Exploring Nature-Based Economy Futures via Arctic COVID-19 Stimulus Measures

Sweden’s COVID-19 recovery strategies led to remarkable success by generating more green jobs than polluting sectors. The government invested in nature-based solutions, ecosystem preservation, and Indigenous community support. This was one of the findings in a study commissioned by the WWF Global Arctic Programme in 2020 to examine the impact of COVID-19 stimulus packages on the prospects for a nature-based economy in the Arctic region.

The study focused on eight Arctic nations and identified ten green policy areas, including green infrastructure, energy, and waste management, to assess the potential for creating green jobs within each area for every million dollars invested. The study found that while these stimulus measures generally failed to prioritize long-term green job creation due to substantial investments in fossil fuel-related industries, there were some positive outcomes.

A summarizing article about the study was written by Elena Tracy, Senior Advisor, Sustainable Development, WWF Global Arctic Programme and featured in a new Arctic Yearbook Special Issue, titled “Arctic Pandemics: COVID-19 and other pandemic experiences and lessons learned.” The Special Issue aims to highlight the unique experiences and effects of the pandemic in the Arctic to provide insights for future responses.

In the 2020 study, Sweden emerged as a standout among the Arctic nations, as its COVID-19 recovery packages generated more green jobs than jobs in  polluting sectors. The Swedish government channeled stimulus funds into nature-based solutions, ecosystem conservation, and Indigenous community support. Notably, Sweden allocated $80 million USD between 2021 and 2023 to restore drained wetlands, curbing greenhouse gas emissions. Saami communities and reindeer herders also benefited from targeted measures.

The study highlights the concept of nature-based solutions (NBS), which simultaneously address challenges across various policy areas, such as employment, environmental health, climate change, and biodiversity crisis. NBS projects, like reforestation and coastal restoration, have been identified as foundational elements of a nature-based economy. This model challenges the assumption of infinite economic growth fueled by natural resources and encourages investing in natural capital through activities like restoration ecology and sustainable practices.

Nature-based solutions are guided by participatory governance and stakeholder engagement, taking longer to develop and implement than traditional policies. Successful NBS should result in reduced fossil fuel usage per production unit, foster synergies between economy and environment, and emphasize labor-intensive job creation.

The Arctic region faces economic and political pressures driven by mineral extraction, commercial fishing, and increased shipping, further exacerbated by the climate crisis. Nature-based solutions offer a ray of hope amidst these challenges. They align with the Kunming-Montreal Global Biodiversity Framework, which mandates protecting and restoring nature. Some Arctic countries, like Canada and Finland, are embracing NBS to support sustainable practices and green job creation.

The study underscores that a nature-based economy doesn’t involve exploiting natural resources for global markets but focuses on conserving ecosystems to sustain livelihoods in a changing Arctic. Public investments in ecosystem preservation and restoration have the potential to create green jobs and enhance the value of Arctic ecosystems for local communities and future generations. This approach presents a promising path forward amid the complex economic and environmental landscape of the Arctic region.

Read the full article featured in the Arctic Yearbook Special Pandemics Issue and WWF Arctic’s 2020 study here.