Swedish forests have become the biggest investment attraction for investors who see other investment alternatives available to them continuing to weaken with the interest rate cuts implemented by the RiskBank (the Swedish Central Bank) in 2014.

Sweden, like Norway and the rest of the Nordic countries, has always been part of a select group of the world’s most developed countries. Its good economic management and natural wealth have always positioned the country at the top of the ranking.

Its large oil reserves and the vast forests it owns have become a source of wealth that, in the case of Sweden, has become part of the country’s investment assets, increasing their value by 7%.

Having money in the bank or in Swedish government debt has lost its attractiveness for Swedes, as the returns they receive are very low, and in some cases zero. For this reason, Swedish investors have started to invest their savings in forests, leaving aside traditional investment alternatives. Investments in forests, which some investors have already begun to call “Sweden’s green gold”.

Since the end of last year, when the price per square meter of forest was 398 kronor (41.7 euros), the price has risen by more than 7%, reaching 419 kronor per square meter (44 euros).

The main reasons for this price increase were undoubtedly the low interest rates offered by the Swedish country. In addition, the financial portal Bloomberg added that the large owners of these forests are usually investors who have very low debt ratios and take advantage of the opportunity to borrow from banks and continue to increase their holdings by buying more land.

Land of big investors

As we have already mentioned, Sweden is a country where large companies and large investors have been focusing on acquiring forests and forest land.

Companies that are involved in the stationery sector, such as Svenska Cellulosa, or groups such as Ikea and Sveaskog that sell furniture and wood, have become leaders in this market. Despite these large groups, Sweden also has small owners who own forest land, with about 330,000 small owners owning land in what could be one of Sweden’s new golden miles or rural Swedish Beverly Hills.

According to Marcus Helin, Director of Real Estate Market at LRF Konsult, he believes that the new “green gold” has a long way to go and that it is expected to attract many new investors from all over the world as well as Swedes They want to increase their forest areas and invest in their forests, taking advantage of the priority they rightfully have as national investors.

Despite this, many pages specializing in buying and selling this type of land in Sweden emphasize that buying forest land in the Nordic country is not a difficult task. In addition, the low supply of properties located near Swedish metropolitan areas and the high price of them have made those interested in obtaining land in this country choose to look for them in rural areas where there are many forests.

Some may think that Sweden is wasting a unique investment opportunity that they could have used for themselves and exporting it to potential foreign buyers who could harm the ecosystem of the beautiful Nordic country.

To do this, Sweden is responsible for classifying forest land into plots that qualify the land according to its quality and fertility.

Forest plots that are up for sale and sold are usually plots where certain tree species have been planted to benefit from the timber of those same trees. In other words, few, or in some cases none, of these forests are usually primary forests.

This means that the country can attract foreign investors, thereby increasing FDI (foreign direct investment), but at the same time, preserve its core primary forests and its forest ecosystem. A great solution for Sweden, which could become the new rural Dubai.

The post Swedish forests, a new “green gold” for investors appeared first on Fin-Green Stockholm.

Sweden and the United States are already close partners in the development of innovation and new technologies, thanks to numerous collaborations between academia, industry and startup ecosystems. The Green Transition Initiative will build on these partnerships and develop them further.

By increasing access, improving visibility, and fostering co-creation, the Green Transition Initiative will also support Swedish companies in expanding their business and presence in the United States. As Swedish and U.S. companies increase their collaboration to drive sustainable change, together we will pioneer what is possible.

Realizing the green potential

The United States has set ambitious national targets to help meet global climate goals. Several states are taking the lead in transforming sectors such as transportation, power generation, and industry, which together account for nearly 80% of total greenhouse gas emissions. Significant investments are being made in these sectors, and as other states follow suit and the Biden administration’s climate ambitions grow, demand for innovative green technologies is increasing.

A large number of Swedish companies, both multinationals and new start-ups, are at the forefront of innovative environmental solutions and are global leaders in sectors such as electric mobility, renewable energy, sustainable industry and green buildings. With ambitions to become the world’s first fossil fuel-free welfare state, Sweden is well positioned to partner with the United States in its transition to a greener future.

The post Sweden and the green transformation appeared first on Fin-Green Stockholm.

EKN’s Green Export Credit Guarantee allows exporters and banks to insure up to 100 percent of the transaction value to protect themselves against the risk of non-payment. Standard EKN export credit guarantees typically provide risk coverage of up to 95 percent.

“In order to benefit from a green export credit guarantee, the export transaction must relate to environmentally friendly products or products whose end use is part of an environmental activity,” says Victor Carstenius, Senior Analyst at EKN, adding: “EKN follows the EU taxonomic classification of environmental activities that contribute to climate change mitigation and adaptation to determine whether an export transaction can be covered by the new guarantee.”

The export-oriented guarantee complements EKN’s green loan guarantee for environmental investments and working capital needs in Sweden. This guarantee covers loans of up to SEK 500 million for environmental investments and working capital needs within Sweden only and covers the bank’s risk up to 80 percent (up from the previous 50 percent). The two types of guarantee have the same green incentive (higher coverage ratio) and the same environmental definition (EU taxonomy).

To cover more than SEK 500 million worth of green investments in Sweden, the government has given Riksgälden the mandate to provide state loan guarantees for new loans taken out by companies from lending institutions to finance large green industrial investments. The loan guarantees can be issued in SEK, EUR or USD. Riksgälden uses the EU taxonomy as a tool for determining sustainability.

EKN and Riksgälden provide the net coverage, and SEK can provide refinancing through environmental, social and sustainable linked loans. SEK provides green loans to companies and projects that contribute to the transition to a low-carbon economy and contribute to the UN Sustainable Development Goals. “SEK is active in the green bond market and issues green bonds for financing, which is used to finance the green loan portfolio,” says Helena Engner Eilley, Senior Sustainability Analyst, concluding that Swedish industry and exports are well positioned to meet the needs for investment in transition technologies: “The financial strength of SEK, EKN and Riksgälden, as well as clean technologies from leading global suppliers, form an unbeatable combination.”

From start-ups to established multinationals, Swedish exporters are prominent in clean technology with innovations that help ease the transition to a carbon-free society. Electric mining equipment, non-fossil fertilizers and biofuels are just a few examples.

The post New guarantees to stimulate green lending appeared first on Fin-Green Stockholm.