Sustainable development on a National Level – the Finnish Approach
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Sustainable development on a National Level – the Finnish Approach
Lea Kauppi, Finnish Environment Institute (SYKE)
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Several people have contributed to this presentation
My special thanks to the secretariat of the Finnish National Commission on Sustainable Development as well as to Aino Inkinen, Matti Melanen, Per Mickwitz and Jyri Seppälä from SYKE
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Contents of the presentation
Strategic framework Institutional framework Assessment framework ECOREG – assessing regional
sustainability ENVIMAT - an extended input-output
model as a sustainability assessment tool
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Finnish model of Sustainable Development Continuity on the political agenda (since 1987) Continuous vertical and horizontal coordination –
National SD commission as the main facilitator since 1993
Leadership on a high political level (Government) Broad-based political dialogue between the government
and the stakeholders Policy coherence Transparency and stakeholder cooperation during the
whole life-span of SD strategy processes Towards Sustainability Governance
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Long history of strategies and programmes for sustainable development in Finland 1990: Sustainable development in Finland 1995: Finnish Action for Sustainable Development 1998: Finnish Government Programme for Sustainable
Development 2000: Signs of Sustainability: Finland’s indicators for SD 2003: Evaluation of sustainable development in Finland 2006: National Strategy for Sustainable Development: Towards
Sustainable Choices – A nationally and globally sustainable Finland Dec. 2009: Evaluation report: State of Sustainable Development in
Finland
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National SD Strategy 2006 (NSDS)
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Strategy framework Vision: to assure well-being within the limits of the
carrying capacity of nature nationally and globally Objective: to create sustainable well-being in a safe and
pluralistic society that promotes participation, and in which all people bear responsibility for the environment
Starting point: the key guidelines of the Strategy help form foundation for drafting Government and policy programmes and help various actors select solutions that observe the principles of sustainable development.
Timeline for the targets is beyond the current generation, extending until about 2030
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Key challenges:Globally: climate change global poverty and inequality population growthNationally: climate changeadaptation to rapid global economic changesdemographic changes
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Main themes of the NSDS Sustainable communities in a
sustainable regional structure Balance between the use and protection of
natural resources Well-being throughout the life-span The economy as a safeguard for
sustainable development Finland as a responsible global actor Supporting sustainable choices
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Finnish National Commission on SD (FNCSD) Government re-appointed the National Commission on SD in
February 2008 Main objective: promote the inclusion of the strategic goals of
SD in national policies and administrative practices Main task: promote, evaluate and monitor the implementation
of the National Strategy for SD; and ensure that all societal actors advance the proposals set out in the strategy
Work Programme and Communication Plan for 2008-2012 adopted in June 2008
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Composition of the FNCSD Chair: Minister of Labour
and Industry Vice-chair: Minister of the
Environment
43 members and deputies meetings 4-5 times a year
+ seminars 1-2 times a year
Subcommittee on locally and regionally sustainable development, term 2007-2012
4 Sector Ministers Ministries and gov’t
agencies The Parliament Local government Academic sector Business and Industry Interest groups Non-governmental
organisations The indigenous Sámi-
people Two churches Culture and Arts
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Organization of the work within the FNCSD Inter-Ministerial Network Secretariat (sectoral SD
contact points) • prepares the meetings and the work programme of
the Commission• appr. 20 active civil servants from various ministries
Operational Secretariat General within the MoE• 4 civil servants • development, preparation, coordination and
management of the Finnish SD policy and the meetings of the FNCSD and its Secretariat
