The circular economy aims to maintain resources in use for as long as possible by keeping their value and reducing environmental impacts. No waste is created as leftover materials are reused. The circular economy opens opportunities for business and growth through effective use of byproducts, cooperation, and new business models. The Ministry of Agriculture and Forestry promotes the circular economy through projects utilizing side streams from various sectors such as fisheries, forestry, and agriculture to produce new products and recycle nutrients.

1. Actor in the circular
economy
Ministry of Agriculture and Forestry

2. The circular economy – a new
economic model
2
• The circular economy aims to maintain raw materials and materials in the use of
the economy for as long a time as possible: materials retain their value and the
adverse effects to the environment are reduced.
• The objective is to save natural resources and to utilise materials effectively and
sustainably
• No waste is created because left-over materials are used as raw materials by
others and products are designed to be reused over and over again
• Value is created more and more often intellectually, and products are being
replaced by services
• The self-sufficiency of companies will increase and their preparedness for the
scarcity of raw materials and changes in prices will improve

3. Working towards a new way of thinking
about resources
3
• The most important driving forces behind change include the limited nature of
natural resources, climate change, the digital revolution and the networking of
society, as well as changing values and attitudes.
• The circular economy opens up new opportunities for business and economic
growth:
• Effective utilisation of side streams
• Open cross-sector and production line cooperation
• New business models such as the combination of public and private funding
• Solutions include digitalisation, new technologies and the responsible use of
artificial intelligence
• The importance of knowledge, expertise and innovations as sources of growth

4. 4

5. Broad-scoped and high-quality
cooperation networks are our
most valuable capital
The Ministry of Agriculture and Forestry as
a trailblazer
• Multidisciplinary cooperation with
various stakeholders
• Dialogue between administrative
branches, research activities and
business activities as the premise for all
operations 5

6. 6
• The more effective utilisation of nutrients found in Algae,
aquatic plants and fish will improve the state of Finland’s
waters and reduce the need for fertilisers.
• The commercial fishing of cyprinids and their productisation
into food will ensure the more effective removal of nutrients.
• Feed produced from Baltic herring makes it possible for the
sea area’s fish population to grow carbon neutrally.
• New value and products from Baltic herring and the side
streams of fish processing
Recycling of nutrients – the circular
economy in the fisheries sector

7. Projects that promote the circular
economy
7
• Development of solutions that save and recycle water (reuse of waste water, case
Mikkeli)
• Development of circulated water technology in fish farming (case Laukaa)
• The so-called zero-fibre deposits that have been layered on the bottom of Finland’s
lakes by the wood refining industry and their potential utilisation (case Tampere)
• The development of water-based tourist services utilising digitalisation
• Promoting marine business parks
• e.g. fisheries built in connection with wind power parks, utilisation of environmental
compensation

8. Resource-efficient use of wood – the
circular economy in the forestry sector
8
• A well-functioning market steers Finland’s different timber types to
various uses. Forest strategy is used to ensure that subsidies and
other incentives do not distort the functioning of the wood market.
• The objective is to utilise the different parts of wood in high added value
products.
• The development of location data and digital services will promote
the resource-efficient use of raw materials and side streams.
• The wood in traditional products and the side streams of wood
processing is utilised in numerous products:
• chemicals, cosmetics, transportation fuels, medicines, smart packaging,
coatings, plastics, the production of animal feed and functional foods,
fabric fibres and textiles, etc.

9. 9
Tree bark Forest
industry’s
waste liquor
Ash from
the wood
Waste slurry
from pulp
factory
Saw dust
Saw dust, bark and the waste
liquors from the pulp industry can
be used to produce electricity and
heat or to process transportation
biofuels or saw dust into pellets.
The ash from wood fuel created
during energy production can be
utilised as fertiliser and in earthworks
Tree bark can be used as an alternative for poisonous
phenolic compounds used, for example, in glues.
Waste slurry from pulp and paper
factories can be used to produce soil
improvers and fertilisers.
Side streams from wood processing
are utilised in many products
Recyclable
paper and
cardboard
Recyclable paper and cardboard are
recycled and utilised in the production of
new paper and cardboard
Black liquor and the forest industry’s
waste liquor can be utilised in the
preparation of chemicals and biofuels for
transportation.
Examples of circular economy in the utilisation of side streams from wood processing:
Saw dust can be used to produce
composites.

