Go to content

Nordic Toolbox for a Just Green Transition

Adopt a place-based approach


The impacts of the green transition differ depending on the location. Achieving a just green transition therefore requires integrating place-based perspectives into green transition initiatives to take local characteristics and challenges into account. Local community involvement can help to identify the best approaches and increase the transparency and legitimacy of green transition measures. 

Key messages:

  • Develop a place-based approach for policies and initiatives.
  • Build on local strengths and strategic advantages.
  • Empower local communities and stakeholders to co-develop transition policies and local green investments.

What are the challenges?

1. Diverse spatial impacts

The green transition will have varied spatial impacts across the Nordic Region. Communities heavily reliant on carbon-intensive industries are at greater risk of experiencing job losses and economic decline. Conversely, areas with strong potential for green energy production or mining of rare earth metals may see increased investments and job creation. However, those regions and municipalities may also face challenges when it comes to scaling up public services and housing to support a growing working population.
ESPON. (2023). Territorial perspective on green industrialization. Working paper. Luxembourg: ESPON. Available at: Working paper Green Industrialisation.pdf (espon.eu).
The green transition thereby risks exacerbating existing regional disparities or creating new ones.
Høst, J., Lauritzen, F. & Popp, S. (2020). A socially sustainable green transition in the Nordic Region. An analysis of the inequality-creating effects of the green transition and the opportunities to promote a socially sustainable green transition. Nord 2020:056. Copenhagen: Nordic Council of Ministers. Available at: A SOCIALLY SUSTAINABLE GREEN TRANSITION IN THE NORDIC REGION (norden.org).

2. Land use conflicts

Renewable energy projects, such as the installation of wind farms or solar panels and mining of rare earth metals, often lead to shifts in local land use patterns. Green investments can therefore create conflicts between achieving environmental goals and respecting the rights and practices of local inhabitants, such as reindeer herding by the Sami people in northern Finland, Norway and Sweden. While monetary compensation may be offered to landowners in the direct impact zone of such installations, that may be perceived as an attempt to silence opposition, leading to discontent.
Salonen, H. (2024). Between hand-outs and stand-outs: Opportunities for policy support for just green transitions. Nordregio Policy Brief 2024:1. Stockholm: Nordregio. Available at: https://pub.nordregio.org/pb-2024-1-Between-hand-outs-and-stand-outs/index.html.
Navigating such conflicts of interest and developing compromises and solutions are key challenges in the context of the green transition. 

3. Lack of involvement of local communities

Decisions and plans for local green investments, such as the establishment of wind farms or mining activities, do not always involve local residents. When communities are not involved from the outset in planning and implementing green transition projects, resistance can emerge, particularly if those projects bring significant changes to the landscape and land use. Additionally, if community participation occurs too late in the decision-making processes or if residents feel their input is not valued, it can lead to feelings of powerlessness and discontent.
Salonen, H. (2024). Between hand-outs and stand-outs: Opportunities for policy support for just green transitions. Nordregio Policy Brief 2024:1. Stockholm: Nordregio. Available at: https://pub.nordregio.org/pb-2024-1-Between-hand-outs-and-stand-outs/index.html.
 
There is a conflict of interest with the Sami in the north, but there are also problems in Skåne in southern Sweden. People don’t want mines there, but we need these minerals for windmills and batteries. Environmental and local interests are in conflict with the green economy.

- Youth representative

1. Diverse spatial impacts

The green transition will have varied spatial impacts across the Nordic Region. Communities heavily reliant on carbon-intensive industries are at greater risk of experiencing job losses and economic decline. Conversely, areas with strong potential for green energy production or mining of rare earth metals may see increased investments and job creation. However, those regions and municipalities may also face challenges when it comes to scaling up public services and housing to support a growing working population.
ESPON. (2023). Territorial perspective on green industrialization. Working paper. Luxembourg: ESPON. Available at: Working paper Green Industrialisation.pdf (espon.eu).
The green transition thereby risks exacerbating existing regional disparities or creating new ones.
Høst, J., Lauritzen, F. & Popp, S. (2020). A socially sustainable green transition in the Nordic Region. An analysis of the inequality-creating effects of the green transition and the opportunities to promote a socially sustainable green transition. Nord 2020:056. Copenhagen: Nordic Council of Ministers. Available at: A SOCIALLY SUSTAINABLE GREEN TRANSITION IN THE NORDIC REGION (norden.org).

2. Land use conflicts

Renewable energy projects, such as the installation of wind farms or solar panels and mining of rare earth metals, often lead to shifts in local land use patterns. Green investments can therefore create conflicts between achieving environmental goals and respecting the rights and practices of local inhabitants, such as reindeer herding by the Sami people in northern Finland, Norway and Sweden. While monetary compensation may be offered to landowners in the direct impact zone of such installations, that may be perceived as an attempt to silence opposition, leading to discontent.
Salonen, H. (2024). Between hand-outs and stand-outs: Opportunities for policy support for just green transitions. Nordregio Policy Brief 2024:1. Stockholm: Nordregio. Available at: https://pub.nordregio.org/pb-2024-1-Between-hand-outs-and-stand-outs/index.html.
Navigating such conflicts of interest and developing compromises and solutions are key challenges in the context of the green transition. 

