Mundus Nordic Green News – 10 March, 2021

Danish government reluctant to impose a carbon tax

As Mundus Nordic Green News reported on March 4, Denmark’s government is struggling to develop appropriate policies to meet its own climate targets. According to environmental economists the cheapest way to reach the target of a 70% reduction in GHG by 2030 is by introducing a tax of 1200 kroner per tonne. And Denmark’s Climate Council has previously proposed a tax of 1500 kroner, and a majority in the Folketing is pushing for the tax to be increased from the few hundred kroner it is at today.

 

But the government fears that a a uniform CO2 tax will cost Danish jobs. It says that a general tax will affect agriculture, which will lose up to 15,000 jobs, as well as the food industry, which could lose up to 4,000. That worries Finance Minister Nicolai Wammen (S), who said “Agriculture is part of the solution to achieve our climate goals and must make its important contribution. We must do it wisely and ensure that we maintain production and jobs in Denmark. We must not just move emissions and jobs to other countries.”

 

EU taxonomy proposal comes in for heavy fire from Swedish politicians

Sweden is up in arms with concerns that the European Commission's proposal on criteria for green investments will disadvantage Swedish forestry, bioenergy and hydropower. In December, the Ministry of Finance wrote in a memorandum that the proposal would mean that "the absolute majority of existing Swedish forestry could not be classified as sustainable according to the taxonomy"

 

"There are serious shortcomings in the European Commission's proposal," writes the Minister of Financial Markets, Åsa Lindhagen (MP). And in the past week, Prime Minister Stefan Löfven (S) has had meetings with the President of the European Commission, Ursula von der Leyen, and the Vice-President of the European Commission, Frans Timmermans, who is responsible for climate and green change.

 

The design of the taxonomy will be important for fund managers and other investors willingness to invest in Swedish forestry and bioenergy. Investments in, for example, facilities for biofuels from forest raw materials can have worse loan terms and interest rates if they are not classified as sustainable. Lindhagen further commented that "Taxonomy must not risk becoming counterproductive in its quest to achieve climate neutrality and phase out fossil fuels."

 

Moderate leader Ulf Kristersson accused the government of inaction, demanding that Löfven “hit the table” on forest, bioenergy and hydropower in his meeting with Timmermans.

 

Södra forms new Innovation business area

Södra, one of Sweden’s largest forestry companies, has established a new business division, called Innovation, to enable a stronger focus on new profitable business, at the same time as existing business areas gain more power to develop their businesses. The new business area will lead Södra's work with commercialization and business development, including promoting innovation in growth investments, developing Södra's subsidiaries and building new partnerships.

 

The development of Silva Green Fuel and Sunpine - two of Södra's major investments in biofuels - will, for example, be within the business area. This also applies to Södra Building Systems. According to Gustavsson, “We will take a larger position in the bioeconomy with the help of a developed innovation work and more partnerships. We will commercialize more products with clear market potential, such as wood construction solutions and biorefinery products.”

 

Circular economy could create 20,000 Norwegian jobs

According to SINTEF, a Norwegian research organization, a move to a circular economy would create 2.5% more jobs. If we double the lifespan of personal electronics, it can create approximately 12,000 extra jobs in Norway, says Susie Jahren from SINTEF, talking about new repair jobs and maybe more leasing services. Recently, SINTEF researchers and partners Skift, WWF, and Deloitte launched ten principles for a more circular business life. Now they want broad support among Norwegian companies.

 

Azelio to issue new shares

Azelio AB has announced that it intends to carry out a new issue of shares, directed at Swedish and international institutional investors. The company has hired Carnegie Investment Bank, Pareto Securities AB and Bryan, Garnier & Co as Bookrunners. The purpose is to finance the continued industrialization of Azelio's technology for thermal energy storage and Stirling-based electricity production, with the aim of starting series production during the third quarter of 2021.

 

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