Eco-innovationinSweden

EIOCountryProfile

2014-2015

Eco-InnovationObservatory

TheEco-InnovationObservatoryfunctionsasaplatformforthestructuredcollectionandanalysis

ofanextensiverangeofeco-innovationinformation,gatheredfromacrosstheEuropeanUnionandkeyeconomic regionsaround theglobe,providingamuch-needed integrated informationsourceoneco-innovationforcompaniesandinnovationserviceproviders,aswellasprovidingasoliddecision-makingbasisforpolicydevelopment.

TheObservatoryapproacheseco-innovationasapersuasivephenomenonpresentinalleconomicsectorsandthereforerelevantforalltypesofinnovation,definingeco-innovationas:

“Eco-innovation isany innovationthatreducestheuseofnaturalresourcesanddecreasesthereleaseofharmfulsubstancesacrossthewholelife-cycle”.

Tofindoutmore,visitwww.eco-innovation.euandec.europa.eu/environment/ecoap

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanCommission.

Eco-InnovationObservatoryCountryProfile2014-2015:Sweden

Author:TommyJansson

Coordinatoroftheworkpackage:TechnopolisGroupBelgium

Acknowledgments

ThedocumenthasbeenpreparedwiththekindsupportofMsGunillaBlomqvistEnvironmentalObjectives Division, Ministry of the Environment, Sweden), Ms Anna Carin Thomér(Environmental Objectives Division, Ministry of the Environment, Sweden), Ulf E Andersson(Swedish Environmental Protection Agency), Ms Annika Holmberg (Innovation and ResearchDivision,MinistryofEnterpriseandInnovation,Sweden)andMsUlrikaStavlöv(Fores–ForumforReforms,EntrepreneurshipandSustainability,Sweden).

AnotetoReaders

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanUnion.Anumberofcompaniesarepresentedasillustrativeexamplesofeco-innovationinthisreport.TheEIOdoesnotendorsethesecompaniesandisnotanexhaustivesourceofinformationoninnovationatthecompanylevel.

This brief is available for downloaded fromhttps://ec.europa.eu/environment/ecoap/sweden

Tableofcontents

Summary....................................................................................................................1

Introduction................................................................................................................2

1 |Eco-innovationperformance.....................................................................4

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends.......8

3 |Barriersanddriverstocirculareconomyandeco-innovationinSweden..13

4 |Policylandscape:towardscirculareconomyinSweden............................15

ANNEX: Policy measures addressing circular economy and eco-innovations inSweden ...................................................................................................................27

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Summary

Sweden ranks fifth in the EU-28 Eco-Innovation Scoreboard (Eco-IS) 2015, behind Denmark,Finland, Ireland and Germany. Two years ago, in the 2013 Scoreboard, Sweden was rankednumberone.Swedendoesnotmanageto translate itshigheco-innovationoutput intohigherresourceefficiencyandsocioeconomicoutcomes. In resourceefficiency,Swedennowranks in12thplace.Insocioeconomicoutcomes,Swedenisdownfrom7thin2013to13thplacein2015.

Eco-innovationisakeycomponentinSweden’snationalenvironmentalpolicystrategyandispartofthelong-termnationalobjectiveforgreenstructuralchange.Swedencontinuestoexpanditseconomywithoutcompromisingonenvironmentalissuesandhasmanagedtominimiseandofteneradicateanynegativeimpactof industrialandsocioeconomicgrowth.Anambitiousandlong-termgenerationalgoalisthebasisforthestrategy,andalthoughmostofthe16environmentalobjectivessetwillnotbemetby2020thedevelopmentisseentobeheadinginagooddirection.Emissionsofcarbondioxide(CO2)havebeendeclininginSwedenformanyyearsduetohigheruseofgreentechnologies.SwedenistheEU-28leaderinrenewableenergyingrossfinalenergyuse in 2014, with a share of 52.6%. The strong push towards the development andimplementationofgreentechnologiesenabledSwedentobecomethefirstcountryinEuropetomeet the renewableenergy targets setby theEuropeanUnion for2020,eightyearsaheadofschedule.

Sweden has promoted and implemented policies that have encouraged research anddevelopment(R&D)inwaterpurification,sanitation,sewageandwastewatertreatment,wastemanagement andwaste-to-energy, production of biofuels, aswell as renewable fuels for thetransportsectorandrenewableenergyfromwind,biomassandsolarpower.Newgrowthareasarecleanindustrialproductiontoprotectandpreservetheenvironment,anderadicatethewasteofvitalmaterialandhumanresources.

Theminoritycoalitiongovernment(SocialDemocraticPartyandtheGreenParty)thatcameintoofficeinOctober2014,followingthegeneralelectionsthemonthbefore,hasnotchangedthenationalstrategyorpoliciesinthisarea.Theevaluationofthe2011-2014nationalenvironmentaltechnologystrategyconcludedthatthemeasurestakenwithinthestrategycouldbeconsideredto contribute, to some extent, to achieving the strategy goals. Doubtswere raised, however,concerning theunderlyingprogramme theory, as itwasnot clearhow themeasures couldbeexpectedtoleadtothedesiredeffects.Thenationalenvironmentaltechnologystrategywasnotreplacedbyanew,conclusivestrategy.Instead,itisfollowedbyanumberofstrategies,derivedfrom the results of the strategy. These are identified as the strategy for smart industries, thestrategyforkeyenablingtechnologiesandtheexportstrategy.Otherimportantpoliciesthathaveemergedintheareaofeco-innovationandcirculareconomyaretheclimateleap,thefossil-freefuelinitiativeandtheTeamSwedeninitiative.

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Introduction

Environmental awareness, early environmental regulation and an innovative and industrioussocietyhavemadeSwedenoneofthegloballeadersinthecleantechsector.Inthe2014WorldWildlifeFundCleantechInnovationIndex,Swedenisgloballyrankednumberfour.

The Swedish Parliament adopted a generational goal: to have environment policy guideenvironmentalactionateverylevelofsociety.Theobjectiveistopassontothenextgenerationa society in which the major environmental problems have been solved, without causingenvironmentalandhealthproblemsbeyondSweden'sborders.Thismeansreducingpressuresontheenvironmentby2020(forclimatechangeby2050)tolevelsthataresustainableinthelongrun.Toattainthegenerationgoal,nationalEnvironmentalQualityObjectives(EQOs)havebeenformulated for 16 areas (Ministry of Environment). The objectives are related to climate, airquality,acidification,forest,wetlands,oceansandcoasts,lakes,mountains,urbanenvironment,agriculture,toxicsubstances,radiation,ozone,groundwaterandbiodiversity.

The environmental objectives system provides a central, common platform for key players inSweden’senvironmentaleffortsandisaimedatmakingitpossibletopursueenvironmentalissuesdynamically, and specify what needs to be done, as well as to raise awareness andmonitorprogress.Legislationandeconomicinstrumentscangohandinhandwithvoluntaryagreementsanddialoguebetweengovernmentandindustry.Thetargetsaremonitoredbythepublicagencyresponsible for each target, and reported jointly annually by the Swedish EnvironmentalProtectionAgency(EPA).Morethoroughevaluationsoftheenvironmentaltargetsarecarriedouteveryfouryears.The latestandfourthevaluationsincethefirstonein1999waspresentedinOctober2015(EPA,2015a).

However,Swedenisfacingmajorchallengestoachieveboththegenerationalgoalandseveraloftheenvironmentqualityobjectivesby2020.Accordingtothe2015evaluationreport,14of16environmentalobjectiveswillnotbemet.Thereportconcludesthattoachievetheobjectivesitisnecessaryfortheoverallpoliticstotakegreaterresponsibilityandaccountability.Thisrequirescourageous political decisions that favour the development towards the environmentalobjectives.Policyinstrumentsandmeasuresneedtofocustoagreaterextentonprocessesanddrivingforces,inordertoavoidenvironmentalproblemsarising.ThegovernmenthasannouncedthatajointstrategytohandletheenvironmentalobjectiveswillbepresentedinJune2016.

In2009,theSwedishgovernmentadoptedtheclimateandenergybill.Theobjectiveis,by2020,toreducegreenhousegas(GHG)emissionby40%,increasetheshareofrenewableenergysourcesto50%(10%inthetransportsector)andachieve20%moreefficientuseofenergycomparedto2008. The policy also envisages that by 2030 Sweden should have a vehicle stock that isindependentoffossilfuelsandbeacarbon-neutraleconomyby2050.

The latest figures show that the greenhouse gas emissions in Sweden in 2014 were about54.4milliontonnesofCO2equivalent,adecreaseof3%from2013.Since1990,thereisatrendofreducingGHGemissionsinSweden;2014emissionswere24%lowerthanin1990.Mostsectorshave contributed to the decrease, particularly the building sector, landfills and industry. Thereductionisduetoachangefromoil-firedboilerstoelectricityanddistrictheating,landfillbansandemission reductions in industry. In2014,emissions fromtheproductionofelectricityand

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district heat decreased the most, mainly due to it being an exceptionally warm year, whichreducedtheneedforheating.

A third of national greenhouse gas emissions come from domestic transport, in particularemissionsfrompassengercarsandheavyvehicles.Emissionsfrompassengercarswere17%lowerby2014thanin1990,whereasemissionsfromheavy-dutyvehicleswere15%higherin2014thanin1990.Emissiontrendsforheavy-dutyvehiclesfollowthetransportmileage,thatis,howmuchandhowfarthegoodsaretransported.Asroadtransport isthesingle largestsourcecategorycontributingtothetotalnationalGHGemissionsinSweden,akeyfuturechallengeistoincreasethe effectiveness in this sector. Smarter transportation, electrification and bio-fuels are keyelementsinthisdevelopment.Swedenhasalreadylargelyphasedoutfossilfuelsfromelectricitygenerationandtheheatingsector,sothetransportsectoristhelargestremainingchallenge;80%offuelsused inthetransportsectorarestill fossil fuels.TheSwedishgovernmentappointedaspecial commission to investigate andproposeactionsonhow the vision tohavea fossil fuelindependent vehicle fleet by 2030 can be realised in an effective manner. The report wasdeliveredtothegovernmentinDecember2013,andhasnowgivenrisetoanumberofinitiativesincludedinthe2016Governmentbudgetbill.TheSwedishEnergyAgencyhasbeengiventheroletocoordinatetheworktowardsafossil-freevehiclefleet.

TheurbanisationtrendisnotuniquetoSweden,althoughStockholmisexpectedtobeoneofthefastestgrowingcitiesby2030(StockholmChamberofCommerce).Thiswillputpressuretomeetsustainableandenvironmentalobjectives.For instanceStockholm’sambitiousgoal tobecomefossilfuelfreeby2050willrequirestrongpolicyactionintheheatingandtransportsectorstoavoidthelong-termlock-inofhighcarboninfrastructure,systemsandtechnology.

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1 |Eco-innovationperformance

TheanalysisinthissectionisbasedontheEU-28Eco-innovationscoreboard(Eco-IS)fortheyear2015.ViaitscompositeEco-innovationindex,producedbytheEco-InnovationObservatory(EIO),Eco-ISdemonstratestheeco-innovationperformanceofacountrycomparedwiththeEUaverageandwiththeEUtopperformers.Eco-ISisbasedon16indicators,aggregatedintofivecomponents:eco-innovationinputs,activitiesandoutputs,environmentalandsocio-economicoutcomes.

