Impacts on economy
Projections regarding the financial effects of climate change have been the target of much attention. These impacts will affect both existing property and future possibilities of producing income and are forecast to be notable. The infrastructure is damaged by extreme weather phenomena, floods and changes in ground frost, all of which cause direct costs. For example, poor condition of forest roads will impede future logging. On the other hand, rising temperatures and longer growing season is expected to improve the conditions of agriculture and forestry in Finland.
On a global scale, financial impacts can vary greatly from country to country and also in Finland climate change is expected to benefit some and hinder others. Even in the same area, different sectors of livelihood can be affected differently by climate change. For example, in Northern Finland, growth of forests is forecast to improve notably and tourism to benefit from the difficulties faced by other countries' tourist locations, while reindeer husbandry might suffer from poor weather conditions with respect to nutrition supply of the reindeer.
Predicting the financial effects of climate change is difficult because economic cycles, amount of supply and demand and other economic mechanisms have an effect on the profitability of various industries. In addition, political decisions can be used in an attempt to guide the progress of development. By preparing for the climate change, negative effects can be adjusted to and even benefit gained from some of the impacts.