Enjoy the all new Green Solutions, Since 2009 Green Solutions is the established channel and exclusive coffe-table magazine with the best Sustainable Innovations and solutions from Sweden and the Nordics for Investors and buyers. Enjoy the HOT50 list and great good examples.

1. FROM SWEDEN 2014
GREEN
SOLUTIONS
VOL.6
Price:20€
Investment
opportunities
in Nordic cleantech
ENERGY OPPORTUNITIES
CAN OFFER UKRAINE
INDEPENDENCE | 14
HOT 50 – SWEDEN’S HOTTEST
CLEANTECH COMPANIES | 56
THE MINISTERS SIX AREAS
OF MAJOR STRATEGIC
IMPORTANCE | 46
AND THE NORDIC COUNTRIES

2. 04
IN THE SPOTLIGHT
News and reports about nordic clean
tech and sustainable innovations, for
example wave power and natural
water purification.
40
SIX AREAS OF MAJOR
STRATEGIC IMPORTANCE
Although a new government came
to power in Sweden in 2014, the
country’s strong commitment to
climate change issues is unabated.
In less than 40 years, Sweden has
gone from having a heavily oil and
coal- dependent energy system to
a system that runs on almost
50 percent renewable energy.
We met with Sweden’s new Minister
for Strategic Development and
Nordic Cooperation, Kristina
Persson, who has pinpointed six
areas that are of great strategic
importance for the future.
HIGHLIGHTS
HIGHLIGHTS
VOL.6
12
UKRAINE´S ENERGY
SUPPLY INDEPENDENCE
As Ukraine seeks to redefine its
relationship with both Russia and the
EU, the public debate in the country has
been, understandably, one of national
identity. But with so many political
disputes, there is a pivotal geo-political
factor that underpins these broader
questions – energy supply. With
Moscow seeking to win allegiance
through gas prices and Russia’s
opponents looking toward American
fracking deals, one thing is clear – nei-
ther offer Ukraine independence.
63
SWEDISH COMPANIES
ESTABLISH UNIQUE
INITIATIVE
As the first group of businesses from
one country ever to do so, 20
Swedish compwanies have adopted
four key principles that will govern
their joint efforts to help achieve
sustainable development and a
reduction in poverty.
36
GOTHENBURG:
THE SMALL CITY
WITH BIG IDEAS
While Beijing, Paris, London, Los
Angeles and Sao Paolo may all
make the headlines for their poor
air quality, Gothenburg is under-
standably less likely to feature in the
media’s narrative on pollution.
50
SWEDEN’S 50 HOTEST
– CLEANTECH COMPANIES
We have listed 50+ smart invest-
ments in what we consider to be
some of the hottest cleantech start
ups in the Nordics. The criteria for
being on the list are, among others,
that the company should have an
innovative product or service with an
international impact potential.
IPCC. DROUGHT. STORMS. CO2 levels of 400 ppm. In 2014, climate change
and sustainability moved from being distinct environmental concerns to
becoming systematic welfare issues. Countering these changes will require
new ways of thinking about energy resources (and efficiency), water,
transport and the relationship between cities and national governments.
As well as the inevitable negotiations between parties, politicians need to
re-address the very way that power is organized. Many politicians are
talking about sustainable development, but if action is to be meaningful it
must be characterized by a holistic approach to resource efficiency. More
stakeholders need to become involved in a social model that integrates
economic, ecological and social perspectives.
UNITED NATIONS GLOBAL COMPACT, the World Business Council for
Sustainable Development (WBCSD) and Global Reporting Initiative, Carbon
Disclosure Project Multistakeholder Forum, The new Mayors Compact, are
all examples of how these principles can be applied to create new models of
governance. The so-called “Post-2015 Development Agenda” sees climate
change as an area in which governments can redefine their decision-making
structures. Several have already introduced innovative climate policy
frameworks, including UK, Mexico and certain states in Germany. But
despite these positive examples, it is clear that most national governments
have failed to agree on how to counter the growing threat of climate change.
A government in power in 2014 must initiate a widespread process of
change if it is to develop a comprehensive climate strategy. This includes
reviewing the role of national governments and cities alike; how they
interact with one another and new stakeholders. Institutions with mem-
bers from across a spectrum of interests will need to form if we are to
secure ongoing commitments within cities, businesses and organizations.
Whether these changes will come about in time remains unclear,
but one element of this story appears inevitable – urban growth.
As you can see in this 6th edition of Green Solutions from Sweden&Nordics
many scaleable cleantech solutions existing on the market. Many of these
examples will also be promoted by Mayors in Scandinavia and other
continents that will be present at the Mayoral and Metropolitan Authorities
Paris 2015 Task Force in the opening of the Political week in Almedalen
2015. The initiative by the Mayor of Gotland, Åke Svensson is an important
step to strength the Mayors role and could inspire the Nordic countries to
keep its leadership role in a time of change. Sweden&Nordics many
scaleable cleantech solutions existing on the market. Many of these
examples will also be promoted by Mayors in Scandinavia and other
continents that will be present at the Mayoral and Metropolitan Authorities
Paris 2015 Task Force in the opening of the Political week in Almedalen
2015. The initiative by the Mayor of Gotland, Åke Svensson is an important
step to strength the Mayors role and could inspire the Nordic countries to
keep its leadership role in a time of change.
Green solutions
– will Mayors take
the lead when national
government fail?
EDITORIAL COLUMN
18
SWEDISH ENTREPRENEUR
HELPS UKRAINE BECOME
MORE EFFICIENT
Nordic district heating solutions are
quickly finding markets in countries
with outdated technology systems.
Ukraine’s ongoing democratization
process is a positive sign and opens
up the potential for Swedish compa-
nies to help with both expertise and
experience. Two Swedish entrepre-
neurs have bravely charged into this
market.
Kaj Embrén, Journalist & blogger
20
SOCAP14: WHERE MONEY
MEETS INNOVATION AND
HEART
Kaj Embrén reports from
SOCAP14: “I can safely say it
was one of the most stimulating
and inspiring events I have been
to. SOCAP is the place where
the innovative entrepreneurs
tackling some of the world’s
toughest challenges can present
their ideas to ‘heart-centred’
investors.”
GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 32 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES

