Sweden Faces Economic Impacts as Environmental Ruling Closes Cement Plant

The closure of Sweden's biggest cement factory on environmental grounds could cause up to 400,000 job losses and wipe out the country's GDP growth, according to an alliance of construction bodies. Cement plant license rejecte

BY Realty Plus
Published - Saturday, 17 Jul, 2021

Sweden Faces Economic Impacts as Environmental Ruling Closes Cement Plant

The closure of Sweden's biggest cement factory on environmental grounds could cause up to 400,000 job losses and wipe out the country's GDP growth, according to an alliance of construction bodies. Cement plant license rejected on environmental grounds. Byggföretagen based its figures on an impact assessment prepared in the wake of a decision by Sweden's Supreme Land and Environmental Court last week to reject a new licence for the Cementa cement plant at Slite in Gotland. The plant, which is the second-largest source of greenhouse gas emissions in the country and responsible for three per cent of all Sweden's CO2 emissions, will no longer be able to mine limestone as a result of the ruling. The licence was refused due to concerns over the plant's environmental impact assessment, particularly in relation to the impact on groundwater. Greenpeace has also accused the plant of using its kilns to incinerate toxic waste without a permit. The ruling means that the plant, which produces three-quarters of all the cement used in Sweden, will have to cease production on 31 October. "The situation is very serious," said Byggföretagen's CEO Catharina Elmsäter-Svärd. "Sweden is facing an extensive construction halt. The cement shortage will have extensive consequences for the Swedish economy and employment." Cement production is responsible for an estimated eight per cent of global carbon emissions. The Slite plant has been earmarked for conversion into an experimental carbon-neutral factory by 2030 but parent company Heidelberg Cement told the court ruling could impact the timetable of the project.