Historical decision: Government of Sweden decides to review a case about expansion of oil refinery

Stockholm, Sweden

If we are to limit global warming to 1.5 degrees Celsius, all greenhouse gas emissions must be reduced drastically. Nevertheless, Preem, the largest fuel company in Sweden, has been granted permission to expand its oil refinery in Lysekil, Preemraff. Today, the Government announced the historical decision that it will review the expansion of the oil refinery. This is the first time that a project of this kind is being reviewed for climate reasons in Sweden. The Swedish Society for Nature Conservation welcomes that the Government is now using the available tools in the environmental laws to steer our society towards long-term sustainable development.

The decision to grant a permit for expansion of Preemraff was taken by the Land and Environment Court in November 2018. If this plan becomes a reality, the emissions from Preemraff would grow twice as large and increase from 1.7 million tonnes carbon dioxide to 3.4 million tonnes per year. Preemraff would then become the largest emitter of carbon dioxide in the country. This would make it very difficult for Sweden to reach its climate goals, regulated in the Swedish Climate Act.

Swedish Society for Nature Conservation, alongside other organisations and over 100 citizens, appealed to the Land and Environment Court of Appeal against Preem’s permission to expand its refinery. 17 June 2019, the court granted a leave to appeal. By doing so, an opportunity opened up for the Swedish Government to answer the more fundamental question whether or not Preem at all can be given a permit to expand its refinery and increase its emissions of carbon dioxide. Today, the Government announced that it will take over the review, making the emissions from Preemraff a Governmental matter.

– We are pleased that the Government takes responsibility and hope that this means that the expansion of Premraff, and the huge increase in emissions this would lead to, will not materialise. Efforts from both society and industry are needed to reduce, not increase, Sweden’s emissions, says Johanna Sandahl, chair of the Swedish Society for Nature Conservation.

The Government will conduct a review according to Swedish environmental law of Preem’s application, based on the same legislation as the court.  The Government is better suited to make a comprehensive assessment based on the long-term goals set out in the Swedish Climate Act – which the Government is subject to.

–  The Government is better suited than the court to answer the question of which activities should be allowed in order for Sweden to reach its climate target of net-zero emission in 2045. It would be a great disappointment if the Government, which is subject to the Swedish Climate Act and the Paris Agreement, would allow for a doubling of emissions from an activity that produces fossil fuels, says Johanna Sandahl.

The opportunity for the Government to review whether businesses with a significant environmental impact should be allowed has existed since the 1960s but has not been used frequently in the past decades. The Swedish Climate Policy Council, which is assisting the Government with an assessment of how compatible the overall policy framework is with the climate goals, announced earlier this year that it is of the opinion that the Government should review major sources of emissions. The Swedish Society for Nature Conservation welcomes that the Government is now using the available tools in the environmental laws to steer our society towards long-term sustainable development.

How the process works and the role of the Government in the permit case of the Preemraff refinery

1. Formally, the Government is now to examine if the project is compatible with Swedish environmental law or not (“consideration of permissibility”). Before the Government starts the review, the court must finalize its review of the case – but not take the ultimate decision if the project is permissible or not.

2. The Swedish Society for Nature Conservation and others that have appealed the permit are allowed to hand in written arguments to the Court. Preem is allowed to do the same.

3. Thereafter, the Court might decide about a main hearing.

4. Instead of pronouncing a judgement, the court will hand over a statement to the Government. The statement is a summary of what has emerged during the procedure and the court’s opinion on how the Government should decide on the matter. The Government is not bound by the court’s final opinion on the matter.

5a. In case the Government’s decision is that Preem’s expansion cannot be allowed, the case will be formally closed by the court.

5b. In case the Government’s decision is that the expansion can be allowed, the review in court continues where all the details in the permit will be laid down. 

Facts:
Sweden’s climate goals, shortened from the official Government website.

On 14 March 2017, the Government presented a bill on a climate policy framework, based on the proposals of the Cross-Party Committee on Environmental Objectives. The Riksdag adopted the Climate Act and the new climate goals on 15 June. The climate policy framework consists of three pillars: a Climate Act, climate goals and a climate policy council.

  • The Climate Act: The Climate Act establishes that the Government’s climate policy must be based on the climate goals and specifies how work is to be carried out.
  • The climate goals: By 2045, Sweden will have net zero emissions of greenhouse gases into the atmosphere and should thereafter achieve negative emissions.
  • The climate policy council: The climate policy council is tasked with assisting the Government by providing an independent assessment of how the overall policy presented by the Government is compatible with the climate goals. The council will evaluate whether the direction of various relevant policy areas will increase or reduce the likelihood of achieving the climate goals.

For further information, contact: 
Anna Havula, press & pr manager, +46-708 703 700, anna.havula@naturskyddsforeningen.se