3. IN THE SPOTLIGHT
CHINA POINTS OUT WHAT SWEDISH
CLEANTECH CAN CONTRIBUTE
A
ccording to the Ambassador of
the People’s Republic of China
to Sweden, Chen Yuming, the
biggest obstacle to China’s transforma-
tion from a “black” to a “green”
economy is, overall, inadequate
scientific capability. As such, China
needs help from Sweden, the ambas-
sador believes. Last fall the Chinese
embassy in Sweden and the Sweden-
China Trade Council network signed a
joint action plan to develop a collabo-
ration platform for the environmental
technology industry. According to the
plan, the partners will jointly promote
cooperation with the help of the
political, commercial, academic, and
research worlds. According to the
ambassador, the plan is intended to
help the parties initiate dialogue,
exchange, and cooperation in the areas
of environment, energy, and infra-
structure.
China wants to solve the energy-
related challenge it is facing through
sustainable development.
“Inrecentyears,theconflict
betweenenergysupplyanddemand
hasbecomeincreasinglyheightened.
Theeconomicdevelopmentmodel
basedoncoalconsumptionhasyielded
negativeconsequences.China’saverage
resourceandenergyconsumptionper
productionunitissignificantlyhigher
thancorrespondingconsumption
levelsindevelopedcountries.Under
thesedifficultcircumstances,China
mustchangethestructureofitsenergy
consumptionasquicklyaspossible,
andincreaseitspercentageofclean
energyinordertoincreaseefficiency
andreducepollution,”writesthe
ChineseAmbassadortoSweden,Chen
Yuming,inadebatearticlepublishedin
SwedishdailynewspaperDagens
Industri.
He points out that Sweden was one
of the first countries in the world to
introduce the concept of sustainable
development.
“In this regard, Sweden possesses
rich and valuable experience. As
ambassador, one of my most important
tasks is to learn from Sweden’s
experience with low carbon dioxide
emissions and to promote cooperation
in this field.”
Chen says that China needs even
better cleantech, recycling technology,
and clean production techniques to
save energy and reduce pollution.
“Sweden is home to a vast number
of innovative and mature companies
working with cleantech, the use of new
energy, planning eco-communities,
waste management, heat pumps and
heat exchange, water management,
biogas, and wind and solar power.
Swedish companies possess advanced
technology and system solutions in
these areas, and they have great
potential for cooperation with China.
While China and Sweden have different
circumstances, models and technical
solutions need to be adapted to suit the
needs of the Chinese market. The
Chinese embassy in Sweden would very
much like to adopt active and prag-
matic measures to promote coopera-
tion within the field of cleantech,” the
ambassador explains.
IN THE SPOTLIGHT
F
ortum Corporation and Clean-
tech Invest PLC are set to begin a
strategic collaboration within busi-
ness development, future investments in
cleantech, and information sharing.
“Fortum’s R&D efforts aim both to
strengthen our current business and
to create new growth opportunities.
Cleantech Invest is known for its
investments in cleantech start-ups and
provides natural opportunities for
promising cooperation within our core
market areas,” says Heli Antila,
Fortum’s Chief Technology Officer.
Cleantech Invest’s Chairman of the
Board, Lassi Noponen, had this to say
about the agreement: “The strategic
partnership with Fortum is an
important milestone and we are
enormously pleased with it. Fortum
has shown that it wants to be at the
forefront when it comes to using clean
energy technology and energy-effi-
cient solutions.”
The aim of the agreement is both
to create new business opportunities
for Fortum and to increase growth and
value-creation for companies in
Cleantech Invest’s portfolio. The
contacts and cooperation between
Fortum and Cleantech Invest compa-
nies are also expected to increase as a
result of the agreement.
For example, together with the
innovation companies in Cleantech
Invest’s portfolio, Fortum will conduct
proof-of-concept tests on solutions
and products either at power plants or
their customers’ workplaces. The
agreement also includes information
sharing within the energy sector and
technology evaluations.
T
he development of new technol-
ogy for street lights driven by wind
and solar power and that can store
energy in batteries is now under way. The
lights will also be fitted with sensors for
environmental and traffic monitoring,
displays, and WiFi. Mid Sweden Univer-
sity, Sundsvall Municipality, Sundsvall
Energi, and Servanet are collaborating
on the city of Sundsvall’s new, smart, and
green street lights.
Three new self-contained street
lights are being erected for stress test-
ing and development purposes at
Campus Sundsvall. “In total, we are
investing around SEK 700,000 in
developing environmentally-friendly
street lights with a high level of
environmental performance and that
can withstand our climate without
being connected to the power grid.
They will also be fitted with new
functions, including displays and
sensors,” explains Mikael Gulliksson,
Project Manager at Mid Sweden
University.
An optimized green lamp post can
do a lot of good along pedestrian
paths, for example, where there is a
need to inform citizens about current
events via displays, or in the country-
side, where they can provide light
without requiring connection to the
power mains. Equipping street lights
with solar and wind power, batteries,
IT components for wireless communi-
cation, and sensors for traffic and
environmental monitoring adds value
that ultimately finances the installa-
tions.
“We are very pleased with the solid
and mutually beneficial collaboration
we have with Mid Sweden University.
Sundsvall Energi aims to contribute to
the region’s development and to help
Sundsvall to grow through new
technical innovations and environ-
mentally-friendly solutions. Sundsvall
Energi’s aim and motivation is that
our operations should be good for the
environment, good for Sundsvall’s
residents, and contribute to the
region’s development. This project
checks all those boxes,” says Anders
Jonsson, CEO of Sundsvall Energi.
At Mid Sweden University’s Fibre
Science and Communication Network
(FSCN) and Sensible Things that
Communicate (STC) research centers,
advanced research has long been
ongoing into new products and
services within the electronics,
forestry, and fiber industries. This
research is now taking new strides
forward and cooperative partnerships
with Sundsvall Municipality, Sunds-
vall Energi, and Servanet are being
developed. The project’s green street
light is being financed by the EU
through its Regional Development
Fund, by Sundsvall Municipality, and
by Mid Sweden University.
FORTUM AND CLEANTECH INVEST
IN R&D COLLABORATION
SMART STREET LIGHTS TESTED
IN NORTHERN SWEDEN
■ Smart & green street lights in the city of
Sundsvall.■
■Chinese Ambassador of Sweden, Chen Yuming.■
GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 54 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES

4. NATURAL WATER PURIFICATION
RECEIVES CLEANTECH AWARD
WAVE POWER PROJECT WINS
EU’S BIGGEST COMPETITION FOR
CLIMATE-SMART BUSINESS IDEAS
T
he South Sweden Cleantech
Award 2014 has been awarded
to cleantech company Alnarp
Cleanwater Technology AB for its
development of a biological and
ecology-friendly system for purifying
waste water from individual drains,
ACT Natural™.
The South Sweden Cleantech
Award 2014 was presented to Alnarp
Cleanwater Technology’s CEO, Yngve
Svensson, on the following grounds:
“With its biological and ecology-
friendly water purification system,
Alnarp Cleanwater Technology has
shown that waste water from indi-
vidual drains can be purified to the
highest levels without the use of
chemicals, while at the same time
helping to nourish beautiful greenery.
During the year, the company has
successfully attracted external equity
capital that has made it possible to
continue to develop its product and
market. With its plant-based purifica-
tion, Alnarp Cleanwater Technology’s
system not only helps purify waste
water from small-scale drains, but
also makes an otherwise invisible
cleantech solution visible in a positive
way.”
“We are happy and proud to
receive this honor and view it as
further recognition of the environ-
mental benefit that our biological and
ecology-friendly ACT Natural™
system provides,” says Svensson.
ALNARP CLEANWATER TECHNOLOGY
has developed a system for purifying
waste water from individual drains,
ACT Natural™. The basic idea is to
imitate nature’s own way of purifying
water. The system functions some-
thing like a forest stream, that is, the
water is kept in constant motion and,
in that way, is oxygenated and
exposed to microorganisms and
natural aquatic flora. The result is a
robust system that requires minimal
maintenance.
“Our system captures at least 90
percent of the phosphorus from
individual drains. It would mean a
significantly lower nutrient load for
the Baltic Sea and domestic lakes and
waterways suffering from eutrophica-
tion if all 700,000 individual drains
in Sweden reduced their phosphorous
emissions by that much,” explains
Svensson.
EARLIER IN 2014 Alnarp Cleanwater
Technology was also able to present
positive results from a research study
it conducted together with the
Swedish Environmental Research
Institute (IVL) concerning a reduction
in pharmaceutical residues. The study
showed that the ACT Natural™ system
reduced residue levels for the
majority of the drugs tested better or
significantly better than an average
taken from across four municipal
treatment works.
Biological purification at the Hovs
Hallar hotel and conference facility in
Båstad, Sweden.
S
wedish entrant Wavetube
emerged as winner of the 2014
European business idea compe-
tition Clean Launchpad. The company
will now attend the world’s first
business school for businesspeople in
cleantech, Climate-KIC Accelerator.
The plan is to drive Wavetube’s
solution for extracting electricity
from sea waves towards full-scale
commercialization.
CLEAN LAUNCHPAD is a business idea
competition that, over a six-month
period, has generated new innovative
ideas within the field of climate
solutions around Europe. It originally
began with 400 ideas. After national
qualifying rounds, the European final
was decided this week in conjunction
with the Climate-KIC Innovation
Festival in Valencia, Spain.
Around 30 projects from 11
countries took part in the semi-finals.
Five projects advanced directly to the
final. Among these were Swedish
Algae Factory and Wavetube from
Sweden’s Chalmers University of
Technology. Wavetube emerged the
winner and will receive 10,000 euros
in prize money and a place in the
Climate-KIC Accelerator program.
“We have a good basic idea for our
concept, which is based on conven-
tional technology, and which, in our
case, we apply to the ocean surface.
Our business model is also realistic,
which appealed to the jury. Our
customers are global power compa-
nies, so there is real potential for
making an international break-
through,” says Sara West, who runs
Wavetube together with Alexander
Torstenfelt.
WAVETUBE’S wave power solution
will now undergo comprehensive
testing in a wave pool in Belfast,
Northern Ireland, before being tested
at sea in the next phase. The concept
differs greatly from other solutions
that aim to harness wave energy, West
explains.
“We believe in developing a simple
and robust concept that is better able
to withstand the forces that arise in
the marine environment. The system
is closed and consists of three connec-
ted pipes or tubes. The few mechani-
cal components included are protect-
ed from the salt water. Power is gene-
rated by an internal water flow caused
by the motion of the waves and which
moves between the three tubes. In the
middle tube, the water passes through
turbines,” West adds.
CLIMATE-KIC—THE EU’S INNOVATION
INITIATIVE FOR PREVENTING
CLIMATE CHANGE
Climate-KIC is a knowledge and
innovation community within the EU
and Europe’s largest innovation
partnership between the public and
private sectors and focuses on climate
change. Chalmers University of
Technology has been active within
Climate-KIC for several years through
the urban planning area and Building
Technology Accelerator and, in 2014,
also in Clean Launchpad and the
construction of what is known as a
bioeconomy platform.
MORE ABOUT WAVETUBE
Wavetube offers a patented solution
for extracting renewable energy from
ocean waves. The power plant is a
closed construction consisting of
standard components and critical
mechanical parts housed in a protec-
tive environment. Wavetube floats on
the ocean’s surface and the electricity
is generated simply via an internal
flow of water. Wavetube strives to
achieve an output of 200 kW per unit.
The concept’s functionality has been
proven through experimental
prototype tests and the next round
of testing will take place in Belfast
in December 2015. Wavetube’s
end-customers are global power
companies.
IN THE SPOTLIGHT
■ Sara West shows a Wavetube prototype. ■
GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 76 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES

