Climate change is the most central and critical challenge of our age. Furthermore, digitalisation and the demographic change create pressure for the public service system as well as accelerate industry transformation. The upcoming 10–15 years are critical for answering the challenges and possibilities that climate change and digitalisation generate.

Concrete actions to tackle climate change are needed rapidly, but the ongoing profound national and international legislation change – and consequent results – will take time to materialise. In addition to changes in legislation and skills development, the transformation urgently requires significant additional investments. In Finland the annual need for additional investments has been estimated to amount to over one billion euros.

During the Vuosaari climate summit on February 3rd, 2020 Sanna Marin’s government stated: “The government is creating a climate fund based on the Finnish State Development Company Vake. The fund will focus on combating climate change, driving digitalisation and advancing low-carbon industry. The transition to a low-carbon economy requires sufficient investments in developing a circular economy, clean technology solutions, and energy efficiency. Vake’s capital is more than 2 billion euros. During this government term, the climate fund will be able to use hundreds of millions of euros.”

During the 2021 budget session on 16 September 2020, the Finnish Government decided that the State Business Development Company Vake will be transferred into the ownership steering supervision of the Ministry of Economic Affairs and Employment (MEAE). Vake will be turned into a Climate Fund through an amendment to its articles of association.  (Further information in the press release)

At present, we are waiting for more detailed information about the owner’s decisions concerning the Climate Fund. We will communicate more about the matter upon receiving this information.

Vake in a nutshell
State company, founded
Operational from
Company balance sheet

Vake’s own proposal: boost for digital and environmental investments

According to the strategy proposal presented by Vake’s board, the core of the company’s operations would be in identifying significant investment opportunities amongst digitalisation and climate action ventures, which are not being realised in the necessary scope and time span through private investments, in order to meet for example Finland’s goal of being carbon neutral by 2035.

With the Finnish State Development Company Vake, the government can allocate significant funds to investments advancing digitalisation and tackling climate change. This would position the company into an innovation funding bottleneck identified by stakeholders and experts: significantly scaling up solutions supported for example by Business Finland. After Vake’s funding the solutions would be equipped to grow for example through private investments and funding from state-owned investment company Tesi (Finnish Industry Investment Ltd).

Vake could offer significant leverage for national, private and EU funding. With its capital Vake would act as a national counterpart for the EU’s funding for climate action and activate private funding for individual investment areas worth tens or hundreds of millions of euros.

Vake’s proposed four investment categories


Public platforms

Providing capital to platform companies that are wholly or primarily government owned. Often legislation-based state-owned companies to open new kinds of business for example at the interface of government data.


Public Private Partnerships

Minority shares in providing capital for public private partnership companies. For example, business based on the data, competence, or infrastructure of cities, municipalities, universities, schools, healthcare districts, or state energy enterprises, arranged as partnerships with commercial actors.


Industrial scale digital and environmental investments

A minority share or capital loan to launch significant industrial scale digital and environmental investments. Vake’s funding activates national and international private investments to join the ventures as well as boosts companies towards ambitious digital and environmental solutions.



Investing into new kinds of funds focusing on digital and environmental investments. Vake could invest into funds to spread risks and to support the forming of new kinds of fund products.