Response to interpellation 2022/23:383 on the industry's climate transition

Energi- och näringsministern Ebba Busch (KD)

Madam Speaker! Daniel Vencu Velasquez Castro has asked me what the government's plan is to secure the long-term investments that have been made in Swedish industry by both the business sector and with public funds. He has also asked whether the government will take further measures to support industry and contribute to a faster transition. Finally, he has asked whether the government plans to enable support for more projects under the IPCEI framework that are classified as a common European interest. Even here, an initially quite substantial answer will follow.

Swedish competitiveness goes hand in hand with the goal of net-zero emissions by 2045, which requires an active industrial policy. This involves, among other things, expanded electricity production, skills supply, as well as fast, predictable and efficient permit processes.

One of the government's primary priorities is to work to secure new planned electricity production in Sweden. Energy policy needs to be developed and adjusted to be able to meet increased electricity consumption. The government is working to improve the conditions for new nuclear power and has proposed amendments to the Environmental Code to remove the limitation on the number of nuclear reactors as well as allow new reactors in more locations than the current three.

The Climate Justice Inquiry, in its final report *Justice for the Climate*, has proposed a number of new provisions as well as amendments to the Electricity Act and the Environmental Code that shall facilitate the expansion of electricity production and the electricity grid. The Government has already taken the Climate Justice Inquiry's proposal on improved guidance further through assignments in the regulatory letters to both Boverket and Naturvårdsverket.

The Government attaches great importance to a good supply of skills for both the business sector and the welfare sector to secure our competitiveness. That Swedish companies have access to the skills needed to be able to develop and grow in Sweden is important for Sweden's ability to drive the climate transition and create new jobs throughout the country.

Arbetsförmedlingen has an important role in this context, which is also reflected in the agency's new instructions that entered into force in December last year. The Government has also tasked the Swedish Energy Agency with coordinating a national effort regarding skills supply for electrification.

The Government is working purposefully and actively with measures on a national level to simplify and speed up the permit processes and increase the pace of the energy transition. For example, the report of the Environmental Assessment Inquiry (SOU 2022:33) has been referred, and the matter is now being prepared in the Government Offices.

The government has also recently appointed the investigation on shortened and simplified permit processes according to the Environmental Code as announced in the Tidö Agreement. The purpose is to secure the business sector's competitiveness and Swedish industrial production and promote a green transition with the export of climate-friendly products and technology.

The Energy Markets Inspectorate has received more resources in the budget for the current year, among other things to shorten the lead times in the permit processes for electricity grids, and the Swedish Environmental Protection Agency has been tasked with producing more detailed guidance on environmental assessment.

The government also works through the general business and simplification policy for the competitiveness of all companies and to reduce the regulatory burden and administration for companies. The government has, among other things, strengthened the business portal Verksamt.se and the Regulatory Council's work in reviewing impact assessments of proposals that may have significant effects for companies.

Furthermore, the government announced in the budget bill for 2023 that an implementation council shall be established with the aim of reducing the regulatory burden for companies. The government also expanded the initiative on Industriklivet in the budget bill for 2023.

The climate transition is one of the most decisive issues of our time. The need for new technology and new solutions to manage the transition is being highlighted now more than ever across the world. Many countries are designing various programs and measures to stimulate the climate transition. There has long been an opportunity to provide state aid for the transition, and Sweden has in different ways utilized the opportunities that the EU's state aid framework provides, with the conditions we have as a small, open economy.

It is up to each Member State to make the priorities they deem necessary to enable the transition, based on the respective country's capabilities. State support should only be used to address market failures.

In 2022, the government allocated 100 million kronor for an investment in Swedish participation in important projects of common European interest, which are sometimes abbreviated as IPCEI in the debates. An additional 70 million kronor were allocated for 2023 and 2024. These funds are in addition to the 200 million kronor for the year 2022 and the estimated 70 million kronor for 2023-2027 which were allocated in the budget bill for 2021.