Figure1EU-28Eco-InnovationScoreboard2015,compositeindex

Source:EIO,2016

Withanoverallscoreof124.5,Swedenisfifthintheranking.Thisisnotablylowerthantheresultsof 2013, when Sweden held first place with 138.3 points. The Nordic countries have beensuccessfulineco-innovationthroughout2010-2015.Theyhaveheldrankingswithinthetopfive,andSwedenhasbeeninthetopthreeduring2011-2013,peakingin2013atfirstplace.Butthescoresfrom2015arepointingatatrendwhereSwedenislosingatleastsomeofitsleadingedge.In2015,Denmark,Finland,IrelandandGermanyhaveallovertakenSweden.

This seems to be somehow a result of a decline of Sweden’s eco-innovation performance,combinedwithan increase inabsolutescores. In firstplace isDenmark,witha scoreof166.5(comparedtoSweden’sleadingscoreof138.3in2013).Runner-upisFinlandwithascoreof140.2,withIrelandinthethirdplaceandGermanyinthefourth.Thelistof28EUMemberStates(EUaverageat100)isillustratedinFigure1.

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Figure2Componentsoftheeco-innovationcompositeindexforSweden,2015

Source:EIO,2016

Figure2illustratesthefivemaincomponentsbehindtheEco-InnovationScoreboardIndex:eco-innovationinputs,activities,andoutputs,andresourceefficiencyandsocioeconomicoutcomes.As the figure shows, Sweden performs above average in three of the five components. Onresource efficiency, Sweden´s performance is around EU average,with a score of 102, and insocioeconomicoutcomes,Sweden’s result isbelowaverageat93. Ineco-innovationactivities,inputsandoutputs,Swedenperformswellaboveaverage.Theresultis,however,overalllowerthantheresultsfrom2013,withthedecreasefocusedprimarilyonSweden’sperformanceineco-innovation inputs.Thisdoesnot sitwellwith thenationalpoliticalambition tocreateagreenstructuralchangeby focusingonsustainablegrowthandeco-innovation.Thisambitionwould,ideally,resultinSwedenkeepingitspositionintheleadinggroupandimprovingitsscoresoverall.

Sweden does not manage to translate the high eco-innovation output into higher resourceefficiencyandsocioeconomicoutcomes.Inresourceefficiency,Swedenhaslostground.During2010-2013,Swedenrankedatbestinfifthplace.In2015,Swedenrankedin12thplace.ThismayinpartbeattributedtothefactthatSwedenhasahighelectricityuse,duetoitsnorthernlocationwith cold winters and electricity-intensive basic industries. For socioeconomic outcomes therecordisnotbetter.Swedenmadeabigleapfroma25thplacein2012to7th in2013,butwasdownto13thplacein2015.In2011,Swedenalsorankedatthebottomofthetablewitha23rdplacewhilein2010itwasranked13th.

Thetrend ineco-innovationactivities shouldbeapproachedwithcautionas twooutof threeindicatorsarebasedondatathatdatesbackto2008.Evenso,itcanbementionedthatfor2015,Swedenkeepsitsfourthplacerankingfrom2013.Thisisonestepdownfrom2012and2011.

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Sweden’soveralleco-innovationinputscoreishigher(index121)thantheEUaverage(100),andthecountryhererankssixthamongthe28EUcountries.Thisissignificantlylowerthanthescorefrom2013(184),whichearnedSwedensecondplace.WhileSwedenislosingposition,thereisarelativeincreaseinscores.Thehighestscorein2015is368(Denmark)andin2013,theleadscorewas220 (Finland).Notably, Swedenhasnot reclaimed itsplace in the top threewhich itheldbetweentheyearsof2010-2013.

Thetotalvalueofgreenearly-stageinvestments istheindicatorthathasthelargesteffectonSweden’s ranking in the area of Eco-innovation inputs. It amounted to US$71million (about€62million)percapitaduring2012-2015,givingSwedenanindexof86,rankingsixth.This isahuge downturn for Sweden as investments amounted to 264 million SEK during 2010-2013.However,itisnotedthatthesenumbersmaybedeceptive.Swedenhasalotofcompanieswhosemainactivitiesareinthefieldofenvironmentaltechnology,butwhicharenotpresentedassuch.Thereisariskthatthesecompaniesaremissinginthestatistics.

In2014,Swedenhad5.1%(EUaverage3.7%)ingovernmentenvironmentalandenergyresearchanddevelopment (R&D)appropriations andoutlays (as a shareofGDP), enough to take thecountrytoasharedsixthplacealongwithFranceforthe2015scoreboard.In2013,Swedensharedfirst place with Finland, with 7.9% (EU average 4.3%). The reason why Sweden seems tounderperformrecentlymayhavetodowiththefactthatthegrossdomesticexpenditureonR&Dwentfrom3.25%to3.3%in2011-2013,butto3.16%inthemostrecentnumbers.TheSwedishtarget for 2020, however, is 4%, which shows that there is a political will for improvement(Eurostat1,2016).

ThetotalR&Dpersonnelandresearchersasapercentageoftotallabourforcewas1.75%in2014,whiletheEUaveragewaslower,at1.26%.ThisgivesSwedenanindexof139andfourthplaceintheranking.

Eco-innovationactivities

Thedataandtrendsofthisindicatorhavetobelookedatwithcautionastwoofthethreesub-indicatorsdatebackto2008.Sweden’soverallindicatorintheareaofeco-innovationactivitiesishigher(index154)comparedtotheEUaverage(100),andalsohigherthantheindexfrom2013.Still,Sweden is still in fourthplace,behindtheCzechRepublic (index181),Portugal (167)andGermany (index 162). Sweden is above average in firms having implemented innovationactivitiesaimingatareductionofmaterialinputperunitoutput(index133).

The figures are slightly higher (index 143) in terms of firms having implemented innovationactivities aiming at a reduction of energy input per unit output. Asmentioned above, bothindicatorsarebasedon2008data,sonochangeshavebeenrecordedsincethen.

Sweden reports 413.69 companies and organisations certified according to ISO 14001 permillion population. The current index (185) is enough for a fourth place, behind the CzechRepublicandRomaniaatindex206andItalyatindex200.OnemustalsorememberthatSwedenispartoftheNordicEcolabel,whichbesidesproductsalsoeco-certifiesservicesincludinghotels,restaurantsandcleaningservices.

Eco-innovationoutputs

Eco-innovation outputs are calculated on the number of pollution-abatement patents, wastemanagementpatents,patentsinenergyefficiencyinbuildingsandlighting(orjusteco-patents),aswellaseco-innovation-relatedacademicpublicationsandmediacoverage.Swedenranksthird(index160)behindLuxembourgatindex205andFinlandatindex190.ThismeansthatSwedenis

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one position down from the 2013 scoreboard, ranking fourth in the area of eco-innovationoutputs.

Intermsofthenumberofeco-innovationpatentsbymillionpopulation,Sweden’slevelof31.65in 2012 was close to twice as high (index 170) as the EU average (18.59), and a substantialimprovementfrom2010,whentherewere16.84eco-patentspermillionpeople.Swedenisonlysurpassed by Germany and France (both 42.83 patents/million inhabitants, index 230) andDenmark(36.37patents/million)inthe2015scoreboard.

Swedenisinthirdplaceintermsofthenumberofeco-innovation-relatedpublications(43.65permillionpopulation)in2014.

Surprisingly, Sweden has a relatively low score (index 39) in terms of eco-innovation-relatedmediacoverage(pernumberofelectronicmedia)in2015.Althoughalowscoreineco-innovationrelatedmediacoverageissomethingthatallthreeNordicmembercountrieshaveincommon.Atthe same time, all Nordic member countries also are among the top four in eco-innovationoutputsrankingoverall(Finlandinsecondplace,DenmarkinfourthandSwedeninthird).

Resourceefficiencyoutcomes

Sweden’s overall indicator in the areaof resource efficiencyoutcomes shows a trendof slowdecline.The2015indexis102,downfrom104inthe2013scoreboard,108inthe2011scoreboardandfrom122inthe2010scoreboard.

Materialproductivity(GDP/DomesticMaterialConsumption), illustratestheGDPgeneratedbymaterialconsumptionofacountry.For2013,Sweden’swas1.44EUR/kg,whichgivesSwedenanindexof75 in the2015 scoreboard. This is below theEUaverage (1.93EUR/kg). Thismaybeattributed to the relativelyhigh consumptionofmetals in its overall compositionof domesticmaterialconsumption(Eurostat,2015).ItisalsointerestingtonotethatallthreeNordicmemberstatesarebelowtheEUaverageinthisindicator.

Withan indexof129 inwaterproductivity, calculatedasGDP relative towater footprintandmeasuredinEUR/m3,SwedenranksfifthbehindtheNetherlands(index132),Luxembourg(index137)andIrelandandtheUnitedKingdom(bothatindex140).Itshouldbenotedthatthisindicatorisbasedondatafortheperiod1996-2005.

ForEnergyproductivity,calculatedasGDPrelativetodomesticenergyusemeasuredintonnesofoilequivalent(EUR/toe),theresultfrom2013was6.66,whichputsSwedenatashared22ndplace.ThelowrankingmaybearesultoftheNordicclimate,withcold,darkwinters,whichcreatesanaturallyhighusageofelectricity.

In termsofGHGemissions intensity of thewholeeconomy, the results from2013 show thatSweden,togetherwithFrance,hasthelowestGHGemissionsintensity(calculatedasGHGrelativetoGDP)at0.27kgofCO2equivalentpereuroofGDP(slightlyupfrom0.23kgin2009);theEUaverageis0.35kgofCO2equivalent/EUR(comparedto0.39kgin2009).About97%ofSweden’selectricityproductionconsistsofelectricitywithlowCO2emissions;Swedenstillusesninenuclearreactorstogenerateelectricpower,andtheshareofrenewableenergyingrossfinalenergyusein2014was52.6%,whichmakesSwedentheEU-28leaderinrenewableenergy(Eurostat2,2016).

Sweden’semissionsofgreenhousegasesareamongthelowestintheOECDcountriesonapercapitabasis,andthisistheresultofanefficientuseofresourcesandsuccessfulwaste,waterandsewagetreatment,ahighpercentageofrenewableenergy,andincreasingenergyefficiency.Thisis also reflected in Sweden’s core competencies in eco-innovation technology areas (waste

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management,water and sewage treatment, renewable energy, air purification and increasingenergyefficiency).

Socioeconomicoutcomes

Thesocioeconomicoutcomesindicatorisbasedondataontheperformanceof‘eco-industries’,including exports, employment and turnover. It should be noted that the indicator foremployment in eco-industries and revenue from eco-industries does not include data fromrenewableenergycompanies.ThesekindsofcompaniesconstitutealargepartofSweden’seco-industry,with171companiesspecialising inrenewableenergytechnology(SwedishCleantech,2016).Sweden’soverallperformanceinthesocioeconomicoutcomesindicatorranks13th(index93),whichisdownfrom7thplaceinthe2013scoreboard(withindex104).Therecentresultisstillabigimprovementfromthe25thplaceinthe2012EIOscoreboard.

Theshareofexportsofproductsfromeco-industries(asapercentageoftotalexports)in2014,60% with an index of 89, is below EU average, down from index 102 in 2010. This may beattributed to the fact that emerging Swedish eco-innovation falls short on translating R&D tocommercial products (Global Cleantech index 2014). This is an acknowledged and complexproblemfortheSwedisheco-innovationcontext.Onesuggestedexplanationforthisisalackofdriving forces fromacademia tocontribute to thedevelopmentofproducts.According toonewidely held opinion, the commercialisation of products is furthermore made difficult by theSwedish eco-innovation context not paying enough attention to the small andmedium-sizedinnovators. According to this view, the innovative system in Sweden favours the larger-sizedinnovators, and tends to put smaller and less streamlined innovators at a disadvantage.Employmentineco-industriesalsofallsshortoftheEUaverage,withanindexof93.

