Circular economy

The Circular Economy Coalition is a new strategic collaboration uniting leading companies, researchers, and policymakers across industrial value chains in Finland and the Nordics. The coalition's goal is to strategically accelerate the region's shift toward advanced circular business models and establish Finland as a global forerunner, successfully turning resource challenges into new opportunities for economic prosperity and resilience.

Driving circularity as the leading theme for economic growth

Circular economy is a strategic necessity for competitiveness, resilience, and climate neutrality. As Mario Draghi noted in his report on competitiveness, circularity is not just an environmental issue but a key lever for economic growth and resilience. Despite Finland's world-class technology and expertise, the country is currently lagging behind in adoption. Each year, Finland pays nearly €100 million in penalties to the EU for unrecycled packaging plastics, a stark reminder of the urgent need for change.

The real obstacles to circularity are not technological. Instead, Finland faces a set of persistent structural barriers.

The demand for circular solutions remains weak and economic incentives are insufficient to make circularity the default business choice.
Energy recovery through incineration continues to divert valuable materials away from higher-value recycling and reuse.
Regulatory and market obstacles hinder the adoption of chemical recycling.
Rigid waste classification rules restrict the reuse of materials that could otherwise re-enter the economy.
The current tax system does little to encourage circular business models or the use of recycled materials.
Slow and unclear regulation and permitting processes delay investments and innovation.
The metrics and logic guiding policy often lead to piecemeal, suboptimal solutions rather than systemic progress.

Nordic companies are well-positioned to lead this transformation, thanks to our world-class technological readiness and expertise, but also thanks to Finland’s clean, reliable, and affordable energy system, a stable and forward-looking policy environment, and a proven track record of aligning climate action with competitiveness.

The Circular Economy Coalition focuses on driving systemic change through the following actions:

Improve the business case and market demand for circular materials and solutions
Examine material and energy streams together to enable true industrial symbiosis across value chains
Aid Finland’s journey toward becoming a Carbon-Neutral Circular Economy Society by 2035
Position circular economy as the leading theme for sustainable economic growth and future prosperity
Develop conditions to increase recycling rates and the utilization of industrial side streams (by-products)

A circular economy will only scale if policy, industry and innovation move forward together. Through the Circular Economy Coalition, NG Nordic want to turn shared ambitions into concrete solutions that reduce emissions, increase resource efficiency and strengthen Northern European competitiveness.

Dag Terje Solvang, Group Head of Communications & Public Affairs at NG Nordic

Finland and the Nordics have everything it takes to lead the global shift to circular business models. By accelerating the transition strategically, we can turn today’s resource challenges into new economic opportunities. Through collaboration and functioning markets, circular solutions can become the default—and the foundation for sustainable growth

Panu Routasalo, CEO Remeo

By accelerating circular economy investments, we strengthen the sectors self-sufficiency in line with Finland’s Government Programme. This creates permanent circular economy jobs in Finland, ensuring that tax revenue and material value remain domestic. Local recycling eliminates unnecessary international transports and safeguards the competitiveness of the Finnish packaging industry as recycled content obligations enter into force.

Mika Surakka, CEO, Sumi Oy

We at NRC Group are seeking for growth and competitiveness through circular economy. Offering our clients innovative solutions which help to cut emissions, increase recycling and use of recycled materials, and reduce impacts on nature plays a crucial role in being a forerunner. Circular solutions are found through cooperation of different actors. Being part of this innovative Coalition offers us a unique platform to make a difference and develop our capabilities.

Harri Lukkarinen, Managing Director, NRC Group Finland

Neste RE is a renewable or recycled drop-in replacement for fossil raw materials in the chemical industry. We accelerate plastics’ circularity by having invested in the world’s largest upgrading unit for plastic-waste-derived oils at our Porvoo refinery in Finland. We look forward to partnering with CLC to drive a supportive regulatory environment for scaling up circularity and processing capacity.

