Metsä Group Commits to Circular Economy Green Deal

Metsä Group has committed to the Circular Economy Green Deal. In the voluntary national initiative led by the Finnish Ministry of the Environment and the Ministry of Employment and the Economy, actors set targets for 2035 and commit to actions that promote a low-carbon circular economy.

We are committed to investing in research and development related to the further processing of our industrial side streams. Our goal is that three significant products or solutions based on Metsä Group’s side streams will be commercialized by 2035. The product or solution can be commercialized either by Metsä Group or by one of our partners, however, in such a way that Metsä Group has played a significant role in the development work. Commercialization in this context means annual sales of at least hundreds of tonnes or equivalent commercial agreements.

Our second goal is to reduce our energy production based on the combustion of our side streams so that in 2035 our annual bioenergy production will be 1,000 gigawatt hours less than in 2025. Improving energy efficiency and developing energy production towards non-combustion-based solutions, for example through electrification, saves valuable wood raw material for higher added value material use. The flows of materials and energy are interlinked, and the development progresses gradually, taking the whole into account.

The circular economy green deal is a new initiative to accelerate the circular economy transition. In September 2024, seven commitments were announced, and now in December six, of which Metsä Group’s is one. The initiative is based on science-based prework, in which the Finnish Environment Institute, VTT Technical Research Centre of Finland, Natural Resources Institute Finland and the Geological Survey of Finland identified the most important areas of actions in terms of the circular economy transition. Prior to their adoption the commitments are assessed by a group including representatives of research institutes.

“Commitment to the Circular Economy Green Deal accelerates our research and development activities related to the further processing of our industrial side streams and can help us find new partners”, says Katariina Kemppainen, SVP, Group R&D at Metsä Group.

One criterium for the new product is that it has not previously been manufactured from Metsä Group's side streams. Potential side streams include biogenic carbon dioxide, lignin, bark, sawdust, ash, dregs and sludges. New products can be chemicals or materials, for example, to be used in construction, paints and coatings, agriculture, cosmetics, or many other end uses.

“Utilizing our side streams in new products together with partners is at the core of our circular economy work. Commercialization makes the benefits for nature and society tangible”, summarizes Ilkka Hämälä, President and CEO of Metsä Group.

We carry out research and development activities within the company, with academic partners and in cooperation with startups and larger companies. Metsä Group's innovation company Metsä Spring invests in and supports startups and potential innovations that explore new uses for northern wood.

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