In terms of turnover (revenue) in eco-industries Sweden achieves an index of 97,which is anotabledeteriorationfromthe130indexinthepreviousscoreboardof2013.However,itisstillfarbetterthantheindexfromthe2010scoreboard,whichwas40.

TheseindicatorssuggestthattheSwedisheco-industrysectorislosingmarketsharesanddoesnotmakeproper use of its export potential. In addition, eco-industries arematuring in othermarkets,which is likely tohaveanadverse impactonSweden´sperformancecompared to itscompetitors. Swedish eco-industry is lagging behind in terms of export of eco-innovationproducts, and Swedenhas beenovertakenby 10 European countries and is now close to theaverageEU-28level.Thisisamajordifferencecomparedto2004,whenSweden´sperformancewas(at0.47%oftotalnationalexports)muchhigherthantheEUaverageandoutrankedonlybyGermany.The lowshareofeco-industryemploymentcouldwellbe linkedtothe fact that theindicatordoesnot include renewableenergycompanies,which isa fieldwhereSwedenhasarelativelystrongposition.

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends

A study from 2014 by the Swedish Agency for Growth Policy Analysis benchmarked themanufacturing sector of Swedenwith other countries (Growth Analysis: 2014:1). The highestperformingsectorsintermsofthegreeninnovationindexandcomparativeadvantagearemotor

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vehicles, special-purpose machinery and furniture with 26%, 5% and 2% shares of greeninventions,respectively,farabovetheworldaverageinthesesectors.Thesesectorsalsoperformwell incomparativeadvantageterms.Theyareclearstrengths ingreencompetitivenesstermsand are well positioned to prosper in the future green economy. The non-metallic mineralproductssectoralsohasremarkableperformanceintermsofgreeninnovationactivity,butdoesnotcurrentlyenjoyacomparativeadvantage.Thissectorpresentsaclearopportunitytomaintainandexpandmarketshareinthefuturethroughgreening.Partsandaccessoriesformotorvehiclesand structural metal products, tanks, reservoirs and steam generators, are lagging behindcompetitorcountries.However,theyhavehighgreenpatentingactivityoverall(7%and8%greenpatents,respectively),whichmeanstheyareprobablynotatrisk.Severalsectorsthatfallintothe‘threats’ quadrant in the analysis: telecommunication, paper and paper products, general-purpose machinery, and other chemical products. These sectors have a strong comparativeadvantage–inparticularpaperandpaperproducts–butaregreeningrelativelyslowlyandmaythereforerisklosingthisadvantage.Insomecases,relativelylowerR&Dinvestmentratescanbeseenasfurtherindicationofpossiblerisksahead.

The Swedish eco-tech industry has developed a strong position inwaste management andprocessing technologies, including reuse and recycling,waste water purification, biogas andotherrenewableenergysources,indoorairquality(energy-savingventilationandairfiltration),heatingandcoolingtechnologies(districtheating/coolingandheatpumps),powertransmissionandtheautomationoftechnicalsystemsinbuildings.ThebenchmarkingstudybytheSwedishAgencyforGrowthPolicyAnalysismentionedaboveshowedthefollowingsectorsareconsideredtobeSweden’sstrengths:

- Renewableenergysources,inparticularbioenergy

- Sustainableconstruction,sustainabletransportandurbanplanning

- Environmental protection technologies (water treatment, waste management,purificationofindustrialemissions)

- Integrated system solutions to complex environmental problems, where differenttechnicalsystems,organisationsandcapabilitiesneedtobecoordinated.

Interviewsandconsultationscarriedoutaspartofthisassignmentconfirmsthatthispictureisstillvalid.

In theenvironment sector,wastemanagement and renewable sourcesof energy are the twoareaswheremostpeopleareemployed.Basedonexportvalue,however,itisrenewablesourcesof energy and recycled materials that account for the highest proportions. Measured in thenumber of companies, sustainable agriculture and fishing are the largest,with approximately3,500companies,andrenewablesourcesofenergywithjustover2,000companies.

Sweden has seen a steadily growing number of implemented eco-tech systems and productsbasedonkeyenablingtechnologies(KETs)appliedindifferenttraditionaleco-techsegments.AstudybytheSwedishEnvironmentalProtectionAgency,(EPA2015b)underlinesthis,statingthatsectors previously defined as state-of-the-art (SoA) technologies such as information andcommunication technology (ICT), biotechnology, space technology and nanotechnology canprovidethebasis forsolutions inmanysectorsand forvarious typesofapplications, includingSwedishenvironmentaltechnologies.Inmanycasesgenerictechnologiesfromthesesectorscancontributetoachievingtheenvironmentqualitygoalsandthe‘generationalgoal’(seeSection3).Fourofthe16environmentalobjectiveswereidentifiedasbeingmostrelevanttotheselected

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SoAtechnologies;agoodbuiltenvironment,reducedclimateimpact,anon-toxicenvironment,andzeroeutrophication.ThesefourgoalsrepresentanumberofpotentialapplicationsfortheidentifiedSoAtechnologies.Thisreportisconsideredimportantforfurtherpolicydevelopmentinthearea.

Another area with a growing number of applications are integrated systems solutions, withsystemsrangingfromsmartgridsforelectricitydistribution,reuseofwasteheat,andsystemssolutionsinthewastewaterandorganicsolidwaste,resultinginsystemsfortheproductionandutilisationofbiogas.OneSwedishcompanymadeittothe2015GlobalCleantech100list:OrbitalSystems,developingawaterrecyclingtechnologytobeusedindomesticappliances(CleantechGroup,2016).

Start-ups are important in an innovative society and the types of SMEs emerging can be anindicator of trends as they often depend in finance from organisations or people who areinterestedininvestinginaparticularbusinesssector.NordicGreen.netisanInternetserviceandnewswebsitecoveringcleantechstart-ups,innovatorsandinvestorsintheNordic,theBalticandtheArcticregions.Itaimsathelpingenvironmentallyactivecompaniesgrow,coveringsustainableinvesting, renewable energy and the organic sectors. The website lists cleanteach start-upsaccordingtosectorandcountry.

Figure3.1SwedishCleantechstartupslistedonNordincGreen.netasof29March2016

Sector Nrofstart-ups Shareofall(in%)-

Biofuels 19 10.2

EnergyEfficiency 37 19.8

EnergyStorage 8

4.0

Organics 12 6.4

Other 41 21.9

Solar 18 9.6

Transportation 19 10.2

WastetoEnergy 6 3.2

Water* 11 5.8

Wave+Tidal+Hydro 8 4.3

Wind 8 4.3

Total 187

*Watertreatment,Waterpurification,Watercontaminatedetection,Wastewatertreatment,Desalination,Other.

Nine Swedish cleantech companies with innovative solutions were included in the 2015Sustainia100guideandhadtheopportunitytoparticipateintheSustainiaAward.TheSustainiaAwardisanannualinternationalawardgiventoasolution,technologyorprojectwithasignificantpotentialtohelpbuildamoresustainablefuture.TheSustainiaAwardCommitteeisledbyformerCalifornia (USA) Governor Arnold Schwarzenegger, with the assistance of the then EuropeanCommissionerforClimateAction,ConnieHedegaard,theformerDirectorofWHO,DrGroHarlemBrundtland,andtheChairoftheIPCC,DrRajendraPachauri.

ExportingSwedisheco-techandeco-solutions

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Increasing urbanisation in developing countries makes technological exchange, and speciallyadaptedmeasuresandinfrastructuralinvestmentsofvariouskinds,morevitalthanever.UntiedSwedishaidhascontributedtothetransferoftechnologyby,forinstance,establishingreferencesites and structures in Sweden’s partner countries. The idea is that Swedish aid can act as acatalyst by encouraging institution- and capacity building, including the development ofregulationsandstandards.

AreportpublishedinDecember2015bytheSwedishEntrepreneurshipForum(‘Areviewofthecircular economy and its implementation’, http://entreprenorskapsforum.se/wp-content/uploads/2015/12/CircularEconomy_webb.pdf) concludes that the Swedish nationalsustainabledevelopmentstrategyclearlydefinesthelong-termvisionofasustainablesocietyanditsfoundationofvalues,andspecifiesvariouspolicyinstruments,toolsandprocessesnecessaryto implement the change process, as well as for the monitoring and evaluation of itsimplementation.Asaresult,significantknowledgeabouttheenvironmentanditspreservationhas been developed. Therefore, Sweden as a technologically developed nation with stronginnovationcapabilitiesintheareasofenvironmentalregulations,greentaxesandindevelopingstandards,couldexploreentrepreneurialandbusinessopportunitiesinwhichSwedishfirmsandmunicipalitiescouldparticipate in implementingadvancedwastemanagementandtechnologydevelopment in China, India and elsewhere. This is consistent with the new orientation indevelopmentaidprovision,withastrongfocusonlocaleducationandresearchcapacitybuildingandpromotionofentrepreneurshipinreceivingcountriesinrecentyears.

Swedenhasconsiderableknowledgeandexperienceofsustainableurbandevelopment.Thisisan area that many countries have shown an interest in, for example the ‘SymbioCity –Sustainability by Sweden’ concept. The concept integrates community planning and urbandevelopmentfromanecological,social,economicandspatialperspective.Itinvolvesadoptingan‘ecocyclic’ approach toenergy,wasteandwater, communityplanning, transportand land-useplanning,andenergy-efficientbuildings.

China is one of the high-priority countries in the Swedish Government’s internationalisationstrategy,especiallyinthefieldsoftheenvironmentandenergy,althoughfewSwedishcompanieshaveinfactbeeninvolvedinbusinessactivitiesintheconstructionsectoritself.Accordingtoareport,thereasonissimplythatnotenoughhasbeendonetorealisethehighambitionsthatarelinkedtotheinvestmentsmadeinChina(GrowthAnalysis,2014:02).Inotherwords,thereisgreatpotentialifitisdoneright.

Swedenhasastrongtraditionofworkingindevelopingcountries.ChamberTradeSweden(CTS)hasanAcademyProgrammethataimsatstrengtheningtheprivatesectorandcontributingtoincreasedtrade,sustainabledevelopmentandreducedpoverty.ChamberTradeSwedenworksas a partner with the Swedish Government and the Swedish International DevelopmentAgency(Sida)inaid,tradeandbusinessdevelopmentprojects.Thefocusareasareindustryandmanufacturing,green technology, agribusinessand lifestyleproducts.CTS is launching severalprojectsthroughoutsub-SaharanAfrica,Iraq,PakistanandIndonesia.

In2013,CTStestedthePakistanienergymarket’sappetiteandwillingnesstouseSwedishgreentechnologies by organising a series of seminars in Pakistan to promote Swedish greentechnologies, products and expertise. A survey among participants in three industrial centresidentified10priorityareas,including:wastemanagement,waste-to-energy;combinedheatandpowerplants(CHPs);waterpurification,sewagemanagementandtreatment;solarpower,small-scale wind energy; hybrid (solar-wind) captive power solutions; biogas production and

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distribution;andenergyefficiencyandclean industrialproduction.ANordicPakistanBusinessSummit, hosted in Lahore in February 2016 aimed to bring companies together for “Growth,NetworkingandNewOpportunities”.

