Navigating Global Transitions in European Arctic Regions

5. Green transition, environmental challenges, and regional development in the NSPA

Abstract

The NSPA regions have made significant progress in renewable energy, reducing emissions, and developing green industries. However, some regions still face challenges, particularly those dependent on energy-intensive industries or reliant on energy imports. It is essential to create region-specific solutions that consider local economic conditions and available resources. A major concern is the potential decline of traditional industries, which necessitates a "just transition" approach, which ensures fair support for workers and communities. Achieving a balanced transition involves integrating environmental, economic, and social objectives, promoting inclusive governance, investing in infrastructure, and implementing policies that protect local communities and Indigenous peoples’ rights while fostering sustainable growth and economic diversification.

Introduction

The urgency of global warming and environmental degradation necessitates rapid transitions to zero-emission and green societies. These transitions require system-wide changes to ensure economic, social, and environmental sustainability (OECD, 2015[1]). Green transitions are driven by expanding coalitions, compelling discourses, rapid technological advancements, and policy shifts that influence technology adoption (Sovacool et al., 2020[2]).

In the European Union (EU) and Nordic countries, the European Green Deal (EGD) sets ambitious targets for 2030 and aims for climate neutrality by 2050. It goes beyond traditional climate and energy policies by addressing green industrial policies and social sustainability (EEA, 2020[3]). However, governments face challenges such as managing complex systemic policies, accommodating diverse regional conditions, and meeting the urgency of climate goals. This is particularly evident in peripheral regions like the NSPA, where territorial disparities heighten resistance to green transitions (EU, 2024[4]).

Effective green transitions require comprehensive socio-technical reconfigurations across key sectors such as energy, transport, housing, and agriculture. These transformations involve not only new technologies but also changes in markets, practices, policies, cultural discourses, and governance structures (Geels et al., 2017[5]). Existing socio-technical systems, or "regimes," are resistant to change due to their path-dependent nature, which reinforces established configurations and limits innovation. Change typically begins in "niches," which serve as protected spaces for radical innovations, experimentation, and learning. These niches can challenge dominant regimes as they evolve.

To scale and mainstream niches, three governance processes are crucial (Smith and Raven, 2012[6]):

• Shielding. Protecting niches from the pressures of dominant regimes, either passively through isolated environments or actively via policies, private sector strategies, or civil society initiatives.

• Nurturing. Supporting niche development by articulating visions, building networks, and fostering social learning, often through experiments such as pilot and demonstration projects.

• Empowering. Enabling niches to compete with or transform existing regimes. This can involve a "fit-and-conform" approach (working within the regime) or a "stretch-and-transform" strategy (altering the regime's selection pressures in favour of the niche).

These processes highlight the potential of regions to act as protective spaces for fostering green innovation and driving systemic transformation.

NSPA regions have successfully reduced per capita greenhouse gas (GHG) emissions from 14 to 10 tons of CO₂ equivalent between 1970 and 2022, outperforming OECD NMR-S and NMR-R regions. However, their progress lags behind non-NSPA regions in Finland, Norway, and Sweden, where emissions were halved from 12 to 6 tons per capita. Despite having higher per capita emissions, NSPA regions maintain lower total emissions than non-NSPA areas, averaging 3.26 tons per region in 2022 compared to 4.32 tons. However, unlike non-NSPA regions, where emissions have declined, NSPA regions have seen an increase in total emissions over time (from 2.89 tons in 1970 to 3.26 tons in 2022).

A key strength of NSPA regions is their leadership in renewable energy adoption—99% of their electricity production came from renewable sources in 2019, surpassing non-NSPA regions (77%) and OECD NMR-S and NMR-R regions (72% and 70%, respectively). This underscores their critical role in the green transition.

Following discussions on demographic challenges and competitiveness, this chapter examines the green transition as another key factor shaping the NSPA’s future. It explores strategies to enhance sustainability, expand renewable energy adoption, and reduce emissions. The final chapter will address Multi-level Governance, focusing on policy co‑ordination, cross-border collaboration, and local engagement.

Accelerating, broadening, and deepening green transitions

The gap between current emissions trajectories and net-zero targets demands accelerated, broadened, and deepened socio-technical changes (Dhal Andersen and Geels, 2023[7]). These changes span technological, institutional, and actor dimensions:

• Technological Dimensions

  • Performance improvements. Advances in low-carbon technologies through R&D and learning processes.

  • Cost reductions. Achieved via economies of scale and learning-by-doing.

  • Supporting assets. Availability of necessary skills, materials, finance, and complementary infrastructures enhances user adoption.

• Institutional Dimensions

  • Policy support. Tools like subsidies, grants, and infrastructure investments, alongside phase-out regulations for legacy technologies.

  • Social norms. Shifts that influence user preferences toward low-carbon solutions.

  • Net-Zero visions. Development of societal goals and practices that align with sustainable futures.

• Actor Dimensions

  • Business reorientation. Increased investments and belief in green technologies.

  • Consumer adoption. Driven by cost reductions, performance improvements, and evolving social norms.

  • Coalition formation. Collaborative pressure from stakeholders advocating for policy change.

Traditionally, green transitions have focused on energy and transportation systems (e.g. solar-PV, wind turbines, EVs). However, addressing broader net-zero challenges necessitates attention to diverse systems, such as aviation, shipping, mining, and construction. Differences in capital intensity, innovation potential, and the need for new infrastructures (e.g. for CCS and hydrogen) pose additional challenges (Wesseling et al., 2017[8]). Scarcity of resources like lithium, crucial for EV production, further complicates upscaling efforts.

The financial sector plays a pivotal role in cross-sectoral transitions. Investigating its influence and whether transformations within finance are required is critical for systemic green transitions. Importantly, while technological change is essential, achieving net-zero goals also demands deep societal transformations to avoid breaching planetary boundaries. Examples include shifts toward circular economies, shared ownership models, and "sufficiency" logics, which challenge norms of mass consumption and private ownership to align with ecological and social limits.

Depths of actor reorientation:

• Routines. Changes in daily practices, such as EV charging habits.

• Capabilities. Development of new skills by industries, like automakers.

• Values and mindsets. Fundamental shifts in societal perspectives, essential for degrowth paradigms that prioritise collective over individualistic practices (Dhal Andersen and Geels, 2023[7]).