3. Lack of involvement of local communities

Decisions and plans for local green investments, such as the establishment of wind farms or mining activities, do not always involve local residents. When communities are not involved from the outset in planning and implementing green transition projects, resistance can emerge, particularly if those projects bring significant changes to the landscape and land use. Additionally, if community participation occurs too late in the decision-making processes or if residents feel their input is not valued, it can lead to feelings of powerlessness and discontent.
Salonen, H. (2024). Between hand-outs and stand-outs: Opportunities for policy support for just green transitions. Nordregio Policy Brief 2024:1. Stockholm: Nordregio. Available at: https://pub.nordregio.org/pb-2024-1-Between-hand-outs-and-stand-outs/index.html.
 
There is a conflict of interest with the Sami in the north, but there are also problems in Skåne in southern Sweden. People don’t want mines there, but we need these minerals for windmills and batteries. Environmental and local interests are in conflict with the green economy.

- Youth representative

What can policymakers do?

1: Develop place-based action plans

A just green transition relies on policies that take regional differences across the Nordic Region into account. Adopt place-based action plans to analyse transparently the potential impact of the green transition on local economies and communities, commit to mitigating adverse impacts and ensure benefits for local communities.
Salonen, H. (2024). Between hand-outs and stand-outs: Opportunities for policy support for just green transitions. Nordregio policy brief 2024:1. Stockholm: Nordregio. Accessible at: https://pub.nordregio.org/pb-2024-1-Between-hand-outs-and-stand-outs/index.html.
Action plans could also identify approaches to diversify and transform the local economy by building on strengths and strategic advantages through smart specialisation. Measures could include targeted industrial policies, tax incentives, subsidies, investments and other financial mechanisms to support sustainable businesses.
Tavonvunchai, N., Coutiño, A.M., Reymond, A., Halonen, M., Moisio, M., Simanainen, M., Peltomiemi, S., Gustafsson, M. & Stadelmann, M. (2022). Financial instruments to support a green economic recovery post-COVID-19. Copenhagen: Nordic Council of Ministers. Available at: FULLTEXT02.pdf (diva-portal.org).
Strengthening local networks between companies, educational institutions and research organisations, labour unions and local public authorities can enable opportunities for sustainable innovation and entrepreneurship.
Climate Strategies. (2018). Just transition for all – Analytical evidence. Background materials for a side-event on 3.12.2018 at the COP24. Available at: https://climatestrategies.org/wp-content/uploads/2018/10/brochure-WEB.pdf.
Action plans in communities benefitting from green investment and job creation could include planning for population growth and increased demand for public services, housing and infrastructure, while communities expecting a reduction in population size will need to plan how to address that issue.
When Finland is trying to get rid of peat production it will negatively impact the employment of young people. But if we can create new jobs in restoration for example, those people could be employed back.

- Youth representative

2: Ensure local quality-of-life benefits

To enhance a just green transition, place-based action plans should also include measures to improve the local quality of life. That could, for example, include investments in public transport and broadband coverage to improve connectivity, public services related to health, education and safety, as well as investments in green areas, culture and social spaces that can boost wellbeing and local resilience.
Cahill, B. & Allen, M.M. (2021). Pathways for just transitions. Gender responsive policies & place based investment. Center for Strategic and International Studies and Climate Investment Funds. Available at: jti_pathways_report_web.pdf (cif.org).
Action plans could also consider skills and training programmes for local populations to be educated in fields required by local industries with development potential and thereby increase their employment opportunities (see the “Invest in inclusive reskilling and upskilling” priority area). Upskilling and reskilling opportunities should not be restricted to people working in local carbon-heavy industries and should instead be open to all residents to maximise the impact.
Strambo, C. & Thazin Aung, M. (2019). Five lessons from past mining closures. SEI Feature. Available at: Five lessons from past mining closures | SEI.
Where green transition initiatives require heavy land use and significant landscape changes to local areas, both landowners and impacted communities often receive some form of monetary compensation. Nonetheless, such funds can be perceived as handouts and cause divisions and mistrust in communities. Compensation packages should be designed by impacted communities via participatory negotiation to address their specific needs and preferences, ensuring a fairer distribution of benefits and fostering greater community acceptance and support.
Salonen, H. (2024). Between hand-outs and stand-outs: Opportunities for policy support for just green transitions. Nordregio Policy Brief 2024:1. Stockholm: Nordregio. Available at: https://pub.nordregio.org/pb-2024-1-Between-hand-outs-and-stand-outs/index.html.

