Paths to Finland’s green future: Impact and opportunities of climate action

Blog | Minna Korkeaoja | 7.6.2024

In order to achieve sustainable growth, the growth of emissions must be halted, and we must move towards carbon-negative development. Global warming is a significant threat, but halting it also presents a tremendous opportunity, one that we must commit to seizing.

Global warming and rising emissions have not disappeared, although concrete crises may have diverted attention. Global economic growth requires more and more energy, and at the same time CO2 emissions from energy production are increasing, as fossil fuels continue to play a significant role alongside emission-free production. As a result, global warming continues. In order to achieve sustainable growth, the growth of emissions must be halted, and we must move towards carbon-negative development.

What is the significance of an individual Finnish company or even an entire nation in halting global warming and reducing emissions?

In Finland, electricity production is becoming nearly emissions-free, with heating quickly following suit. As our carbon footprint shrinks, our climate handprint grows. Finland and Finnish companies are 10–15 years ahead of many other countries in terms of development, and we have the opportunity to help other countries implement the same measures we have already taken. We are pioneers in many ways, and together with other Nordic countries and Europe, Finland is clearly a larger player than its size suggests in the global fight against climate change.

Global warming is a significant threat, but halting it also presents a tremendous opportunity, one that we must commit to seizing.

A winning roadmap to Europe’s green future

A clear and long-term roadmap is needed for Europe’s green future. There are many perspectives to consider, such as which comes first; supply and production, or demand and consumption. The challenging economic situation forces us to consider the risk appetite and capacity of financiers, investors, and stakeholders. And the question everyone is asking is when will interest rates finally start to decline.

The political operating environment, permit processes and regulation also play a crucial role. Is it possible to create a consensus in Finland and Europe so that decisions don’t change overnight or at least every fourth year? The time horizon for energy and other industrial investments is significantly longer than electoral terms; traditionally, the energy sector has operated on a horizon of a quarter-century.

It is vital that we create stable and predictable conditions for long-term investment and development. The green transition is not only an environmental act, but also an economic necessity and opportunity that we must seize to secure the future.

WRITER

Minna Korkeaoja

Senior Advisor and Board Member, Korkia Capital Oy​