Though deep changes across all dimensions are not always necessary, successful examples like the diffusion of EVs and renewables show that targeted shifts in mindsets and capabilities can enable rapid technological adoption without radically altering user practices (Geels and Turnheim, 2022[9])

Green transition policy

Green transition policies have evolved into what (Schot and Steinmueller, 2018[10]) describe as "third-generation" research, technology, and innovation policies, emphasising the use of science and innovation to address societal challenges. These policies, sometimes referred to as the "normative turn" (Uyarra, Riberio and Dale-Cough, 2019[11]), highlight the directionality of innovation, focusing on achieving desired outcomes rather than mere technological progress. The mission-oriented innovation policy exemplifies this approach, tying innovation funding to societal challenges such as climate change and food poverty while recognising innovation’s value beyond economics (Kattel and Mazzucato, 2018[12]).

However, mission-oriented approaches rely heavily on robust government capacities, which vary across regions (Coenen and Morgan, 2019[13]). To address these challenges, transformative innovation policy focuses on overcoming:

• Directionality failures. Inability to guide innovation toward transformative goals.

• Demand articulation. Weak capacity to understand user needs.

• Policy co‑ordination failures. Lack of coherence between policies.

• Reflexivity failures. Insufficient monitoring and adjustment of policy impacts (Schot and Steinmueller, 2018[10]) (Weber and Rohracher, 2012[14])

While principles of transformative innovation policy are being integrated into programs (e.g. Sweden’s innovation strategies), implementation remains experimental and underdeveloped (Haddad et al., 2022[15]). The OECD highlights the need for systemic innovation policies that mobilise technology, markets, regulations, and social innovations to foster wide-scale transformation (OECD, 2015[1]). Linking different policy areas and strengthening international and local dimensions enable learning and synergies across systems (Serger et al., 2023[16]).

Transformative innovation policies are mixed with and/or hybrids of traditional policy instruments. Table 4.1 provides an overview of potential instruments for transformative innovation policies (adapted from (Kivimaa and Kern, 2016[17])).

Table 4.1. Instruments for transformative innovation policies

Policy objectives	Policy instruments
Knowledge creation, development and diffusion	R&D funding schemes, subsidies for demonstrations; educational policies, training schemes, reference guidelines for best available technology.
Establishing market niches/market formation	Regulation, tax exemptions, certificate trading, feed-in tariffs, public procurement, deployment subsidies, labelling.
Price-performance improvements	Deployment and demonstration subsidies enabling learning-by-doing; R&D support.
Entrepreneurial experimentation	Policies stimulating entrepreneurship and diversification of existing firms, advice systems for SMEs, incubators, low-interest company loans, venture capital; relaxed regulatory conditions for experimenting.
Legitimacy and social acceptance	Innovation platforms, foresight exercises, public procurement and labelling to create legitimacy for new technologies, practices and visions.
Directionality	Goals set and framing in strategies, targeted R&D funding schemes, regulations, tax incentives, foresight exercises, voluntary agreements.
Control	Taxes, import restrictions, and regulations. Carbon trading, pollution taxes or road pricing. Banning of technologies.
Institutional change	Structural reforms in legislation or significant new overarching laws
Network change	Balancing involvement of incumbents in policy advisory councils with niche actors. formation of new organisations or networks to take on tasks linked to system change

Source: Author’s elaboration.

Regional Approaches: At the regional level, transformative innovation policies are better suited to addressing localised societal challenges (Wanzenbock and Frenken, 2020[18]). This approach enhances inclusivity, legitimacy, and democratic accountability, particularly in regions facing unique environmental and socio-economic pressures (Henderson, Morgan and Delbridge, 2024[19]).

Distributional Justice Concerns: Green transitions risk exacerbating inequalities, with unevenly distributed benefits and costs across EU regions. Core regions prosper, while "left-behind places" face social and economic challenges, fuelling populist politics and undermining progressive climate policies (Rodriguez-Pose and Bartalucci, 2024[20]). Without addressing these disparities, affected regions may reject sustainability goals, highlighting the need for equitable transitions that consider geographical impacts.

Regional green transitions

Regional dimensions are critical in understanding green transitions, as earlier analyses often overlooked the spatial context and multi-scalar dynamics shaping transformative change (Coenen, Benneworth and Truffer, 2012[21]). Green transitions are contingent on place-based factors such as local industrial specialisation, resource endowments, policies, and informal institutions, rather than universal processes (Coenen and Hansen, 2015[22]). Developed regions benefit from agglomeration economies—skilled labour, research institutions, and supporting organisations—leading to a concentration of twin transition technologies (green and digital) in economically advanced areas (Bachtrögler-Unger et al., 2023[23]). These regions are better equipped to achieve green growth by supporting clean-tech clusters through policies such as R&D funding and training programs (Smith, 2007[24]).

Peripheral regions, however, face significant challenges, often functioning as upstream resource providers in renewable energy value chains. This positioning risks limiting their economic benefits and exacerbating environmental and social impacts associated with resource extraction (Vale et al., 2024[25]). Yet, peripheral regions have opportunities if they integrate local capabilities into broader global innovation systems, requiring strong external connections and institutional entrepreneurship (Binz, Truffer and Coenen, 2016[26]) (Boschma et al., 2016[27]) (Fuenfschilling and Binz, 2018[28]).

A key critique of green transitions is the insufficient empirical assessment of their sustainability impacts. For instance, while electric vehicles reduce fossil fuel dependency, their production risks depleting lithium reserves by 2050 and causing severe environmental degradation, such as water loss and biodiversity damage (Gong and Andersen, 2024[29]).

The concept of just transitions has gained prominence, addressing disparities in energy distribution, social costs of decarbonisation, and the effects on disadvantaged groups (Newell and Mulvaney, 2013[30]). Accelerated green transitions must balance urban and economic centre development with recognition of peripheral regions and vulnerable industries, workers, and communities. Core-periphery tensions and inclusive decision-making are essential to ensuring socially, environmentally, and spatially just outcomes (Korsnes et al., 2023[31]).

Resistance to green transitions often arises from overlooked socio-economic and cultural concerns. For example, large-scale wind energy projects, like the “Fosen” case in Norway, faced backlash for neglecting the rights of Indigenous Sámi communities (Karam and Shokrgozar, 2023[32]). Greater engagement with local stakeholders and acknowledgment of diverse goals and contestations are necessary to align green transitions with broader justice and sustainability objectives (Skjølsvold and Coenen, 2021[33]).

Green transition and environmental issues in Finland’s NSPA

This section provides a policy analysis for South Savo, North Savo, North Karelia, Central Ostrobotnia, Northern Ostrobotnia, Kainuu, Lapland of their climate and energy transition, green industrial transition and just transition. This is followed by an overview of current policies. The section concludes with a summary and policy recommendations.

