{ "title": "Finland’s Green Building Revolution", "publication": "IMF News, November 2, 2021", "sourceUrl": "https://www.imf.org/en/news/articles/2021/10/27/110421-finlands-green-building-revolution", "canonical": "https://www.imf.org/en/news/articles/2021/10/27/110421-finlands-green-building-revolution", "overlayPath": "/en/news/articles/2021/10/27/110421-finlands-green-building-revolution/index.md", "summary": "

With fires, landslides, and floods raging around the world, the climate crisis demands a sea change in how we live and consume.

", "authors": [ "Steven Dorst November" ], "publishDate": "2021-11-02", "sections": [ { "heading": "Overview", "content": "- Article title: Finland’s Green Building Revolution\n- Author: Steven Dorst\n- Date: November 2, 2021\n- This article first appeared in the Fall 2021 issue of Finance & Development Magazine produced in conjunction with COP26.\n- Central theme: Finland is substituting fossil-based chemicals and materials with renewable wood-based raw materials to produce goods, services, and energy as part of a broader climate strategy." }, { "heading": "Finland’s wood-based bioeconomy", "content": "- Finland has 65 percent of its land covered by forests.\n- The Forest Act mandates that four trees be planted for every tree harvested.\n- Finnish companies are developing wood-based products across multiple sectors:\n - Clothing\n - Multistory buildings\n - Packaging\n - Sustainable fuels\n - Battery production\n - Biofuels to biomedical products (UPM)" }, { "heading": "Environmental benefits and carbon implications", "content": "- Wood-based products can be easy to recycle, biodegradable, and hypoallergenic.\n- CO2 can remain stored in cut wood for decades and even centuries.\n- Quote: “Replacing fossil fuels and materials such as plastic or concrete and steel used for building with wood and bio-based materials limits the carbon emissions to the atmosphere.” — Lotta Heikkonen, Ministry of Agriculture and Forestry\n- Finland was the first country to introduce a carbon tax, in 1990, and has since cut greenhouse gas emissions by about a fifth.\n- National goal: becoming carbon-neutral by 2035.\n- Planned measures include deploying electric vehicles, phasing out fossil fuel heating, and creating carbon sinks to absorb and neutralize CO2 emissions." }, { "heading": "Circularity and industry perspective", "content": "- Emphasis on a circular bioeconomy where products are bio-based, shared, reused, remanufactured, recycled, biodegrade, or are used for renewable energy. — Timo Heikka, Stora Enso Oyj\n- Many wood-based products are made from production by-products and residues or from materials recovered after product use.\n- Molecular wood-based biochemicals are highlighted as a key area for replacing fossil-based raw material components. — Jyrki Ovaska, UPM" }, { "heading": "Economic incentives and market development", "content": "- Growing market for wood-based products creates economic incentives for smart tree management.\n- The combination of environmental and economic drivers is fostering innovation in wood-derived materials and applications." }, { "heading": "Policy challenges and IMF engagement", "content": "- Although carbon emissions in Finland are already subject to significant pricing, additional measures are needed to achieve the 2035 emissions neutrality goal.\n- The IMF is working with Finland on additional energy pricing and sectoral measures to help bridge the gap." }, { "heading": "Caveats and applicability", "content": "- The wood-based approach may not be appropriate for all countries because of:\n - Climate differences\n - Trade-offs between agriculture and tree growth\n- The Finnish example serves as a reminder to reconsider how natural resources can be harnessed to address climate change.\n\nSource: Finland’s Green Building Revolution — Steven Dorst, November 2, 2021.\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- Finance & Development Magazine\n- Finland and the IMF\n- Fiscal Policies for Achieving Finland’s Emission Neutrality Target\n- Regional Economic Outlook for Europe, October 2021\n- carbon tax\n- working with Finland\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/10/27/110421-finlands-green-building-revolution" } ], "bullets": [ "[Markdown version](/en/news/articles/2021/10/27/110421-finlands-green-building-revolution/index.md)", "[Structured JSON version](/en/news/articles/2021/10/27/110421-finlands-green-building-revolution/index.json)", "[Bundle manifest](/en/news/articles/2021/10/27/110421-finlands-green-building-revolution/bundle-manifest.json)", "Authors: Steven Dorst November", "Published: November 2, 2021", "Article title: Finland’s Green Building Revolution", "Author: Steven Dorst", "Date: November 2, 2021", "This article first appeared in the Fall 2021 issue of Finance & Development Magazine produced in conjunction with COP26.", "Central theme: Finland is substituting fossil-based chemicals and materials with renewable wood-based raw materials to produce goods, services, and energy as part of a broader climate strategy.", "Finland has 65 percent of its land covered by forests.", "The Forest Act mandates that four trees be planted for every tree harvested.", "Finnish companies are developing wood-based products across multiple sectors:", "Wood-based products can be easy to recycle, biodegradable, and hypoallergenic.", "CO2 can remain stored in cut wood for decades and even centuries.", "Quote: “Replacing fossil fuels and materials such as plastic or concrete and steel used for building with wood and bio-based materials limits the carbon emissions to the atmosphere.” — Lotta Heikkonen, Ministry of Agriculture and Forestry", "Finland was the first country to introduce a carbon tax, in 1990, and has since cut greenhouse gas emissions by about a fifth.", "National goal: becoming carbon-neutral by 2035.", "Planned measures include deploying electric vehicles, phasing out fossil fuel heating, and creating carbon sinks to absorb and neutralize CO2 emissions.", "Emphasis on a circular bioeconomy where products are bio-based, shared, reused, remanufactured, recycled, biodegrade, or are used for renewable energy. — Timo Heikka, Stora Enso Oyj", "Many wood-based products are made from production by-products and residues or from materials recovered after product use.", "Molecular wood-based biochemicals are highlighted as a key area for replacing fossil-based raw material components. — Jyrki Ovaska, UPM", "Growing market for wood-based products creates economic incentives for smart tree management.", "The combination of environmental and economic drivers is fostering innovation in wood-derived materials and applications.", "Although carbon emissions in Finland are already subject to significant pricing, additional measures are needed to achieve the 2035 emissions neutrality goal.", "The IMF is working with Finland on additional energy pricing and sectoral measures to help bridge the gap.", "The wood-based approach may not be appropriate for all countries because of:", "The Finnish example serves as a reminder to reconsider how natural resources can be harnessed to address climate change.", "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)", "[PRESS CENTER](http://presscenter.imf.org/)", "[Finance & Development Magazine](https://www.imf.org/external/pubs/ft/fandd/index.htm)", "[Finland and the IMF](https://www.imf.org/en/Countries/FIN)", "[Fiscal Policies for Achieving Finland’s Emission Neutrality Target](https://www.imf.org/en/Publications/WP/Issues/2021/06/25/Fiscal-Policies-for-Achieving-Finlands-Emission-Neutrality-Target-460890)", "[Regional Economic Outlook for Europe, October 2021](https://www.imf.org/en/Publications/REO/EU/Issues/2021/10/20/regional-economic-outlook-for-europe-october-2021)", "[carbon tax](https://www.imf.org/external/pubs/ft/fandd/2021/09/five-things-to-know-about-carbon-pricing-parry.htm)", "[working with Finland](https://www.imf.org/en/Publications/Policy-Papers/Issues/2021/07/30/IMF-Strategy-to-Help-Members-Address-Climate-Change-Related-Policy-Challenges-Priorities-463093)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2021/10/27/110421-finlands-green-building-revolution/index.md", "json": 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