23.07.2010

Transnational corporations are essential for low-carbon economic growth

According to UNCTAD’s World Investment Report, launched today, transnational companies and foreign direct investment can support the mitigation of climate change. The report analyses the companies’ impacts and opportunities in boosting low carbon economic growth and the opportunities for governments to speed up this development.

According to UNCTAD, companies can offer capital and the crucial technological know-how which are required to mitigate climate change and support sustainable development. The report states that in 2009, foreign direct investment into low-carbon business areas amounted to about USD 90 billion. When other investments and measures that have an indirect impact are taken into account, the actual investments by companies were much larger.

Foreign direct investment is rising again in Finland
According to Invest in Finland, which is responsible for launching the report in Finland, transnational companies and investments have an essential role in the development of different economic sectors and the economy as a whole. Foreign direct investment in Finland has been falling in last few years but is now rising again according to the report.

Tuomo Airaksinen, CEO of Invest in Finland, says, “Foreign business actors and direct investments bring many opportunities for developing the economy. In addition to capital, they offer know-how, strengthen international networks and develop knowledge clusters.”