Climate & energy transition

The NSPA regions in Northern and Eastern Finland are facing significant climate change risks, including warmer temperatures that could lead to more winter precipitation falling as rain, reducing snow cover and increasing flooding risks. These changes pose threats to agriculture and forestry, key sectors of the regional economy. While warmer temperatures may boost vegetation growth and extend the growing season, they also endanger native northern species and ecosystems, negatively impacting biodiversity. Industries such as forestry, fisheries, reindeer husbandry, and tourism will need to adapt to these climate shifts.

At the same time, the Finnish NSPA regions are making progress in their green transition. This shift to renewable energy has contributed to a general decline in greenhouse gas (GHG) emissions per capita across the regions, although this decline is not uniform. Some regions, like Northern Ostrobothnia, have seen sharp reductions, while Kainuu and Lapland have experienced rising emissions. Overall, GHG emissions in Finnish NSPA regions are below both the OECD NMR-R regional average and Finland's national average. These variations are influenced by local industrial activities and transportation patterns.

Bioenergy, particularly from forestry biomass, plays a key role in the climate and energy strategies of the NSPA regions. Finland's path to carbon neutrality relies heavily on increasing carbon removals from land use and forestry, although carbon removal has been declining since 2010. To meet the 2035 climate neutrality target, a substantial increase in renewable energy, particularly from onshore wind and large-scale offshore wind farms, is essential. Wind power, however, faces challenges related to radar compatibility. The deployment of solar photovoltaic (PV) systems is also expected to rise, supported by private and municipal investments. This shift towards distributed energy aims to improve security and address rural energy poverty.

The Finnish government is also focusing on transitioning from fossil fuels in the heating sector to non-combustion technologies such as heat pumps and geothermal energy. Biofuels are driving the adoption of renewable energy in the transport sector, with a biofuel obligation and increasing electric vehicle usage. The government also promotes low-emission hydrogen and hydrogen-based fuels for heavy road transport, maritime transport, and aviation. There is a push to increase biomethane production for transport and heating.

Despite these advancements, the NSPA regions face several challenges. Energy intensity and per capita energy consumption are high due to energy-intensive industries like forestry and mining, as well as high heating demand in the cold climate. Although Finland does not produce fossil fuels domestically, imported fossil fuels still account for over a third of its energy supply. Some regions, such as South Savo, are more dependent on energy imports than others. Historically, Finland relied heavily on Russian energy imports, but following the Russian invasion of Ukraine, the country has stopped receiving most of these supplies. This disruption has accelerated efforts to reduce dependence on Russian energy, increase domestic renewable energy production, and improve energy efficiency.

Industry consumes more than half of Finland's energy, with an even higher share in the NSPA regions. Energy efficiency agreements with industrial players are a key strategy for reducing energy consumption, with mandatory audits for large enterprises and optional ones for SMEs. The government supports SMEs with financial incentives. In buildings, stricter energy efficiency standards and support for replacing heating systems aim to reduce energy demand. The Finnish roadmap for fossil-free transport seeks to halve transport emissions by 2030 and achieve net-zero emissions by 2045 through measures such as electric vehicle subsidies, increased biofuel requirements, and promotion of public transport and active mobility.

Peat, while categorised as a renewable energy source by some definitions, has significant environmental and climate impacts. In 2021, peat accounted for 2.9% of Finland's electricity generation, particularly in regions like South Savo, North Karelia, Kainuu, and Lapland. The government plans to reduce peat use by at least 50% by 2030, with large-scale peat plants likely to close by 2026. This shift may lead to job losses, particularly in peat-producing areas, prompting the European Commission to propose a "fair transition fund" to support affected communities and diversify regional economies.

Green industrial transition

The green industrial transition in the Finnish NSPA regions is centred around key sectors such as forestry, energy, agriculture, ICT, mining, and, notably in Lapland, “snowtech.” The forest is a vital resource not only for biomass but also for ecosystem services like climate change mitigation, non-wood forest products, biodiversity support, and environmental purification. Over the past 10–15 years, the pulp and paper industry in the region has experienced significant restructuring due to declining international demand for paper, leading to closures of paper mills. Despite this, paper remains the forest industry's top export, while the paperboard sector has seen growth. The focus now is on transitioning towards a sustainable circular bioeconomy, with forest-based companies exploring new products from wood-based biomass, including bioenergy, textiles, nanofibers, biodegradable plastics, and pharmaceuticals. This transition also offers opportunities for decentralised, high-value production. Although companies in the forestry sector are benefiting from innovations in technology and machinery, particularly in North Savo, creating a competitive bioeconomy will require expertise across diverse fields such as pharmacy, nutrition, and bioinformatics. Collaborative links between forest industries, universities, and research institutes are essential. North Karelia has emerged as an internationally recognised centre for forest bioeconomy, bolstered by a strong innovation ecosystem supported by institutions like the University of Eastern Finland and LUKE. In contrast, South Savo faces challenges, including a shortage of skilled professionals and limited local research facilities.

Northern Ostrobothnia, with its vibrant ICT sector, has developed a strong ecosystem for SMEs, particularly in health tech. The region’s capital, Oulu, is an innovation hub where businesses collaborate in circular production models, leveraging infrastructure to transfer waste or side-products to other industries. This collaboration fosters the digital-green "twin transition," with a focus on low-carbon production and circular economy principles. North Karelia also sees a prominent role for SMEs in driving its digital and green industrial transformation, with investments supporting low-emission production, smart manufacturing, and a circular economy. The region has notable expertise in circular practices, especially in mining, and is well-positioned for innovation-driven development, particularly in photonics and international collaboration.

Lapland, known for its mining and quarrying activities, is central to Finland’s green energy transition. The region accounts for over 40% of Finland’s turnover in metal ore mining and contributes a quarter of the total revenue from mining and quarrying. Its rich deposits of critical minerals like nickel, copper, cobalt, and rare earth elements are essential for the green energy transition, particularly for battery manufacturing. Lapland is poised to become a key player in the European battery industry, with substantial investments planned for several new mining projects. Beyond mining, Lapland is also focusing on "snowtech," capitalising on its extreme climate conditions to develop and test innovative technologies such as autonomous vehicles and electric vehicle systems. Despite these strengths, the region faces challenges, including a lack of skilled labour, limited capital, low investment in research and innovation (just 1% of GDP), and vulnerability to global economic cycles.