ElectriCity – Cooperation for sustainablepublictransport

In Gothenburg, the second largest city ofSweden, a cooperation between industry,scienceandsocietyistestinganddevelopingthesustainablepublictransportsystemtofitfuture challenges. ElectriCity is ademonstration arena and a platform fordevelopment and testing of products andservices that could contribute to a moreattractive and sustainable public transportsystem.VolvogroupistheinitiatorofElectriCity.Onecentraldemonstrationprojectwithinthearenaisthenewlydevelopedelectricbusasacomponentinsustainablepublictransport.ThebussesarebuiltanddevelopedbyVolvo.Theyrunonrenewableelectricity,areemission-free,energyefficient,anddonotmakeanynoise.Theystartedtotrafficanewbus-routeinthecityon15June2015.Thestartingpointfortherouteislocatedindoors.Duetothebussesbeingnoise and emission-free, they can drive in locations where conventional busses cannot,therefore,thisconcepthasimplicationsforplanningofsmartcitiesinthefuture.

Keywords:transportation,alternativefuels,smartcityplanning,publictransport,sustainabletravel

Link:http://www.goteborgelectricity.se/

SEECGeo-storage

SEEC is a Swedish company that has developed a new solution in the area of geothermalheating. The innovative component is built upon a development of thewell-tried boreholetechnology.TheSEECsolutionusestheboreholestoenablestorageoftheexcessivesummerheatfordistributionofthisheatduringthecoldwinter.Inaddition,wintercoldisstoredandused for cooling during the summer. This cuts the need for the purchasing of commercialenergy. Through the geo-storage, housing cooperatives are able to cut their purchase ofcommercialenergyby70%,andcommercialproperties(suchasofficesorindustries)areableto cut their purchase of commercial energy by to 90%. This implications for economic andenvironmental profits. The technique is developed in dialogue with KTH Royal institute ofTechnologyandTheFacultyofEngineeringLTH,LundUniversity.

Keywords:Energyefficiency,geothermalheating,cleantechcompany

Link:http://seec.se/

Source:http://www.goteborgelectricity.se1

Source:http://seec.se/1

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3 |Barriersanddriverstocirculareconomyandeco-innovationinSweden

Economicandstructural

The most important driver is the overarching political ambition in Sweden to create greenstructuralchangebyfocusingonsustainablegrowthandeco-innovation.Thisisclearlymanifestedinthe‘generationalgoal’–theoverallgoalofSwedishenvironmentalpolicy–whichdefinesthedirection of the changes in society that need to occurwithin one generation if the country’senvironmental quality objectives are to be achieved. With that as a starting point, thegenerationalgoalisintendedtoguideenvironmentalactionateverylevelinsociety.Anumberofimportant points have been added to it.One is that efforts to solve Sweden’s environmentalproblemsmustnotcomeatthepriceofenvironmentalandhealthproblemsbeingexportedtoothercountries.

AnAllPartyCommitteeonEnvironmentalObjectiveshasbeensetuptosecurebroadpoliticalconsensusonenvironmentalissues.Itsroleistoadvisethegovernmentonhowthegenerationalgoalandtheenvironmentalqualityobjectivescanbeachievedinawaythatiscost-effectiveineconomicterms.ThecommitteeismadeupofMembersofParliament,togetherwithadvisersandexpertsfromnon-governmentalorganisationsandgovernmentministries. Itsoverallremitruns to the end of 2020. (EPA, http://www.miljomal.se/sv/Environmental-Objectives-Portal/Undre-meny/Who-does-what/All-Party-Committee-on-Environmental-Objectives/).

Thereisanexplicitpoliticalambitionthatbyfocusingonsustainablegrowthandeco-innovationat home Sweden will be able to contribute both to creating new jobs and to reducing theenvironmental burden in other countries (Growth Analysis, Growth Facts, 2013). The greatchallengetoimplementagreenstructuralchangeisnotlimitedtotheenvironmentaltechnologysector, but affects all industry sectors and thereby thewhole economy. Even companies thatdeliver solutions in completely different areas of society will need to be environmentallysustainable.This isexpressed inarecentreport fromEPA (EPA2015b),which isalreadybeingusedasabasisfornewpolicyinitiatives.Thisindicatesthatallindustriesandsectorswillneedtoshifttoamoreenvironmentallydrivenbusinessmodel.Swedishcompanieshavehistoricallybeenabletorespondandadaptquicklytonew internationalmarketandeconomiccircumstances–“green structural change is actually nothing new but rather a desired continuation of thecontinuoustransformationoftheeconomy”(GrowthAnalysis,GrowthFacts2013).Potentially,thisisagreatlong-termdriverforeco-innovationinSweden.

There are some 30 national public stakeholders with connections to the environmentaltechnologyfield(GrowthAnalysis,GrowthFacts,2013).Thisconstitutesachallengetocompaniestofindtherightone(s),andalsoinvolvesariskofunnecessaryworkduplicationandsuboptimaluse of public funds. The idea to involve all governmental stakeholders is to create as manychannelsaspossibleintothesystemofgreenstructuralchange.ThewebsiteSwedishcleantech.seis theofficialbusiness-to-business (B2B)platformforSwedishcompanies,with thepurposeofcontributing to the development, commercialisation and export of Swedish environmentaltechnology. Thewebsite isoperatedanddevelopedby theSwedishAgency forEconomicandRegionalGrowth (Tillväxtverket) in cooperationwith the authorities, industry and stakeholderassociations, aswell as regional environmental technology actors. TheAssociationof Swedish

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Environmental Technology Industries (ASSET), is the umbrella organisation for the Swedishenvironmentaltechnologysector(http://asset.nu/en/).Theorganisation´saimistostrengthenSwedishcleantechcompaniesthroughbusinessdrivencollaboration.

Businessperception

StudiesshowthatSwedishcompanieshavepreviouslyrespondedtoregulatorydriversofeco-innovation.Onestudyoneco-innovativemeasuresin largeSwedishcompaniesfoundthat– inadditiontoregulations–consumerdemandsandbusinessopportunities(viacostreductions,forexample)arepresentlyconsideredasdrivers(VINNOVA2013:03).

AccordingtoasurveypublishedbytheEuropeanCommission,companiesstatedthatthebiggestobstaclestomore investment ineco-innovationwereuncertainmarketdemandanduncertainreturnoninvestment,andalmostthesamenumberstatedthatobstaclesconnectedwithfunding(suchas access toown funding, insufficient availabilityof subsidiesor tax relief)were seriousobstacles(GrowthAnalysis,GrowthFacts,2013).SwedishcompaniesinthesurveygenerallymadethesameassessmentoftheobstaclesasotherEuropeancompanies.Themostimportantdrivingforcesformoreinvestment ineco-innovationforbothSwedishandEuropeancompanieswereexpected and current energy prices and material prices. Furthermore, Swedish companiesthought greater demand for green products, good business partners, and the availability oftechnologyandleadershipwereimportantdrivingforcesforinvestmentineco-innovation.

The main challenge identified is that there is no money for the early stages of businessdevelopmentandforcompaniesthatwanttogrow.Thebiggestobstaclestomoreventurecapitalinvestmentinthecleantechsectorarestatedtobethatmeasuresaretoocapital-intensive,long-term and difficult to scale up, and that the risks related to both technology and policy areconsideredtobehigher.Allinall,thisleadstoenvironmentaltechnology,andfirstandforemosttheenergysector,becominglessattractivetoprivateventurecapital,whichthentendstoprefersmall capital-intensive investments with lower risk and faster return on investment. Venturecapitalinvestmentshavedecreasedcontinuouslyinrecentyears,fromcloseto0.07%ofGDPin2007toabout0.025%in2014.Theshortcomingsinthestate'sventurecapitalactivitiesconsistinthem not being active enough, being governed by sectoral and regional lock-ins, and beinginefficient(MinistryofIndustry,EmploymentandCommunications,2016).

Inorder to tackle this,agovernmentbill inMarch2016presentedanewstructure to financeinnovation and sustainable growth. This will be discussed in parliament, with expectedimplementationbyJanuary2017.

TheSwedishEnvironmentalTechnologyStrategyandGrowthAnalysisevaluation

During 2012-2015, the Government of Sweden implemented an Environmental TechnologyStrategy with the following goals: increased commercialisation of innovative environmentaltechnology,higherfirmgrowthandincreasedexportsfromtheenvironmentaltechnologysector.SEK400million(about€43million)wereallocatedtothestrategy.TheEnvironmentalTechnologyStrategy included26differentmeasures thatwerecarriedoutby10publicly fundedagencies.Firms,andinsomecasesresearchinstitutes,havereceived28%oftheresourcesallocated–arelatively small proportion. About half of the resources have remained inside publicly fundedagencies,with the objective of strengthening their activities to promote Swedish firms in theenvironmental technology sector. The strategy is very broad, and does not focus on any onespecificarea.Theactualsupportthatfirmshavereceivedhasalsobeensmallinrelationtothefactorsthatareknowntoaffectenvironmentaltechnologyfirms’growthpotential.TheSwedish

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AgencyforGrowthPolicyAnalysis(GrowthAnalysis)conductedacomprehensiveevaluationofthisstrategyanditsimplementation.ThereportwaspublishedinMarch2015,inwhichGrowthAnalysisconcludedthatitisunlikelythatthesegoalswillbeachieved.Forfutureinitiativestoleadtoahighlevelofgrowthintheenvironmentaltechnologysector,GrowthAnalysisrecommendedthat they include: (1)aclear focusona limitedarea, (2)agreater relianceonevidence-basedmeasures,and,(3)abalancebetweensupply-sidefocusedanddemand-sidefocusedmeasures.Additionally,furthereffortsneedtobeundertakentoidentifyandevaluatethetypesofactivitiesthatmanyofthemeasuresinthestrategyinclude,suchasexportpromotionactivities,inordertogatherevidenceonwhateffectstheyhaveonfirms.

4 |Policylandscape:towardscirculareconomyinSweden

TheEnvironmentalPolicyFramework

TheoverallgoalforSwedishenvironmentalpolicyistosolvethemajorenvironmentalissuesofourtimewithoutcompromisingtheenvironmentandhealthofpeoplebeyondSweden’sborders.This vision creates newopportunities for jobs in the green technologies sector and promotesdevelopmentofagreenwelfaresociety.ProgresstowardsSwedenbecomingagreeneconomyisconsidered to safeguard our natural environment and health, along with strengthening theeconomyanditscompetitivenessinthelongterm(SwedishGovernment,2014).

Thisgeneralgoalhasnotchangedwithanewgovernmentcomingintoofficeafterthegeneralelections in September 2014, but some of the instruments and strategies are updated. TheNationalEnvironmentalTechnologyStrategy,inusebetween2011and2014,hasbeenevaluatedby theagencyGrowthAnalysis.Theevaluationconcludes that ingeneral, themeasures in thestrategycanbeconsideredtocontribute,tosomeextent,toachievingthestrategygoals,becausethemeasuresmanagedtoreachthetargetgroup identifiedbythegovernment.However, theunderlyingprogrammetheoryisconsideredtobequestionablebecauseit isnotclearhowthemeasurescouldbeexpectedtoleadtothedesiredeffects(GrowthAnalysis,2015).

