Place-based policies are key to avoid deepening regional inequalities

The impacts of the green transition are not evenly distributed across the Nordic Region. Regions dependent on carbon-intensive industries may experience greater economic disruption than service-based economies. Similarly, rural areas with limited public transport options face different challenges than urban centres. These spatial and sectoral differences shape how communities perceive and respond to climate policies.

Nordregio’s research reveals that differences in local socio-economic and demographic conditions across Nordic municipalities correlate with political discontent and support for populist parties. For example, areas characterised by higher unemployment, lower educational attainment and slower income growth tend to show stronger support for populist movements (Figure 5). This suggests that if the green transition is perceived as threatening local jobs or economic stability, it may risk exacerbating political discontent.

To maintain legitimacy and public support for the green transition, climate policies must be sensitive to spatial inequalities and adopt a place-based approach. This means tailoring policies to local conditions and recognising and responding to region-specific challenges. It also entails ensuring that benefits and burdens are fairly distributed both within and across regions and engaging local stakeholders. Moreover, it is important to address the existing structural inequalities that contribute to political discontent. Without a place-based perspective, national policies risk overlooking local vulnerabilities and reinforcing existing inequalities.

Promote regional equity by tailoring climate policies to local needs and conditions.

Dzhavatova, K., Sánchez Gassen, N., Tapia, C., Sonesson, M., Norlén, G. & Berbert Bruno, K. (2025). Nordic spatial variations in demographic, social, and economic characteristics: A visual guide. Nordregio Working Paper 2025:2, Stockholm: Nordregio. DOI: 10.6027/WP2025:2.1403-2511.

Sánchez Gassen, N., Tapia, C., Chilvers, M., Dzhavatova, K. & Lundgren, A. (2025). Navigating Nordic discontent. Regional divides, electoral trends, and the green transition. Nordregio Policy Brief 2025:18, Stockholm: Nordregio. DOI: 10.6027/PB2025:18-2001-3876.

Tapia, C., Dzhavatova, K., Chilvers, M. & Sánchez Gassen, N. (forthcoming). Exploring the uneven landscape of Nordic discontent in the green transition.