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Sustainable development policy cycle Identification of key challenges and strategic goals
• NSDS 2006 Government commitment to implement the goals
• Decision-in-Principle 2006 • Government Programme 2007
Implementation of the Strategy goals (ongoing) Follow-up of the implementation by SD indicators
• Indicator report in 2007• ongoing updating of data
Evaluation of progress and assessment of impacts • first progress report by sector Ministries in 2007• Evaluation process in 2009 concluding with an overall report
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Facilitation of the implementation and evaluation of the strategy by the FNCSD
A.Political level• Support to the sector ministries
to mainstream SD into their sector policies & programmes
• Permanent Secretary engagement B.Operational level
• Support to the sector ministries to draw uptheir own SD action plans with practical measures
C.Methodological level• Methodological development and process design helping the sectors to
assess the impacts of NSDS
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Assessment Framework Progress reporting by ministries and other
stakeholders represented in the FNCSD Regular monitoring using the headline indicators Self-assessment with the help of CAF annex on
sustainable development Setting criteria for impact assessment of the
strategy Developing a toolbox for ministries in order to
observe the SD aspects in policy-planning Present the state of SD in Finland and key
challenges and trends for the future EVALUATION REPORT IN DECEMBER 2009
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Monitoring Regional Sustainability – Indicators
Developed and Used in the Finnish Kymenlaakso Region
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ECOREG 2002–2004www.environment.fi/syke/ecoreg
The aim:To demonstrate the concept and evaluation
of eco-efficiency at a regional scale
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Kymenlaakso Region, Finland
Myllykoski Paper, Anjalankoski. Photo: Myllykoski Paper Oy
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The working process – based on multistakeholder involvement and empowerment
Workshop participants
Steering group
Projectgroup
Nee
dsP
riorit
isin
g
Idea
sR
esul
ts
Eco-efficiencyof Kymenlaakso
and its measuring
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The system boundaries of the ECOREG analysis
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Simultaneous monitoring of eco-efficiency and socio-cultural development > Monitoring of sustainability
Eco-efficiency
0
20
40
60
80
100
120
1995 1996 1997 1998 1999 2000 2001
Year
Economic output Environmental burden 1
Environmental burden 2 Environmental burden 3
Rel
ativ
e c
hang
e
Socio-cultural welfare
80
85
90
95
100
105
110
1995 1996 1997 1998 1999 2000 2001
Year
Employment Safety Population change Culture
Rel
ativ
e c
hang
e
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The indicators based on economic and material flow analysis
A ”top-down approach” (Input-Output Analysis, I-O)
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862385
2642
0
5 00
1 00 0
1 50 0
2 00 0
2 50 0
3 00 0
K ym e nla ak so F in lan d E U -1 5
G ro ss do m es tic p ro d uc t p e r to ta l a re a in K ym en laa k so , F in lan d an d th e E U in 20 0 0, 1 0 00 eu ro /km 2
25.6 25.1 22.6
0
5
1 0
1 5
2 0
2 5
3 0
K ym e nla ak so F in lan d E U -1 5
G ro ss do m es tic p ro d uc t p e r c a p ita in K ym e n la ak so , F in lan d an d th e E U in 20 0 0, 1 00 0 e u ro
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National-economy-wide material flow balance
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22.0
4.23
0
1
2
3
4
K ym en-laakso
F in lan d E U-15
0
1
2
3
4
K ym en-laakso
F in la nd E U-15
D irec t m a te ria l inp u ts /G D P in 2 0 00 , kg /eu ro
D irec t m a teria l inp u ts /a re a in 2 0 00 , kg /m 2
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The indicators based on environmental analysis
A ”bottom-up approach” (Life Cycle Assessment, LCA)
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Activity sectors
Kymenlaakso regionUpstream Downstream
Wood
ElectricityOther raw materials
HeatChemicals
Wood
Gravel, crushed rock
Water
Other raw materials
Raw materials
Final products
Fuels
Chemicals
Transports
Boundaries of the environmental analysis (”cradle-to-gate”)
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0
500
1000
1500
2000
2500
3000
3500
Agriculture Forestry Communities Rural andholiday homes
Industry Traffic
Impa
ct v
alue
Climate change
Stratosphericc ozone depletion
Tropospheric ozone formation
Acidification
Eutrophication
Aquatic oxygen depletion
