Public Transport to Receive Aid Worth 20 Million Euros to Combat Climate Change

Public transport is set to receive aid funding worth 20 million euros a year to fight climate change. The aid is intended for use by large and medium-sized cities and other competent public transport authorities. The Finnish Transport and Communications Agency Traficom is working with authorities and stakeholders in order to determine how the aid can be allocated for maximum effect. Applications for the aid funding will open later in the spring.

A climate-based State aid grant is set to become available for application by large and medium-sized cities and Centres for Economic Development, Transport and the Environment (ELY Centres). The funding is specifically aimed at supporting public transport purchases and development.

“I welcome the news of a permanent increase to the aid earmarked for the climate-based development of public transport. Public transport could in fact play a pioneering role in helping fight climate change in the transport sector”, said Director Pipsa Eklund.

This so-called climate aid will be awarded in two tranches. The first 13 million will be allocated by Traficom through a call for applications organised in the spring for competent public transport authorities, with the remaining seven million administered by the Ministry of Transport and Communications.

Regions and stakeholders consulted on how the climate-based State aid for public transport should be used

Traficom is asking competent public transport authorities and relevant stakeholders for their views on how the climate-based State aid funding for public transport should be targeted in order to achieve the greatest possible impact with regard to cutting emissions.

In its first years, the funding will be awarded with a particular focus on measures designed to move towards cleaner fleets and fuels. The emphasis is then likely shift to promoting a permanent increase in the modal share of public transport.

“Making sure that this climate aid funding is allocated in an optimal way is first and foremost a collaborative effort that relies on a wide range of regional expertise in order to identify the most effective measures. We are asking cities and ELY Centres for their views to help us take a comprehensive approach and make the best possible decisions”, said Public Transport Specialist Toni Bärman.

The climate-based State aid for public transport will also seek to maximize climate benefits by targeting grants based on annually changing regional and thematic priorities.


Pipsa Eklund, Director
Tel. +358 29 534 5396, pipsa.eklund(at)

Toni Bärman, Public Transport Specialist
Tel. +358 29 534 6764, toni.barman(at)