Just transition

In Finland, the concept of a "just transition" has recently gained attention, particularly in relation to the job losses that may occur due to the eventual phase-out of peat production. However, the core idea of a just transition extends beyond this, encompassing the broader need to support individuals and communities adversely affected by the sustainability transformation and to ensure that the transition is socially equitable for all citizens. A key concern is that rural areas could become mere instruments serving national or international agendas without gaining real benefits for their local populations. This concern was explored through the Nordregio research project, “Just Green Transition on Rural Areas: Local Benefits from Value Creation,” which examined how green transition measures, particularly energy projects like wind power, could bring local benefits to rural communities. Case studies, including one in Northern Ostrobothnia, highlighted the importance of local involvement in the decision-making process.

Land use planning plays a central role in the sustainability transition in Finland’s Arctic regions, with a shift from national to regional decision-making. Regional land use plans guide municipal and more detailed project planning, covering areas such as wind power, mining, and environmental impact assessments. The regional plans set the regulatory framework for these projects and aim to balance competing interests at the local level. Since the 2016 reform of the Land Use and Building Act, regional councils have gained more authority over planning decisions, moving away from national oversight. This has made regional planning more efficient and responsive, helping to resolve complex issues related to infrastructure, energy, and land use.

However, the system also faces challenges, especially in rural areas where public and private interests often conflict. In Finland’s northern and eastern regions, these conflicts include balancing the needs of reindeer herders with the growth of industry and the energy transition. The regional plans aim to reconcile these competing interests, but in sparsely populated areas, municipal guarantees cover only a small fraction of the land, leaving the entire province subject to various land use conflicts.

The Nordregio project emphasises the critical role of local involvement and trust in the success of green energy projects in Nordic rural areas. If local needs are overlooked, communities may resist renewable energy initiatives. To foster trust and ensure a just transition, it is essential to engage local communities early, communicate transparently, and guarantee that projects provide tangible local benefits. While financial incentives are often highlighted, relying solely on monetary rewards can divide communities. A more holistic approach that includes community engagement, environmental benefits, and local ownership of projects helps promote a sense of justice and shared benefit in these transitions.

Current policies

Following Finnish national policy, the aim for the NSPA regions is to be carbon neutral by the year 2035 with at least 80 % of the greenhouse gas emissions reduced from 2007 levels. To this end, various regions have established climate or green deal road maps. These road maps involve stakeholders from various sectors, including government, business, and communities, to ensure a comprehensive and unified approach to sustainability. They often promote green business development through sustainable practices. They contribute to whole-of-government decision making at the regional level but sometimes, local economic interests can over-shadow environmental considerations. The green deal roadmap of Lapland includes the aim to be a full HINKU- region. The Hinku regions and the Hinku communities in each region jointly commit to reducing the region’s greenhouse gas emissions by 80 per cent from the 2007 levels by 2030. To be granted this status, the region’s Hinku municipalities must account for at least 80 percent of the region’s population and the region must, jointly with its Hinku municipalities, commit to the region’s overall emissions reduction target.

Table 4.2. synthesises the main points from the discussion and provide some recommendations to guide policymakers in implementing strategies to foster sustainable development in Finland’s NSPA.

Table 4.2. Overview of key Insights and policy proposals for South Savo, North Savo, North Karelia, Central Ostrobotnia, North Ostrobotnia, Kainuu, Lapland.

	Climate & energy transition	Green industrial transition	Just transition
Strengths	Ambitious targets and track record to reduce greenhouse gas emissions. High share of renewables (bio-energy, hydro & wind).	Growth in mining & mineral-quarrying industry. Opportunities for biorefining in forest industry. Opportunities for battery industry Emerging opportunities in ‘twin’ green-digital transition. Explicit focus on green industry development in Smart Specialisation strategies.	Sustainable forestry practices.
Weaknesses	High energy intensity in industry and energy consumption per capita Reliance on energy imports. High environmental and climate impact of peat extraction	Adoption of biorefinery technologies in pulp and paper industry in practice is limited. Shortage of skilled workers in emerging green energy industries	High susceptibility to climate change impacts on natural resources and traditional livelihoods, especially for Indigenous communities. Maintaining the balance between reindeer herders, growing industry and the energy transition.
Policy recommendations	Expand and diversify green energy production (wind, solar, hydrogen). Develop smart grids. Enhance the provision and access to public transport (railways), enhance the sharing infrastructure & mobility management, expand infrastructure for electric vehicle charging and investing in alternative fuels such as HVO, biogas, and hydrogen.	Enhance green industrial diversification. Stimulate high-value products from biorefining. Support legitimacy and social acceptance of the bioeconomy. Increase co‑ordination and collaboration across universities tailored to green industries.	Foster early community engagement, transparent communication, and ensure local benefits are vital in planning green energy transition. Balance industrial development with biological diversity and Indigenous peoples’ interests

Source: Author’s elaboration.

Green transition and environmental issues in Norway’s NSPA

This section provides a policy analysis for Nordland, Troms, and Finnmark of their climate and energy transition, green industrial transition and just transition. This is followed by an overview of current policies. The section concludes with a summary and policy recommendations.

Climate & energy transition

Northern Norway faces significant environmental challenges, with the effects of climate change becoming increasingly visible in the form of thinning ice and shifting wildlife patterns that impact traditional livelihoods. However, these challenges also offer the region opportunities to lead in climate adaptation and mitigation, as well as sustainable resource management. The region is actively pursuing energy transition efforts, including the widespread adoption of renewable energy sources.

In terms of emissions, Nordland saw substantial reductions in the 1970s and 1980s, while emissions in Troms and Finnmark increased, plateauing in the mid-2000s. Over time, all regions have seen a gradual decline in emissions, driven by improvements in energy efficiency, a shift away from fossil fuels, and greater public engagement with climate issues. The industrial sectors, particularly oil and gas, remain the largest contributors to greenhouse gas emissions. To meet national goals, all regions have committed to reducing emissions by 55% from 1990 levels by 2030 and achieving net-zero emissions by 2050. While emissions data indicate progress towards these targets, the path forward will require more aggressive measures, as further reductions become increasingly difficult.

Renewable energy is central to the region’s energy strategy, with all three counties relying heavily on hydropower, complemented by growing investments in wind energy. Nordland achieves a 100% renewable electricity supply through its 177 hydropower plants and 4 wind farms, while Troms and Finnmark generate 88.15% of their electricity from renewables. Despite these strengths, energy usage in Northern Norway is expected to rise significantly, driven by the electrification of the oil and gas industry, new industrial sectors (such as battery production, hydrogen, and green steel), and growing sectors like data centres, fishing, and fish farming. This growth threatens to erode the region’s energy surplus and may result in an imbalance, highlighting the need for new power sources and transmission infrastructure. As these developments unfold, it is essential to balance energy policies with land use considerations to protect natural landscapes and biodiversity. Ensuring that climate action is integrated into all regional and municipal planning will be key to securing a sustainable energy future.

