Bylaws of the Green Transition Fund

The purpose of the Green Transition Fund of the City of Porvoo is to ensure that the City of Porvoo has the capacity to launch and to participate in projects that develop lines of business and their potential to operate and that enable and accelerate the green transition of companies operating in the city and that create new business opportunities. The purpose of the Fund is also to finance measures and investments implemented by the city itself as defined in the city’s climate and environmental programme or similar documents.

Upon the approval of the annual accounts, the City Council shall approve the accumulation of the Fund derived from profit for the financial year based on a proposal made by the City Board. An initial capital of EUR 10 million shall be transferred to the Fund from the city’s profit for 2022.

The assets of the Fund may be used in accordance with the purpose of the Fund for measures that accelerate and support the green transition of the city and/or companies operating in the city and that open new business opportunities. For example, the measures may include financing development projects, obtaining studies and reports, and implementing the city’s climate and environmental programme or similar measures. The aim is also to complement EU funding and other national sources of funding and to enable the capitalisation of potential joint ventures as decided separately. The Fund cannot be used for business subsidies. In addition to the Fund’s own bylaws, the Fund’s activities are guided by EU state aid regulation and the procurement legislation, which determine the types of projects whose financing the Fund can participate in.

The Vitality Committee or any other body determined separately by the City Council shall decide on the use of the Fund’s asets in accordance with the bylaws of the Fund.

The Fund’s assets are included in the city’s general financial assets. The Fund’s return shall be added to the Fund’s capital every year.

The Vitality Committee or an equivalent body shall be responsible for the governance of the Fund, and the assets of the Fund shall be managed by the Asset Management Unit. In connection with the annual accounts, the Fund shall report annually on the Fund’s capital at the beginning of the year, the use of assets and the capital at the end of the year.

The Fund will exist until 2035. The closure or dissolution of the Fund shall be determined by the City Council.