ARTICLE27 March 2023

Europe risks stifling innovation with the revised Industrial Emissions Directive (IED)

The Council of Ministers reached a general approach on the revised Industrial Emissions Directive the 16th of March.

Karin NilssonPhoto: Ulf Börjesson/Ernst Henry Photography AB

The Confederation of Swedish Enterprise together with member organizations that have worked actively on the revised Industrial Emissions Directive, appreciates the Swedish position on the importance of flexible use of resources, but are concerned that other Member States do not share the same view. The proposal risks preventing innovation and slowing down the green transition, writes Karin Nilsson, Environmental Policies Expert.

Swedish Enterprise, together with its member organizations, has quickly analyzed the general approach from the Council of Ministers, and are concerned that the revised Industrial Emissions Directive may lead to over-detailed regulation that inhibits the important transition.

The binding requirements on the use of resource are unchanged, but the possibility of derogations has been introduced. Despite derogations, we believe that these requirements will reduce flexibility and inhibit innovation. Binding requirements on resources will make the green transition more difficult as many products that are more sustainable and of higher quality require more resources. The proposal will be counterproductive by favoring only simple processes and products - but not the advanced production that takes place in, for example, Sweden.

The proposal for ”strictest possible emissions limit values” risks result in that all decisions that must be taken to obtain a higher value than the strictest possible will lead to an extensive court process. This puts at risk the efficient permitting processes required to achieve the green transition. In addition, it is impossible for an installation to have ”strictest possible emissions” on all parameters. Consideration must be given to what is most environmentally efficient for each unique installation and location.

The detailed level of requirements imposed by the revised directive risks hindering investments and at the same time greatly complicating the Swedish permit processes. To meet the EU’s climate goals, increase resource efficiency, and contribute to the circular economy, companies need to have control over the optimization of their resource use and contribute to the best possible environmental benefits in society.

The Confederation of Swedish Enterprise, together with its member organizations, will need to continue to work actively for a functioning permit system in the EU and Sweden.

Written byKarin Nilsson
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