TheNationalEnvironmentalTechnologyStrategywasnotreplacedbyanew,conclusivestrategy.Instead,ithasbeenfollowedbyanumberofstrategiesderivedfromtheresultsofthestrategy.TheseareidentifiedasthestrategyofSmartindustries,thestrategyforkeyenablingtechnologiesandtheexportstrategy.Otherimportantpoliciesthathaveemergedintheareaofeco-innovationandcirculareconomyaretheclimateleap,thefossil-freeinitiativeandteamSweden.Thesewillbeelaborateduponlaterinthechapter.

TheEnvironmentalObjectives

Thecontextforthepoliciesrelatingtoeco-innovationandcirculareconomyisthegenerationalgoaladoptedbytheSwedishParliament,whichistheoverarchingobjectiveofenvironmentpolicyand guides environmental action at every level of society, from the national level up toengagementattheEUandgloballevels.Thegoalistopassontothenextgenerationasocietyinwhichthemajorenvironmentalproblemshavebeensolved,without increasingenvironmentalandhealthproblemsbeyondSweden’sborders.TheimplementationofSwedishenvironmentalpolicyandthegenerationalgoalisguidedbyaframeworkof16EnvironmentalQualityObjectives

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(EQOs),aimingtomakeitpossibletopursueenvironmentalissuesdynamicallyandspecifywhatneedstobedone,andtoraiseawarenessandmonitorprogress.

Legislation and economic instruments can go hand in hand with voluntary agreements anddialoguebetweengovernmentandindustry.Tofacilitateprogresstowardsthegenerationalgoaland the environmental quality objectives, the government has adopted milestone targets inpriority areas, designed to set out the needed changes in society. Themilestone targets andenvironmental quality objectives function as guidance for county administrative boards,government agencies, municipalities and the business sector on important priorities forcontinuingenvironmentalaction.

TheSwedishEnvironmentalProtectionAgencyhastheoverallresponsibilityformonitoringtheprogress in collaboration with other concerned agencies. The EPA delivers annual reportscontaining an overall assessment of the prospects of achieving environmental objectives andmilestones.Thelatestreport(EPA,2016)concludesthatonlytwoofthe16generationalgoalswillbeachievedin2020.Theseareprotectedozonelayersandsaferadiationenvironment.Despitesome important developments, the environmental work related to limited climate impact, awealthyfarmland,thrivingwetlands,magnificentmountain landscapeandawealthyfloraandfaunaaregoinginthewrongdirection.However,fourofthesevenmilestonetargetsarereachedorareclosetobeingreached,followingtheestablishmentofnecessarypolicyinstruments.Thisisanindicatorthatimportantmeasureshavebeentakenwhichwillhavepositiveeffectsontheenvironment in the long run. As a result of the report, the areas that need to be especiallyprioritisedinordertoredirectSwedishsocietytowardsenvironmentalpromotionandapproachtheenvironmentalobjectivesareidentifiedas:

• pursuitofacohesivepolicyforsustainabledevelopment;• decouplinggrowthfromnegativeenvironmentaleffects;• targetingunderlyingdrivingforcesandbehaviours;• enhancingenvironmentalconsiderationsintheuseofland,waterandnaturalresources.

Withintheseareas,thereportpresentsthefollowingprioritisedefforts:

• Measures to fulfil objectives within the framework of the climate deal from the UNclimatemeetinginParis

• ApplicationandcontinuousdevelopmentofEUstandardsforchemicals• Strengthening of efforts relating to the preservation of valuable environments and

environmentalconsiderations• Actionplanwithinthemaritimeenvironmentadministrationandactionplanwithinthe

wateradministration.

Furthermore,thereportinvestigatestheSwedishclimatestatus.Swedenhasdeclininglevelsofgreenhousegasemissionsandhalfoftheenergycomesfromrenewablesources.However,thegoal of Sweden contributing no greenhouse emissions by 2050 will not be reached withoutadditionalefforts.AsubstantialpartoftheemissionsderivingfromSwedishconsumptionhavebeenrelocatedabroad.Fromaconsumptionperspective,whichaccountsforsuchimportsandexports,theSwedishemissionshasnotdeclinedatallduringthe2000s.Thiscallsforachangeinthe general driving forces in environmental efforts. An important effort relating to this is theClimate leap (see good practices), which is a programme with regional and local climateinvestmentstoloweremissions.During2016,theMiljömålsberedningen(seebelow)willpresenttheir considerations regarding environmental framework and instruments. For example, thisincludesloweringofemissionsby85%by2045.

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Other initiatives that contribute toenvironmental efforts aremeasuresmade todecrease thelevelsofwasteinsocietyandtoenhanceefficientwastemanagement,effortsinimprovingthedecontaminationofcontaminatedareas,effortsmadeontheinternationalstageintheareaofairpollutioncontrol,andefforts resulting in lower levelsofover-fertilisationandacidification.However,existingpoliciesarenotconsideredtobesufficientforthefulfilmentofthegenerationalgoals.FurtherattentionneedstobepaidtoeffortsrelatingtofulfillingtheclimatedealfromtheUN climate meeting in Paris, the continued development of comprehensive EU chemicalslegislation and the implementationof thenational actionprogrammes in the areasofmarineenvironmentandwatermanagement.

Along with these efforts, an overall adjustment must be made towards supporting resourceefficiencyandacirculareconomy,achangeinmotivationsandbehaviouralpatternsandascalingupoftheenvironmentalconsiderationsontheuseofland,waterandothernaturalresources.

Reportonapolicyframeworkforcohesivemanagementoftheenvironmentalobjectives

In December 2014, the Government assigned the Miljörådsberedningen, a parliamentarycommitteeintheareaofenvironmentalpolicy,toprepareareportonaframeworkforclimatepolicyandastrategyforacohesiveandlong-termoverarchingclimatepolicy.AfirstreportwasfinalisedinMarch2016,andthefinalpartofthereportwillbedeliveredinJune2016.

Thereportthathasbeenfinalisedanddeliverediscalled‘ASwedishframeworkforclimatepolicy,interim report’ (Miljömålsberedningen, 2016). The central topics are the background for thereport–theglobalclimatechallenge,acohesivepropositionforaframeworkforclimatepolicy,suggestionsforlong-termobjectivesfor2045,andasuggestionforaclimatelaw.ThecommitteesuggeststhatSwedentakecontinuedresponsibilityforaneffectiveclimatepolicyinordertofulfiltheobjectivesoftheParisclimatedeal,especiallywithregardtotheobjectiveofkeepingglobalwarminglessthan1.5degrees.Thisrequiresthesocietiesoftheworldtodrasticallyreadjustforzeroemissionobjectives.ThecommitteeexpressessupportforSwedentocontinuetobeamodelcountryandgloballeaderintheareaofclimatepolicy.Centraltothisambitionwillbethefundingofemissionreductionandadaptionmeasuresinthedevelopingworld.Thecommitteeidentifiescertainadvantagesaswellaschallengeslinkedtotheroleofbeingaprecursororpioneerinthereadjustmenttowardsanemissionfreesociety.Thegreatestchallengesareconsideredtobeforthe countries of the world, including the EU, to strengthen their climate policies. ParticularchallengesintheSwedishnationalcontextareconsideredtobetheloweringofemissionsinthetransportsector,theagriculturalsectorandinbasicindustry.Here,thereadjustmentsneedtoberealisedinamannerthatcombinescompetitivenessandcreationofnew,sustainablejobs.

Thecommitteesuggeststhattheframeworkforclimatepolicyregulatesobjectives,procedures,planningandmonitoringoftheworkrelatedtotheEQOoflimitedclimateimpact.Further,thecommitteesuggeststhattheframeworkissubjecttoparliamentaryreviewandthatsomeofitscomponentsareregulatedbylaw.Theframeworkconsistsof:

• along-termobjectivefor2045;• aplanconsistingoftargetsforemissionreductions,whichwillbepresentedinthesecond

report;• guidelinesforthegovernment’splanningandfollow-upofitspoliciesinordertofulfilthe

objectives;• periodicpresentationstotheparliament;• aclimatepolicycouncilassignedtoscrutinisethepolicyimplementation.

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Regarding the long-term objective for Sweden in the area of climate impact, the committeeproposesthefollowing:

• Notlaterthan2045,Swedenshouldhavenonetemissionsofgreenhouseemissionsintothe atmosphere. After 2045, Sweden should accomplish negative emissions. Thisobjectivemeansthatthepreviousvisionofzeronetemissionsby2050isspecifiedandbroughtforward.

• Notlaterthan2045,emissionsfromSwedishactivitiesinSwedishterritoryshouldbe,inaccordance with Sweden’s international GHG emissions, at least 85% lower than theemissions in 1990. CCS measures may be included in those cases where no otherreasonableoptionsexist.

• To reach net zero emissions, complementary measures will be allowed followinginternationalrules.

• The objective for 2045 presupposes heightened ambitions within the EU emissionstradingsystem(EU-ETS).

• TheobjectiveshouldapplytoemissionscausedbyalltypesofactivitiesinSweden,theonesthatareincludedintheEU-ETSaswellastheonesthatarenotincluded.

• The government needs the consultation of an interdisciplinary body of experts thatprovides an independent and autonomous overview of how government policycorrespondstotheclimateobjectives.Thesuggestionisthatthisbodytakestheformofacouncilforclimatepolicy,withthespecifiedassignments:- to evaluate effects of policy instruments, issued or planned, on the basis of the

perspectiveofthesocietyatlarge,andtoanalysewhetherornottheobjectivesarefulfilledinacost-efficientmannerthatalsotakesintoaccountthethreedimensionsofsustainability;

- to estimate whether or not the government’s suggestions for measures arepurposefulandsufficienttofulfilthetargetobjectivesandthelong-termobjective;

- toscrutiniseandjudgethequalityofthebasisonwhichthegovernmentmakesitsdecisions.

Stateofthearttechnologiesfortheenvironmentalobjectives

AreportsummarisingtheresultsofagovernmentassignmentgiventotheSwedishEnvironmentalProtection Agency and executed in cooperation with the Swedish Environmental ResearchInstitute(IVL)andinclosedialoguewiththeEnergyAgency,SwedishNationalSpaceBoardandVinnova (EPA2015b) states that sectors thathavepreviouslybeendefinedas state-of-the-art(SoA)technologies,suchasinformation(ICT),bio-,nanoandspacetechnologiescan,duetotheirgenericnature,provideabasisforsolutionsinmanysectorsandforvarioustypesofapplicationsand therefore contribute to development and increased value for Swedish environmentaltechnologies.Inmanycasesgenerictechnologiesfromthesesectorscancontributetoachievingtheenvironmentqualitygoalsandtheso-calledgenerationalgoal.Fourofthe16environmentalobjectiveswereidentifiedasbeingmostrelevanttotheselectedSoAtechnologies;agoodbuiltenvironment, reduced climate impact, a non-toxic environment, and zero eutrophication.Between these four goals are a number of potential applications for the identified SoAtechnologies,andthereportendswithfewgenerallyapplicablerecommendationscommontoallfourSoA-technologies.

Thereportisconsideredanimportantdocumentforfurtherpolicydevelopmentinthearea.Thisismanifestinthegovernment’s2016budgetbill,whichearmarksSEK17million(€1.8million)peryearforenvironmentaltechnologiesforthecomingfouryears.

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SmartIndustries

On 21 January 2016, the Swedish Government decided on a strategy for a new era ofindustrialisation, called Smart Industries. The strategy aims to strengthen Swedishcompetitiveness and enhance the attractiveness and profitability of investments in Swedishindustry.ThestrategyhasidentifiedfourmainareaswhereSwedenshoulddevelopitsindustryfurther. Sustainability is one of these areas, and the others are digitisation, competence, andinnovation.

