What is the green transition?

The green transition means a shift towards economically sustainable growth and an economy that is not based on fossil fuels and overconsumption of natural resources. A sustainable economy relies on low-carbon solutions that promote the circular economy and biodiversity.

For companies, the manufacturing industry and municipalities, the green transition can mean investments in clean energy production, circular economy solutions and hydrogen technology, and the introduction of different kinds of new services and operating models. Low-carbon roadmaps and sustainability strategies drawn up by different sectors are an important part of this package.

What the green transition means in our daily lives, includes for example phasing out fossil oil heating, and shifting to electric cars. For the society as a whole, it can mean different kinds of incentives and subsidies for the forementioned,  as well as legislation that supports the green transition. The green transition also means that we must question our individual consumer habits and ways of thinking: could we e.g. use machines and appliances that consume less electricity? Would we be prepared to pay more for products manufactured near us that cause less emissions

Why is the green transition necessary?

The green transition is a necessity because, at the moment, we are overconsuming natural resources, both fossil and renewable ones. This overconsumption has further aggravated the climate and ecological crisis. For this reason, a comprehensive change is needed in the way we use our natural resources.

The key challenge is to limit consumption within the carrying capacity of our planet, while at the same time keeping the wheels of the economy turning. Broadly speaking, phasing out fossil fuels will turn the climate and environmental challenge into an opportunity: the green transition becomes a driver of new growth and lays the foundation for business and a sustainable economy. By offering a more comprehensive range of products and services we will also provide better opportunities for the end users to reduce their own burden of emissions. 

How does the Ministry of the Environment lead the green transition?

The Ministry of the Environment leads the green transition by supporting it with various kinds of support, developing legislation and guidance, and assessing and creating criteria for new projects. Together with other ministries and stakeholders, we will ensure that those implementing the measures needed for the transition, can expect a stable regulatory environment and financial and informational incentives to carry out reforms and investments. Practices and regulation required for a society that is in line with the green transition are being prepared nationally, within the EU and globally. 

What is also at the core of the green transition is that, when e.g. reducing emissions, we will not cause harm to other environmental objectives. This is key in the Do No Significant Harm (DNSH) principle, included in the EU taxonomy for sustainable activities. In Finland the DNSH principle has been applied in the preparation of investments and reforms under the European Union’s Recovery and Resilience Facility (RRF). The Do No Significant Harm principle will also be used for other targeted elements governed by the national legislation to boost the green transition. 

In addition, Finland has launched the first DNHS project in Europe through support from the European Commission, DG REFORM. The aim of the DNSH in Finland project is to use investment and legislative analyses, guidance and training to boost the green transition in processes where the DNHS principle is already in use or could be helpful. 

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More information

Emma Terämä, Chief Specialist 
Ministry of the Environment, Governance and International Cooperation, Human Resources, Finance, Administration 0295250255