Ecotoxicity
Environmental accidents
Contamination of soil and water resources
Deterioration of local air quality
Depletion of non-renewable resources
Odour
Noise
Loss of biodiversity
Degradation of landscapes and cultural environments
Loss of recreational values
0
500
1000
1500
2000
2500
3000
3500
Agriculture Forestry Communities Rural andholiday homes
Industry Traffic
Impa
ct v
alue
Climate change
Stratosphericc ozone depletion
Tropospheric ozone formation
Acidification
Eutrophication
Aquatic oxygen depletion
Ecotoxicity
Environmental accidents
Contamination of soil and water resources
Deterioration of local air quality
Depletion of non-renewable resources
Odour
Noise
Loss of biodiversity
Degradation of landscapes and cultural environments
Loss of recreational values
0
500
1000
1500
2000
2500
3000
3500
Agriculture Forestry Communities Rural andholiday homes
Industry Traffic
Impa
ct v
alue
Climate change
Stratosphericc ozone depletion
Tropospheric ozone formation
Acidification
Eutrophication
Aquatic oxygen depletion
Ecotoxicity
Environmental accidents
Contamination of soil and water resources
Deterioration of local air quality
Depletion of non-renewable resources
Odour
Noise
Loss of biodiversity
Degradation of landscapes and cultural environments
Loss of recreational values
Impact values calculated for the activity sectors (the sum of the values equals 10 000)
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Social and cultural indicators supporting the measurement of eco-efficiency
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POPULATIONCHANGE
EDUCATION
SAFETY
SOCIAL EXCLUSIONEMPLOYMENT
LOCALIDENTITY
HEALTH
CULTURE
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POPULATION CHANGE
-1 0 0 0
-80 0
-60 0
-40 0
-20 0
0
1 98 0 1 98 5 1 99 0 1 995 2 00 0 2 00 5
NE T M IGR ATIO NPersons
0
500
1 00 0
1 50 0
2 00 0
2 50 0
3 00 0
3 50 0
1 980 198 5 1990 199 5 200 0 2 00 5
NUM BER OF FOREIGNERSPersons
0
40
80
12 0
16 0
20 0
19 93 19 95 19 97 19 99 20 01 20 03 2005
Num ber o f non-em ployed per 100 em ployed
DE PEND ENCY RATIO
Not in the work force Pensioners (+65)Ch ildren (0 -15)
-4
-2
0
2
4
6
1980 198 5 1990 199 5 200 0 2005
Kym enlaak so
EXCESS O F B IRTHSPer 1000 persons
Fin land
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Application of the indicators in Kymenlaakso: the 1st eco-efficiency follow-up report (2000-2004)
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Volume growth of value added in Kymenlaakso and in Finland T1
Volume index of value added/Value added at the prices of 2000, 1996 = 100
80
90
100
110
120
130
140
Kymenlaakso 100 103,3 106,4 106,2 111,5 109,2 109,2 112,1
Finland 100 106,2 111,4 115,3 122 123,4 126,1 128,5
1996 1997 1998 1999 2000 2001 2002 2003
Source: Statistics Finland, regional accounts 19 Apr 2005
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Application of the indicators in Kymenlaakso:use in the regional planning
The concept of eco-efficiency has found its way to Kymenlaakso's Regional Strategic Plan 2005-2015
The following vision is formulated for the future Kymenlaakso:
"An attractive and eco-efficient, internationally interactive region.”
Eco-efficiency will also have a central role in Kymenlaakso's Regional Development Programme 2007-2010 which implements the Strategic Plan. Relevant ECOREG indicators will be used for monitoring the Programme's success.
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The ”ECOREG tools”• Indicators for regional eco-efficiency
• Working processes and methods for constructing these indicators
• Mechanism for monitoring eco-efficiency and social development, i.e. sustainability
Conclusions
Actions Measures increasingeco-efficiency
Responsibilities
Calculation tool Calculation of eco -efficiency
indicators
Assessing progress towardseco-efficiency
Determining coordinationresponsibili ties
Creating a cooperation network
Establishing amanagement group
Data collection
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Regional-level planning:Land use: -Regional land use plansAction planning:-Regional strategies, plans and programmes-Sectoral plans:-Environmental health programmes-Planning traffic systems-Waste management, water supply and water protection plans-Fire safety and rescue plans
Utilisation possibilities of the data produced by the ECOREG mechanism
Municipal level:-SD action programmes (Agenda 21 work)
Corporate level:-Environmental reporting-Social responsibility reporting
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Concluding remarks about ECOREG
The ”ECOREG tools”:
1) The project’s overall concepts, approaches and methods for developing and applying regional eco-efficiency / sustainability indicators, are applicable throughout Europe.
