Responding to the crisis with green innovation

The financial crisis that we are seeing now has spread more rapidly and had a deeper impact than any crisis we have experienced since the 1930s.

Because of that it is important to find the right tools to tackle it. It is essential that the Nordic countries continue to support free trade with open economies and show the world that a non-protectionist stance equates to taking national, regional and global responsibility at a difficult time.

Alongside national efforts to alleviate the effects of the crisis, it is and will remain necessary to take international measures to prevent and mitigate the harmful effects of the sort of events we are now witnessing. This is especially important for small countries like those in the Nordic region so that they can protect jobs and prosperity in a globalised world.

At the same time, we believe that the international downturn that we are now going through should not be used as an excuse for failing to act to seek solutions to the other major challenges we face in the future.

Working actively for an international response to the climate issue must continue to be our ambition. If they act in partnership, the Nordic countries have an important role to play here. Not least when it comes to showing that it is possible to combine economic growth and environmentally benign production.

The environmental challenges have to be met by creating competitiveness through new innovative ideas and methods. At the same time, by meeting the climate challenges we can create green jobs in a green society. That is what we call green growth, something which we think can benefit both us in the Nordic region and the rest of the world.

Green growth

There is a huge need for innovation within the environmental and energy technology sector the world over. All the signs are that the demand for new technical solutions and products which can reduce emissions of carbon dioxide and lay the basis for more sustainable development will increase further in future.

The Nordic countries are already well ahead within these sectors, but we believe that the ambition level can be raised further. Therefore, we in the Nordic countries must do more for innovation, research and technological development. We must become the leaders in renewable energy sources and energy efficiency. We must also be in the forefront when it comes to developing carbon capture and storage technology.

Amongst other things, the Nordic countries have come up with an ambitious research initiative to reach the targets. This initiative is a direct result of the Nordic globalisation drive that we launched in Punkaharju in Finland in summer 2007 and is the largest initiative to have been launched within the Nordic Council of Ministers for some time.

We also aim to show that it is possible to combine an ambitious national climate policy with concern for the world around us. The climate issue is an international challenge which calls for international responses and efforts.

Only too often we see that the impact of global warming is greatest in parts of the world that are already vulnerable, and where the resources and expertise to tackle it are lacking. The Nordic Development Fund enables us to deliver progressive development aid, where skills transfer can create new opportunities for those with the most acute problems. At the same time we can influence climate changes in the right direction.

The Nordic countries also have unique opportunities to take forward and commercialise sustainable energy solutions based on biomass, hydropower, wind and geothermal technologies, and also, significantly, energy efficiency. Here we need to build on our joint efforts, put in place better conditions for entrepreneurs and become better at disseminating expertise out to the wider world.

The fifth freedom

In order to develop and strengthen the Nordic region, we need to deepen and develop our co-operation within the entire knowledge sector.

The Nordic region and Europe have a dynamic internal market. This market is built on the four freedoms of people, goods, services and capital. We also need to focus on the fifth freedom – freedom of movement of knowledge – meaning freedom for ideas, students, teachers and researchers to move across borders, thus encouraging unrestricted access to knowledge.

One year ago we met at the first Globalisation Forum in Riksgränsen in Sweden. This year we met for two days in Iceland to discuss the challenges we face with representatives from politics, research, business, the media and numerous organisations.

It has been a valuable opportunity to deepen our discussions about how we can jointly devise strategies to make better use of the opportunities of globalisation.

We agree that, together and across our borders, we are well placed to secure sustainable development in the Nordic region, our common goals being a high standard of living and confidence in the future - both for those alive today and coming generations. Solidarity and co-operation between the Nordic countries has never been as important as it is now.

Anders Fogh Rasmussen, Prime Minister, Denmark

Fredrik Reinfeldt, Prime Minister, Sweden

Jens Stoltenberg, Prime Minister, Norway

Jóhanna Sigurðardóttir, Prime Minister, Iceland

Matti Vanhanen, Prime Minister, Finland