Sweden cannot compete in the long term with state aid. Sweden has, however, relatively cheap fossil-free electricity. Therefore, we also see that large establishments have been made and will be made in Sweden. These we shall protect.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Daniel Vencu Velasquez Castro (S)

Madam Speaker! Thank you, Minister, for the answer!

Swedish industry is of world-class quality; it has always been. It is through the quality of our products that we, as a fairly small nation, have been able to compete out in the world. And there is no doubt that a strong industry has been the prerequisite for our strong welfare state, together with a wise distribution policy.

In a situation where welfare needs more resources, our infrastructure needs to be strengthened and more people need to get into work, industry is once again a prerequisite for building a strong society. Unlike how it sounded during the previous mandate period, the government parties have become somewhat more positive towards the support for the green industry.

It is good that the state is an active party in the climate transition and creates conditions for the industry to develop. It is clear that all industries need to be self-sustaining in the long run, but it is serious that the government does not understand why this state support is needed now and in the time ahead, when we are in the middle of a race for the leading position in the green transition.

Fossil-free steel, battery factories and an automotive industry that is transitioning are some of the things that now give hope for a sustainable future, as these industries together account for a third of Sweden's total emissions. The transition needs to be carried out for the climate and to give future generations a chance to have a planet that is livable.

Something that has become apparent is the importance of succeeding with the climate transition in order to strengthen Swedish competitiveness. All over the world, we see how countries are taking large steps to attract green investments and states that are doing their utmost to support companies that contribute to achieving a net-zero society. To be clear: These supports can be of a financial nature or consist of relief in permits and regulations.

Madam Speaker! I am proud of what the previous government managed to achieve together with the business sector. When the Social Democratic government took office, it was almost as if we in Sweden stood completely helpless before the fact of what the climate transition was. But with political leadership and a political direction, one goes far, and that is what we did. It was during those eight years that the industrial boom occurred, and all of a sudden, Sweden was part of the solution to the climate crisis.

But unfortunately, it is not as self-evident today. I am sure the government believes it has done its best with the EU presidency, and I have personally participated in a couple of deliberations that have been well-conducted. But in practice, not much has happened. Sweden is no longer seen as a strong climate nation leading the fight in the climate transition and contributing to making the EU a leader in the race. Instead, there has been setback after setback, rather than us leading the union and accelerating towards a green and sustainable future.

This is not what Swedish industry needs. Industry would have needed Sweden to set the frameworks for the new EU laws that come with the Fit for 55 package and the EU's green deal. Swedish industry should be the starting point in the EU's work to design regulatory frameworks that facilitate green industrial establishments.

Nor even here at home, Madam Speaker, does the government take responsibility or leadership in the issue of the industry's transition and future. Now large industries are waiting for decisions on whether they will receive support or not, and then the government chooses to shift the responsibility to the Swedish Energy Agency. But the minister knows that it is the government and not the agency that has the mandate to make decisions on projects that fall within the framework of the so-called IPCEI framework.

Why can the minister not give an answer regarding support for an industry that can create thousands of jobs and contribute to drastically lowering Sweden's emissions? Could it be because the government feels somewhat constrained by the Sweden Democrats – the party that in practice runs the government?

The Sweden Democrats have been very clear that they do not think there should be any large subsidies to the industry, preferably no subsidies at all. How does this create long-term perspective and conditions for the industry to develop, Ebba Busch?

My questions remain: What is the government's plan to secure the investments that have been made, and will the government take further measures to support the industry?

The speech at riksdagen.se, in Swedish (opens in a new tab)

Energi- och näringsministern Ebba Busch (KD)

Madam Speaker! Now that we are both here, the interpellor and I, I would like to thank you for the interpellation. This is still my favorite subject, if I may say so.

Repeatedly, I have had to point out from this rostrum that Sweden truly has an answer to what I have several times called the million dollar question, the big question: Is it possible to combine high-reaching climate goals with paving the way for more employment opportunities for Swedish citizens - Swedish mothers and fathers - so that they can provide for themselves and their children and at the same time have a strong welfare? The Swedish answer is yes.