Maiju Helin, Director, Polymers & Chemicals, Neste

Industrial decarbonisation requires bold innovation and collaboration. By converting industrial sidestreams into low-carbon binders and with Betolar’s proprietary metal extraction, we reduce carbon emissions and the use of virgin resources while creating value. Betolar is committed to scaling circular solutions that make zero waste a reality.

Tuija Kalpala, CEO, Betolar

Latest insights

Participating companies

Betolar is a circular economy and materials technology company transforming industrial sidestreams into low-carbon, cement-free solutions for mining, metals and construction. Our mission is to cut CO₂ emissions and virgin resource use through innovations like Geoprime, proprietary metal extraction and AI-driven analytics. By developing sustainable value chains and advancing environmentally responsible ecosystems globally, we aim to deliver measurable benefits for industry and society.

With over 40 years of experience, the Finnish family-owned company Finnfoam offers and develops the most advanced structural energy efficiency solutions on the market to reduce the carbon footprint of construction and the building during use. Finnfoam is known as a trendsetter in ecological construction, whose innovative development has made Finnfoam one of the leading manufacturers of plastic-based thermal insulation in the Baltic Sea region. Expertise, quality, and customer orientation ensure safe solutions for all insulation. The company's product range includes all hard and mold-free thermal insulation FINNFOAM (XPS), FF-EPS, FF-PIR, and Tulppa wet room boards. Finnfoam's factories are in Finland, Sweden, Estonia, Lithuania, and Spain.

Lassila & Tikanoja is a Finnish circular economy company focused on recycling and resource efficiency. Its circular economy business provides waste management & recycling, hazardous waste & remediation as well as industrial & water treatment services that turn waste streams into valuable raw materials. L&T supports customers in reducing environmental impact and advancing a more sustainable, circular society. L&T employs approximately 2000 people in Finland and Sweden.

Neste is the world's leading producer of renewable diesel and sustainable aviation fuel (SAF), with production on three continents. Neste provides renewable and fossil fuels for transportation, aviation, marine and other industrial uses, as well as renewable and circular solutions for the polymers and chemicals industries. The company has a network of nearly 1,000 fuel stations with expanding service offering, such as EV charging, in Finland and in the Baltics. Neste’s strategy focuses on growth in renewable fuels to help its customers to reduce their greenhouse gas emissions. The company’s renewables production capacity is expected to reach 6.8 million tons annually in 2027. Neste is included in international indices for its sustainability performance.

NG Nordic is a leading Nordic provider of circular solutions and environmental services. Together with our customers and partners, our mission is to stop pollution, decarbonize society and ensure access to sustainable raw materials. NG Nordic has 3,400 employees across 90 sites in the Nordics and Poland, and handles 4.4 million tonnes of waste annually. The company generates EUR 1.3 billion in revenue and produces 930 GWh of district heating, while supplying 130 GWh of electricity to the grid each year.

NRC Group is the leading rail infrastructure company in the Nordics, employing around 2,000 professionals in Finland, Sweden, and Norway. The company ambitiously builds and maintains critical infrastructure and has expanded its expertise beyond railways. NRC Group provides sustainable infrastructure solutions using the latest technologies and best practices. The company’s goal is to become the most desired partner and employer in the future of the infrastructure sector.

Remeo creates a more sustainable material value chain in Finland by turning waste into new resources. As a Finnish circular economy company, Remeo covers the entire material value chain from waste to recycled raw materials. Remeo provides waste management services, waste reception and processing, and produces high-quality recycled raw materials for industrial use. In 2024, Remeo generated EUR 109 million in revenue and employs nearly 500 people across Finland, working together, sustainably and boldly.

Sumi is a Finnish non-profit packaging producer organisation playing a key role in implementing circular economy for packaging in Finland. Sumi fulfils statutory packaging producer responsibility on behalf of companies and organizes the collection and recycling of metal, glass, plastic, cardboard and wooden packaging. Up to one quarter of Finland’s packaging waste passes through Sumi. Sumi promotes innovation in circular economy industry, strengthens material recovery and supports sustainable value chains for packaging materials.