Government proposes a ban on extraction of coal, oil and natural gas and stricter rules on extraction of alum shale

By Alexander Norfolk March 8, 2022
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03 March 2022

In the proposal referred to the Council on Legislation for consideration, the Government proposes amendments to the Swedish Environmental Code and the Mineral Act that entail a ban on the extraction of coal, lignite, crude oil, shale oil and natural gas similar to the ban on uranium extraction. The Government also presents proposals aimed at tightening regulatory framework for the extraction of alum shale.

Creating the green jobs of the future by driving the climate transition is among the Government’s priority issues. Implementation of the climate policy framework involves taking measures against the extraction of substances that have negative health and environmental impacts. Against this background, the Government now proposes amendments to the Environmental Code and the Minerals Act.

“The green and digital transitions will create more jobs and require more metals and minerals. Nevertheless, Sweden must never stray from the environmental legislation. We will also lead the way and ban the extraction of coal, oil and gas, and tighten the regulatory framework for extraction of alum shale to play our part in the climate transition,” says Minister for Business, Industry and Innovation Karl-Petter Thorwaldsson.

Amendments to the Environmental Code mean that permits will no longer be granted for mining or extraction operations for the extraction of coal, lignite, crude oil, shale oil or natural gas. The ban also applies to the extraction or recycling of these substances from residual products from mining activities. Exemptions will be made for indirect extraction and geological storage of less than 100 000 tonnes of carbon dioxide for research purposes.

A suitability requirement will also be introduced for those who apply for exploitation concessions for the extraction of concession minerals in alum shale, along with a new notification requirement in cases where exploitation may cause significant damage to agriculture or forestry.

Coal, oil and gaseous hydrocarbons will be removed from the list of concession minerals covered by the Minerals Act. The Minerals Act will also be amended to no longer allow a concession holder to benefit from coal, lignite, crude oil, shale oil or natural gas extracted in connection with extraction of concession minerals.
It is proposed that the legislative amendments enter into force on 1 July 2022.

The original press release can be found on the Swedish government website