This article has been translated with DeepL.
NEW RESEARCH: How to get a smoother environmental review – advice for companies in transition
- Published: 2 May 2024,
- 12:27 PM
- Updated: 2 May 2024,
- 9:36 AM
The green transition in northern Sweden risks stalling unless environmental permitting processes are streamlined. This, according to researchers at Norrlandsnavet, who give entrepreneurs advice along the way.
Green technology, also known as cleantech, is crucial for tackling climate change – and central to the green transition currently taking place in northern Sweden. It is primarily the larger companies in the mining, steel and wind power industries that are the main players in the transition. But smaller cleantech companies are also important players.
Small businesses are affected by lengthy and uncertain licensing processes in two ways. Some are subcontractors to large industries, and are therefore negatively affected if industrial projects are delayed due to permitting issues. Other small businesses are themselves engaged in activities that, while contributing to the climate transition, also require permits under environmental legislation.
– One of our studies shows that when larger companies encounter problems with environmental permits, it can be difficult for small companies to recruit staff. Many are reluctant to move to a region with an uncertain future, says Patrik Söderholm, professor at Luleå University of Technology and former member of the Climate Policy Council.
Success with flexible environmental permitting processes
A government inquiry is currently underway into how the processes for environmental permits can be made more predictable and shorter, and research in Norrlandsnavet can contribute important pieces of the puzzle. Together with doctoral student Kristoffer Sundström, Söderholm is investigating how the equation of investments that contribute to the green transition and the environmental requirements for the same should go together. One factor they have studied is the flexibility of the trial, including the use of trial periods.
– A trial period means that the authorities give companies the opportunity to identify solutions to achieve a lower environmental impact over a certain period of time, explains Kristoffer Sundström.
– The trial periods reduce the risk of companies facing tough environmental requirements that they have to adapt to within a short time frame, he continues.
The trial periods create flexibility in environmental legislation that has historically proven to be of great importance. Companies achieve lower emissions while not jeopardizing future investments and profitability.
– It’s a way of easing the inherent conflict between setting tough environmental requirements and ensuring business survival, says Patrik Söderholm.
A good dialogue is essential
The battery manufacturer Northvolt’s investment in Skellefteå is, according to the researchers, a good example of when environmental permitting has worked smoothly – and a case that both companies and authorities can learn from.
– The company had an early dialogue with the authorities to better understand what to expect during the environmental assessment. You don’t want to encounter surprises along the way, says Kristoffer Sundström.
– An example in northern Sweden is issues related to reindeer husbandry, and the need for dialogue and collaboration with the affected Sami villages.
As a business, it is important to be proactive. Northvolt engaged with the authorities early in the process, bringing in environmental experts to help the company reduce its environmental impact.
– The authorities also did their part to enable the business, for example by granting the company a trial period, says Kristoffer Sundström.
How flexible would you say the authorities are during the licensing processes?
– The authorities are reasonably flexible and open to dialogue. But it is important for businesses to be aware that the process is not always that simple. It is common for companies to submit permit applications that are not complete, and do not address all key issues. Then the process risks becoming lengthy, says Patrik Söderholm.
As an expert on environmental regulation and former member of the Swedish Climate Policy Council, what do you hope the government inquiry will come up with when it is presented in December this year?
– There is no need for radical reforms of the environmental legislation, the focus should be on its practical implementation. For example, the authorities need more competence and resources and should be given more responsibility for driving the processes forward.
Contact
patrik.soderholm@ltu.se
Three tips for entrepreneurs facing environmental assessment
Be proactive. Engage early with the authorities to understand what is expected of your type of business and what the process will look like.
Engage environmental experts for advice at an early stage. But don’t hire just anyone, not all consultants understand your business and its environmental impacts.
Use the flexibility of environmental legislation. The authorities have the possibility to grant trial periods and can formulate conditions in terms of limit values instead of less flexible technical requirements.
This article is produced in collaboration with Norrlandsnavet.
More about the project and Norrlandsnavet
The research project is called SME Growth and Green Industrial Transitions: Strengthening the Innovation Systems, and is part of Norrlandsnavet, at Luleå University of Technology. The initiative works to develop business in northern Sweden and is funded by the Kamprad Family Foundation. Read more about Norrlandsnavet.
More articles about Norrlandsnavet:
NEW RESEARCH PROJECT | Helping tech companies in Norrland to scale up
The role of small businesses in the green transition
Three years of Kamprad’s 100 million (SEK) investment in companies located in northern Sweden