5. SWEDISH CLEANTECH START-UPS
ON TOUR INTERNATIONALLY
T
his year’s investor tour, Swedish
Cleantech Tour, made its final
stop in Boston. In total, 15 of
Sweden’s most innovative cleantech
companies met with more than 110
investors, industry representatives,
and cleantech players in three
investor-rich markets in Europe and
the US.
In 2014, Swedish Cleantech Tour
visited London, Zürich, and Boston
with the aim of presenting Swedish
companies’ best solutions to global
environmental problems. The tour
has helped handpicked cleantech
companies to make valuable investor
and industry contacts in the lead-up
to their coming internationalization.
“It’s great to see what a prominent
position Sweden has in cleantech and
what a positive reception Swedish
cleantech companies receive from
investors the world over. Over the
course of the year we have received
around ten inquiries from new
markets that want to see this concept
in their regions next year. That’s a
true acknowledgment of quality,” says
Magnus Rehn, Business Coach at
STING and one of the initiators
behind Swedish Cleantech Tour.
WATTGUARD was one of the compa-
nies selected to participate. The
company makes sure that electrical
energy is used more efficiently and
has developed a unique concept for
reducing power consumption and
carbon dioxide emissions in settings
that require a lot of lighting.
“Swedish Cleantech Tour plays an
important role in our expansion
strategy targeting the US. The choice
to stop in Boston was ideal for us,
because Massachusetts is a leader in
the field of energy efficiency. Thanks
to this event, we have gained a deeper
insight into the regulatory require-
ments that influence and steer the
American market and have already
come into contact with a number of
important parties,” says Finn Chris-
tensen, CCO and co-founder of
Wattguard.
The Swedish Cleantech Tour
concluded with a week in Boston,
organized in cooperation with the
Swedish American Chamber of
Commerce New England and Massa-
chusetts Clean Energy Center.
Through seminars, inspirational
lectures, and external networking
events, the Swedish companies were
introduced to the American market.
The participating entrepreneurs also
received pitch training from one of
Boston’s most experienced presenta-
tion trainers in high tech before
presenting their innovations to
specially invited investors and
industry personalities.
The Swedish Cleantech Tour was
conducted for the second year
running by business incubators
STING and LEAD, in cooperation with
Stockholm Business Region Develop-
ment, ALMI, and the Swedish Energy
Agency.
PARTICIPATING COMPANIES
ARSIZIO–Grants licenses for dynamic
and cost-effective 3D extrusion, a
globally-patented production method.
CLIMEON–Currently developing a
unique method for extracting
electrical energy from waste heat.
WATTGUARD–Reduces power
consumption and carbon dioxide
emissions in heavily-lit settings.
INFRAFONE–Using infrasound
technology, we offer services like soot
cleaning.
MIDSUMMER–Currently developing a
new method for manufacturing solar
cells at a radically reduced cost.
WATTY–Develops products for
creating energy savings in homes and
buildings.
IN THE SPOTLIGHT
FIVE KEYS TO
SUSTAINABLE CITIES
P
aul Fenton, PhD candidate at
Linköping University’s Depart-
ment of Management and Engi-
neering, Environmental Technology
and Management Division, has identi-
fied five prerequisites for achieving
sustainable urban development.
PHD CANDIDATE PAUL FENTON has
studied the planning processes used
for energy and climate-related
matters in a number of Swedish
municipalities, both large and small.
Among other aspects, Fenton has
investigated how these processes
are produced, how they involve
stakeholders and citizens, and
what results they achieve.
HE HAS IDENTIFIED FIVE FACTORS
that are important to the end result.
“Achieving sustainable develop-
ment requires seriousness, courage,
and willpower,” says Fenton.
FIVE MUSTS FOR
SUSTAINABLE DEVELOPMENT
• The municipality’s or stakeholders
ability to work in support of sustain-
able development
• A mandate to do so
• Available resources, both financial
and expertise
• The scope and desired results of the
processes
• The collective desire to achieve
sustainable urban development.
Photo: Sweco.
■ Plantagon greenhouses are built to reduce the environmental impact of food production. ■
GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 98 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES

6. PREVIOUS WINNER TESTS
ENVIRONMENTALLY-FRIENDLY
SHOWER
Anew, environmentally-friendly
shower produced by Orbital
System is currently being
tested in the Swedish city of Eskils-
tuna. The shower saves and recycles
up to 90 percent of the water it uses
and 80 percent of its own energy. The
shower is part of the project Testbädd
för miljöteknik (Cleantech Test Bed),
which gives companies the opportu-
nity to test their green innovations
within Eskilstuna Municipality’s
operations.
The shower system is constructed
like its own recycling plant: the water
that runs down into the floor drain is
purified using a high-tech filtering
technique before being redirected
back to the shower head again. In this
way, it saves both energy and water.
The system is designed to achieve
water as clean or cleaner than what
comes out of a faucet, so the shower
water is cleaner than regular tap
water.
Called the Orbital Shower Con-
cept, the shower was designed by
Mehrdad Mahdjoubi, founder of
Swedish company Orbital System,
which has been awarded the Green
Mentorship Award. Mahdjoubi has
received several awards for his shower
innovation, attracting major interest
from abroad.
IN THE SPOTLIGHT
ENERGY FROM INSIDE
THE EARTH COMPETING FOR
THE ZENNSTRÖM PRIZE
T
he Zennström Green Mentor-
ship Award was founded by
Zennström Philanthropies to
find, support, and highlight the impor-
tance of Sweden’s innovative green
businesses. The competition looks for
“disruptive” or transformative
solutions that tackle green challenges
across a range of sectors. A company
that works with energy generated
inside the earth is one of those
nominated for the prize.
Cleantech company Energeotek
AB, which works with energy gener-
ated inside the earth, is one of eight
cleantech companies nominated for
the Zennström Green Mentorship
Award.
Four winners will receive business
mentoring from leading experts as
well as access to the industry program
headed by Cleantech Inn Sweden, and
go-to-market strategy sessions with
Serendipity Innovations. The overall
winner will receive prize money
valued at SEK 1 million from Swedish
innovation agency VINNOVA, along
with mentoring and access to business
development services with mentoring.
Zennström Green Mentorship is
working to combine existing business
support with mentoring to help four
Swedish clean technology start-ups to
scale.
Cleantech Inn Sweden will link
entrepreneurs with large industrial
companies looking for innovative
ideas to solve their challenges through
its tailored industrial program.
Serendipity Innovations will advise
companies on their go-to-market
strategies to open up new opportuni-
ties in line with the start-up’s business
development activities.
Venture Cup fast-tracks its national
winner from the environment and
energy category to become one of
the final ten contestants for the
Zennström Green Mentorship Award.
VINNOVA will provide the overall
winner with funding to increase the
likelihood of the start-up achieving a
level of development that will help it
scale up.
The Zennström Green Mentorship
Award was founded by Zennström Phi-
lanthropies to find, support, and
highlight the importance of Sweden’s
innovative green businesses. The
competition looks for “disruptive” or
transformative solutions that tackle
green challenges across a range of
sectors.
THE PROGRAM WILL PROVIDE
business mentoring to four start-ups
and one of the four winners will
receive personal mentoring from
Niklas Zennström. The aim is to
provide these start-ups with mentor-
ing and tailored business development
advice to insure they are more
market- and investor-ready by the end
of the year, helping them achieve a
level of scale that can be disruptive or
even transformative in years to come.
One of the nominated companies,
Energeotek, is working on a solution
for a future environmentally-friendly
and, in principle, endless energy
source based
on the geothermal energy found inside
the earth. The heat is retrieved from a
depth of two to six kilometers (1.2-3.7
mi.) for use in energy production—
district heating or cooling for 3,500
plus homes.
Zennström Philanthropies’ aim is
to support and draw attention to the
work that Swedish entrepreneurs and
researchers do in fields like climate
research, human rights, and entrepre-
neurship. Its Green Mentorship Award
primarily focuses on recognizing
cleantech entrepreneurs.
Last year’s winner, entrepreneur
Mehrdad Mahdjoubi, founder of
Orbital Systems, together with Niklas
Zennström after receiving the Green
Mentorship Award.
Photo: Claes-GöranFlinck
■ Mehrdad Mahdjoubi, previous winner and founder of Swedish company Orbital System
together with Niklas Zennström at the award ceremony. ■
10 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES

7. 1312
NEITHER NATURAL NOR
SHALE GAS OFFERS UKRAINE
THE INDEPENDENCE IT CRAVES
I
ssues of energy efficiency and
sustainable energy production
may have featured less promi-
nently in the recent unrest, but
they may present the greatest
long-term opportunity for Kiev to
seize control of its own fortunes.
European investment can also
play a crucial role in encouraging
energy (and thus political) inde-
pendence, for the country.
IN UKRAINE’S THIRD LARGEST CITY
Odessa, for instance, the Swedish
company Alfa Laval has revolu-
tionized the way that district
heating is delivered. Odessa’s
total energy consumption has
been reduced by 50 percent, with
electricity use down 40 percent
and water usage decreasing by an
astounding 95 percent. Not only
have the direct system costs also
fallen by 30 percent, carbon
dioxide emissions are now 3,800
tons lower per year. Such energy-
efficiency projects have the
potential to ensure better
resource security, according to
Professor of Energy at Halmstad
University, Sven Werner.
“[This type of] investment in
district heating meets all the
requirements that the politicians
have set up for the future energy
supply,” he says. “Including that
it contributes to more power
production.”
The political risks of a contin-
ued reliance on oil and gas stretch
beyond the sphere of immediate
international diplomacy. There
are growing fears of a fossil-fuel
bubble that, when burst, could
financially cripple countries like
Ukraine and thrust them further
into the hands of larger states.
Globally, pension funds and
other financial institutions are
now beginning to move money
away from fossil fuel industries
towards renewable energy.
Governments too are beginning
to realize the risks of remaining
As Ukraine seeks to redefine its relationship with both Russia and the EU,the public debate in the
country has been,understandably,one of national identity.But with so many political disputes,there
is a pivotal geo-political factor that underpins these broader questions – energy supply.With Moscow
seeking to win allegiance through gas prices and Russia’s opponents looking towardAmerican
fracking deals,one thing is clear – neither offer Ukraine independence.
THE SWEDISH DISTRICT HEATING ASSOCIATION, LULEÅ MUNICIPALITYTHIS ARTICLE WAS PAID FOR BY VATTENFALL, FORTUM VÄRME, ALFA LAVAL AB, SVEBIO,

8. 3 SVEBIO 7
The Swedish Bioenergy
Association (Svebio) was
founded in 1980. Today Sve-
bio consists of around 300
members, most of them enter-
prises active in producing/pro-
viding biofuels or using biofuels
on a larger scale. As a non-profit
organisation, Svebio has played
a central role in the bioenergy
development. In the beginning
Svebio provided a necessary
network enabling commercial
use of wood chips in district
heating systems.
Visitors address: Svebio,
Holländargatan 17,
111 60 Stockholm, Sweden
www.svebio.se/english
3 LULEÅ 7
Luleå is the seat of the Norr-
botten County Administration
and has a population of about
73,000. The city has developed
into a technological centre in
the North of Sweden. The most
important corner stones of this
development are metallurgy,
education and research, as well
as good communications. Luleå
University has played an impor-
tant role. The university consists
of a School of Engineering, a
School of Business, a School of
Education and a School of Music.
Situated close to the University
Campus is Aurorum Technology
Park. Aurorum houses companies
whose activities are connected
with the university’s spheres of
interests.
Visitors address: Stadshuset,
Rådstugatan 11
Website: www.luleå.se
Postal address:
Luleå kommun, 971 85 Luleå
3 ALFA LAVAL AB 7
Alfa Laval is a global company foun-
ded in 1883. Yearly order intake of 3,500
MEUR and 16,000 employees world-
wide. We are listed on Nasdaq OMX,
Stockholm. For decades, Alfa Laval
has been the trend-setter in designing
solutions for district heating and it has
strongly contributed to the develop-
ment of international district heating
infrastructure. In every country where
district heating -and cooling is an es-
tablished concept, Alfa Laval is a major
provider of technology, products and
application know-how. We offer a wide
selection of solutions, covering every cli-
mate zone and every size of building.
Head office: Alfa Laval AB
Post Address: Box 73, 221 00 Lund,
Sweden, www.alfalaval.com
3 AB FORTUM HEAT 7
FortumHeatisaFortum´ssubsidiaryco-
ownedtogetherwithCityofStockholm.
ABFortumHeatsuppliesStockholmcity
withheatandelectricity.
Visitors Address: Lidingövägen 115,
115 41 Stockholm, www.fortum.com
3 THE SWEDISH DISTRICT
HEATING ASSOCIATION 7
Svensk Fjärrvärme (Swedish District
Heating Association) is a trade organiza-
tion for companies in Sweden which
generate and distribute district heating,
combined heat and power and district
cooling. The association’s more than 140
member companies are located all over
Sweden and are responsible for 98 per
cent of the district heating in Sweden.
Svensk Fjärrvärme works for making
the district heating industry an obvious,
growing part of an energy future which is
ecologically sound, and financially
and socially sustainable.
The Swedish District Heating Association
101 53 Stockholm, Sweden. Visitors
address: Olof Palmes gata 31
www.svenskfjarrvarme.se
overly dependent on fossil fuels
that may soon become unprofit-
able. They often reap the returns
on the fossil-bearing plants,
taking about 90 percent of income
in the form of ownership and
taxation. So diversifying with
more sustainable and renewable
investments can help alleviate
their exposure to increasingly
volatile energy markets.
THE OVERALL SAVINGS could also
be huge. Greater investment in
more efficient district heating and
other state-level energy-efficiency
schemes saves an approximate
€100bn a year in Europe, accord-
ing to a 2013 study by researchers
at universities in Halmstad, in
Sweden, and Denmark’s Univer-
sity of Aalborg. Even more could
be done if the European Bank for
Reconstruction and Development
(EBRD) acted more forcefully.
Currently, the targets it sets on
energy savings when making
project specifications are not
tough enough, meaning that any
local company can, and will, offer
a simple and cheap solution. In
countries like Ukraine, this stunts
the development of new technol-
ogy in district heating provision.
When banks loan money for ener-
gy efficiency they should also
incentivize the development of
the future technologies to match.
NORDIC COUNTRIES provide a
world-leading model of using
these efficiency savings to secure
greater energy independence.
With 25 million people and a
combined GDP of about
USD$1trillion, they are both
improving their own standing and
inspiring similar moves in Europe
and around the world.
Innovations in district heating
remain some of the most perti-
nent examples from Nordic
countries that countries like
Ukraine can learn from. Account-
ing for half of Swedish heating, it
has gone from being almost
exclusively powered by fossil fuels
in the 1980s, to now being about
80 percent renewable and recy-
cled heat. It uses waste, as well as
waste energy from industries –
partly by taking advantage of this
excess heat and power, but mainly
by transitioning to biofuels.
Biofuels, largely those is left over
as waste from deforestation,
accounts for 44 percent of the
energy supplied, according to
Ulrika Jardfelt CEO of Swedish
District Heating.
“There is much that is unclear
about what will happen in
Ukraine, but what we do know
is that many of the EU member
countries need to reduce their
dependence on imported energy,”
she explains.
“In Sweden, we have managed
– through local government
spending on infrastructure —
made it possible to switch to
renewable fuels. And now we’re
taking it a step further by using
the net to deliver heat from those
who have surplus heat to those
who need it... In Europe, we can
see that the greatest benefits are
linked to district heating,” says
Jardfelt, who urges the European
Commission to talk more about
the subject heat.
Such calls are slowly being
heard by European decision-mak-
ers, with more talk about energy
efficiency and renewable energy.
According to the EU’s own long-
term trend analysis, a policy that
continues ‘business as usual’
cannot achieve the goal of a
de-carbonized EU by 2050 or
keeping rising temperatures of
less than 2 degrees Celsius.
FEARS OF A FOSSIL FUEL BUBBLE
only increase as investment
continues to flow into both the
gas and oil industries. But we are
also beginning to see positive
climate change decisions that
are increasingly connected to the
markets—pension funds and
other financial institutions are
starting to opt out of investments
in fossil fuel industries and invest
more in sustainable energy.
Nonetheless, vast challenges
remain. Annually on the world
markets, investment in renewa-
bles amounts approximately
USD$1,000 billion. But estimates
suggest that this sum needs to be
closer to USD$8,000 billion a level
if we are to achieve the aforemen-
tioned 2 degree Celsius target.
The risks facing those govern-
ment that enjoy substantial
income from fossil fuels are
increasing as it becomes less and
less profitable to invest in dirty
energy. Governments taking
upwards of 90 percent of their
income through state ownership
and taxation will be able to better
control their huge exposure with
diverse sustainable and renewable
investments.
THE MODEL FOUND IN SWEDEN
(which is in many ways a large-
scale version of what we have
seen in Odessa) has redeveloped
infrastructure in a manner that
should serve as an example for
other European cities. The 1991
carbon dioxide tax, consistent
political support for renewable
energy and a strong forestry
sector have all led to the growth
of the now thriving bioenergy
sector (see graph). This energy
source is now a more important
resource for the country than
fossil fuels, argues CEO of The
Swedish Bioenergy Association,
Gustav Melin.
“By far the greatest contributor
to Sweden’s renewable revolution
has been bioenergy,” he says.
“Biomass, such as municipal solid
waste, demolition wood, black
liquor, firewood, bark, sawdust,
industry by-products, wood chips,
Fortum Värme’s new biofuelled combined heat and power plant in Värtan, Stockholm.
Photo: Hans Ekestang
14 15
THE SWEDISH DISTRICT HEATING ASSOCIATION, LULEÅ MUNICIPALITYTHIS ARTICLE WAS PAID FOR BY VATTENFALL, FORTUM VÄRME, ALFA LAVAL AB, SVEBIO,