3: Ensure broad commitment

Place-based action plans should be based on a broad mandate to ensure continuity across electoral cycles and changes in government. It is recommended to establish cooperation across national, regional and/or local public authorities, ministries and agencies and involve representatives from finance, planning, transport, health, education and social sectors as required. Place-based leadership is important to ensure policy coherence and mainstreaming across sectors and actors, and good governance includes clarity of roles and responsibilities. A unit or agency could be tasked with coordinating and spearheading the just transition agenda.
OECD. (2019). Regions in industrial transition: Policies for people and places. OECD Regional Development Studies. Paris: OECD Publishing. Available at: https://doi.org/10.1787/c76ec2a1-en.
It is equally important to involve local residents, civil society organisations, social partners, education providers and other relevant local stakeholders as early as possible in the process of creating place-based action plans (see the “Engage people” priority area). Their involvement can help to identify challenges as well as local strengths and opportunities, find solutions and compromises, develop narratives for sustainable change and help gain trust and support for the change (see the “Develop a vision” priority area).
OECD. (2017). Investing in climate, investing in growth. Paris: OECD Publishing; Cahill, B. & Allen, M.M. (2021). Pathways for just transitions. Gender responsive policies & place based investment. Center for Strategic and International Studies and Climate Investment Funds. Available at: jti_pathways_report_web.pdf (cif.org).

4: Foster good-quality green jobs

Nordic governments can foster the green transition through green and social public procurement, by investing in green innovation and infrastructure projects and by supporting low-carbon businesses. Importantly, green jobs should offer social protection, good working conditions, equal opportunities and decent pay. Care should be taken that green jobs also benefit women, people with disabilities, young people and other underrepresented groups on the Nordic labour markets.
International Labour Organization. (2016). What is a green job? Available at: What is a green job ? | International Labour Organization (ilo.org); Løvslett Danbolt, I. (2023). Bridging the green jobs divide: Nordic gender barriers and opportunities in the spotlight. Nord 2023:036. Copenhagen: Nordic Council of Ministers. Available at: nord2023-036 (norden.org).
Support young entrepreneurs who are developing sustainable businesses and innovations. Provide financial assistance, mentoring and networking opportunities to help them succeed in the green economy.

- Youth representative

→ On the next page you will find inspiring examples of how to adopt a place-based approach

Read more about how to adopt a place-based approach


Cahill, B. & Allen, M.M. (2021). Pathways for just transitions. Gender responsive policies & place based investments. Just Transition Initiative. Available at: https://www.cif.org/sites/cif_enc/files/knowledge-documents/jti_pathways_report_web.pdf.
ESPON. (2023). Territorial perspective on green industrialization. Working paper. Luxembourg: ESPON. Available at: Working paper Green Industrialisation.pdf (espon.eu).
European Commission. (2023). Approaches for designing SME support schemes. A catalogue for just transition regions. Bruxelles: European Commission. Available at: Approaches for designing SME support schemes: A catalogue for just transition regions (europa.eu).
Lindvall, D. (2023). Why municipalities reject wind power: A study on municipal acceptance and rejection of wind power instalments in Sweden. Energy Policy, 180, 113664. Available at: https://www.sciencedirect.com/science/article/pii/S0301421523002495?via%3Dihub.
OECD. (2019). Regions in industrial transition: Policies for people and places. OECD Regional Development Studies. Paris: OECD Publishing. Available at: https://doi.org/10.1787/c76ec2a1-en.
OECD. (2023). A territorial approach to climate action and resilience. OECD Regional Development Studies. Paris: OECD Publishing. Available at: A Territorial Approach to Climate Action and Resilience | OECD.
Palmér Rivera., M. & Pelling, L. (2024). The life we live here: Conversations about climate change and the green transition. Stockholm: Friedrich Ebert Stiftung Nordic Countries. Available at https://library.fes.de/pdf-files/bueros/stockholm/21305-20240902.pdf
Rodríguez-Pose, A. & Bartalucci, F. (2023). Regional vulnerability to the green transition. Single Market Economics Paper 16. Bruxelles: European Commission. Available at: Regional vulnerability to the green transition - European Commission (europa.eu).
Salonen, H. & Tomrén, L. (2024). Can local value creation induce a sense of justice during green transitions? A study of six rural areas in Denmark, Finland, and Norway. Nordregio Report 2023:9. Stockholm: Nordregio. Available at: https://pub.nordregio.org/r-2023-9-can-local-value-creation-induce-a-sense-of-justice-during-green-transitions/index.html.
Skubida, A., Sarna, K., Binarová, N. & Głowacki, K. (2022). How to break down the barriers to transformation. WiseEuropa, Impact Hub and Climate-KIC. Available at: barriers-to-transformation.pdf (climate-kic.org).