Nordic Green News – 14 September, 2020

Swedish government announces major sustainability funding

The Deputy Prime Minister, Isabella Lövin, and Financial Markets Minister, Per Bolund, who are also dual party spokespersons for Sweden’s Green Party, gave a press conference this morning at which they announced a number of “game changing initiatives” and other policy support mechanisms. The measures were announced as details in the lead up to the budget, next Monday. Their total cost was estimated to be almost SEK 20 billion over 3 years, with SEK 9 billion spent in 2021, falling to SEK 3 billion in 2023. Around half of the total will go to climate smart travel, 20% will go to nature and 15% energy efficiency.

 

In addition to the green benefits, the spending was presented as part of the solution to jobs and economic growth following the corona pandemic. Given the large number of individual initiatives announced, Nordic Green News will provide further details on these during the rest of the week.

 

SEK 50bn of credit guarantees to kick start biofuels and other innovation

The ministers also presented a plan to underwrite SEK 50 billion of green credit guarantees over the next three years, a measure first announced in June. The additional support is hoped to stimulate large scale investment in the green transition by Swedish industry. Per Bolund (MP), the Minister for Financial Markets and Housing, commented that the initiative, similar to an insurance, offers businesses opportunities to seek competitive and innovative solutions “as the entire world attempts to reach the goals set in the Paris Agreement […] A fantastic global export market is in the waiting if Sweden is at the forefront [of sector developments].” However, the announcement stated that companies with projects must pay a commercial rate for the guarantee. As the guarantee is not a loan or grant to projects, it has no cash impact in the budget, and its benefits are in addition to the spending announced above.

 

Danish Future Fund to support up to 27,500 green jobs

The Danish Government and its support parties have agreed on the framework for the establishment of Denmark's Green Future Fund, with DKK 25 billion (EUR 3 billion) of funding. According to the Finance Ministry, previous experience with investment projects shows that the Future Fund can become a lever for private financing of up to DKK 85 billion (EUR 11 billion), thereby generating up to DKK 110 billion DKK (EUR 15 billion) for green companies and projects. It is estimated that the fund may support 27,500 green jobs, the press release states. The Green Future Fund will deploy through existing schemes, EKF Danmarks Eksportkredit will be strengthened by DKK 14 billion. DKK, Denmark's Green Investment Fund (DGIF) by DKK 6 billion, the Growth Fund by DKK 4 billion, and the Investment Fund for Developing Countries (IFU) by DKK 1 billion.

 

Remeo to build advanced recycling plant in Vantaa

Remeo Oy is implementing a recycling plant in Vantaa, near Helsinki. The estimated cost of the project is approximately EUR 35 million. Construction of the plant began in May 2020 with earthworks, and the plant will start up in late 2021. The plant's future annual treatment capacity is 120,000 tons of construction waste and 60,000 tons of energy waste generated by trade and industry. The plant will use new learning technology instead of mechanical material handling, which will allow a significantly larger part of the material processed to be re-used. 

 

According to Remeo, the plant will make it possible to increase the recycling rate in Finland, virtually eliminating the need to export construction waste abroad. Johan Mild, CEO of Remeo Oy said, “The recycling plant under construction in Vantaa is the largest project in our company's history, and with it we aim to become even more firmly a pioneer in the Finnish circular economy. The circular economy requires action instead of speech, and for this reason we have not been waiting for possible social support systems, but we have boldly set out to invest in this project, which is important for our customers and society as a whole. We believe that economics and ecology go hand in hand”.

 

Varma outlines news sustainable development equity portfolio 

Finnish pension company, Varma is building a new equity portfolio, with responsible investment targets, so that the portfolio better meets the climate goals of Varma's investment activities and promotes the selected UN sustainable development goals. The chosen themes are combating climate change and responsible consumption. The long-term target size of the portfolio is EUR 500-1,000 million, as a step towards Varma plans to to make its entire EUR 45 billion investment portfolio carbon-neutral by 2035

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