Policy Brief: Reducing use of natural resources can be coupled with strengthening the economy

Biodiversity loss, climate change and pollution are largely due to the use of virgin natural resources. By reducing the extraction of virgin natural resources and paying more attention to nature, biodiversity loss will be curbed.

"The transition to a carbon-neutral circular economy enables sustainable and efficient use of natural resources while solving climate and environmental challenges and opening up new economic opportunities for Finland," emphasises Professor Jyri Seppälä from the Finnish Environment Institute (Syke).

Economic growth can be decoupled from resource consumption and environmental impacts

There is a great need for the transition to a circular economy, as Finland's raw material consumption per capita is more than three times higher than the EU average, and the added value of natural resource use is among the lowest in the EU.

The objective of Finland's Circular Economy Programme is to transition to a carbon-neutral circular economy society, where the raw material consumption growth will halt by 2035.

"The transition is feasible without weakening the economy. At the same time, greenhouse gas emissions and air pollution can be reduced, and biodiversity loss can be slowed down. However, decoupling economic growth from the consumption of natural resources and environmental impacts requires that circular economy and low-carbon measures are widely adopted in different sectors of society, such as construction, industry, consumption, energy sector and food system," highlights Senior Research Scientist Hannu Savolainen from Syke.

Key circular economy measures in the transition include more efficient use of materials, increased supply and use of recycled materials, increased added value in industry, and consumption focusing on long-lasting products and services instead of goods.

There are ways for sustainable use of natural resources

The transition to a carbon-neutral circular economy society requires more ambition and effective regulation from Finland. This will strengthen Finland's role as an internationally competitive and sustainable circular economy operator.

"Circular economy is promoted through regulation that maintains and creates markets for sustainable circular materials, products and services. Finland should support EU's circular economy initiatives, such as the Ecodesign regulation promoting the extension of the lifespan and recyclability of products, and the proposal to verify green claims," emphasises Enni Ruokamo, Senior Research Scientist at Syke.

Investments in industries that are resource-efficient and add high value, and clean energy are essential for the transition to a carbon-neutral circular economy. In addition, policies that reduce land use pressures and strengthen carbon sinks should be increased.

Syke Policy Brief:Reducing use of natural resources can be coupled with strengthening the economy (helsinki.fi)

More info:
Senior Research Scientist, Group Manager Hannu Savolainen, Finnish Environment Institute, tel. 029 525 1839, firstname.lastname@syke.fi

Senior Research Scientist Enni Ruokamo, Finnish Environment Institute, tel. +358 295 252 092 firstname.lastname@syke.fi (available from 7.5.)

Professor, Director Jyri Seppälä, Finnish Environment Institute, tel. +358 295 251 629, firstname.lastname@syke.fi

Check out Syke Policy Briefs: syke.fi/policybriefs/en