Sweden is inviting international asset managers to help allocate SEK one trillion (USD 90 billion) of pension savings, but says it won’t accept applications from firms that don’t incorporate ESG into their strategies. The new framework will replace a system tainted by an embezzlement scandal that infuriated Swedish taxpayers and triggered calls for a more robust setup. The upshot is that only investment firms that integrate environmental, social and governance goals into their work need apply, according to the Swedish Fund Selection Agency, which is overseeing the process.
Scandinavian Biogas, a Nordic producer of biogas, is partnering with AFRY, a Swedish-Finnish engineering company, to construct a new biogas plant in Mönsterås, Sweden. The investment in the biogas plant is estimated to be SEK 760 million, and it will primarily produce liquefied biogas for heavy road transport and shipping. The plant is expected to have a production capacity of 120 GWh/year and generate 200,000 tons of bio-fertilizer production, which will be returned to local farms. AFRY will be an engineering partner for the project and will provide services in health and safety, mechanics, pipes, electricity, document management and project risk management.
Finnish energy company Fortum and Kärnfull Next have signed a cooperation agreement to facilitate the expansion of small modular reactors (SMRs) in Sweden. Kärnfull Next, a Swedish project developer, already has a project portfolio including several small reactors, and the partnership with Fortum will enable them to cover the entire value chain for new reactors, from planning and financing to construction and operation. SMRs can provide predictable and fossil-free electricity, heat and hydrogen for industries and municipalities, making them an important part of the solution to climate change. The first SMR in Sweden could potentially be in operation during the early 2030s if permitting, licensing and legislation are addressed quickly.
Oil and Energy Minister Terje Aasland presented a report to the Storting, Norway's parliament, on 13 March, regarding the government's follow-up of the Fosen case. The Supreme Court's October 11, 2021, judgement on the Storheia and Roan wind power plants in Fosen found that the licensing decisions violated human rights, specifically those of Sami reindeer herders who depend on the area for their livelihood. A few weeks ago, activists protested that despite the judgement nothing had been done (see our reporting here). Aasland discussed the government's efforts to follow up on the Supreme Court's ruling and safeguard the rights of the reindeer herders while creating predictability for all parties involved..
The Swedish Government has admitted that it may be difficult for Sweden to meet the EU's requirements for emission reductions and at the same time keep the price of petrol and diesel down by easing requirements on mixing in expensive biofuels. While a lower proportion of biofuels leads to increased emissions of greenhouse gases, it becomes cheaper for consumers, something that figured as a central part of several governmental parties’ election campaigns.
According to the Swedish consulting company Sweco - commissioned by, among others, the fuel company Preem, Lantmännen and Södra Skogsägarna - relaxed emission reduction obligations could come at the staggering cost of up to SEK 39.4 billion until 2030.
Swedish MEPs have become more positive towards the EU's climate package "Fit for 55" following negotiations that led to significant reductions in the original climate requirements for Swedish forestry. The revised proposal now calls for Sweden to increase its annual carbon sink by four million tonnes of carbon dioxide, down from the previous requirement of 13 million tonnes. The new law on national emission targets for all EU members is also set to be adopted this week, with regulations on the distribution and division of responsibilities between member states remaining a central pillar of the European climate goals.
The Swedish Energy Agency (Sw. Energimyndigheten) has released its long-term scenarios for the Swedish energy system every two years, with a focus on a strong electrification of society in this year's report. The scenarios show a decrease in the use of fossil fuels by 70-77% between 2020-2050, with all scenarios indicating that there are many factors that may influence the outcome, such as the development of the industry. The production of hydrogen through electrolysis contributes to the greatly increased electricity use. The report highlights the need for all fossil-free power types to meet the increased demand for electricity, and for promoting flexible and resource-efficient use of electricity. The Swedish Energy Agency emphasises the importance of having a holistic perspective to carry out the transition with continued competitiveness, ecological sustainability and secure energy supply.
Fincantieri, Europe's largest shipbuilder, is shifting from the oil industry to wind farms, aiming to double the revenue of its offshore business Fincantieri's Vard in the next five years. Pierroberto Folgiero, Fincantieri's CEO, stated that Vard in Norway could potentially have revenues of up to EUR 1.7 billion by 2027, up from EUR 700 million last year.
German carmaker Volkswagen has revealed plans to build its first North American battery plant in St Thomas, Ontario. The decision came after it put on hold a planned battery plant in eastern Europe, as it waited for the European Union to respond to Washington's $369bn package of subsidies in the Inflation Reduction Act. VW had estimated it could receive up to €10bn ($11.6bn) in US incentives. Batteries produced at the Canadian factory will supply VW’s $2bn electric vehicle plant in South Carolina, which it announced two weeks ago. VW has already committed to having 240 gigawatt hours of battery production capacity in Europe by 2030.
The Nordic countries are some of the most dynamic and successful economies in the world. They are also leaders in sustainability, from renewable energy, biofuels, carbon capture and storage and the hydrogen economy, circular economy business models and battery development, the Nordics are pioneers in policy design, technology development and consumer uptake. Mundus Nordic Green News is covering this transition for the international community. Every day we curate the stories of most relevance to international businesspeople and policy experts from the flow of news. Mundus Nordic Green Indices summarise the meta-data from our daily coverage to enable easy tracking of trends. We supplement these with our own opinion pieces and commentary.