9. 3VATTENFALL AB7
Vattenfall is 100 per cent owned
by the Swedish state and is one
of Europe’s largest generators of
electricity and the largest pro-
ducer of heat. Vattenfall produces
electricity and heat from six energy
sources – wind power, nuclear
power, natural gas, biomass, coal
power and hydro power. In 2013,
operations were conducted in the
Nordic countries, Germany, the
Netherlands, France and the UK.
Visitors address:
Evenemangsgatan 13C.
SE-169 56
Solna, Sweden
Postal address: SE-169 92
Stockholm, Sweden
http://corporate.vattenfall.com
pellets, briquettes, ethanol,
methanol, bio-diesel, bio-oil and
bio-gas, accounts for most of
Sweden’s renewable energy.”
IN THE EASTERN CITY of Norr-
köping, the municipal govern-
ment has, alongside E.ON, Lant-
männen Agroetanol and Swedish
Biogas, invested nearly USD$1.5
billion in a plant that produces
steam (which is used in the
production of fuel ethanol),
electricity and heat from biomass.
While in the west of the country,
in Värmland, a USD$540 million
plant is being planned which will
produce bio-methanol using raw
materials from nearby forests.
There are countless more
instances of Swedish organiza-
tions implementing sustainability
projects and, in the process,
reducing the country’s depend-
ency on outside supplies. The
northern city of Luleå has man-
aged to provide the country’s
lowest heating costs for its
residents, largely thanks to the
use of waste energy from the
local ironworks/steel mill. The
project is, according to Anna
Blomborg, Marketing Manager of
Alfa Laval “a good example of
successful cooperation between
local industries and the district
heating company.”
ANOTHER INSPIRING EXAMPLE can
be found in wind-power company
Vattenfall’s city partnerships,
such as its work in Sweden’s
fourth largest city, Uppsala.
Vattenfall is participating in the
Uppsala Climate Protocol, in
which companies and organiza-
tions work together to secure the
city’s ambitious long-term
climate and energy goals, such as
reducing the city’s CO2 emissions
by 45 per cent by 2020.
Now, almost 95 per cent of
homes and businesses in Upp-
sala’s urban areas are heated
with district heating from
Vattenfall. Vattenfall is commit-
ted to supporting the city of
Uppsala in its climate ambitions.
A new combined heat and power
plant – which uses biomass – will
be built by 2020, says Director of
European Affairs at Vattenfall,
Sabine Froning. Uppsala is likely
to exceed its target of a 45 per
cent reduction in CO2 emissions.
“We are working systemati-
cally on energy savings, reducing
CO2 emissions and supporting
the use of renewable energy,”
Froning explains.
The district heating sector has
grown for a third consecutive
year, with pioneering projects
springing up around the country.
In Stockholm, the capital of
Sweden, Fortum Värme has
invested USD 680 million in a new
bio-fuelled combined heat and
power plant, which is now under
construction.
The environmental benefits will
be huge, and carbon emissions
will decrease localy by 126,000
tons and globaly by 650,000 tons
annually, says the company’s CEO,
Anders Egelrud.
“We are now focusing on
meeting the 2030 target of provid-
ing the greater Stockholm area
with 100% renewable and recycled
energy,” he explains.
“In a few years, nine out of
every ten households in Stock-
holm will provided with carbon
and resource neutral heating. We
take pride in the fact that Fortum
Värme has no small part in mak-
ing Stockholm one of the cleanest
capitals in the world, and in 2010,
Stockholm was appointed world’s
first ‘Green Capital’ by the EU.”
IN THIS AREA there are promising
parallels with Eastern European
countries. As in Sweden, many of
Eastern Europe’s district heating
plants are owned largely by state
or local authorities, giving govern-
ments the power to drive forward
change. Indeed, 75 percent of
Ukraine’s are state-owned at a
national or municipal level.
This also means, however, that
democracy and decision-making
effectiveness both come into play.
Corruption in Eastern Europe is
well documented and poses a
potential threat that will be taken
into consideration when investing
in new energy-efficient infrastruc-
ture. But at the same time,
procurement of these new
technologies can, with the help of
European capital, itself help
combat corruption. The shared
focus should now be about
encouraging innovation with
technology solutions that can
enhance the efficiency of Ukrain-
ian plants.
THERE ARE ENCOURAGING SIGNS.
The European Investment Bank
(EIB) has now introduced its first
initiative to support climate-relat-
ed investments across the conti-
nent. It has introduced a GBP-
500mil bond investment oppor-
tunity for projects that demon-
strate that heating energy effi-
ciency and renewable energy are
key priorities, explains Director
and Head of Capital Markets
Department at EIB, Eila Kreivi.
“This initiative was driven
by an increased interest in
the emergence of social respons-
ibility portfolios among the large
mainstream investors,” she
explains. “Maybe this is a start of
a new step to increase investment
in the field of cities’ energy
infrastructure and new district
heating models that also bring
more values than technology.”
SUCH INTEREST IN ENERGY projects
from European institutions may
hold the key to shifting the power
balance in Ukraine, as well as
other countries in which depend-
ence on fossil fuels, and other
states, dominates. Whereas Russia
threatens Kiev with the stick
of energy prices, Europe is in-
stead dangling the far more
appealing carrot of self-sustain-
ability.
Bioenergy–now larger than oil
Bioenergy
130,2 TWh;
33,6%
Hydro power
55,2 TWh;
14,2%
Wind power
9 TWh; 2,3%
Coal
18,7 TWh;
4,8%
Fossil gas
9,7 TWh;
2,5%
Heat pumps
4,8 TWh; 1,2%
Oil
102,5 TWh;
26,4%
Nuclear
power
57 TWh;
14,9%
Swedens domestic energy use
in 2013. Svebio calculation based on
Swedish Energy Agency forecasts.
16 17
THE SWEDISH DISTRICT HEATING ASSOCIATION, LULEÅ MUNICIPALITYTHIS ARTICLE WAS PAID FOR BY VATTENFALL, FORTUM VÄRME, ALFA LAVAL AB, SVEBIO,

