Mundus Nordic Green News – 11 March, 2021

Sweden begins full frontal assault of EU taxonomy proposal

As we reported yesterday, criticism of the Commission’s taxonomy proposal, which had been building steadily has crystalised. After high-level engagement didnt succeed, Sweden’s government has now begun an all-out defense of its interests. The underlying argument is that proposals that might make sense in Brussels make little sense in Sweden, undermining environmental management practices that Sweden has developed.  

In developments today, Sweden’s Energy Minister, Anders Ygeman, demanded via a letter signed by 9 other EU member states that the European Commission proposal be revised to incentivise investments in bioenergy, hydropower and other renewable energy (Slovenia, Finland, Lithuania, Estonia, Slovakia, Hungary, Poland, Latvia and the Czech Republic were also signatories). This is the second letter from Ygeman to the Commission. Last year, Ygeman and Norway's Minister of Petroleum and Energy Tina Bru sent a letter about the criteria in the taxonomy that affect hydropower.

The Government’s position was underlined by communications from Svante Axelsson, Coordinator for Fossil Free Sweden, who wrote that Commission's proposal for taxonomy for sustainable investments risks slowing down large parts of Swedish climate work. Axelsson continues that “the draft produced by the European Commission runs counter to previous directives regarding the view of biofuels and sets up obstacles that will make it more difficult for Sweden to live up to its climate goals, not least in the transport sector. The main problems highlighted in the article are:

1. By not looking at the life cycle perspective but only what comes out through the exhaust pipe during passenger transport, biofuels will not be classified as renewable regardless of whether production is sustainable or not.
2. In order for forestry to be classified as sustainable, it must be possible to show "additionality", ie that new measures for increased sustainability are implemented. Although it is of course good to reward development, this means that it will be more difficult for forestry that has already implemented measures to be classified as sustainable. Those who run first thus get a disadvantage, which gives incorrect incentives at a time when the changeover should go faster.
3. In taxonomy, no fuel production from feed or food crops is considered sustainable, which affects Swedish ethanol production, despite the fact that it does not compete with food production as we in Sweden have a surplus of arable land.

Then, in a debate article in Sweden’s leading business daily, Dagens Industri, he puts the point even more strongly. “It is incomprehensible that the European Commission chooses to present a proposal that hinders instead of accelerates the Swedish industry's opportunities to implement the roadmaps for fossil-free competitiveness that have been developed within the framework of Fossil Free Sweden.”

”With the help of biofuels, local and regional bus traffic already run with 90% renewable today. Many other companies, municipalities and regions have signed up to Fossil-Free Sweden's challenge to completely switch to fossil-free transport before 2030. Although the transport will largely be electrified, it will not be possible to achieve the goals by 2030 without biofuels … [And] several companies are in the process of making large investments in, among other things, biorefineries - investments that are threatened if they are no longer considered sustainable.”

[Editor: Our view is that these criticisms are valid. The point about a life-cycle perspective for emissions exposes an existing Brussels definition about whether it is relevant to measure the net CO2 emissions over a life cycle, or only once the fuel is burnt. Under this logic, 100% sustainable biofuels are regarded as giving the same climate damage as petrol or diesel because both produce CO2 when consumed.

It would appear that Sweden is up for the fight for a number of reasons. Firstly, it believes strongly in its position. Secondly, the current proposal damages the interests of a wide range of stakeholders. Thirdly, without biofuels, Sweden has very limited chance to meet its own climate targets.

However, it should be noted that Greenpeace does not support the Swedish government position.]

(Government press release, Fossil Free Sweden, Dagens Industri, Dagens Industri)

New Danish green party forms out of frustration at government cold feet

Theresa Scavenius, a defector from The Alternative is to form another green party, Momentum. According to Poliken, there are now 4 green-oriented parties in Denmark , which have been established in the last eight years: Alternativet (2013) and Frie Grønne (2020), which are both represented in the Folketing, Veganpartiet (2018) has been approved, and now Momentum 2021). And 3 of the Government support parties Enhedslisten, SF and Radikale, all have green core issues. Politiken's debate editor argues that this is basically due to the government hesitating in its climate policies. (Politiken)

Aker Clean Hydrogen drops like a stone on first day of listing

Aker Clean Hydrogen announced on Monday that it had raised a total of NOK 3.45 billion through a private capital raising, at NOK 16 per share. On Thursday, the company was listed on Euronext Growth on the Oslo Stock Exchange. The share was the most traded, and fell 15.5% from the subscription price, closing at NOK 13.52. (Dagens Naeringsliv)

Azelio completes direct share issue of SEK 596 million

As reported yesterday, Azelio is raising funds to finance the continued industrialization of its technology. The placement was successful. (press release)

Danish artificial island criticised

Skåne officials and Danish environmental activists oppose the creation of a new artificial island in Copenhagen on the grounds of altered ocean currents that could worsen the health of the Öresund waters, which would struggle to flush out polluted water from the Baltic Sea. (Bloomberg). 

Pyrocell factory has arrived in Sweden

Timber company, Setra and the fuel company, Preem are collaborating on the production of fossil-free pyrolysis oil from sawdust through the jointly owned company, Pyrocell. Pyrolysis is a process in which a substance is quickly heated to a high temperature so that the solid material evaporates and can be condensed into a liquid. Through pyrolysis, residual products from the forest such as branches, roots, tops and sawdust can be converted into an oil that can then be refined into biofuels.

Pyrocell's new factory has arrived in Gävle, in the form of about 30 modules manufactured in the Netherlands. Once assembled over the summer, the plant will produce around 25,000 tonnes of pyrolysis oil, corresponding to the annual fuel consumption of 15,000 passenger cars. (Woodnet)

What we’re reading

• Car groups throw spanner in works of EU’s hydrogen drive (FT, paywall)
• The new energy giants are renewable companies (Bloomberg)