Withintheareaofsustainability,itisidentifiedthatSwedenneedstotransformitseconomyfrombeinglineartocircular.Productsthattodayareconsideredwasteholdvaluethatcouldbeusedmore thanonce. The circular economywill create solutions for societal challenges, aswell ascompetitive advantages and sustainable growth (Ministry of Industry, Employment andCommunications,2015).Asapartof this strategy, theMinister forEnterpriseand Innovation,MikaelDamberg,isholdingtalkswithrepresentativesofdifferentstrategicindustrialbranches,andatalkconcerningsustainableproductionwillbeheldinearlysummer.

KeyEnablingTechnologies(KETs)fortheenvironmentalobjectives

Asafollow-uptothenationalenvironmentalstrategy,finalisedinMarch2015,anewstudywasconductedfocusingonKeyEnablingTechnologies(KETs)fortheenvironmentalobjectives.Thenational environmental protection agency was responsible for the study (National ProtectionAgency,2015).ThestudyfocusesonhowenvironmentaltechnologycanhelpSwedenfulfiltheEQO’sandthegenerationalgoal.Theobjectivesthatareidentifiedasbeingstronglyconnectedtoenvironmentaltechnology,andpotentiallyabletobenefitfromthem,are:

• Agoodbuiltenvironment• Reducedclimateimpact• Anon-toxicenvironment• Zeroeutrophication.

The study contains the results from a number of think tanks on the issue of cutting-edgetechnology and the environmental objectives. KETs are defined as IT, bio, space, andnanotechnology.Therecommendationsfromthestudyarethefollowing:

• Create an arena for all different actors, such as small and large companies, agencies,innovationcompanies,andfunders.

• Carryoutactivitiestoenhanceawarenessofenvironmentalcutting-edgetechnologyofthetargetgroups,whicharebothpublicandprivateactors.Municipalitiesareconsideredtobeanespeciallyimportanttargetgroup.

• Promoteprocurementofinnovationsandnewtechnology.• Promoteinnovationcontestsfollowedbyprocurementsandinvestments.• Enhance the importance of innovation and high environmental performance in eco-

labelling,certificates,constructionstandardsandstandardsforproductsandfacilities.• Develop funding for cutting-edge technologies. These are more premature than

conventional technologyandthereforehigherrisk.Therefore, fundingneedstoadapt.Here,thereareanumberofaspectstoworkwith:- increasedleveloffundingfromR&DprogrammesonEUlevel;- support for verification and demonstration of technology including first full-scale-

installation;- measurestogetcostumersattractedtothenewtechnology;- fundingformoreinterdisciplinaryandcreativeresearch;- improvedsolutionsforpartialfunding;

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- considerationsontheformforprioritisingandfocuswithinsomeareas.• Provide extra support for especially interesting areas such as the cycle of water and

organicwasteincities,theconnectionbetweenurbangreenareasandbuiltenvironment,etc.

• Createexplicitconditionsforagenciestorelateto,throughfunctioningregulationsandsufficientconditionsoninnovativeness,alsothroughspecificationofprioritisedareas.

• Create business models that support the implementation of solutions with goodenvironmentaleffects,whichaccountfordifferentactorsandthatdistributecostsandincomesbetweenactorsandovertime.Businessmodelsderivedfromtheenvironmentalobjectivesareconsideredimportant.

TheExportStrategy

ThenewexportstrategywaspresentedinSeptember2015.Oneoftheareasofspecialfocusisincreasedambitionforsustainablebusiness,especiallyinoperationsabroad.Measuresdirectedatthisissueare:aplatformtosupportforeignmissionstocontributetosustainablebusinessinexportpromotioncontexts,andanincreaseinthegenerallevelofknowledgeaboutsustainablebusiness of foreign missions (Government Offices of Sweden, 2015). The strategy will bepresentedtoanddecidedbyparliamentearlysummer2016.

TeamSweden–forefficientexport

Thisisapolicydevelopmentcreatedbythenewcoalitiongovernment(SocialDemocratsandtheGreenParty),replacingtheinternationalcleantechsecretariatplacedattheMinistryforForeignAffairs.TeamSwedenisnotadecision-makingbody,butaforumfordialoguewiththeindustryin matters of exports. Team Sweden will consist of subgroups, of which one will focus onenvironmentaltechnology,andanotheronewillfocusonenergy.Thisnewinitiativeisstillinaninitialstage(GovernmentOfficesofSweden,2016).

SwedishGovernmentalAgencies

Since a total of 25 government agencies have explicit responsibilities in the environmentalobjectives system, there is a wide range of programmes to promote the achievement of thegenerationalgoalandtheenvironmentalqualityobjectivesandtoproposemeasurestofurtherdevelopenvironmentalactionwherenecessary.Tomakeiteasierforcompaniestofindtherightsupportamongthedifferentgovernmentalagencies,thegovernmenthastaskedtheAgencyforRegional and Economic Growth (Tillväxtverket) to create and administrate a website calledwww.swedishCleantech.se(launchedinFebruary2013)onSwedishenvironmentaltechnologyaspartoftheframeworkoftheenvironmentaltechnologystrategy.Theambitionistosupportthecleantech companieswith consultation services, informationonpublic fundingand loans, andinformation on possibilities of venture capital. The site also functions as an index of Swedishcleantech companies for potential investors or other interested parties (Swedish Cleantech,2016).Thesiteisaresultfromtheformernationalenvironmentaltechnologystrategy.

Nationaleco-coordinatorforindustry

On1January2015,anationaleco-coordinatorwasappointedtostrengthencollaborationwithintheindustryandbetweenauthoritiesandindustryineffortstoreachthetargetgenerationandenvironmental quality objectives. Annika Helker Lundström, formerly CEO of Swedish WindEnergy,thetradeassociationforcompaniesworkingwithwindpower,wasappointedtothisnewandtemporaryposition.Theassignmentincludesworktomakevisible,promoteandsafeguard

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industry's work in the framework of the environmental objectives. The eco-coordinator willpresentherworkon30June2017.

NationalAgencyforPublicProcurement

The government established a new agency for public procurement in September 2015. Thisagencyisassignedtogivesupportthroughconsultation,practicaltoolsandmethodswithintheareaofpublicprocurementingeneral.Theobjectiveoftheagencyistodeveloptheideaofagoodpublicdealwithafocusonsustainable, innovativeandefficientprocurement.Theagencyputsextraemphasisonenvironmentallyfriendlyprocurementasaninstrumenttoachievethepolicyobjectivesintheenvironmentalarea.Thisisconsideredtocontributetosustainabilityinthewidersense,includingsocialandeconomicdimensions(Agencyforpublicprocurement,2016).

VINNOVA–SwedishGovernmentalAgencyforInnovationSystems

In2012,VINNOVAlaunchedtheInternationalCooperationforEco-Innovationsprogramme,whichaims at strengthening Swedish actors’ networks for international research and developmentcooperationforeco-innovation.Itisanticipatedthattheactors’increasedglobalR&Dpresencewillleadtogreatercompetitivenessandgrowth,whilststrengtheningtheprospectsofabetterenvironment and sustainable societal development. A second and last call for proposals for“InternationalCooperationwithActorsinChinaforEco-Innovations”waslaunchedinJune2013.

TransportationandEnvironmentisoneofVINNOVA'sstrategicareasandhasidentifiedanumberofkeyareaswithmajorpossibilitiesforinnovation:solutionstoairpollution,noise,congestionandtrafficaccidents;fossilfuels,wasteandrecycling;bio-basedmaterialsinnewapplications;asmartelectricitygrid;sustainablecitiesandsustainableurbandevelopment;transportefficiencyandlogistics;citygrowthandattractiveness.

VINNOVA, theSwedishEnergyAgencyandFormasarecollaboratingon theventure”Strategicinnovation areas”. The purpose of the venture is to create conditions for internationalcompetitivenessandtofindsustainablesolutionstoglobalchallengesforsocieties.

Strategicresearchandinnovationagendas

Theideaisforindustry,thepublicsectorandacademiatocollaborateforcommonprioritisationofinvestmentsinresearch,developmentandinnovation,thusstrengtheningoneanother.Withintheventuretherearetwotypesofefforts:

• Strategicresearchandinnovationagendas–aimingtostimulateastrategicdialoguebetweenactors soas to, througha joint researchand innovationagenda,highlightareasforeffortsandtheneedsandpossibilitiesavailable;

• SIO programmes – aiming to support the implementation of the research andinnovationagendasthataremostimportantforSweden.Aswellasthosethathavethegreatestpotential tocreateconditions for internationalcompetitivenessandtofindsustainablesolutionstoglobalchallengesforsocieties.

SymbioCity is a Swedish government initiative runbyBusiness SwedenandSKL International.BusinessSwedenoverseestheSymbioCitytrademarkandpromotesnationalexportsonbehalfofthe Swedish Government and industry. As part of Swedish international development co-operation, SKL International uses the SymbioCity approach to support cities in developingcountriestoplanandbuildsustainably,e.g.byidentifyinginclusiveandinnovativesolutions.

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Regionalinnovationstrategiesforsmartspecialisation

RegionalauthoritiesinSwedenaredesigningsmartspecialisationstrategiesforinnovation.Theseareintendedtorespondtocomplexdevelopmentchallengesbyadaptingtotheregionalcontext.SmartspecialisationisatoolforregionsinSwedentoenhanceefficientuseandcreatesynergiesof the European Structural Investment Funds (ESIF). The regional innovation strategies willcontribute to theEurope2020growth strategy,which is tobecomea smart, sustainable, andinclusiveeconomy.

Outof29regions(NUTS2andNUTS3),19havesmartspecialisationstrategiesaddressingtheissueof circular economy or eco-innovation within the area of the EU priorities on sustainableinnovation, blue growth, social innovation with regard to environmental issues, sustainableenergy and renewables, sustainable innovation, key enabling technologies, eco-innovations,sustainableagriculture,resourceefficiency,cleanerenvironmentandefficientenergynetworks(e.g.smartgrids),andsmartgreenandintegratedtransportsystems.

The region of Värmland has three regional innovation strategies aiming at enhancing thesustainableinnovationrelatingtothepriorityofenergyandrenewables,andKETs.Thestrategiesare System Solutions with Photovoltaics, Forest-Based Bio-Economy, and AdvancedManufacturingandComplexSystems.

Anotherexampleofaregiondevelopingrelevantregionalpoliciesaddressingcirculareconomyandeco-innovation is thesouthernmostregionofSkåne.Amongthethreeprioritiesthathavebeenidentified,twohavedirectlinkstocirculareconomy:SmartSustainableCities(knowledge,products, processes, services and systems at the intersection between a broad range oftechnological areas that solves cities' sustainability challenges) and SmartMaterials (materialscienceanditsinnovation).

Fossil-FreeSwedenInitiative

Swedenhastheaimofbecomingoneofthefirstfossil-freewelfarecountries.Themotivationis not only based on the ethical argument of respect for future generations, but it is alsosupportedbyeconomicarguments.Toachievethegoal,allactorsinsocietymustdotheirpartandreduceemissions.TheFossilFreeinitiativeaimsathighlightingandsupportingactorsthatconductactivitiesthathelpsolvetheclimateissueandcontributetoSwedenachievingthegoalof a fossil-free society. Sweden has a range of actors who are willing and able to reducegreenhousegas-emissions,forexample:enterprises,municipalitiesandassociations.TheFossilFree Initiative isanopportunity for theseactors toshowcase theireffortsunderacommonumbrella,bothdomesticallyandinternationally.TheinitiativeisopentoallkindsofactorswhosupporttheFossilFreeSwedendeclaration.ThedeclarationstipulatesthatactorsparticipatingintheinitiativesharetheviewthattheworldmustbecomefossilfreeandthatSwedenshouldtaketheleadintheseefforts.Italsostipulatesthatactorsmustbeabletopresentconcretemeasurestoreduceemissions.

