Lapland to reinvent itself as a sustainable business hub

Clean air, carbon sinks and green energy initiatives are just some of the exciting sustainable business opportunities to be found in Lapland, Finland's northernmost region.

The area is primarily known for tourism and for supposedly being the home of Santa Claus, but the fight against climate change has opened up new sustainable business opportunities.

A new initiative by the area's marketing firm the House of Lapland is hoping to spur private development in the area, marked by an expedition for four Dutch and German investors and entrepreneurs to scour the region for business opportunities.

Read more: New Microsoft data centre could heat Helsinki homes

According to some reports, Finland, and in particular Lapland, has the cleanest air in Europe. In some parts of the area, there are only around 1.8 micrograms of particulates less than 2.5 micrometres (PM2.5) in length - less than half of the national average of 5 micrograms.

These particulates are particularly dangerous as they can cause respiratory or cardiovascular diseases. Tackling air pollution is an important part of the climate crisis, and is vital for industry to be more sustainable.

However, this clean area also presents a downside. While significantly cutting down on air pollution and emissions is possible, many of these technologies are not fully net-zero, which means that any business that is not fully sustainable could be to the detriment of the region.

One type of technology seeing developments in the region is wind energy such as the Nuolivaara Wind Farm, but solar could present an interesting opportunity.

Due to its lying within the Arctic Circle, the sun often does not set during the summer. It has been hinted that a mix of constant sunlight during the winter together with the low levels of air pollution can mean solar cells could produce a lot of energy.

An assessment conducted by the Finnish Meteorological Institute suggests that, during this period, solar panels in Lapland can produce more electricity than in India.

A similar situation can be seen across the globe in Alaska, where electricity is expensive, and large solar arrays are being placed in a bid to keep prices low. New technological developments have also allowed panels to better utilise the long summer days in the Arctic.

Local authorities refer to Lapland as "Europe's last wilderness." The area has miles and miles of endless forest, which not only ensure the air stays clean due to them producing so much oxygen, but they also act as a carbon sink - absorbing CO2 directly from the atmosphere.

Carbon sinks will be essential in the energy transition to take carbon out of the air and will form a crucial backbone to overall emissions reductions. As such, many governments are looking to reforestation as a way to tackle climate change.

The municipality of Muonio, one of Finland's northernmost cities, has been looking to enable local economic activity by highlighting the unique business opportunities in the region for those willing to be fully sustainable. Clean nature and good air quality are central to these developments, so fossil fuel burners need not apply.

“It increases vitality in the area in many ways, such as by offering a unique environment for entrepreneurship that relies on natural values, new innovations and happy everyday life; it’s concretely easy to breathe here. For example, a business that is based on nature experiences, well-being or natural products is possible because of the excellent air quality," Kaisa Kylä-Kaila, Business Development Specialist of the Municipality of Muonio said.

"It’s also very important for us to cherish clean air and nature now and in the future, because we understand its large significance for us, also from the perspective of the early adapting of economic activity to climate change,” she added.

The expedition found several key areas for development in the region, which could all play a role in the energy transition.

Outside of those mentioned, they also discovered a potential bedrock for geothermal energy as well as "possibilities" with its forests and soil, which could hint at a future for sustainable forestry and green agriculture.

Read more: Geothermal could cover a quarter of Germany's energy needs

“It’s clear that Lapland has a lot of business potential beyond the pillars of tourism, forestry, and mining, for example in data centres or in increasing needs of battery technologies and materials," Dutch tech entrepreneur Franc Mouwen said in a statement.

"To me, the exciting long-term potential is, however, in carbon sinks or storages. Technologies and markets for this are still in development but needed, fast. Lapland is a unique and wonderful albeit fragile environment, so such businesses would fit well to the region's DNA and heritage," he concluded.

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