This research project examines the effects of climate change on Finnish public finances from different perspectives. The project gathers information on global and local climate risks and specifies their effects on Finland and its economic sectors. The risks of climate policy to public finances are mapped regionally.
The aim of this research project is to create a framework for a comprehensive assessment of the impact of climate policy on public finances. The framework gathers information on the mechanism of action of public finances and builds risk scenarios for Finland, which can be used to better understand the various effects of climate change on the sustainability and risks of public finances. The project also evaluates various modeling tools and continues to apply them to scenario-based calculations of the magnitude of effects of climate change on public finances.
The result of this research project will be a clear and structured understanding of the overall economic impacts of climate change and an assessment framework aimed at developing public finance assessments. Furthermore, a regional-level assessment of the risks to public finances posed by climate change and a mapping of cost-effective management strategies will be produced.
The project coordinated by Etlatieto Oy also involves Finnish Environment Institute and Demos Helsinki.