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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure SE-2022-27/2965 Updated – measures in Sweden

Ban on new coal mining, natural gas and oil extraction projects

Förbud mot utvinning av kol, naturgas och råolja

Country Sweden , applies nationwide
Time period Open ended, started on 01 July 2022
Context Green Transition, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Reorientation of business activities
– Change of production/Innovation
Author Anna-Karin Gustafsson and Elina Härmä (Oxford Research) and Eurofound
Measure added 31 October 2022 (updated 15 November 2024)

Background information

The ban on extraction of several fossil energy sources is primarily described as a measure to reduce emissions. It is also seen as a vehicle with which more resources can be made available for extraction of minerals that is necessary for the green conversion. The amendment passed the parliament four years after it approved a bill that prohibits uranium mining.

Content of measure

The amendment of the environment code [1998:808] and the mineral law [1991:45] prohibits any extraction of oil, coal and natural gas in Sweden. Applications to set up such activitites will not be granted by Swedish authorities after the bill is introduced. The bill also means that the listed minerals will lose the status as so called concession minerals that are considered to be vital for industry and society. Besides applying to oil, coal and natural gas, it also incudes new rules that would limit alum shale extraction. Extraction for some research purposes is however excepted. Specifically, the bill will allow the extraction and storing of the equivalent of 100,000 metric tonnes of carbon dioxide.

Updates

The following updates to this measure have been made after it came into effect.

07 June 2022

In 2022, the government gave a special evaluator the task to identify which goods and services in Sweden are essential for the maintenance of essential activities or where a disruption of the availability of said goods or services would risk causing serious consequences. The purpose of the evaluation is to strengthen Sweden's ability to maintain essential supplies and ensure access to essential goods and services in the event of crises during peacetime, during heightened alert, and ultimately during wartime.

As part of the evaluation, the domestic resources of coal, oil, and natural gases are to be investigated. Similarly, the evaluation includes an investigation of the conditions required for utilising these natural resources in the event of a peacetime crisis or heightened alert, including an investigation of possible requirements for financing.

The evaluation has so far resulted in two interim reports, but neither have presented results on the domestic resources of coal, oil, and natural gases.

The duration of the remaining parts of the evaluation was extended in July 2024 setting a new reporting deadline for 31 May 2025. Further political decisions will likely be guided by the evaluation results.

Use of measure

The amendment has been criticized for being symbolic since there are very few operations in Sweden dealing with the minerals it adresses. In May 2022, only one company had an extraction permit for natural gas whereas a handful where, mainly, prospecting for natural gas. No company has neither prospected nor extracted any of the types of coal that is listed in the bill.

Target groups

Workers Businesses Citizens
Does not apply to workers Larger corporations
Does not apply to citizens

Actors and funding

Actors Funding
National government
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Regional or local level

Involvement

The measure underwent a round of consultations

Views and reactions

The trade association, Svemin, that gathers mining companies in Sweden has criticized the bill, claiming it will make it harder to extract essential minerals. One example of this is the suggested limitation of which biproducts of mining that companies can use. By removing coal form the list of concession minerals, companies need to treat it as waste, ehch in turn will increase the ecohazards associated with mining and the costs. Svemin clais that the latter could mean that mining for essential minerals will be unprofitable.

Sectors and occupations

This case is not occupation-specific.

Sources

  • 19 May 2022: Förbud mot utvinning av kol, olja och naturgas och skärpta regler för utvinning i alunskiffer (www.riksdagen.se)
  • 31 May 2022: Sverige stoppar utvinning av olja, kol och gas (www.svd.se)
  • 11 March 2024: SOU 2024:19 'En ny beredskapssektor – för ökad försörjningsberedskap' (www.regeringen.se)

Citation

Eurofound (2022), Ban on new coal mining, natural gas and oil extraction projects, measure SE-2022-27/2965 (measures in Sweden), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SE-2022-27_2965.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.