Funding, Funders and Ecological Sustainability

According to the Centre for Cultural Policy Research Cupore, state funding for the arts and culture in Finland totalled €1.1 billion in 2023 (excluding funding for the national broadcaster Yle). The Ministry of Education and Culture contributed €881 million. In 2022, the total municipal expenditure on cultural services — excluding library services—was approximately €537 million in mainland Finland. Municipalities primarily funded museum services (€137 million) and general cultural services (€118 million), based on net costs (total costs minus revenues). The level of financial investment in cultural activities varies significantly between municipalities.

The state funds art and culture primarily through the Ministry of Education and Culture and its agencies, such as the Arts Promotion Centre Finland and the Finnish Heritage Agency. The Ministry of Economic Affairs and Employment also contributes to funding, notably through Business Finland. In 2023, Business Finland allocated nearly €20 million to the creative industries. Of this, more than €12 million supported the audiovisual sector, mainly through a production incentive that reimburses up to 25% of costs incurred in Finland. The aim is to attract productions to Finland and boost international financing for domestic projects. The game industry received €1.7 million of Business Finland’s support.

In 2023, Yle received €429 million in funding via the Ministry of Transport and Communications. Yle plays a key role as a commissioner and partner in the audiovisual, music and live events sectors. In addition to domestic funding, the EU supports culture through cultural programmes and structural funds. The European Regional Development Fund (ERDF) and the European Social Fund (ESF) are particularly relevant for cultural funding.

According to a study by Gaia Consulting, private foundations supported the arts with €85 million in 2023. Foundation funding plays a vital role in certain creative sectors. It is most significant in visual arts and literature relative to their share of state funding, but also supports music and the performing arts. Foundations also build art collections, maintain creative residencies, and run their own cultural initiatives. Among the largest private arts funders are the Finnish Cultural Foundation, Svenska Kulturfonden, and the Kone Foundation, all of which have substantial potential to drive sustainability transitions in the creative sectors.

In recent years, angel investors and investment funds have also entered the creative funding landscape. While the game industry remains a key focus, other sectors have also begun to attract interest. In addition to public and private funding, revenue from ticket sales, copyright royalties, and other commercial income sources are significant for the financing of creative work.

Research, development and innovation (RDI) activities supporting ecological sustainability in the creative industries require increased funding. Expanding the funding base for sustainability-focused research would benefit not only the creative sectors but society at large. RDI in the creative industries should be systematically promoted and supported. For example, the adoption and application of new technologies could accelerate the development of sustainable innovations. The creative industries should also strengthen relationships with non-traditional funders and other sectors. These fields have significant potential to act as platforms for new sustainable practices and innovation.

Funders Have the Power to Advance Sustainability

A significant number of funders are actively working to improve the sustainability of their own operations and have implemented environmental management systems such as Ekokompassi or WWF’s Green Office. Developing their own operational models in an ecologically sustainable direction is a concrete way for funders to put the values of ecosocial education into practice. At best, sustainable practices adopted by funders spread throughout the field—and into society at large. For example, an increasing number of people now choose to travel by land rather than fly.

While making one’s own operations more sustainable is important, funders’ greatest potential impact lies in how they distribute funding and in the ripple effects this has on promoting sustainability transitions in the creative industries. The influence of funding can manifest in two ways: by adding sustainability criteria to funding conditions or by directing funding specifically to projects related to ecological transformation. There is also a clear demand within the creative industries for guidance that would help establish shared and more sustainable frameworks for operations.

According to participants in the LuoTo project’s sustainability workshops, funders and commissioners in the creative industries are in a key position to accelerate the sustainability transition. Funding instruments and commissioning requirements create the structural conditions for practical action. Creative professionals expect funders to introduce sustainability-promoting conditions, criteria, and funding models. The next step would be to initiate dialogue between funders and the creative sector on the relationship between ecological sustainability and funding.

Project-based funding forms a significant portion of the arts and culture sector’s financial structure. Funders have the tools—and therefore the responsibility—to promote the sustainability transition. Projects should be designed from the outset with sustainability in mind, and these considerations should also be integrated into project evaluation and funding decisions. For a true paradigm shift to occur, both applicants and peer reviewers need access to sector-specific information and training on ecological sustainability.

Funders should support, whenever possible, sustainable practices and choices that reduce carbon emissions and protect biodiversity. In the future, grant recipients will increasingly be expected to measure and report on environmental impacts, and these practices should be developed to be as clear and simple as possible. Existing funding models should also be openly examined: do they support the sustainability transition in the creative sectors, are they neutral, or might they even hinder change?

Commissioners Also Hold Influence

In addition to funders, commissioners play a key role in the sustainability transition of the cultural sector. Publicly funded Yle, in particular, carries significant expectations. Yle’s responsibilities are defined by law: the broadcaster is tasked with producing, creating, developing, and preserving domestic culture, art, and stimulating entertainment, while also supporting the safeguarding of Finnish cultural heritage. Yle’s cultural content, like all of its programming, is governed by the ethical guidelines for Yle’s content and programming, as well as the Journalistic Guidelines.

Integrating ecological guidance into Yle’s programming and content policies would be a significant step forward in the cultural sector’s sustainability transition. Beyond Yle, all commissioners should reflect on the sustainability of their own practices and their potential to support ecological transformation in the creative industries and society at large.

Many European public broadcasting and media companies have already integrated ecological sustainability into their operations. In addition to committing to sustainable production practices, some companies have also pledged to address ecological themes in their content. For example, in the UK, the BBC and 11 other major media companies signed the Climate Content Pledge in 2021. These organizations acknowledge their influence and have committed to increasing public understanding of the climate crisis and the necessary actions, while inspiring more sustainable choices.