10. 10
Projects that promote the circular
economy
• Projects funded from the Ministry of Agriculture and Forestry’s R&D funds that
research and pilot new areas in which the side streams from wood processing can
be used
• Information on the amount and location of biomasses (Biomass Atlas)
• The National Forest Strategy 2025’s new Wood-based Products project
• Forest Knowledge and Electronic Services project, and Improving the Efficiency of
the Timber Market project
• The forest sector will implement numerous R&D projects as part of promoting the
bioeconomy

11. Recycling of nutrients – the circular
economy in the agriculture sector
11
• Manure, biowaste, slurry from treatment plants and the
processing of other biomasses into fertiliser products or
bedding
• Plants recover valuable nutrients for their own use and at the
same time the eutrophication of waters is prevented and
greenhouse gases are reduced.
• The processing of biomass produces energy, biogas or heat,
which are utilised both for the energy needs of the farm and
are refined into transportation fuel.
• Food loss: the objective is to halve food loss by 2030.

12. 12
Projects that promote the circular
economy
• Government Programme:
• The national project on recycling nutrients
The experimental programme on recycling of nutrients (MEUR 12 )
• Horse manure utilisation programme (600 000 euros)
• Rural Development Programme for Mainland Finland, 2014–2020:
• MEUR 6.5 for recycling measures in the most vulnerable areas from the perspective of waters
• The environment payment, investment subsidies, education and dissemination of information,
cooperation, guidance and rural business funding as well as Leader
• New business from by-products
• The utilisation of excess food products as part of the circular economy
• The Rural Development Programme is an important instrument in promoting the circular economy and
this is also being taken into consideration in the preparation of the coming term.
• Food loss:
• 2018–2019 the monitoring of food loss and its development in different parts of the food chain as well as
the drafting of a national roadmap for food loss (Natural Resources Institute Finland)
• 2016–2018 tool for the measurement and assessment of food loss (Natural Resources Institute Finland)
• Saa syödä food waste events 2015–2018, food loss week 2015–2018, voluntary food sector agreement
on material efficiency.

13. 13
Business projects promoting circular
economy
Funding from the Rural Development Programme for Mainland Finland 2014–2020 is available to
circular economy micro-businesses and small business that are expected to achieve major
development and growth.
• Loimaa-based Timberwise Oy manufactures single plank wooden floors. It is involved in a project to refine
waste from its current operations into a commercial product. This is expected to have a positive impact on the
company’s profitability. It will also help to create new jobs.
• Demolition company Purkumerkki Oy of Iisalmi has invested in new demolition machinery that will allow the
company to take on larger and more challenging demolition work. The investment will increase employment and
improve the company’s profitability. The company has set its sights on international growth.
• Kotka-based Firomet Oy collects nearly all kinds of metal. In order to improve its ability to process metal and
deliver uniform material, the company acquired a mobile metal crusher. The crusher will increase the company’s
turnover and product processing rate. Freight costs will decrease as more material can be loaded on trucks.
• Kuormalavakeskus Oy from Loviisa has taken the recycling of wooden pallets to a completely new level. The
company sells pallets, picks them up, repairs them, sorts them, and at the end of their lifespans, sells them to a
heating plant. This circular economy frontrunner has invested in a new warehouse to provide more space for its
growing business activities. This has enabled a strong increase in volume and improved turnover.

14. 14

15. The sustainable
utilisation of side
streams and
production of
renewable materials
will also create new
jobs.
Using the circular
economy to create
growing and sustainable
business as well as
wellbeing from
renewable natural
resources.
Achieving the UN’s objectives for
sustainable development will require the
circular economy
15
Actions by the
Ministry of Agriculture
and Forestry:
enabling legislation,
innovation financing,
international
influence, etc.
The responsible and
climate sustainable
use of natural
resources is part of
risk management.