A recent report by the consulting company Oxford Economics highlights the potential for long-term economic growth in Finland if the country meets its emission targets. The switch to clean energy could boost Finland’s gross domestic product by 4.5% by 2050 compared to a baseline scenario, with net zero emissions targeted by 2035 in the climate leader scenario. Green investments are expected to drive innovation, productivity, energy exports, and real incomes, supporting a strong growth trajectory for the Finnish economy.
The report compares three scenarios for economic growth in Finland from 2024 to 2050, based on different levels of emission reduction and clean energy adoption. The most positive scenario, the climate leader scenario, envisions a 0.94% average annual real GDP growth, driven by green investments and sustainable practices. Other scenarios, such as the delayed development scenario, show slower growth due to potential barriers like electricity grid limitations and labor market constraints.
Finland’s goal of achieving carbon neutrality by 2035 is ambitious and surpasses EU standards. The report emphasizes the importance of maintaining Finland’s leadership in climate policy, leveraging the country’s natural resources, educated workforce, and early adoption of low-carbon solutions. By remaining committed to emission targets and green investments, the Finnish economy can realize significant growth potential in the coming decades.
Oxford Economics’ forecast shows that relaxing climate goals would hinder economic growth compared to scenarios where emission targets are met or exceeded. The benefits of transitioning to clean energy are clear in the report, with the climate leader scenario offering the most robust growth outlook for Finland. By capitalizing on its strengths and seizing opportunities in the green economy, Finland can position itself as a leader in sustainable growth and innovation.