10. 18 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 19
THIS ARTICLE WAS PAID FOR BY RECOND CONCEPT
18 19
THIS ARTICLE WAS PAID FOR BY RECOND CONCEPT
I
t is not surprising for industry
insiders that Nordic district
heating solutions are quickly
finding markets in countries
with outdated technology
systems. But entering countries
with political and military con-
flicts witch have weak democratic
and anti-corruption traditions is a
challenge few would have the
courage to take on. Ukraine’s
ongoing democratization process
is a positive sign and opens up the
potential for Swedish companies
to help with both expertise and
experience. Two Swedish entrepre-
neurs bravely charging into this
market are Nils-Erik and Carina
Jonasson from the small Swedish
town of Ånge in Västernorrland
County. After several trips and
meetings in both Sweden and
Ukraine, they are now about to
launch their optimization pro-
gram at the district heating plant
in the city of Lviv, located on the
Poltava River in western Ukraine.
They will be providing analyzes,
training and products. “We see
great potential to improve energy
efficiency, reduce greenhouse gas
emissions and immediately cut
costs,” says Nils-Erik. “Our team
has the expertise and over 25
years of experience in various
specialties within both water
and district heating.”
RECONDCONCEPT is their compa-
ny’s name, and they are focused
on optimizing existing facilities.
This allows savings to add up
quickly and, after a few years,
enough resources have been freed
up to allow major investments in
new technologies.
Nils-Erik explains the impor-
tance of cooperation with the
Swedish Embassy and other
Swedish stakeholders, such as
Business Sweden and Swedfund,
when preparing for this. “We are a
small company in this market,”
says Nils-Erik. “Cooperation with
other Swedish and European
stakeholders, including support
services, is important for small
organizations like ours. We are
vulnerable in countries that have
conflict zones.”
PERSISTENCE IS OFTEN a prerequi-
site for getting established on mar-
kets like Ukraine. RecondConcept
came to Ukraine through a Swed-
ish business contact who had
contacts in the capital city of Kiev.
We were contacted here in Ånge,”
says Carina Jonasson, “and we
traveled to Kiev in May 2013. Since
then, everything has happened
quickly. “We formed the company
in Ukraine in October 2013.
Naturally, the military conflict
that began in the spring of 2014
has affected us. But we have been
able to negotiate and conduct a
pilot study in the city of Zapor-
izhzhia, which is about 150
kilometers (90 miles) from the
fighting in eastern Ukraine. Daily
life with the severe energy crisis
in Ukraine forces new solutions
the forefront, and this has made
our expertise and experience even
more valuable,” says Carina.
Based on their travels in
Ukraine, RecondConcept has a
long list of possible assignments
and areas in need for attention.
This includes small, medium-sized
and large cities, food industries,
and other industries in significant
need of energy efficiency
programs.
It becomes apparent when
talking to Nils-Erik and Carina
just how much impact they are
having as they explain how other
companies already are using their
technical know-how within
processes and products:
“RecondConcept saves Stock-
holm Arlanda Airport SEK 40,000
in energy costs per day and
reduces carbon dioxide emissions
by 13.7 tons per day. We have
significantly improved Preem
Petroleum’s work with energy
efficiency in their refinery. And
each year, the energy company
Fortum saves approximately EUR
80 million in energy costs by using
our technology and products.”
When I ask about the compa-
ny’s sustainability profile, they
explain their strong commitment
to sustainable development. Their
solutions remove impurities in
energy-bearing systems using
green chemicals, reducing green-
house gases.
BY INCLUDING ENVIRONMENTAL
improvements and these signifi-
cant financial savings in both their
business profile and their market-
ing, they should have a competi-
tive advantage in the growing
Ukrainian market, even though
they will have to show both
courage and leadership. The
dependency on Russian gas has
been a source of both corruption
and technological stagnation, as
they have wasted gas instead of
focusing on modernization and
energy efficiency.
“We are just seeing the begin-
ning of the market developing in
Ukraine. Our first three customers
have given us a good start, and
the goal is significantly higher
than the approximately SEK
10 million that these first three
contracts will give us,” concludes
Nils-Erik.
SWEDISH ENTREPRENEUR
HELPS UKRAINE BECOME
MORE ENERGY EFFICIENT
“WE ARE JUST SEEING THE
BEGINNING OF THE MARKET
DEVELOPING IN UKRAINE.
OUR FIRST THREE CUSTOM-
ERSHAVEGIVENUS AGOOD
START,AND THE GOAL IS
SIGNIFICANTLY HIGHER
THAN THE APPROXIMATELY
SEK10MILLION THAT THESE
FIRST THREE CONTRACTS
WILL GIVE US”

11. COLUMN: KAJ EMBRÉN
SOCAP14:
Where Money
meets Innovation
and Heart
I
’ve just returned from the 2014 Social
Capital Markets conference with fresh
ideas and rejuvenated hope. I can safely
say it was one of the most stimulating and
inspiring events I have been to. SOCAP is
the place where the innovative entrepreneurs
tackling some of the world’s toughest chal-
lenges can present their ideas to ‘heart-cen-
tred’ investors. Alongside foundations, like
Rockefeller and Ford, that one might expect,
were representatives from Google, American
Express, Vodafone and many other corpo-
rates. Their presence was testament to the
rising customer demand that is driving the
expansion of impact investing. In the words of
SOCAP co-founder, Kevin Jones, ‘more and
more successful companies are doing good
and making money.’
Needless to say, I came across many
fascinating people over the course of the week,
and I’d like to spend the rest of this post
introducing some of them to you.
First, meet James Hanusa, head of inno-
vation at Burning Man. I don’t know about
you, but I had not heard of this remarkable
festival (perhaps it’s an age thing!) where
60,000 people gather to build an alternate
reality founded on the principles of communal
effort, inclusiveness, radical self-expression
and decommoditisation – in the middle of the
Nevada desert.
I WAS SURPRISED to learn that many Silicon
Valley residents and venture capitalists make
the annual pilgrimage. James explains, “they
just take the week off, considering this to be
their vacations. What you will hear from a lot
of them is that it opens up their field of
possibilities. They are faced with inner
personal stuff. It really encourages people to
look at their own behaviour, asking them-
selves and each other: ‘who are we?’ You see
deep conversations and transformations.”
There are many business lessons to be
learnt in the desert, where collaboration and
interdependency rule. These ideas are far
from abstract in so hostile an environment:
how long could you survive there alone?
James went on to introduce me to another
concept that I wish I’d known about sooner:
the hackathon. The idea is simple: challenge a
range of experts to solve a problem holistically
within a short space of time. First thought up
by Codrina Lauth, of the Copenhagen Business
School and Danish company Grundfos, the
idea has grown beyond its original base of
programmers and coders, with all sorts of
experts joining the fold. For instance, a civic
hackathon was held the run up to the 2012
San Francisco mayoral elections. The so-
called ‘summer of smart’ challenged groups
of skilled people to address the needs of the
city and its people, on everything from health
to transportation.
THE BEAUTY OF HACKATHONS is that they
can deal with almost any issue, pretty much
anywhere. British Airways sponsored one on
the education system that took place during a
transatlantic flight. Another, called the
Millennium Train Project for social entrepre-
neurs was hosted over a five-day train journey
between San Francisco and Denver. No
wonder the model is gaining traction in both
the corporate and academic worlds.
One can think of SOCAP as a hackathon on
steroids, which brings me onto my next
introduction: Tim Soerens, who led both the
Meaning and Placed-Based Innovation themes
at this year’s conference. Tim is also the
co-founding director of the Parish Collective,
a faith-based social enterprise that convenes
leaders for holistic neighbourhood renewal.
Tim’s work fits into a broader theme at the
conference, that of community and infrastruc-
ture investment. Several other speakers – in-
cluding Kevin Jones, Antony Bugg-Levine of
the Non-Profit Finance Fund and Sir Ronald
Cohen – stressed its importance. There were
also a number of sessions on building commu-
nity resilience, including one from the
Rockefeller Foundation on its 100 Resilient
Cities initiative.
It is no coincidence that the growth of
impact investing has coincided with a period
of global economic crisis. Each new stress or
shock to the economy reinforces the necessity
of investing in social enterprises and robust
systems.
New corporate models have been devel-
oped to match. Marc J. Lane, a lawyer who
specialises in these matters, explained two of
them to me. Low profit limited liability
companies (L3C) are private entities that
bridge the gap between non-profit and
for-profit investing by providing a structure
that facilitates investments in socially
beneficial, for-profit ventures while simpli-
fying compliance with tax rules for program
related investments. Benefit Corporations
or ‘B Corps’, on the other hand, are US state
certifications for companies that factor
social good as well as profit in their decision-
making.
I CAME AWAY from SOCAP14 invigorated.
But in Scandinavia we still have a long way
to go to foster this level of innovative social
responsibility and corporate giving and
participation. It is a shift that must occur both
culturally – in the mindsets of the business
community – and institutionally – with legal
frameworks to encourage such activity.
The creation of a Nordic SOCAP is a good
place to start. Bert-Ola Bergstrand, of Social
Capital Forum, a fellow Swede who has
followed SOCAP since the beginning, told me
that they have started to organise webinars
and other activities to pave the way. You can
find out more on their Facebook page.
To see the video interviews with SOCAP
co-founder, Kevin Jones, as well as Codrina
Lauth and James Hanusa, click greensolutions-
swedennordics.tumblr.com here.
■ SOCAP co-founder, Kevin Jones: ”More and more
successful companies are doing good and making
money.” ■
Kaj Embrén
Journalist, blogger
GREEN SOLUTIONS FROM SWEDEN WITHIN THE NORDICS | 21