I do not have the same view as Daniel Vencu Velasquez Castro, that Sweden would in any way slow down in this matter. On the contrary, I can give credit to the previous government, which pointed out the need for the industry's value in the green transition. When we see how others, even on the bourgeois side, talk about the industry being the past, we Christians Democrats and Social Democrats can join forces and say that the industry is the future when it is green. Now we see that the business sector is in the driver's seat in several parts of the so crucial green transition.

I do not agree that we are slowing down; on the contrary, we have taken the baton and rather increased the pace. I have had the privilege of leading two ministerial circles during the Swedish EU Presidency. One is responsible for competitiveness issues, and the other handles energy issues. It has been a huge advantage to be able to drive the Swedish priorities in both of these two circles. We have, in fact, aimed to contribute during the Swedish Presidency to making the EU greener, safer, freer, and more secure. In order to do that, we need to highlight the long-term issues and the competitiveness of the EU and link them to the green transition. I would say that we have succeeded in doing so by far.

There is not a single country within the EU that I have had contact with during this spring, regardless of the color of the government, that does not see Sweden as a pioneer country, that does not feel challenged in a positive way by Sweden in the climate transition, or that in any way questions that we are dedicated to meeting the climate threat.

Looking at what we have delivered during this spring, it is not so strange that I do not meet this image. During the Swedish presidency, we have namely completed what is called Fit for 55. This is, therefore, the EU's large climate package. Never before in the entire history of the European Union has one had such a large legislative package on the table. Of eleven acts, Sweden has brought five of them to completion. It shows commitment to the climate transition. But it also shows that we have succeeded in linking this to competitiveness issues and thereby brought with us significantly more countries that are not usually as active in the issue of meeting the climate transition and the green transition that Sweden is.

I therefore believe that we have demonstrated, both at home and not least in an EU context, that we hold these issues in high regard. We deliver on them, not just in words but also in action. And we intend to continue to maintain a high pace even moving forward.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Daniel Vencu Velasquez Castro (S)

Madam Speaker! I can understand that the member states of the European Union see Sweden as a pioneer because it is we who have ensured that they can do so. But the question is whether they see this government as a pioneer or not.

We have a government basis that wants to appear as if they are in agreement. But every single time support for the industry is to be announced, the Sweden Democrats speak out critically against this. It is as if the fact that we are in a climate crisis has completely passed them by. Now the government is forced to do as they want. The Sweden Democrats have decided to make climate policy the next culture war. And the government chooses to sanction this culture war. Those who do not want to see a green industrial revolution in Sweden are now located inside the walls of the Government Offices. It is serious, and it creates uncertainty for the industry. This can, in turn, lead to investments ending up somewhere else. It means that Swedish jobs disappear abroad and that the Sweden Democrats get what they want. Sweden is relegated to the substitutes' bench, but they get to keep the power.

In the European Parliament, the government parties have also not been friends of the green industry. The Moderates, Christian Democrats, and Sweden Democrats have voted for emission regulations that make it easier for German fossil steel to continue being sold, which directly hampers Swedish competitiveness and green steel. This was boasted by, among others, Busch's party colleague Skyttedal, namely that it worsens Swedish competitiveness and green steel.

All this creates anxiety, and for every day that the government is slow and unclear about what applies to the industry and what the state's role will be, Sweden loses competitiveness. Being a leading nation that others follow ensures that Swedish jobs are created and that the Swedish economy will emerge strengthened from the many crises we find ourselves in.

Mr. Speaker! In his response to me, the Minister has wished that there were no state aid and in some way nevertheless expressed some form of criticism towards the IPCEI framework in a situation where the industry needs to know whether the policy will be an active party in the climate transition or not. It is extremely important that we are involved in shaping the list of priority projects and use it for various initiatives that contribute to achieving net-zero emissions.

