Climate leadership can boost Finnish economy by 0.2 percentage points

Switching to clean energy could significantly boost Finland's economy, according to a press release published by the Confederation of Unions for Professional and Managerial Staff in Finland (Akava) on Tuesday, reported Xinhua.

The report, created by Oxford Economics based on interviews with Finnish experts in December 2023 and January 2024, suggests that investment in renewable energy and ambitious climate targets could see significant income growth and economic development.

"If Finland achieves the most positive outlook for the green transition, described in the report as becoming a climate leader, the annual economic growth rate between 2024 and 2050 could be nearly 0.2 percentage points higher than in the base scenario," Pasi Sorjonen, chief economist at Akava, said in the press release.

Sorjonen further noted that the total increase in real income over this period compared to the baseline would be approximately 110 percent relative to the 2023 income level.

Akava, a confederation representing highly educated professionals through its 36 affiliates, which together have unionized over 600,000 members, commissioned the report through its research unit, Akava Works.

The report outlines three scenarios for Finland's green transition: the climate leadership scenario, the basic scenario, and the delayed progress scenario.

In the basic scenario, Finland relaxes its climate policy targets, resulting in weaker economic growth and prolonged public finance issues. In the delayed progress scenario, setbacks and friction would slow progress, preventing Finland from attracting private investment, decreasing productivity, and delaying its carbon neutrality goal by 2035.

"We can achieve climate leadership by heavily investing in research, innovation, and education to drive this transformation," Akava President Maria Lofgren said.