12. 1. HOW ATTRACTIVE ARE
SWEDISH CLEANTECH COMPA-
NIES FROM AN INTERNATION-
AL PERSPECTIVE?
“Ingeneral,Swedishcleantech
companiesareveryattractiveto
investors.Theyhaveahighly
innovativeandoftenhaveglobal
relevance,too.”
2. WITHIN WHICH SECTORS
ARE SWEDISH CLEANTECH
COMPANIES MOST ATTRAC-
TIVE?
“It depends a little on who you
ask, but we prioritize seed
investments in technology
that generates or conserves
energy.”
3. HAS MIDROC INVESTED
IN SWEDISH CLEANTECH
COMPANIES?
“Our motto is ‘Making the
world a better place and
making some money while
doing it,’ and we have invested
in around 15 companies over
the past five years.”
4. WHAT EVIDENCE IS THERE
TO SUGGEST THAT INVEST-
MENTS IN SWEDISH CLEAN-
TECH COMPANIES WILL
RETURN A PROFIT?
“It depends on in which phase
you make your investment.
Seed investments are often the
only alternative if good ideas
and technologies are going to
have any chance at all of being
tried. Unfortunately, access to
venture capital is limited in
Sweden, as is the size of the
domestic market. So the over-
all aim of seed investors is
often, unavoidably, exits to
global players from the US
and/or Asia, based solely on
the technology’s ‘strategic fit’.
This is known as ‘tech exits’.
Unfortunately, these most
often also mean the export of
future job opportunities and
earning potential from Sweden
to other countries. The tech
exits strategy is extremely
risky, but, potentially, also
very lucrative.”
5. HOW DO YOU VIEW
DEVELOPMENT OF THE
SWEDISH CLEANTECH
INDUSTRY IN THE FUTURE?
“We need more venture capital
willing to take risks, preferably
in combination with public
procurements, that gives
young companies with potent
but untried technologies that
difficult-to-acquire ‘first
customer’ which also provides
them with credibility. A
combination like that would
significantly increase the
opportunities for growth with
Sweden as the continued base,
instead of ‘forcing’ tech exits
to players outside Sweden’s
borders.” ■
FIVE QUESTIONS
5 questions to Göran Linder, Managing
Director of Midroc New Technology AB.
Midroc invests in pioneering, global tech-
nology in the fields of energy conservation,
cleantech, and sustainable development.
The company’s strategy is to invest in
innovative technologies in the early
stages of their development.
22 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES

13. GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 2524 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES
VENTURE CAPITAL
How
Investors
Think
Cleantech is becoming less and
less attractive to private venture
capitalists. This is because clean-
tech investments are seen as
capital-intensive, long-term, and
expensive to scale, and because
the risks associated with tech-
nology and politics are high.
That was the conclusion drawn
in a report published by the
Swedish Agency for Economic
and Regional Growth.
I
n its report entitled Private Venture
Capital and Cleantech–Prerequi-
sites and Obstacles from an
Investor Perspective, the Agency
interviewed eight Swedish venture
capitalists to find out what specific
obstacles exist to investing in clean-
tech. The first obstacle revealed by the
report is that the return on cleantech
investments is no higher than that on
investments in other sectors, while
the risks are greater. The second is
that many investments in cleantech,
to a greater extent than those made in
most other segments, are greatly
affected by shifts in policy. What is
known as the “regulatory risk” is
high. The third obstacle identified is
that cleantech is associated with
capital-intensive investments within
the energy system, which creates an
entry barrier for venture capital firms
that lack a sufficiently large capital.
The fourth is that cleantech is seen as
falling into a long-term investment
category that is associated with high
development costs and, thus, is riskier
than short-term investments. Finally,
capital-intensive investments are
generally viewed as being expensive
to scale up.
IN THE REPORT the venture capitalists
interviewed also expressed that
cleantech and the energy sector, in
particular, are not very attractive for
private venture capital. This is
because cleantech investments are
seen as capital-intensive, long-term,
expensive to scale, and because the
risks associated with technology and
politics are high. According to those
interviewed, private venture capital-
ists with limited access to capital
prefer less capital-intensive invest-
ments that provide quicker returns
and have less risk.
WHEN DETERMINING how attractive
a specific investment object is, the
Agency’s report shows that the way
venture capitalists think about
cleantech investments does not differ
from the way they think about
investments in other sectors.
There is one factor that is unique
to cleantech investments, however.
Cleantech investments are generally
considered to be positive from an
ethical and status standpoint.
Simply put, there is added value in
being identified with environmental
causes.
■ The first obst-
acle revealed by
the report is that
the return on
cleantech invest-
ments is no higher
than that on in-
vestments in other
sectors, while the
risks are greater.
The second is that
many investments
in cleantech, to
a greater extent
than those made
in most other seg-
ments, are greatly
affected by shifts
in policy. ■

14. BUSINESS SWEDEN
■ Håkan Dahlfors,
Strategy & Business
Development at
Business Sweden
believes that there
are more growth
markets that hold major
potential for Swedish
companies working
in energy technology
and cleantech. ■
The most
promising
growth markets
T
he largest export markets
for Swedish cleantech
companies are largely the
same as Sweden’s biggest
export markets overall.
Germany, other Scandinavian
countries, China, the US, Holland,
and the UK remain the industry’s
most important export markets.
“China is conspicuous because it
comes so high up on the list of our
most important trade partners,”
says Dahlfors.
Business Sweden works to help
Swedish businesses grow internation-
ally and to encourage foreign actors
to invest in Sweden. The organization
is jointly owned by the state and by
private industry. In Business Sweden’s
eyes, the German market holds enor-
mous interest. In part, this is due to
Germany’s position as an important
trade partner, generally, for Sweden,
and in part because of major planned
changes to the energy market as a
result of the German government’s
decision to phase out nuclear power.
China is already a major market for
Swedish companies operating in the
sector, but there is still great potential
here, given that the challenges facing
China are so large and because there
is a tangible sense of urgency on the
part of the Chinese.
Dahlfors believes that there are
more growth markets that hold major
potential for Swedish companies
working in energy technology and
cleantech. “But it should be noted that
the sector’s development, as a whole,
is dependent on government policy,
where different control functions
strongly impact Swedish businesses’
ability to offer competitive solutions.
Laws, rules, and financial incentives
are often decisive,” Dahlfors explains.
This means tha t mature markets,
such as Scandinavia, northern
Europe, and North America, will
continue to be very important for
the majority of Swedish companies.
The economic situation in many of
our nearby markets means that
Swedish cleantech companies need to
find new export markets,” says Håkan
Dahlfors, at Business Sweden.
“There’s a shift going on in the
world economy where especially
markets in Asia will grow strongly.
Urbanization and economic growth
will drive investments in energy,
environmental technology
etc, says Dahlfors.
Within which sectors do Swedish
cleantech companies have the great-
est export opportunities? “Some of
the sectors in which Swedish clean-
tech companies are particularly
strong are energy efficiency in both
industry and construction, sustain-
able urban development, and bioen-
ergy. But the majority of Swedish
cleantech companies that export are
sub-suppliers, meaning they don’t
provide complete solutions to
end-customers. But we’re seeing
energy technology and cleantech
become increasingly integrated
natural elements within a number of
different sectors. Energy- and
resource-efficiency are becoming a
stronger and stronger sales argument
for solutions in sectors like industry,
transport, and construction,”
Dahlfors concludes.
Swedish cleantech companies are still primarily exporting their products
and services to traditional overseas markets. A change is needed, however.
“The economic situation in many of our nearby markets means that Swedish
cleantech companies need to find new export markets,” says Håkan Dahlfors,
Strategy & Business Development, Business Sweden.
Mature Markets
Scandinavia
Northern Europe
North America
Promising growth markets
China
Germany
Interesting markets
Turkey
Poland
Chile
Indonesia
GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 27

