Climate change is the biggest threat to our economy in the long run. That is why many companies have already mentioned the fight against climate change as one of their main competitive advantages.
Mitigating climate change also offers new economic opportunities. As countries tighten their climate targets, more and more investment is needed to achieve these targets. These investments will create jobs, create economic activity and bring a growing market for clean solutions. This is an opportunity that Finnish companies must not miss.
Many companies have already taken action. Companies are not only reducing their carbon footprint, but also increasing their carbon footprint. The carbon footprint shows the positive climate effects of using a product or service. If we produce and export new and clean solutions in Finland, we will have a greater impact on emission reductions worldwide.
We need political reforms to increase the carbon footprint. It is not fair or effective to support low-carbon innovation while encouraging the continued use of fossil fuels. Policies should continuously support companies’ climate work and ensure that low-emission and environmentally friendly solutions are always the most cost-effective options. Pioneering companies that reduce their emissions rapidly must gain a competitive advantage from their operations.
Our government is committed to supporting companies in their sustainable development leap. We have already developed low-carbon roadmaps for industries in collaboration with companies and organizations. These roadmaps provide a more accurate picture of the extent of the measures required. For example, the energy sector needs tax reform to support emission reductions, and the transport and logistics sector needs investment in digital services and the development of public transport.
We are also reforming our taxation in a way that supports Finland’s goal of being carbon neutral by 2035. This autumn, we have already decided to reduce the level of taxation on industrial electricity and to give up two environmentally harmful tax subsidies.
This transition is now also supported by the EU’s recovery and adaptation framework, which means more than two billion euros in return funding for Finland. Although the EU demands that 37% of the funding be used for climate action, the Finnish government has committed to use half of the funding for climate investment. This funding is a once in a lifetime opportunity for our economy – we must not waste it.
Krista Mikkonen
Minister for the Environment and Climate Change
This article is written for MP Talk, which is a regular column in the Helsinki Times, where members of the Finnish Parliament share their thoughts and opinions. All opinions expressed are those of the author and do not necessarily reflect the views of the Helsinki Times.
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Source: The Nordic Page