But the minister does not answer this. Instead, it is nuclear power that is the answer in the interpellation response. We have heard that before – not just from me. All good types of power are needed, and countless Social Democrats have said this in this chamber several times. But when we are to discuss how the government can support the industry through various supports and reliefs, the minister chooses to fall back to her safe zone and create this false contradiction about nuclear power. It is time to let go of the culture war, Ebba Busch, and answer what the industry can expect for other supports from the government.

But if we are to talk about energy, we can look at what the government is doing for the fossil-free society. In the European Parliament, all parties from the government base vote to include fossil gas in the EU's taxonomy. That is something that directly undermines, for example, nuclear power. It is therefore unclear whether the government wants nuclear power for the sake of the climate, or if they have learned from their new friends how an effective culture war is waged.

In addition to this, the government has opened up for more subsidies for coal power in, among others, Greece and Poland. The fossil-free society feels very far away when we have a government that places greater weight on what is written on a piece of paper than what is actually done in practice. It is not responsible climate policy, and it means that we move further away from the fossil-free society.

To return to industry, I still wonder what the government intends to do to ensure that green investments do not end up abroad. It cannot be that we extract iron ore from our mines and then neglect to refine it and instead send it abroad. With such enormous investments being made all over the world, we in Sweden cannot just watch and be overtaken.

The Sweden Democrats are a threat to the green transition. Regardless of whether Ebba Busch wants to see it or not, everyone else sees it. Stop sanctioning the culture war, let go of the prestige and let go of the Sweden Democrats, because it is not possible to build a climate-friendly society with a climate-denying party!

Mr. Speaker! Therefore, I ask if the government is prepared to create real and long-term conditions for the industry and engage in dialogue with us so that fragile majorities do not become what the industry has to contend with.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Energi- och näringsministern Ebba Busch (KD)

Mr. Speaker! I will begin by answering the last concrete question. First and foremost, we are living in very restless times. Therefore, I am pleased that Sweden now has a government that has a majority for its base in this chamber.

The former Social Democratic government was forced to resign twice. During three of eight budget years, they governed with a budget that was pushed through the chamber because they were completely unable to seek the broad support needed to pass their budget in the chamber.

When it comes to decisive infrastructure issues, which housing can still be considered to be, one had six housing ministers during eight years.

This is how I can continue regarding how fragile and uncertain it was. And two years ago at this time, we stood without a government.

That is why I am glad that Sweden, in this restless and insecure situation, has received a stable government with a majority for its base in this chamber. It means that we can make such necessary decisions as to change the goal from 100 percent renewable to 100 percent fossil-free. That was a decision that was made here in the chamber yesterday. It is important if one also in action shall show that all good forces are welcome. I would wish for more clear votes in the chamber also from the Social Democrats' side on this issue going forward.

Mr. Speaker! I was accused of once again only focusing on nuclear power. But for those who actually listened to my contribution, I marked very clearly the action, not just words, that we demonstrated during the Swedish presidency.

I can calm the concern that exists regarding individual Sweden Democrats' statements on the climate issue by stating that it is not noticed at all at the EU level. The concern that the Social Democrats are trying to whip up and give media space to, and give space here – that there would be question marks regarding where we stand in the fight against the climate threat or in the green transition – does not exist at the EU level. It is also for that reason that we have been able to maintain such a high pace.

But above all, in Sweden, we are now getting more people on board regarding the need for the green transition because we are shifting from a perspective where it is primarily the individual who is to bear the green transition. We as individuals absolutely have a responsibility. But we are now making a major systemic shift in terms of the transition of transport and our heavy industry, where electrification is essential and the foundation for this.

We are now also bridging many of the tough and internal contradictions that existed in the previous government between the Social Democrats and the Green Party, which caused one to be totally paralyzed in several crucial issues. I can take, for example, the issue of the mining industry. Tough deadlocks between S and MP meant that the way was not cleared for new mines in the way that was needed. These minerals and metals that are in Swedish mines and that are in the Swedish soil are crucial for Sweden and the EU to manage the green transition. They were needed for our wind turbines, for our electric cars, for our batteries, and for our digital transition and for our phones. Therefore, we need to clear the way for more mines. I have spoken with a multitude of formerly active Social Democrats who now rather praise that we are clearing the way here.

