Policy priorities for mobilizing investment in Swedish green industrial transitions

The report finds that neither the scale of capital investment nor access to financing are primary obstacles to Sweden's green industrial transition. Instead, the most critical barriers are the lack of market demand for more expensive green products, insufficient infrastructure (particularly renewable electricity), and slow permitting processes. The authors recommend that policymakers focus on market formation through carbon pricing and the EU's Carbon Border Adjustment Mechanism (CBAM), while continuing direct support for R&D and demonstration projects through programs like Industriklivet.

• The scale of capital investment and access to financing are not perceived as significant barriers to deep green industrial transformation by industry or financial actors, provided a viable business case exists.
• The primary obstacle to scaling investments is the risk associated with increased production costs and the resulting uncertainty regarding market demand for green industrial products.
• Market formation policies, specifically high carbon prices and the European Union's Carbon Border Adjustment Mechanism (CBAM), are identified as the most effective levers for mobilizing investment.
• Infrastructure deficits, specifically the lack of renewable electricity and grid capacity, and slow permitting processes are critical bottlenecks for industrial decarbonization.
• Government loan guarantees are viewed as an appropriate tool for risk sharing for commercial-scale investments, though their effectiveness was not fully assessed as interviewees had not yet used them.
• While current national and EU support for R&D is satisfactory, there is a need for continued and potentially increased direct support for the demonstration and commercialization stages of first-of-a-kind facilities.
• Sector-specific demand policies are necessary because general policies may not be sufficient for all industries; for example, public procurement is vital for cement, and biofuel blending mandates are key for refining.
• The pulp and paper industry has high potential for 'negative emissions' via BECCS, but currently lacks the financial incentives or regulations to implement it.
• There is a risk that aggressive national industrial support in larger EU member states could undermine fair competition and disadvantage smaller countries like Sweden.

APA

Maltais, A., Karltorp, K., & Tekie, H. (2022). Policy priorities for mobilizing investment in Swedish green industrial transitions. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2022/06/green-industrial-transitions-sei2022.022.pdf

Chicago

Maltais, Aaron, Kersti Karltorp, and Haben Tekie. Policy priorities for mobilizing investment in Swedish green industrial transitions. Stockholm Environment Institute, 2022. https://www.sei.org/wp-content/uploads/2022/06/green-industrial-transitions-sei2022.022.pdf.

Wikipedia

{{cite report |last1=Maltais |first1=Aaron |last2=Karltorp |first2=Kersti |last3=Tekie |first3=Haben |title=Policy priorities for mobilizing investment in Swedish green industrial transitions |publisher=Stockholm Environment Institute |date=June 2022 |url=https://www.sei.org/wp-content/uploads/2022/06/green-industrial-transitions-sei2022.022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{maltais2022policy, author = {Maltais, Aaron and Karltorp, Kersti and Tekie, Haben}, title = {{Policy priorities for mobilizing investment in Swedish green industrial transitions}}, institution = {Stockholm Environment Institute}, year = {2022}, month = jun, url = {https://www.sei.org/wp-content/uploads/2022/06/green-industrial-transitions-sei2022.022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }