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Sweden

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Reshape extractive industries

Resource extraction will continue to be necessary, even in a more circular world.[120] As the earliest stage of many supply chains, extractive industries feed into a range of other material and emissions-intensive sectors. As a resource-rich country and fruitful producer, Sweden's rate of resource extraction is among the highest in the world. Rich in iron ore, Sweden's 12 active metal mines produce over 90% of the EU's production,[121] in addition to its important shares of critical minerals like cobalt and zinc. It also feeds into other highly relevant sectors, such as manufacturing,[122] and plays a critical role for exports. Forestry is another key activity: forests cover nearly three-quarters of Sweden's landmass, and the country is one of the world's largest exporters of pulp, paper and sawn timber.[123] Forest products commonly feed into biofuel creation, powering the country's transport and heat, and meeting the manufacturing industry's demand for energy. It also satiates the growing demand for bio-based materials. But while Sweden is credited for managing its vast forests in an economically and socially sustainable way, the felling of old-growth trees for timber is becoming increasingly common and problematic: a major blow for biodiversity.[124] And as the mining industry is taking steps towards circularity, resource efficiency, decarbonisation and biodiversity, and addressing responsible production following the country's 2012 Mineral Strategy and subsequent roadmaps, a core focus lies in meeting these objectives while maintaining competitiveness and Sweden's leading position in the EU. As of yet, action to limit or optimise extraction has been limited: the country is well-positioned to make the most of its precious reserves of nature by putting circular strategies front and centre.

To this end, this 'what if' scenario for Sweden's extractive industries looks at the effects of cutting and regulating resource extraction—boosting its circularity while slashing its material footprint.

Impact on Sweden's circularity

As noted above, our only intervention for this scenario would see a small decrease of 3.4% for the material footprint and a slight increase of 0.12 percentage points (including extractive waste) (0.15 percentage points excluding extractive waste). These strategies would bring other benefits, however: extractive industries have a significant challenge ahead in protecting biodiversity, and advancing the circularity of extracted resources is therefore crucial to safeguarding wildlife and natural systems. Resource efficiency for mining and logging also present economic benefits.

Extractive industries going fossil-free and using waste as a resource

Over the last decade, extractive industries in Sweden have taken some steps to address emissions in their supply chains. Both the forestry sector [130] and the mining and minerals sector [131] have developed roadmaps to become fossil-free. The former is pursuing an increased role for the bioeconomy in the overall economy, while the latter aims to improve product design and bolster value chains that optimise metal and mineral reuse and recycling. Swedish state-owned mining company LKAB, the EU’s largest iron ore extractor, is exploring the potential to extract phosphorus and rare earth minerals from mining waste, and reaping many benefits in the process.[132] In another project, ReeMAP, LKAB and Boliden aim to produce sulfuric acid from mining waste that can be used to extract rare earth minerals. By extracting useful concentrates from iron ore tailings, the need to open new mining sites is cut substantially—and the practice provides new economic opportunities, from the supply of rare earth elements vital for renewable energy technologies to fossil-free fertilisers.

In another innovative initiative, the forestry and fishing sectors joined forces to cut overfishing by transforming byproducts from biorefineries or sawmills—like branches and treetops—into fish feed. Results so far are promising: fish fed the wooden feed grow well, reducing the need to extract marine life from the sea for feed.[133] Evigas is undertaking similar efforts to transform residual materials into high-value commodities: using its process, any organic material—from wood or sawdust to straw and manure—can be used to produce BioCarbon, BioOil and Syngas suitable for a range of applications.[134]

The Circularity Gap Report is an initiative of Circle Economy, an impact organisation dedicated to accelerating the transition to the circular economy.

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