2) However, a suitable local process is needed, whereby the mechanism is adapted to fit the specific local circumstances and objectives.
In general:
3) Measuring (the progress made in) regional eco-efficiency / sustainability is possible and meaningful.
4) Indicators based on life cycle thinking can be developed. Appropriate system boundaries are a major challenge!
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An extended input-output model as a sustainability assessment tool
ENVIMATOverview of the extended input-
output (ENVIMAT) modelKey SD indicators and ENVIMAT Examples of results of ENVIMAT
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Overview of the ENVIMAT model
an environmentally extended input-output (EEIO) model on the macro-economic level in Finland
LCA approach to the environmental and socio-economic impacts of consumption and production in Finland
provides also information on environmental impacts of the Finnish economy abroad through imports and on the role of exports in the domestic impacts
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The ENVIMAT model
consists of 151 industries with their 918 domestic products
describes the interactions of monetary and physical flows between industries
includes data on emissions (appr. 80), natural resources (appr. 25), land use, wastes, energy within industries
is able to link information on 772 imported products
includes data on 2002 and 2005 (at present)
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The structure of the ENVIMAT model
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IndustriesProduct groups
DomesticAnalysisImport
Consumptioncommodities
DMI = Direct Material Input, TMR = Total Material Requirement, DMC = Direct Material Consumption, TMC = Total Material Consumption
Tables
Indicators
ProductionConsumption
Value addedEmployment
DMI, TMRDMC,TMCEnergy
Environmentalimpacts
Monetaryinput-outputtables (MIOT)
Physicalinput-outputtables (PIOT)
Environmentaltables
Export
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Current indicators of the ENVIMAT model
material flow account indicators: total material requirement (TMR), direct material inputs (DMI), domestic material consumption (DMC), total material consumption (TMC)
domestic value added and employment environmental impacts: climate change,
stratospehric ozone depletion, acidification, eutrophication, tropospheric ozone formation, ecotoxicity, human toxicity, biodiversity, depletion of natural resources• total environmental impacts (=eco-index)• wastes, land use, ecological footprint
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I . GOOD LIFE IN A SUSTAINABLE SOCIETY 24/101. Balance between the use and protection of natural resources 9/92. Sustainable communities in a sustainable regional structure 5/13. Citizens – well-being throughout the entire life cycle 10/0
II. THE ECONOMY AS A SAFEGUARD FOR SUSTAINABLE DEVELOPMENT 5/3
III. FINLAND AS A GLOBAL ACTOR AND BEARER OF RESPONSIBILITY 2/0
IV. SUPPORTING SUSTAINABLE CHOICES 1/0
X/ N = Number of key indicators/ Number that ENVIMAT is capable to describe
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How well can the key indicators of the Finnish SD strategy be assessed by the ENVIMAT model ?
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Assessment of changes in key indicators
OFFICIAL EVALUATION in 2007:- ORANGE = PROGRESS MAINLY NEGATIVE- GREEN = PROGRESS MAINLY POSITIVE
CRITICAL = development has been insufficient regarding climate change mitigation and/or international commitments/targets
? = maybe critical or progress has been environmentally negative
ENV = the ENVIMAT model provides information for the indicator
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Challenges of SD in Finland on the basis of key indicatorsI . GOOD LIFE IN A SUSTAINABLE SOCIETY
I.1. Balance between use and protection of natural resources Greenhouse gas emissions CRITICAL ENV Total energy consumption CRITICAL ENV Use of renewable energy sources CRITICAL ENV Endangered species CRITICAL ENV Energy and natural resource consumption in relation to
economic growth ? ENV Environmental loading in relation to economic growth ? ENV Development of total material requirement CRITICAL ENV Proportion of household expenditures on services ? ENV Eutrophicating discharges into Baltic Sea ? ENV
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OFFICIAL EVALUATION in 2007:- ORANGE = PROGRESS MAINLY NEGATIVE- GREEN = PROGRESS MAINLY POSITIVE
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I.2. Sustainable communities in a sustainable regional structure
Relative change in population in different regions !
