The Nordic countries, heavily reliant on global trade, are increasingly vulnerable to climate change impacts abroad. However, national policies and business practices often overlook these "transboundary climate risks" (TCRs).
Key challenges:
Diffuse risk ownership: TCRs are dispersed across multiple jurisdictions, sectors and value chains, adding far more complexity than conventional direct or domestic climate risks.
A lack of business preparedness: Limited awareness and action from businesses.
Policy gaps: National policies often overlook TCRs.
Siloed approaches to adaptation: Current adaptation approaches do not recognise the need for cross-cutting actions that use multiple policy tools across diverse sectors
Suggested solutions:
Strengthening Nordic and international cooperation
Improving risk assessments
Promoting public-private partnerships to enhance resilience