If Finland's government does not adopt a more aggressive wind and nuclear power development policy to bring down the country's greenhouse gas emissions, it could cost the country an extra EUR 400 million in purchases of emissions allowances under the Kyoto climate treaty. So concludes a report commissioned by the country's trade and industry ministry. According to the report's author, Mikko Kara of Finland's technical research centre, Valtion Teknillinen Tutkimuskeskus (VTT), "In 2008-2012 the price of electricity in Finland could rise by 15 to 20 percent." The financial fallout from emissions trade under the Kyoto Climate Treaty, Kara estimates, could equal 0.6% of Finland's GDP and see unemployment figures rise 0.3%. "The most cost-effective way to reduce emissions would be to build more nuclear energy. The use of wind energy and other renewable sources must also be increased," says Kara. To encourage renewables development "grid and transfer fees for small scale and dispersed electricity production should be brought down to a more reasonable level." Tax incentives to promote wind and renewable energy should also be introduced, says the report.
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