In response to ambitious EU and national climate targets, Northern Norway is also focusing on reducing transport emissions. Key initiatives include electrifying ferries, a major source of regional emissions, and exploring hydrogen-powered alternatives for maritime transport. Electric buses are being introduced in urban centres like Tromsø, Harstad, and Bodø, with plans to expand these solutions to district and regional buses. Tromsø has adopted a zero-growth target to promote sustainable transportation options, such as public transport, cycling, and walking. While electrifying the vehicle fleet is progressing, long-distance solutions remain uncertain and may take several years to implement.

Northern Norway also holds potential for hydrogen production. The region’s cold climate, access to carbon storage areas, expertise, and low energy costs make it an ideal location for both green hydrogen (produced from renewable energy) and blue hydrogen (produced from natural gas with carbon capture). Tromsø, home to the Arctic University of Norway, is well positioned to serve as a hub for hydrogen development, with the eastern part of Finnmark suited for green hydrogen and the western part for blue hydrogen production. However, the timeline for large-scale production projects remains uncertain. There is also potential for expanding wind power, with offshore wind becoming a viable option in the next 10-15 years. Although Northern Norway currently lacks smart grids, they are seen as essential for creating a more flexible and efficient energy system. The island of Senja is set to be the first area in the region to implement smart grids, serving both the fishing industry and local homes.

Green industrial transition

Historically, Northern Norway's industrial activities have been centred around primary industries, particularly in fisheries and aquaculture, with a focus on extracting and refining natural resources. Norway is leading the international High-Level Panel for a Sustainable Ocean Economy (Ocean Panel), advocating for ocean protection and sustainable ocean production, which has fostered political unity and direction in sectors like aquaculture. The Norwegian salmon farming industry, a global leader in technological advancements, has evolved to adopt more sustainable practices. Innovations like offshore and onshore farming systems have been developed to mitigate the environmental impact of traditional, more polluting open-pen farming methods. Cell-based seafood, still a niche technology, holds great potential to diversify the seafood sector and enhance sustainability by enabling highly controlled, animal-free production. However, the industry’s growth has been limited by a robust regulatory system designed to ensure its sustainable development (Fløysand and Jakobsen, 2017[34]).

The region is now focusing on green industrial growth, identified through regional Smart Specialisation processes that seek to leverage the area's natural resources and products. This includes supplementing traditional industries with more sustainable processes and technologies, such as in wind power, mining, and petroleum. Nature-based tourism has also become a significant economic pillar, offering activities like hiking and wildlife watching. However, competition for land use between these industries must be considered in regional planning. While central industries are dominated by multinational corporations, the tourism sector consists mostly of small local businesses operating within regional markets.

Initially, regional Smart Specialisation strategies did not specifically address sustainability in tourism, but they did recognise the value of the region’s pristine Arctic nature and the opportunity to make tourism more sustainable in environmental, economic, and social terms. Tourism was among the hardest-hit sectors during the pandemic, experiencing layoffs, bankruptcies, and challenges in employee recruitment due to a tight labour market. Post-pandemic, a decline in cruise traffic and the absence of Russian tourists—due to the closure of borders in Eastern Finnmark—further affected tourism in the region’s most remote areas. In response, the regional strategy aims to diversify tourism, focusing on longer-term stays and enhancing the overall experience for visitors (Teras et al., 2023[35]).

One major challenge is encouraging industries like fisheries and tourism in coastal communities to embrace innovation, particularly in energy. Northern Norwegian businesses generally exhibit low innovation index results and patent intensity compared to national averages. Nevertheless, the region’s Smart Specialisation strategies address energy transformation and the greening of industries, with hydrogen emerging as a key focus. The regional strategies are particularly suited to communities with limited capacity in the conventional power grid, no available batteries, and favourable conditions for wind energy production. In this context, hydrogen offers a viable solution for storing and transporting energy, despite the significant energy required for its production. Finnmark, in particular, has prioritised using wind power to produce hydrogen, which could serve as a means of storing, transporting, and exporting energy (Teras et al., 2023[35]).

Just transition

In Northern Norway, green transitions often conflict with land use planning due to competing interests such as industrial activities, reindeer herding, recreational use, and Indigenous peoples' rights. Resolving these conflicts requires a complex and lengthy process of license processing aimed at balancing these diverse interests. However, many municipalities lack updated spatial plans, which hampers the efficient management of land use. To address these issues, reforms and improvements have been initiated to strengthen the land use planning system, with a focus on providing municipalities with more resources and expertise to overcome obstacles and facilitate development.

A key challenge in land use planning is the continuation and tightening of building bans in the 100-meter shore zone, enforced through the new Planning and Building Act and state planning guidelines for differentiated management. In this zone, special consideration must be given to the natural environment, cultural heritage, outdoor activities, landscapes, and other public interests. The outdated spatial plans in many municipalities, due to a shortage of skilled personnel and resources, further complicate growth and development in the region.

Nature conservation policies in Northern Norway aim to ensure sustainable land and water resource use. These policies have led to the establishment of several conservation areas, with county authorities holding the power to object in specific areas. However, there is a need for clearer guidelines, regional strategies, and plans to better integrate environmental considerations into land use planning, prioritising sustainability over socioeconomic factors. While these policies focus primarily on environmental protection, they may restrict the growth of new industries or expansions, potentially limiting economic development. Nevertheless, efforts are made to balance these environmental priorities with the promotion of sustainable economic growth.

Current Policies

Troms and Finnmark have developed climate plans with two main themes: reducing greenhouse gas emissions and managing climate risk, supported by seven sub-themes that focus on emission reduction, energy transition, climate resilience, and public health. Recognising the urgency of effective climate strategies, the region has embraced several ambitious initiatives, such as the "Se Nord" plan for 2020-2024 and participation in the EU's "mission climate adaptation" project, which aims to drive the green transition in industry. Additionally, the regional transportation plan for Troms (2022-2033) highlights the region's commitment to addressing climate change by integrating climate considerations into broader development policies. The County Governor plays a key role in ensuring municipalities incorporate climate-related policies into their decision-making, offering guidance and support. Furthermore, the "Klimapartnerne Troms og Finnmark" initiative has been established as a collaborative network that unites municipalities, businesses, research institutions, and other stakeholders to promote climate action, share knowledge, and advance sustainable development across the region.

