Climate mitigation and adaptation are crucial for securing Finland’s climate resilience

Economic impacts of climate change might be significantly more severe than anticipated.  According to a new study, the macroeconomic losses could be up to six times more severe than previously thought. Finland has so far avoided the worst economic impacts of climate change. However, these effects will also manifest in Finland in the long term. 

“This new study demonstrates how more comprehensive and high-quality data can provide more accurate assessments of the economic impacts of climate change. On the other hand, this study is primarily an exploratory analysis, and the topic requires further research. Another similar study also indicates that economic losses may be greater than previously estimated, though in that case, the loss was found to be double rather than sixfold. This suggests that the economic impacts could increase far more than expected, but the extent of this increase remains uncertain,” says Tyrsky’s senior consultant Adriaan Perrels.

Rising average temperatures and precipitation amounts gradually push societies outside their coping ranges. On top of that, extreme weather events are expected to become more frequent as the climate changes, with significant economic consequences. In Finland, these events include heavy snowfall, storms, heatwaves, droughts, forest fires, and floods caused by heavy rainfall. The higher the average global temperature rises, the more severe these impacts will be on the economy and the frequency and intensity of extreme weather events. Swift actions to mitigate greenhouse gas emissions are necessary to keep these impacts as minimal as possible. In addition to mitigation efforts, timely adaptation measures are also required, as the global average temperature has already risen by more than one degree since pre-industrial times. 

Adaptation is crucial in mitigating economic impacts. According to a study by Adriaan Perrels and colleagues from various institutes (2022), proactive adaptation measures could save Finland approximately 8 billion euros by 2070. Both the 2022 study and a Nordic study conducted by Tyrsky Consulting, the Stockholm Environment Institute and the Western Norway Research Institute on transboundary effects of climate change point at the importance of international interdependence of adaptation policies, despite their typical local level realization. Less wealthy countries are less resilient and risk to suffer more from climate change than many wealthy countries. Neglecting that feature may backfire to the Nordic economies.

Climate change mitigation and adaptation are Tyrsky’s areas of expertise

Tyrsky Consulting advances climate action through numerous projects and offers expert services related to mitigation and adaptation for the public and private sector. For example, Tyrsky has taken stock of Finland’s greenhouse gas emissions and assessed national pathways towards climate neutrality in the Nordic countries. Additionally, Tyrsky has conducted a study on the potential of nature-based carbon sequestration solutions in Central Finland and also taken part in Carbon dioxide use and removal project.

In the field of adaptation, Tyrsky is one of the leading actors in Finland. Tyrsky provides expert support for adaptation planning, implementation, and stakeholder engagement for municipalities and regions in Finland, Sweden, and Denmark as part of the MIP4Adapt project. Additionally, Tyrsky has developed an adaptation toolbox for the Tampere city region, offering practical tools for municipalities in the region to enhance their adaptation efforts. Tyrsky is also involved in the PIISA project, which aims to develop insurance innovations to support households, businesses, and the public sector in adapting to climate change and creating products and services that promote adaptation.

If you would like to learn more about our work and services, please contact Tyrsky’s CEO Pirjo Jantunen (pirjo.jantunen@tyrskyconsulting.fi) or research director Kati Berninger (kati.berninger@tyrskyconsulting.fi).