations are remote and hard to monitor. Strong applications use IoT sensors tracking resource flows and emissions, satellite remote sensing monitoring ecosystem impacts, digital twins optimizing operations, and transparent data platforms providing real-time sustainability metrics. Digital monitoring builds credibility and enables continuous improvement.

Align with Finland’s Climate Act and Arctic Strategy: Finland has ambitious climate targets and an Arctic strategy. Reference these explicitly. Show how your project advances national goals—carbon neutrality by 2035, sustainable Arctic development, Sámi rights protection, and Arctic expertise export. Positioning your project as contributing to national priorities strengthens your case.

Plan for Long-Term Financing Beyond the Grant: The grant covers pilot and demonstration, but you need sustainability plans. Show how you’ll finance scale-up through revenue from circular products or services, green bonds or impact investment, carbon credits or sustainability-linked financing, and customer contracts. Projects with clear paths to financial sustainability are more attractive.

Address Biodiversity Explicitly: The Arctic is a biodiversity hotspot. Show how your project protects or enhances biodiversity—habitat preservation, pollution reduction, ecosystem restoration, or wildlife-friendly practices. Include biodiversity indicators in your monitoring framework, ideally developed with Indigenous knowledge holders.

Application Timeline

The November 7, 2025 deadline aligns with the Arctic Innovation Forum in Rovaniemi. Here’s a realistic timeline:

April 2025: Submit pre-proposal outlining your circular innovation concept, Sámi consultation status, preliminary emission reduction estimates, and export potential. This is a shorter document (5-10 pages) that gets initial feedback.

May-June 2025: If invited, develop full proposal including detailed technical feasibility studies, stakeholder agreements (especially with Sámi communities), lifecycle assessments, financial models, and export strategies. This is intensive work requiring technical, legal, and cultural expertise.

June 2025: Submit full proposal by the deadline with all required documentation.

July-September 2025: Participate in due diligence sessions. Business Finland will assess your technical approach, financial viability, Sámi partnerships, and Arctic resilience. Be prepared for detailed questions.

November 2025: Pitch at Arctic Innovation Forum in Rovaniemi. This is your opportunity to present to an expert jury, potential customers, and investors. Strong pitches can attract additional funding and partnerships beyond the grant.

December 2025-January 2026: Finalize grant contract and commence implementation.

Frequently Asked Questions

Can non-Finnish companies apply? No, the lead applicant must be Finnish-registered. However, Finnish companies can partner with international organizations, and solutions can serve global markets.

What if we haven’t consulted the Sámi Parliament yet? Start immediately. Consultation takes time and must be genuine, not a checkbox. Contact the Sámi Parliament, explain your project, and ask for guidance on appropriate consultation processes. Budget time for this—it can take months.

How is the 40% emission reduction calculated? Using lifecycle assessment comparing your proposed approach to current baseline practices. This includes direct emissions (energy, transport) and indirect emissions (materials, waste). Business Finland can provide guidance on methodology.

Can we use funding for salaries? Yes, project staff salaries are eligible costs. However, the funding is for the project, not general operations. Staff must be working specifically on the funded circular economy or clean energy innovation.

What about intellectual property? You retain IP rights to your innovations. However, you must share technical lessons and data (while protecting commercial IP) to contribute to Arctic sustainability knowledge. Your grant agreement will specify what must be shared and what can be protected.

Can we apply for multiple projects? Yes, but each project needs a separate application. If you have multiple distinct innovations, you can apply for each. However, Business Finland evaluates each independently.

What happens if we don’t achieve the 40% emission reduction? Grant agreements include performance milestones. If you’re not on track, Business Finland may adjust funding or require corrective action. Honest reporting and adaptive management are expected.

How to Apply

Ready to transform Arctic industries through circular economy and clean energy? Here’s what to do:

Step 1: Assess your readiness. Do you have Arctic operations or expertise? Have you consulted Sámi stakeholders? Can you achieve 40%+ emission reductions? If not, address these gaps first.

Step 2: Engage Sámi communities. Contact the Sámi Parliament, relevant reindeer herding cooperatives, and local Sámi organizations. Discuss your project, listen to concerns, and explore partnership opportunities.

Step 3: Conduct baseline assessments. Measure your current emissions, waste generation, and resource use. This baseline is essential for demonstrating improvements.

Step 4: Design your circular or clean energy solution. Work with engineers and sustainability experts to develop technical approaches, conduct lifecycle assessments, and model impacts.

Step 5: Analyze export potential. Research Arctic markets globally, identify potential customers, and develop export strategies.

Step 6: Prepare your pre-proposal and submit by April deadline.

Step 7: If invited, develop full proposal with all required components: technical feasibility studies, Sámi partnership agreements, lifecycle assessments, financial models, export strategies, and monitoring plans.

Step 8: Submit full proposal, participate in due diligence, and prepare to pitch at Arctic Innovation Forum.

Visit the official Business Finland Arctic Circular Innovation page for detailed guidelines and application materials: https://www.businessfinland.fi/en/for-finnish-customers/services/funding

Questions about eligibility, Sámi consultation, or technical requirements? Contact Business Finland—contact information is available on their website.

The Arctic’s future depends on sustainable industries that respect ecosystems and Indigenous rights. If you’re ready to build them, this program can help you prove it works and export your solutions globally.