In Nordland, to meet the EU’s 2030 burden-sharing target and the 2035 net-zero target, a comprehensive strategy has been developed to reduce greenhouse gas emissions. Key measures include transitioning to fossil-free transportation, optimising the energy supply chain, promoting clean energy production, and prioritising green public acquisitions. To meet the 2030 target, emissions must be reduced by 10% annually, with a particular focus on the transport sector, which accounts for 70% of emissions. The county administration employs climate accounting and budgeting tools to identify emission sources and determine the most effective measures. Additionally, refurbishing existing buildings and prioritising sustainable construction practices are part of the strategy to reduce the region's carbon footprint. All three regional county councils in Northern Norway have incorporated energy transformation and the greening of industries into their Smart Specialisation strategies.

Table 4.3 synthesises the main points from the discussion and provide some recommendations to guide policymakers in implementing strategies to foster sustainable development in Norway’s NSPA.

Table 4.3. Overview of key Insights and policy proposals for Nordland, Troms, and Finnmark

	Climate & energy transition	Green industrial transition	Just transition
Strengths	Ambitious targets to reduce greenhouse gas emissions. High share of renewables (hydro & wind).	Novel sustainable, technological production methods and advanced regulatory system in aquaculture. Energy transition and the greening of industries integrated in Smart Specialisation Strategies. Opportunities in developing hydrogen-based solutions.	Integration of SDGs in Smart Specialisation strategies.
Weaknesses	Energy usage is expected to increase. Transition to low- and zero-emission transport modes.	Reliance on traditional industries (aquaculture and tourism). Shortage of skilled workers in emerging green energy industries.	High susceptibility to climate change impacts on natural resources and traditional livelihoods, especially for Indigenous communities. Reindeer husbandry, natural diversity, and cultural and natural environments often conflict with industrial development and infrastructure expansion.
Policy recommendations	Implement climate resilience strategies: focus on enhancing resilience in sectors vulnerable to climate change, such as agriculture and coastal industries. Consolidate green energy initiatives: continue advancing renewable energy projects such as wind, solar, and hydropower, tailored to Arctic conditions. Foster collaboration on climate actions, sharing knowledge and experiences across local and regional levels of government. Utilise climate accounting and climate budgeting tools. Strengthen investment and focus on sustainable transport (e.g. electrification of ferries, use of hydrogen, improve EV infrastructure).	Implement sustainable resource management: implement strict regulations to protect the natural environment and encourage sustainable practices in industries like fishing and mining. Promote sustainable tourism: utilise natural landscapes and cultural heritage to expand eco-friendly tourism, creating jobs and promoting environmental stewardship. Prioritise green hydrogen initiatives. Increase co‑ordination and collaboration across universities tailored to green industries.	Enhance Sámi cultural integration. Formulate policies that support and promote Sámi culture, ensuring economic development does not compromise cultural heritage. Extend support to Indigenous peoples’ enterprises and initiatives that incorporate traditional knowledge and cultural elements in green transition. Sustain cultural and social inclusion. Integrate responsible research and innovation principles in Smart Specialisation Strategies. Foster competence and capacity in land use planning.

Source: Author’s elaboration

Green transition and environmental issues in Sweden’s NSPA

This section provides a policy analysis for Jämtland Härjedalen, Västernorrland, Västerbotten, and Norrbotten of their climate and energy transition, green industrial transition and just transition. This is followed by an overview of current policies. The section concludes with a summary and policy recommendations.

Climate & energy transition

The Swedish NSPA regions are at the forefront of the green transition, transforming their economy historically centred on natural resource extraction, processing, and export. Climate change is already altering the region’s environment, with noticeable changes in snow cover, growing seasons, frost patterns, and increased risks of wildfires and vector-borne diseases. These changes underscore the dual necessity of adapting to climate impacts while decarbonising energy and transport systems. Despite progress, many firms lack understanding of the region’s climate risks, highlighting the need for proactive climate risk management to ensure sustainability and competitiveness.

Northern Sweden’s abundant natural resources position it as a key player in advancing green development not only for the region but for Sweden and Europe. The region has already achieved carbon neutrality when accounting for carbon sinks from its forests. Renewable energy dominates its electricity and heating sectors, with hydropower, wind power, and biofuel-based cogeneration leading the way. Innovative initiatives, such as biogas and ethanol production from food and forestry residues in Härnösand and Örnsköldsvik, and hydrogen-based steel plants, exemplify the region’s commitment to leveraging new technologies. Approximately a third of the region’s green electricity is exported, and its electricity surplus offers opportunities for industries reliant on renewable energy.

However, the region faces two major challenges. The first is insufficient grid capacity, which is already impeding new industrial plans due to limited energy supply. Strengthening grid infrastructure, including both north-south and east-west lines, is critical to support growing demand. Although wind power expansion has been significant, conflicts with reindeer husbandry, wildlife, and local communities must be carefully managed, as the Sámi population holds legal rights over land use. Additionally, diversifying renewable energy sources, such as biomass, geothermal, wave, tidal, and solar, could help remote areas access affordable energy. Co‑ordination at the municipal level is crucial, yet regional plans for production and distribution remain inadequate. The adoption of smart grids, which use digital technologies to optimise supply and demand, could enhance efficiency and align with the EU’s energy strategy.

The second challenge pertains to reducing emissions, particularly from the steel industry in Norrbotten, which relies on coal imports and is Sweden’s second-largest greenhouse gas emitter, contributing 15% of the nation’s total emissions. Transitioning steel and metal plants to low- or zero-carbon technologies is essential for Sweden’s 2045 climate neutrality target. The transportation sector also demands significant transformation, as it remains heavily fossil-fuel dependent. Regional strategies aim to enhance rail infrastructure, public transport, walking and cycling paths, and on-demand mobility solutions in rural areas. Expanding the use of renewable fuels, such as HVO, biogas, and hydrogen, and building infrastructure for electric vehicles are priorities. Encouragingly, 83.3% of public transport vehicles already use non-fossil energy, approaching the national level of 92.2%.

While progress is evident, achieving a fully sustainable and green economy in the Swedish NSPA regions will require addressing these pressing challenges through innovation, infrastructure development, and regional and cross-border collaboration.

