The role of the state administration and international agreements is essential in creating common incentives for the green transition. However the fastest change happens in economic life. The global economy is fluctuating, but for companies accelerating the green transition, the market is getting hotter.
Stopping global warming to 1.5 degrees Celsius is not an ambitious goal, but an absolute minimum. For companies, achieving the goal may mean an increase in regulation and responsibility requirements. There are also great opportunities hidden in the change. Along with the tightening demands, there is an opportunity to grow business. Growth is possible by developing new climate solutions and technological innovations for those who know how to seize this. When sustainability creates a competitive advantage, responsibility rises on the agenda of companies more and more strongly. The focus shifts from footprint to hand print, from compensation to strategic business.
Finance boosts the green transition
The core business of companies must change for many reasons. Both consumers and employees require responsible operations, but the biggest driver is the increasingly strong focus of funding on green investments. Strategic responsibility cutting across the company’s operations will replace one-off responsibility measures. Successful companies must be capable of continuous growth spurts combined with a meaningful value proposition and ambitious sustainability measures.
We are moving into a time where more and more companies want to profile themselves as pioneers of the green transition. This is the right direction. The green transition requires as much private money as possible behind it, and the change must be intensified as a common front. The laws of the market economy also apply in this global crisis. Where there is a problem, there is also a solution, and where there is a solution, there is a market.
Finland has an opportunity to be a forerunner
Finland has an internationally exceptional opportunity to be a pioneer in the green transition. Especially in the energy transition, we have solid know-how and a world-class ecosystem, whose cooperation and export potential must be strengthened. New solutions, such as hydrogen and carbon-free steel, bring great changes and opportunities as they progress. For us to play our cards right, Finland must be able to invest 4% of the gross domestic product to speed up climate innovations. With the current tax base, this will only be possible by promoting sustainable economic growth. Preventing global warming at a sufficient level and within the targeted timeframe requires that both public funding and domestic capital aim for the same goal. It is essential that the entire business ecosystem is involved in the discussions when the incentives are being worked on.
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