VITO – employment impacts of climate policy

The challenge:
Finland strives to combine more ambitious climate targets than the rest of the EU with an employment rate of 75%. Climate policy is bound to contribute to accelerating economic and labour restructuring, with the labour market creating both new jobs and greener occupations. At the same time particularly jobs directly or indirectly linked to fossil energy will be lost.

As part of the Government’s analysis, assessment and research activities the study “Vihreät toimet – ilmastopolitiikan vaikutuksia työllisyyteen” reviewed the connections between employment and climate policy, the markets of green products and the public finance’s role in managing the employment impact of climate policy. The study was carried out by Etla, the Finnish Environment Institute and Demos Helsinki. The project also consulted widely with societal stakeholders.

The solution:
The modelling calculations of the study found that the impact of climate policy is projected to be only slightly detrimental to overall employment in the long run. The biggest effects are indirect and visible in labour-intensive industries. Positive employment effects can be promoted in the coming decades through tax solutions, labour market policies and education and training. In addition, the export of so-called green products that contribute to climate change mitigation can offer Finland completely new opportunities for success and employment.

The report in the Government’s analysis, assessment, and research activities portal can be found here (in Finnish).