Green industrial transition

The Swedish NSPA regions are undergoing a transformative green industrial transition, centred on the forestry, mining, and energy industries. Key innovations, such as fossil-free mining, green steel production, and lithium-ion battery manufacturing, represent some of the most ambitious green developments in decades. These efforts are a collaborative vision of companies and policymakers aiming to reverse trends of population and economic decline, positioning the region as a leader in green technology and sustainable development. Historically, Northern Sweden has been regarded as the "land of the future" and the "natural resource pantry" due to its logging, hydropower, and mineral extraction activities, which have primarily served southern markets and driven Sweden’s modernisation (Sörlin, 2023[36]). While these natural resources remain pivotal for job creation, competitiveness, and climate goals, there is an increasing emphasis on moving beyond extractivism to build production and manufacturing capabilities, creating higher-value fossil-free products.

The Swedish NSPA regions exemplify the potential of peripheral, resource-dependent areas to escape development traps through green industrial innovation (Grillitsch and Hansen, 2019[37]). However, industrial structures and specialisations vary within the territory. Jämtland Härjedalen and Västernorrland rely less on mining and minerals compared to Västerbotten and Norrbotten, where such industries dominate. The former regions, characterised by forest industries and scattered rural communities, face challenges such as declining global demand for paper products and increasing competition. In response, the forestry sector is exploring biorefinery technologies to extract more value from biomass, while simultaneously improving energy efficiency, reducing carbon emissions, and enhancing sustainability.

Norrbotten stands out as a mining powerhouse, hosting all of Sweden's iron ore mines, the world's largest underground iron ore mine in Kiruna, the country’s largest copper mine in Aitik, and significant gold mines in Västerbotten. The mining sector has experienced periods of profitability driven by high global demand, followed by economic downturns and rationalisations during market declines. To meet the growing global demand for sustainably sourced minerals, the region is positioning itself as a leader in sustainable mining, with Norrbotten emerging as an innovation hub supported by national and European programs like EIT Raw Materials. The region’s mining university, LTU, is globally renowned for its industry-linked research. Despite these advancements, there is a need to diversify the economy to avoid overreliance on mining, mitigate the risks of Dutch Disease, and foster sustainable growth. Leveraging existing strengths in mining and forestry, along with technological advancements, can help create new business opportunities and reduce economic volatility.

The industrial landscape in Norrbotten and Västerbotten is further reshaped by the establishment of hydrogen factories, battery manufacturing plants, and planned fossil-free steel facilities. Companies like Northvolt aim to revolutionise the automobile industry with lithium-ion batteries for fossil-free cars, while tech giants such as Facebook are drawn to the region for its renewable energy and cold climate. SSAB envisions leading the global steel industry’s transition to fossil-free production. Similar developments are occurring in Västernorrland, particularly in hydrogen technologies with one of Europe’s largest establishments on its way. These industrial expansions necessitate not only an increased supply of green energy but also a robust influx of skilled workers, along with investments in housing, schools, and healthcare to accommodate their families.

The four regional county councils in Northern Sweden explicitly prioritise greening industrial development in their Smart Specialisation strategies, signalling a unified commitment to fostering innovation, sustainability, and long-term economic resilience.

Just transition

The concept of a "just transition" in the Swedish NSPA regions involves balancing the economic benefits of mining and other extractive industries with growing concerns about their socio-environmental impacts. As global demand for raw materials is expected to double by 2060, the extractive industry must adapt to the climate crisis by becoming more sustainable. Local support for mining operations is essential for their success, but this requires careful monitoring of externalities, such as water pollution, and measures to reduce their carbon intensity, like adopting intelligent building systems, zero-carbon transport, and engaging in the circular economy. Additionally, the Sámi people, whose traditional way of life is closely tied to snow-dependent activities like reindeer husbandry, face increasing challenges as their lifestyle is disrupted by environmental changes and industrial development. (OECD, 2022[38]) highlights that the rights of Indigenous peoples are often insufficiently considered in environmental impact assessments, and the Sámi, in particular, lack the same access to agricultural funds that other sectors receive to support their activities. This creates tensions, as industries in the Swedish NSPA regions, particularly mining and forestry, must balance local livelihoods with evolving sustainability goals and biodiversity preservation.

The region’s agricultural sector, heavily reliant on machinery, faces obstacles in accessing renewable fuels and affordable alternatives, underscoring the need for urgent support to facilitate the green transition. Agriculture’s role in ensuring food security and resilience to future challenges is crucial. Sweden’s national policies, particularly since 1909, have heavily emphasised hydropower, which has had significant, at times negative, consequences for local communities. Resistance to large-scale wind farms has grown, especially when municipalities in southern Sweden, which face energy shortages, also resist wind power development. Local stakeholders often call for compensation systems for land use or for energy production to be more closely aligned with energy needs. An emerging solution is to create innovative business models that generate local legitimacy by reinvesting profits from energy projects into local community development, though current funding levels remain insufficient to create meaningful change. Ultimately, a more inclusive consultation process is needed to ensure fair mechanisms for burden-sharing, as municipalities often bear the financial risks of supporting green industries, while the Swedish state collects the tax revenue from these companies.

According to Swedish legislation, both the County Administrative Board and municipalities share responsibility for nature protection, working closely with Indigenous communities, especially the Sámi. The Sámi have long contributed to ecosystem and biodiversity monitoring through their reindeer herding practices, which are crucial for assessing environmental health. Additionally, the EU’s growing concern over biodiversity has put increased focus on sustainable forestry, with new EU policies emphasising a more place-based approach to forest management that aligns with local conditions and traditional methods of preservation. Forests, now seen as key carbon sinks, also provide important economic benefits to municipalities, which rely on them for funding essential services such as schools. The evolving bioeconomy, which shifts from fossil fuel-based materials to wood, presents opportunities for more sustainable forestry practices. Learning from these regions can help shape national and EU policies that foster a richer, more context-specific understanding of sustainability in forest management.

Current Policies

Energy and climate policies across the Swedish NSPA regions share similar overarching goals while also addressing place-specific priorities. All counties take a holistic approach, incorporating technology-based solutions, behavioral changes, and extensive collaboration with local stakeholders. These policies align with Sweden’s broader environmental goals, aiming to resolve major environmental issues without exacerbating problems beyond its borders.

Jämtland County’s Energy and Climate Strategy focuses on energy transition, including electrification and renewable fuels for transport and machinery, climate adaptation, biodiversity, and a regional water forum. The county’s Environment and Climate Council, a platform for collaboration among business, public administration, and interest groups, is tasked with implementing the strategy. Additionally, the municipality of Östersund has its own Climate Programme, which aims for a fossil-free municipal organisation by 2025 and climate-neutral and energy-efficient operations by 2030.