Keywords:Swedishpolitics,fossil-freeSweden,circulareconomy

Link: http://www.government.se/government-policy/fossil-free-sweden/about-the-fossil-free-sweden-initiative/

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TheClimateleap–supportforlocalclimateinvestments

TheClimateleapisastate-fundedprogramforlocalclimateinvestments,introducedin2015andadministeredbytheSwedishEnvironmentalProtectionAgencyalongwithothercentralagencies. Its total funding is SEK1,925million (€207million) for theperiod2015-2018.Theprogramenablessupportforclimateinvestmentsthatcanreduceemissionsandinfluencethetransition to fossil-free transportand travel. So far, fundinghasbeendistributed toclimateinvestmentsintheareasofinfrastructure,productionofbiogasandbiofuelfillingstations.

The support is expected to contribute to cooperation between actors and create synergiesbetweendifferentactivitiesinmunicipalitiesandregions.Theprogrammewillsupportclimatemeasuresthatgobeyondwhatthelawrequiresandthatareprofitableinthemacro-economicperspective.

Keywords: Resource efficiency, reduced emissions, governmental priorities, budget ofSweden,localinitiatives

Link: http://www.government.se/articles/2015/09/investments-in-climate-change-adaptation-and-energy/

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CleantechGroup,2016,GlobalCleantech100,http://www.cleantech.com/indexes/global-cleantech-100/

EnvironmentalObjectivesPortal(Miljömål.se).Availableathttp://www.miljomal.se/sv/Environmental-Objectives-Portal/

EPA (Naturvårdsverket),2015a. Styrmedsiktepåmiljömålen–Naturvårdsverkets fördjupadeutvärderingavmiljömålen2015

EPA(Naturvårdsverket),2015b.Spetsteknikerförmiljömålen,Rapport5933

EPA (Naturvårdsverket), http://www.miljomal.se/sv/Environmental-Objectives-Portal/Undre-meny/Who-does-what/All-Party-Committee-on-Environmental-Objectives/).

European Commission, 2016, Smart specialization Platform, available athttp://s3platform.jrc.ec.europa.eu/regions/SE211/tags/SE211

Global Cleantech, 2014. Available at: http://www.cleantech.com/wp-content/uploads/2014/08/Global_Cleantech_Innov_Index_2014.pdf

GrowthAnalysis,2015,report2015:02,Utvärderingavregeringensmiljöteknikstrategi.Availableathttps://www.tillvaxtanalys.se/download/18.201965214d8715afd16dc76/1432813840993/rapport_2015_02_Utvardering+av+regeringens+miljoteknikstrategi+Syntesrapport+och+resultatuppfoljning.pdf

Growth Analysis (Tillväxtanalys) (1), 2015, Innovationspolitik för framtidens energisystem,Report number WP/PM 2015:05. Available athttps://www.tillvaxtanalys.se/download/18.201965214d8715afd16ed79/1432817371839/rapport_2015_05_Innovationspolitik+for+framtidens+energisystem.pdf

GrowthAnalysis(Tillväxtanalys)(2),2015,Utvärderingavregeringensmiljöteknikstrategi,Reportnumber WP/PM 2015:02. Available athttps://www.tillvaxtanalys.se/download/18.201965214d8715afd16dc76/1432813840993/rapport_2015_02_Utvardering+av+regeringens+miljoteknikstrategi+Syntesrapport+och+resultatuppfoljning.pdf

GrowthAnalysis(Tillväxtanalys)(1),2014,Analysavstödinsatserförmiljöteknikföretaginågraeuropeiskaländer.ReportnumberWP/PM2014:21.Availableathttps://www.tillvaxtanalys.se/download/18.201965214d8715afd11ed63/1432581346334/pm_2014_21_Analys+av+stodinsatser+for+miljoteknikforetag+i+nagra+europeiska+lander.pdf

GrowthAnalysis(Tillväxtanalys)(2),2014,Förutsättningarförgrönstrukturomvandling–Syntesrapport,WP/PM2014:11.Availableathttps://www.tillvaxtanalys.se/download/18.201965214d8715afd16cd9a/1432811535081/rapport_2014_11_Forutsattningar+for+gron+strukturomvandling+Syntesrapport.pdf

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GrowthAnalysis(Tillväxtanalys)(1),2013,Benchmarkinggreencompetitiveness,ReportnumberWP/PM2013:18.Availableathttp://www.tillvaxtanalys.se/en/home/publications/pm/pm/2013-11-22-benchmarking-green-competitiveness.html

GrowthAnalysis(Tillväxtanalys)(2),2013,EvaluationoftheSwedishEnvironmentalTechnologyStrategy,ReportnumberWP/PM2013:09.Available(inSwedish)athttp://www.tillvaxtanalys.se/sv/publikationer/rapportserien/rapportserien/2013-12-19-utvardering-av-regeringens-miljoteknikstrategi--resultatuppfoljning-och-konkurrenskraftsanalys.html

GrowthAnalysis(Tillväxtanalys)(3),2013,PrivateventurecapitalandCleantech–Prerequisitesandobstaclesfromaninvestorperspective.Availableathttp://www.tillvaxtanalys.se/en/home/publications/reports/reports/2012-11-12-private-venture-capital-and-Cleantech---prerequisites-and-obstacles-from-an-investor-perspective.html

National Agency for Public Procurement, 2016,http://www.upphandlingsmyndigheten.se/hallbarhet/varfor_upphandling/samhallsnytta/

NordicGreen,2014,CleantechStartups- InnovatorsandInvestorsintheNordic,theBalticandtheArcticregions.Avalaibleathttp://www.nordicgreen.net/about/about-us.

Regeringskansliet (Government Offices of Sweden), (1) 2016,http://www.government.se/government-policy/environment/goals-and-visions/

Regeringskansliet (Government Offices of Sweden), (2) 2016,http://www.government.se/government-policy/fossil-free-sweden/about-the-fossil-free-sweden-initiative/

Regeringskansliet (Government Offices of Sweden), (3). 2016, Regeringens proposition2015/16:110.Statenochkapitalet– struktur för finansieringav innovationochhållbar tillväxt.http://www.regeringen.se/contentassets/de597ecc23644aec88b5566f1594acf7/team_sweden_folder_eng.pdf

Regeringskansliet (Government Offices of Sweden), (1), 2015. Sweden’s Export Strategy,http://www.regeringen.se/contentassets/e2b2f540107143e99907cbe604a87ce2/swedens-export-strategy.pdf

Regeringskansliet (Government Offices of Sweden), (2), 2015, Smart industri – ennyindustrialiseringsstrategi för Sverige,http://www.regeringen.se/contentassets/869c75f458fc4585ab4ec8c13b250a07/informationsmaterial-smart-industri---en-nyindustrialiseringsstrategi-for-sverige

Regeringskansliet(GovernmentOfficesofSweden)(1),2014,Miljö,energiochklimat,2014,Enfossiloberoendefordonsflotta.Availableathttp://www.regeringen.se/sb/d/18153/a/230245

Regeringskansliet(GovernmentOfficesofSweden)(2),2014,Publikationer,2014,Strategiförutvecklingochexportavmiljöteknik2011-2014(ETAP).Published11/09/2011.Availableathttp://www.regeringen.se/sb/d/14218/a/174071

Regeringskansliet(GovernmentOfficesofSweden)(3),2014,ResearchandInnovation-AsummaryofGovernmentBill2012/13:30.Published11/01/2013.Availableathttp://www.regeringen.se/sb/d/16738/a/207030

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Swedish Cleantech, 2016, Eco industry companies within the area of sustainable energy.Available at:http://swedishcleantech.se/hittaforetag.4.4caa4de5140ab6d423c4fb.html?type=Technology+Supplier&area=2Renewable+Energy_Bioenergy&area=2Renewable+Energy_District+Heating+and+Cooling&area=2Renewable+Energy_Hydro+and+Marine+Power&area=2Renewable+Energy_Solar&area=2Renewable+Energy_Wind&county=&query=&page=7

SantanderBank.2016,Sweden:ForeignInvestments:https://en.santandertrade.com/establish-overseas/sweden/foreign-investment

Sustania, Sustania 2015 – a guide to 100 sustainable solutions. Available at,http://sustainia.me/resources/publications/4th_Sustainia100_2015.pdf

SwedishCleantech,2016,http://swedishcleantech.se/

Swedish Entrepreneurship Forum, 2015. A review of the circular economy and itsimplementation. Available from http://entreprenorskapsforum.se/wp-content/uploads/2015/12/CircularEconomy_webb.pdf

SymbioCity2016,http://www.symbiocity.org/en/approach/

Vinnova, 2014, Eco-innovativemeasures in large Swedish companies -An inventorybasedoncompany reports, Vinnova Analysis VA 2013:03. Available athttp://www.vinnova.se/en/Publications-and-events/Publications/Products/Eco-innovative-measures-in-large-Swedish-companies/

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ANNEX:Policymeasuresaddressingcirculareconomyandeco-innovationsinSweden

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

addcellsifnecessary

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimprove-ment

Energyefficiencyimprove-ment

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

SUPP

LYSIDEFO

CUS

Equity/businesssupport

Venturecapitalfunds

Sustainable Technologies Fund - a private equity growth fundseekinginvestmentopportunitiesincompanieswithinSustainableTechnologies,

http://www.stechfund.com/

X X X X X

Other relevant venture capital funds include: Volvo TechnologyTransfer, TeknoSeed, Sjätte AP-fonden, Northzone, Midroc NewTechnology,Ledstiernan

X X X X

Publicguaranteefunds

VINNOVA – Sweden´s innovation agency has a budget of€220 million to invest in projects each year including “Strategicinnovationareas”–aprogrammeaimingatcreatingconditionsforinternational competitiveness as well as to find sustainablesolutionstoglobalchallengesforsocieties.www.vinnova.se

X X X X X X

Environment-Driven Business Development programmeimplemented by the Swedish Agency for Economic and RegionalGrowth (Tillväxtverket) aims to strengthen the competiveness ofsmall and medium-sized enterprises (SMEs) in environmentallydrivenmarkets.Theprogrammehasprovided€3.88million(SEK35million)infunding.

http://www.tillvaxtverket.se/

X X X X X

Swedishenergyagency:Providingseedfunding(loans)forstart-upcompanieswithafocusonenergyefficiency.

