Recipes for Systemic Change - Helsinki Design Lab

OPPORTUNITY SPACEFinland can achieve carbon neutrality in the coming decades. In fact,relative to other nations, carbon neutrality is low hanging fruit for Finlandand only requires a 50 percent carbon emissions reduction. Its massive carbonsink, growing use of low carbon energy sources, and effective policyimplementation make the reduction a realistic and tenable goal that wouldplace Finland among a select league of nations leading this change.In a carbon-restricted global economy and a strong regulatory environment,the first nations to bind emissions reductions to economic growthwill enjoy a substantial competitive advantage over other nations still workingtoward compliance.Although the technical challenge of energy efficiency is a central concernof business and government, the question now concerning Finlandis how to achieve a low or no carbon economy and to continue to prospersocially, economically and environmentally.In recognition of this new reality, the Prime Minister’s Office recentlyreleased a foresight report outlining an 80 percent emissions reduction targetby 2050—a target aligned with many OECD countries and dependentupon international cooperation. While the report signals a potential directionfor Finland’s long-term policy planning, the details of how the countrywill transform itself and of who will lead the effort remain unanswered.A transformation of such a scale will require Finnish businesses toengage emerging markets and spark new ones. The central government andmunicipalities will need to lead with strategic policy interventions, smartinvestment, forestry practices that improve carbon sink capacity, as well aslow carbon retrofitting and development for the built environment.The Finnish government is extremely adept at transforming goals andobjectives into public policies and legislation, but they tend to result inshort-term achievements. One such example is Finland’s compliance underthe EU emissions trading scheme. The government does not have a recordof success in long-term energy and environmental policy planning andimplementation.In order to gain a First-Mover advantage, the government will need toset more aggressive targets that build on-the-ground momentum via a pathof higher risk at a potentially greater cost. Yet, in an era of crisis, expensiverisk taking is likely to be politically unpopular.Nonetheless, Finland will act to address climate change. As has been itscustom, the government will most likely move forward in lockstep with theEU. A necessary first step will be capturing and re-presenting the strategicadvantage that comes with leadership in carbon neutrality at a national209