Västernorrland’s strategy highlights five key areas: efficient and fossil-free transport, a strong bio-economy, sustainable construction, sustainable consumption, and a future-ready electricity system. Västerbotten’s strategy focuses on renewable transport, a sustainable industry and service sector, climate-conscious households, a responsible public sector, and the future of forestry and agriculture. Norrbotten’s strategy targets fossil-free transport, world-class production, resource-efficient buildings, and a flexible, robust energy system.

The regional Smart Specialisation strategies also emphasise green transition. Jämtland Härjedalen prioritises green industry development in two areas: the sustainable use of soil, forest, and water resources, and sustainable energy, positioning the region as a potential leader in tackling climate change. Västernorrland’s strategy focuses on forest-based bio-economy and renewable energy, particularly in solar, wind, hydro, and bioenergy, capitalising on the region’s leadership in renewable energy production. Västerbotten’s Smart Specialisation strategy highlights the sustainable hospitality industry, sustainable energy systems, and the forest bioeconomy, alongside its strength in a knowledge-intensive economy bolstered by its higher education institutions and Arctic co‑operation. Norrbotten’s strategy, centred on smart diversification, seeks to foster new specialisations in space technology, digitalisation, energy technology, environmental innovation, tourism, and Arctic industries, leveraging the region’s strong foundation in natural resource use, particularly mining, forestry, and hydropower.

Overall, the Swedish NSPA regions are deeply committed to a green industrial transition, with each region aligning its energy and climate strategies to both global sustainability goals and local strengths, ensuring that green industry development is integrated into broader regional economic plans.

Table 4.4 synthesises the main points from the discussion and provide some recommendations to guide policymakers in implementing strategies to foster sustainable development in Sweden’s NSPA.

Table 4.4. Overview of key Insights and policy proposals for Jämtland Härjedalen, Västernorrland, Västerbotten, and Norrbotten

	Climate & energy transition	Green industrial transition	Just transition
Strengths	Impressive track record in achieving carbon neutrality. High share of renewables (hydro, wind & bio-energy).	Growth in mining,mineral-quarrying industry, hydrogen and battery production. Opportunities for biorefining in forest industry. Explicit focus on green industry development in Smart Specialisation strategies	Sustainable forestry practices by manufacturing bio-based products to replace fossil-based ones.
Weaknesses	Future energy usage is expected to increase substantially. Emissions related to the steel industry, the transportation sector and its automobility dependence.	Risk of remaining in extractive development trap for natural resource-based industries. Development of new value chains based on biorefinery technologies is limited. Shortage of skilled workers in emerging green energy industries.	Reindeer husbandry, natural diversity, and (sustainable) tourism sector & agrifood businesses often conflict with industrial development and infrastructure expansion. Opposition to large-scale deployment of (green) energy infrastructure and mining has increased in recent years.
Policy recommendations	Expand and diversify green energy production (wind, solar, hydrogen). Build new and reinforce local, regional and national power supply lines, development of smart grids. Convert steel- and metal-processing plants to low- or zero-carbon technologies. Enhance the provision and access to public transport (railways), enhance the sharing infrastructure & mobility management, expand infrastructure for electric vehicle charging and investing in alternative fuels such as HVO, biogas, and hydrogen.	Enhance green industrial diversification. Stimulate high-value products from biorefining Support legitimacy and social acceptance of the bioeconomy. Integrate forest-based bioeconomy into EU climate and industrial strategies & support infrastructure and knowledge sharing for bio-based transitions Promote sustainable tourism: utilise natural landscapes and cultural heritage to expand eco-friendly tourism, creating jobs and promoting environmental stewardship. Increase co‑ordination and collaboration across universities tailored to green industries.	Integrate interests of Indigenous peoples in environmental impact assessments. Balance industrial development with biological diversity, Indigenous and other local community and economic interests (e.g. tourism and agriculture). Compensate for negative impacts of renewable energy deployment on local communities and nature by re-investing profits in local investment funds earmarked for local economic development

Source: Author’s elaboration.

Conclusions

The NSPA regions of Norway, Sweden, and Finland have made notable strides in their green transition, with a focus on renewable energy, emissions reductions, and the growth of green industries. However, disparities between regions remain, particularly in areas still dependent on energy-intensive sectors or facing challenges related to energy imports. To overcome these challenges, region-specific solutions are necessary to address local economic structures, energy demands, and available resources, while also tackling environmental and socio-economic issues.

A major concern is the potential loss of traditional industries, which underscores the need for a "just transition." This involves supporting workers and communities affected by the shift through retraining, economic diversification, and fair compensation. The success of the green transition relies on a balanced approach that integrates environmental, economic, and social objectives, ensuring that no community is left behind.

In Finland, the green transition is progressing, particularly with reductions in fossil fuel dependence and an increase in renewable energy. However, energy-intensive sectors such as forestry, mining, and transport continue to drive high emissions, requiring targeted policies that reflect regional needs. Opportunities for green growth lie in areas like forestry, ICT, and mining, especially with innovations in the bioeconomy and the growing demand for minerals used in green technologies. The decline of traditional industries, such as peat production, poses a threat to jobs in rural areas, highlighting the need for retraining and investment in new sectors. National climate policies are ambitious, but successful implementation at the local level through regional roadmaps, effective engagement, and balanced economic-environmental policies are critical for achieving goals.

Northern Norway has made progress with renewable energy, particularly in hydropower and wind, but rapid industrial growth, including in battery production and green steel, threatens to strain existing energy infrastructure. The shift towards sustainable industries, such as green hydrogen and offshore wind, offers economic opportunities, but outdated infrastructure and environmental concerns remain significant barriers. A "just transition" is vital to support local communities, especially in traditional sectors like fisheries and tourism. Additionally, disputes over land use and Indigenous peoples’ rights in resource management highlight the need for inclusive governance and planning that balances environmental, economic, and social priorities.

Sweden's NSPA regions are well-positioned for the green transition, with ample renewable energy resources. However, rapid industrial expansion, particularly in mining, forestry, and green technologies, presents challenges in managing energy infrastructure while balancing development with environmental and social impacts. To ensure a sustainable transition, investments in smart grids, expanded renewable energy, and diversification away from extractive industries are essential. Furthermore, a "just transition" is needed to support rural communities and integrate the rights of Indigenous Sámi people into regional planning. Successful strategies should prioritise economic diversification, equitable benefit distribution, and inclusive stakeholder dialogue, ensuring the transition is fair and sustainable for all.

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