X X X

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http://www.energimyndigheten.se/Foretag/Processen/

SupportforR&Dinpublicsectorandindustry

R&Dfunding

ResearchandInnovation-GovernmentBill2012/13:30-fortheperiod2013-2016. This is a core instrument in thegovernment’ssupport for eco-innovation research programmes in Sweden.Initiativesdescribed inthebillentailan increase intheresourcesallocatedtoresearchandinnovationofSEK4billion(€430million)by 2016. Along with the increase of SEK 5 billion (€540million)presentedinthepreviousresearchandinnovationbill,thismeansanincreaseofaroundSEK9billion(€970million)overeightyears.

http://www.regeringen.se/sb/d/16738/a/207030

Forexample:

The Swedish Energy Agency accounts for the largest part ofresearchappropriationsintheEnergyareaandalargepartoftheSwedish Energy Agency´s Research budget of SEK 1240 millionpromotes the development of environmental technology in theenergyarea.

http://www.regeringen.se/sb/d/16738/a/207030

X X X X X X

R&Dinfrastructure

Fiscalmeasures

TaxincentivesforR&Dandstart-ups

Arbetsförmedlingen offers a start-up subsidy for new companystart-upsalthoughnotspecificallylinkedtoEcoInnovationand/orenergyissues.

http://www.arbetsformedlingen.se/Globalmeny/Other-languages/Languages/English-engelska/Start-up-a-business.html

Verksamt.seisacollaborationofthreegovernmentagencies–theSwedish Companies Registration Office, the Swedish Tax AgencyandtheSwedishAgencyforEconomicandRegionalGrowth–havebroughttogetherandstructuredinformationandservicestohelpentrepreneurs,althoughnotspecificallylinkedtoecoInnovation.

https://www.verksamt.se/en/web/international/about-the-website

Swedish Agency for Economic and Regional Growth -Tillväxtverket. Theaimof theSwedishAgency forEconomicandRegional Growth — Tillväxtverket — is to work pro-actively for

29

sustainablegrowth—apublicstrategytoensurethatinvestmentsforgrowthwillalsomakegrowthpossibleforcominggenerations.

http://tillvaxtverket.se/sidhuvud/englishpages.4.21099e4211fdba8c87b800017332.html

Innovationleadstoopportunities:

http://tillvaxtverket.se/sidhuvud/englishpages/sustainablegrowth.4.62efe22412f41132d41800010588.html

TaxincentivesforR&Dpersonnel

Education,trainingandmobility

Tailoredtrainingcoursesforcompanies,entrepreneurs

See education efforts listed below under “Advise/consulting forstart-ups,companies,entrepreneurs”.

X X X X X

Advice/consultingforstart-ups,companies,entrepreneurs

STING:StockholmInnovationandGrowth-businessacceleratorswith a focus on cleantech, medtech, ICT and internet/mediacompanies.

www.stockholminnovation.com

X X X X X

BusinessSweden: is theofficial investmentpromotionagencyofSweden. Business Sweden (formerly Invest Sweden) connectsinternational companies with business opportunities in Swedenand offer comprehensive, one-stop investment consultancyservicesfreeofcharge.Cleantechisanimportantarea.

http://www.business-sweden.se/en/Invest/

X X X X X

TheZennströmGreenMentorshipAward–createdbyZennströmphilanthropies to shine to spotlight on the work being done byentrepreneursinSwedentotackleclimatechangeandcreatealowcarbon future. The winner will receive personalmentoring fromNiklas Zennström, co-founder of Skype and the internationalventurecapitalfirm,Atomico,aswellasco-founderofZennströmPhilanthropies.

http://gma.zennstrom.org/

X X X X X X

Almi:AlmiFöretagspartnerABisownedbythestatewiththetaskto promote the development of competitive small andmedium-sizedbusinessesaswellastostimulatenewenterpriseswiththeaimofcreatinggrowthandinnovationinSwedishbusinesslife.Its

X X X X X

30

activitycoversthewholeprocessfromideatoprofitablebusiness.The objective is to get more innovative ideas to the marketsuccessfully, to get more viable businesses launched anddeveloped, as well as to increase the competitiveness andprofitabilityofthebusinesses.

www.almi.se

The Swedish Agency for Economic and Regional Growth(Tillväxtverket) has taken over the SWENTECs platform/databasethatprovidesexamplesandcontactstoofSwedishenvironmentaltechnologycompanies.

www.tillvaxtverket.se

X X X X

NordicCleantechopen:AninitiativeistostrengthenthepipelineofnewinnovativeCleantechideasandpromotethedevelopmentoftheseideasintosuccessfulbusinessesintheNordiccountries.

http://www.nordiccleantechopen.com

X X X X X

Cleantech Inn Sweden - A nation-wide business supportorganisation that coachesnewandestablished companies in thepromotionandadoptionofcleantechinnovations.

http://cleantechinn.com

X X X X

X

Placementschemesforstudents

There are several public and private sector support schemes forSwedish students in the technology area (including educationlinkedtoeco-innovation)whowishtostudyabroad.

http://www.kth.se/student/2.240/stipendier-for-utbytesstudier-1.993

X X X X

SupportforR&Dworkersrecruitments

TheSwedishResearchCouncil isanauthoritywithintheMinistryof Education and Research which offers funding opportunities(including in the natural and engineering sciences) for academicpositionsandfellowships.

http://www.vr.se/omvetenskapsradet/strategierochriktlinjer/vetenskapsradetsanstallningsstod2010.4.37eca2ee12a87a820218000815.html

X X X X

Networksandpartnerships

Competencecentres,clusters,science-technology

parks

Tillväxtverket,Vinnova,ISAandtheSwedishEnergyAgencyfinancecluster formations of companies and other players in support ofenvironmental technology. Examples include

X X X X

31

“Biobränsleregionerna” (Biofuel regions), Bioenergy in Småland,SustainableBusinessRegions,Eco-designclusters.

SP Technical Research Institute of Sweden: SP is a group ofresearch institutes for the application of technological research,several linked to environmental technology. SP supports thedevelopment of sustainable energy systemswith the purpose toincreaseenergyefficiencyinbuildingsandindustries.Competenceareasinclude:TheClusterWasteRefinery,HeatPumpCentre(HPC)andCertificationofproductsandmanagementsystems.

www.sp.se

X X X X

Technologyplatformsandinnovationnetworks

X X X X X

Foresightandcommonvisionbuilding

Swedish American Green Alliance (SAGA): a sustainabilityexchange for Swedish and American researchers, entrepreneurs,policy makers, journalists, legislators, activists, industry leaders,academics, NGOs. SAGA makes connections and cultivatespartnerships.

http://stockholm.usembassy.gov/environment.html

X X X X

Marketintelligenceandotherformsofinformation

sharing

Business Sweden – The Swedish Trade & Investment Council.Swedishtradecouncil:GreenBSO:BusinessSupportOffice.SupportforSwedishSMEsintheenvironmentaltechnologyareatoestablishthemselvesoverseas.

http://www.business-sweden.se/Export/Smaforetag/

X X X X

Business Sweden – The Swedish Trade & Investment Councilprovides support (as part of the Strategy for Development andExportofEnvironmentalTechnology2011-2014)toexportmarketto Swedish environmental technology companies (focus onsustainable urban development, infrastructure and sustainabletransportation)intheUnitedStatesmarket.

http://www.business-sweden.se/en/Invest/Industry-Opportunities/Energy-and-Environmental-Technology/

X X X X

ChamberTradeSwedenhasaChamberAcademyprogramme.Thepurpose is to deliver contacts, competence and capacity. Theprogramaimsatstrengtheningbusiness intheprivatesectorandcontributing to increased trade, sustainable development and

32

reduced poverty. The programme has launching several projectsthroughout Sub Saharan Africa, Iraq, Pakistan and Indonesia,collaborating and building the capacity of local chambers andbusinessnetworks.Oneofthekeyareasistostrengthenthebaseforgreentechnology.

http://chambertradesweden.se/chamber-academy/

DEMAN

DSIDE

FOCU

S

Regulationsandstandards

Regulations,targets,cap&tradeschemes

EnvironmentaltaxesandsubsidiesincludingacarbontaxwiththeaimtosupportecoinnovationdevelopmentinSweden(suchasfuelswitchtowardsbiomass).

X X X X

Performancestandards,labelling,certification

NationalsystemforGreencertificatesinelectricityproduction(theGovernment Bill Renewable electricity with green certificates(GovernmentBill2005/06:154)aimingtopromotethemostcost-effectiveproductionofrenewableelectricity.

X X X X

In Sweden there are also a number of different types ofenvironmentallabelsonthemarket:Thirdpartycertifications:TheNordicSwan,“BraMiljöval”(Goodenvironmentchoice)andKRAVfor ecological products, the EU Flower. Environmental productdeclarations:providingcomparable informationaboutthe impactofproductsandservicesontheenvironment.Energylabelling:ofwhitegoods,air-conditioningequipmentandairheatpumps.

http://www.svanen.se/en/Nordic-Ecolabel/

http://www.naturskyddsforeningen.se/in-english

http://www.krav.se/english

Publicprocurement

“Green“publicprocurementofgoodsandservices

The Government has developed criteria for Green Procurementwhichareincreasinglybeingimplementedincludingconsiderationsof support methods such as Life Cycle Costing, EnvironmentalProductDeclarationsandEnvironmentalManagementSystems.

X

X X X X

National Agency for Public Procurement. This new agency(September 2015) gives support through consultation, practicaltools and methods within the area of public procurement ingeneral. The agency puts extra emphasis on environmentallyfriendly procurement as an instrument to achieve the policyobjectivesintheenvironmentalarea.

http://www.upphandlingsmyndigheten.se/en/

X X X X X X

R&Dprocurement

33

Innovationprocurementhasbeenusedsuccessfully inSwedentobringaboutnewproducts.Thishasbeendonethroughcooperationbetween public players and business. However, there is noinstitutionalinfrastructureforpublicinnovation.

Pre-commercialprocurement

Not found.

TechnologyTransfer

Advisorysupportfortechnologyadopters

Not found.

Financialorfiscalsupportfortechnologyadopters

(e.g.grantsforpurchasingnewtechnology)

Seetaxincentivesbelow.

Supportofprivatedemand

Taxincentivesforconsumers(e.g.forpurchasing

environmentallyefficientproducts)

Swedenhasseveral tax incentives targetingconsumersaimingtoimprove energy efficiency/fuel switch/reduction of GHG gases.These include: reductionofpurchasecosts forsolarpanels, solarheating,energyefficiencyinvestmentsfordomesticbuildingsandfuel efficient cars. These are administered by different agencies.MoreinformationcanbefoundattheSwedishenergyagencyat:

http://www.energimyndigheten.se/sv/Hushall/Aktuella-bidrag-och-stod-du-kan-soka/

X X X X

Taxreductionsforproductsandservices(e.g.VAT

reductions)

Sweden has a tax reduction system named “ROT avdrag” whichprovidesconsumerswithanopportunitytoreducetheconstructioncost(manhours)ofbuildingrenovationsincludingenergyefficiencyimprovements(suchastheinstallationofthermalheatingsystems)See:

www.skatteverket.se

X X X X

Demandsubsidies(e.g.eco-vouchers,consumer

subsidies)See”taxreductionforproductsandservices”above.

X X X X

Awarenessraisingandinformationprovision

Several awareness and information campaigns have been/areunder way to raise public awareness and change consumerbehaviour. For example, the Climate Change campaign,implemented by the Swedish EPA, as part of the Climate Billioneffort. Other examples include the work of the Swedish EnergyAgency (raising awareness of energy issues tocompanies/organisationsandconsumers)

X X X X X

AbouttheEco-InnovationObservatory(EIO)

TheEco-InnovationObservatory(EIO)istheinitiativefinancedbytheEuropeanCommission’sDirectorate-GeneralfortheEnvironment.TheObservatoryisdevelopinganintegratedinformationsourceandaseriesofanalysesoneco-innovationtrendsandmarkets,targetingbusiness,innovationserviceproviders,policymakersaswellasresearchersandanalysts.

VisitEIOandDGENVEco-innovationActionPlan(EcoAP)websiteandregistertogetaccesstomoreinformationandtoaccessallEIOreports,briefsanddatabases.

www.eco-innovation.euec.europa.eu/environment/ecoap