Here I see that we could leave the rhetoric and the high tone - which can be justified sometimes - and instead cooperate on permit processes for electricity grids, more power production, and more mines. To conclude with a clear answer to the last question that the member posed, I am happy to cooperate with the Social Democrats on this.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Daniel Vencu Velasquez Castro (S)

Mr. Speaker! Regarding the answer about individual representatives for the Sweden Democrats: Are we not to take the economic-policy spokesperson seriously? Are we not to take the Sweden Democrats' party leader seriously? Are we not to take the chairman of the Committee on Enterprise seriously? Is that what the Minister is saying?

It makes me worried when the minister appears indifferent to the threats to the industry that come from the Sverigedemokraterna.

In Sweden, we have a tradition of cooperating on difficult and complex issues to meet the challenges we face together. It is difficult for a small country like Sweden to otherwise compete on a global market. Both we and the industry need long-term thinking, and therefore we need to cooperate. We have done that in this country for decades, so it is not foreign, Ebba Busch.

The government cannot sit on its hands while the whole world is transitioning. The EU classifies Swedish innovations as something of common European interest. Yet, we cannot even provide an announcement on whether we will list more projects according to the IPCEI framework or if more money will come to the industry.

It needs to be done because it creates jobs, strengthens competitiveness and makes Sweden a better country. But it also means that we get money for our welfare and infrastructure and that more people get into work. It also makes Sweden a nation with high employment and strong welfare systems.

Municipalities and regions are not receiving increased state funds from the government. They have chosen to starve the welfare system. Now it is unclear what the government wants with the industry, which can create the prosperity we all seek for Sweden. It will be a double blow for the entire population of Sweden.

Now it is time for the government to show decisiveness. Ebba Busch knows that we Social Democrats are happy to have a dialogue. It would be an unnecessary conflict to portray that we do not want to conduct a dialogue with the State Council. It is high time that Ebba Busch invites to such conversations, because welfare, jobs, infrastructure, yes, the entire Swedish society is in need of Sweden implementing and leading the green transition. It is high time that Ebba Busch takes responsibility and invites to such conversations if she is serious about us being leading in the green industrial revolution.

(Applause)

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Energi- och näringsministern Ebba Busch (KD)

Mr. Speaker! I perceived that I received a question from the member regarding whether I was interested in dialogue and cooperation. Therefore, I tried to answer it, and the answer is yes. I did not try to paint a picture that you in the Social Democrats in any way would not be open to it, but I tried to be service-minded and answer the question as I perceived it to be very clear in the member's previous contribution. Therefore, I raised it.

Some news may have passed by. I understand that it can be easy to miss; there is a lot on the Riksdag's table.

Some of you had been invited to actively and clearly take a stand for 100 percent fossil-free in the chamber yesterday. That was a choice not to make, and I regret that. But I still see movements in the right direction, which is positive.

Some of them we have invited all parties in the Swedish Riksdag to participate in and influence the upcoming energy bill and do so together with the industry and relevant companies. It is a news item that we have released externally, and we have previously signaled that we are open to it. Now we are also making it concrete.

As late as today, I met with a colleague of Vencu Velasquez Castro, Fredrik Olovsson, who is the leader of the opposition in the Committee on Industry, to discuss how we can cooperate regarding some of the energy issues.

You only have to look at the Tidö Agreement: The climate work shall be efficient and ambitious. All four coalition parties agree on this.

I have recurring weekly, if not almost daily, direct contact with heavy representatives of the industry but also parts of the unions, who see that there are no question marks regarding the government's ambitions for the climate transition, the green transition or the necessity of linking it to competitiveness. There, I am happy to cooperate further and am glad that there is a shared desire for it.

The interpellations debate was hereby concluded.

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