Distance of certain services from homes ! Economic dependency ratio by province ! Service satisfaction of citizens Development of public and passenger car
transport CRITICAL ENV
! : the first three indicators increased regional differences inside Finland
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OFFICIAL EVALUATION in 2007:- ORANGE = PROGRESS MAINLY NEGATIVE- GREEN = PROGRESS MAINLY POSITIVE
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I.3. Citizens – well-being throughout the entire life cycle
Life expectancy at birth Expected retirement age Occupational diseases and accidents Population development by age group ! People with low employment potential Immediate placement of 9th grade students in further
studies Per capita alcohol consumption and deaths
attributable to alcohol Employment rate for immigrants and number of non-
Finnish speaking schoolchildren Participation of 14-year olds in social organisational
work Voting activity
! : Problems in pension payments in the future
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II. The economy as a safeguard for sustainable development GDP per inhabitant ENV Economic dependency ratio Public debt in relation to GDP divided into state
and municipal shares of debt Number of employed and unemployment rate ENV Finland's competitiveness in relation to other
OECD countries assessed in terms of relative cost of work unit ENV
! : Problems in pension payments in the future
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III. Finland as a global actor Official Development Aid Direct investments from Finland in other countries
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IV. Supporting sustainable choices
Research and development expenditure and patenting
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Total material requirement (TMR) of the Finnish economy in 2002
Imports for intermediate use
48%
Imports for final use5%
Domestic nature47%
Domestic production
Domestic final use48%
Exports52%
22.0
4.23
TMR includes both materials used in the economy and materials mobilised in extraction processes but left in nature
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Greenhouse gas emission balance (Gg CO2 eq) of Finland
22.0
4.23
Year 2002
Imports Domestic Exports
52,641 76,989 57,945
Finnish consumption and investments = 71,685
Year 2005
Imports Domestic Exports
54,622 69,194 53,835
Finnish consumption and investments = 69,981
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The sustainability of Finland in terms of CO2 emissions Consumption based results: 13,8 (2002) and 13,5 (2005) t
CO2 eq per inhabitant Official national GHG inventory (production based
results): 14,8 (2002) and 13,3 (2005) t CO2 eq per inhabitant
IPCC estimates that sustainability requires 1 -2 t CO2 eq per inhabitant in the world
The positive development of CO2 in Finland from 2002 to 2005 was due to the decrease of the volume of forest industry in 2005 and the high share of hydropower in the Nordic electricity market in winter 2005
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Top 20 final products of the Finnish industries in terms of their CO2 emissions in 2002: amount of imported and domestic CO2 emissions
0 4000 8000 12000 16000
Basic precious metals and other non-ferrous metals 20
Ships and boats 19
Business services 18
Restaurant services 17
Education services 16
Civil engineering work 15
Human health and veterinary services 14
Other community, social and personal services 13
Meat and meat products 12
Public administration services 11
Dairy products and ice cream 10
Television and radio transmitters; telegraphy 9
Refined petroleum products 8
Basic chemicals 7
Wholesale and retail trade services 6
Construction work of residential buildings 5
Basic iron and steel and ferro-alloys 4
Production and distribution services of electricity 3
Letting and owning of dwelligs 2
Pulp, paper and paperboard 1
Gg CO2 eq
DomesticImports
22.0
4.23
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Contribution of different consumption categories to the economy, environmental pressures and employment.
22.0
4.23
0 10 20 30 40
Housing
Food
Leisure
Holidays
Personal care
Clothing
Education &employment
Otherconsumption
Economic valueEcoindexTMRDomestic energyGHGDomestic employment
The sum of the categories for each indicator = 100.
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The current ENVIMAT model can be used for
monitoring and assessing how the sustainability of the economy is changing
identifying unsustainable patterns of production and consumption
identifying impacts caused by Finland in global context
designing new policy instruments (e.g. ecological taxation) for supporting sustainable choices
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Further development of the ENVIMAT model annual reporting (or at least once per three years) more detailed spatial resolution new sustainbility indicators ( also socio-cultural) identification of unsustainable resource flows more dynamic features in order to use the model for
forecasting more dynamic features in order to use the model for
forecasting
Note: ENVIMAT produces data for decision making, but does not decide tradeoffs between different SD CRITERIA
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Thank you for your attention!