15. 28 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 29
Private
Investments Fall
Private investment in Swedish cleantech practically ground to a halt in 2012.
Overall, investment fell by a full 79 percent. “Private venture capital has
declined enormously over the past two years, in line with a global trend.
Internationally, the downturn actually began slightly earlier than 2011,”
says Magnus Agerström, Managing Director of Cleantech Scandinavia.
Denmark
48%
Sweden
38%
Norway
14%
Distribution of Public
investments 2012
Total M € 83,6
Compensating for this development, the Swedish
public organisations have been much more active
during the year, expanding investments more than
threefold in amounts and almost doubling the
number of deals. This also means that the share of
public funding invested in Sweden is larger this year
than ever before. 38% of Nordic public investments
in cleantech were invested in Swedish companies.
However, the traditional leader in public funding,
Denmark, still holds the lead with 48% of the
publicly invested amounts into cleantech in 2012.
This is a lower percentage than in 2011 when
64% of public investments in Nordic cleantech
took place in Denmark.
Denmark
48%
Sweden
38%
Norway
14%
Distribution of Public
investments 2012
Total M € 83,6
dish
ctive
than
are of
is year
ments
anies.
ng,
012.
h
PRIVATE INVESTMENTS
F
or the sixth year running,
Cleantech Scandinavia has
compiled figures on invest-
ments in Nordic cleantech
companies. Its 2012 report
shows that the total sum invested in
Swedish cleantech companies, both
private and state capital included, has
decreased drastically in recent years–
from €171 million in 2009 to €46.2
million last year. Investments by
private investors, in particular, have
decreased. Last year they totaled just
under one-seventh of the total for
2009.
“First of all, it has to do with the
times we’re living in. I think you can
see the same kind of tendency in the
majority of sectors. Secondly, I also
believe that many private venture
capitalists got ahead of themselves a
little when they invested in cleantech
companies in 2008/2009. This means
that investors are sitting on invest-
ments that haven’t done so well or
increased as quickly as they had
expected,” Agerström adds.
An increasing number of venture
capital firms are now choosing to
invest at later stages and many invest
only in companies that have achieved
continuous sales growth, turn a profit,
and need capital to expand. “It seems
like many venture capital firms got
burned by going in a little too early,”
Agerström contends.
The distribution of investments by country is
uneven and to little extent reflects the size of
the cleantech segment in the different countries.
Finland had a good year when it comes to private
funding and the 2012 amount of € 51,8 million
were almost in parity with 2010 (€ 66,6 million)
although much lower than top year 2008 (€ 135
million). Denmark and Norway both showed
minor increases in private investments compared
to 2011. Sweden had a worse year when
it comes to private investments. It seems like
the fall in investment levels that hit the other
Nordic countries already in 2011 did not hit
Sweden until 2012.
Distribution of Private
investments 2012
Total M € 125,6
Sweden
45%
Denmark
32%
Finland
11%
Norway
12%
Denmark
48%
Sweden
38%
Norway
14%
Distribution of Public
investments 2012
Total M € 83,6
Compensating for this development, the Swedish
public organisations have been much more active
during the year, expanding investments more than
threefold in amounts and almost doubling the
number of deals. This also means that the share of
public funding invested in Sweden is larger this year
than ever before. 38% of Nordic public investments
in cleantech were invested in Swedish companies.
However, the traditional leader in public funding,
Denmark, still holds the lead with 48% of the
publicly invested amounts into cleantech in 2012.
This is a lower percentage than in 2011 when
64% of public investments in Nordic cleantech
took place in Denmark.
Contents
Introduction
Overview
EquityInvestments
PublicFunding
Exits
Annexes
NordicCleantech
DealFlow
2012
The report also reveals an unbroken
trend that has continued since 2007
for an increase in the percentage of
cleantech companies financed by
public organizations. In 2012, this
figure reached 43 percent. “The
Swedish cleantech sector is most
definitely not experiencing a crisis.
In fact, just the opposite–cleantech
companies are very optimistic. Sales
are increasing and they are gaining
strength. In the near future, we believe
that more and more Swedish cleantech
companies will have reached the stage
where they will be truly attractive to
international venture capital funds
and even more attractive to multina-
tional industrial technology corpora-
tions,” Agerström suggests.
Even if private investments are
shrinking rapidly, there is no shortage
of positive trends to be found. The
investment trend is running contrary
to the general trend of a continually
growing number of companies focused
on solving environmental problems.
One sign proving this is the increase in
the number of investments in Swedish
cleantech companies to a record level,
totaling 96 investments last year.
These investments are small, however,
and, in the majority of cases, have
been made by state actors. “When the
early investments from the private
venture capital firms decrease and
they choose to invest in later stage
companies instead, upcoming and
innovative companies risk never
making it as far as private venture
capital,” Agerström explains.
The report also shows that a new
wave of young, innovative Swedish
cleantech companies is currently on
the rise. They focus on everything
from advanced new materials to
solutions for improving energy
efficiency and renewable energy.
“Many of these companies
receive public funding. The Swedish
Energy Agency is very active and is
an important reason why so many
Swedish companies have been able to
get off the ground. Public funding in
the form of grants and soft loans has
continually increased since we began
compiling figures in 2007.
The amounts per company have not
increased, but more companies are
getting support,” Agerström reveals.
He hopes that more private
venture capital will become available
in the near future. “Our message
through this report is not to look
backwards on yet another year of low
investment, but to look forward to a
future of increased growth and
profitability for Swedish cleantech.
2012 was not the end of Swedish
cleantech. It wasn’t even the begin-
ning, but rather the first step in the
beginning of the success story that is
cleantech,” he concludes.
The distribution of investments by country is
uneven and to little extent reflects the size of
the cleantech segment in the different countries.
Finland had a good year when it comes to private
funding and the 2012 amount of € 51,8 million
were almost in parity with 2010 (€ 66,6 million)
although much lower than top year 2008 (€ 135
million). Denmark and Norway both showed
minor increases in private investments compared
to 2011. Sweden had a worse year when
it comes to private investments. It seems like
the fall in investment levels that hit the other
Nordic countries already in 2011 did not hit
Sweden until 2012.
Distribution of Private
investments 2012
Total M € 125,6
Sweden
45%
Denmark
32%
Finland
11%
Norway
12%
Denmark
48%
Sweden
38%
Norway
14%
Distribution of Public
investments 2012
Total M € 83,6
Compensating for this development, the Swedish
public organisations have been much more active
during the year, expanding investments more than
threefold in amounts and almost doubling the
number of deals. This also means that the share of
public funding invested in Sweden is larger this year
than ever before. 38% of Nordic public investments
in cleantech were invested in Swedish companies.
However, the traditional leader in public funding,
Denmark, still holds the lead with 48% of the
publicly invested amounts into cleantech in 2012.
This is a lower percentage than in 2011 when
64% of public investments in Nordic cleantech
took place in Denmark.
Contents
Introduction
Overview
EquityInvestments
PublicFunding
Exits
Annexes
NordicCleantech
DealFlow
2012
■ MANY OF THESE
COMPANIES RECEIVE
PUBLIC FUNDING. THE
SWEDISH ENERGY AGENCY
IS VERY ACTIVE AND IS
AN IMPORTANT REASON
WHY SO MANY SWEDISH
COMPANIES HAVE BEEN
ABLE TO GET OFF THE
GROUND. ■

16. 30 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 31
CLEANTECH IN SWEDEN
Swedish Companies
Establish Unique
Initiative
As the first group of businesses from one country ever to do so,
20 Swedish compwanies have adopted four key principles that will
govern their joint efforts to help achieve sustainable development
and a reduction in poverty.
A
s the first group of
businesses from one
country ever to do so, 20
Swedish companies have
adopted four key princi-
ples that will govern their joint efforts
to help achieve sustainable develop-
ment and a reduction in poverty.
Initiated by Sida, the Swedish
companies Axel Johnson, Boliden,
Elekta, Ericsson, Företagarna,
GoodCause, H&M, IKEA, Indiska,
Investor, PostkodLotteriet, Ratos,
Scania, SPP, Swedfund, Systembolaget,
Tetra Laval, 3W, Unilever, and Volvo
have agreed to integrate sustainability
into their operations and business
models. The companies will also stress
the importance of creating more and
better jobs, of systematically reducing
environmental impact, and of fighting
corruption and unethical business
practices.
The companies involved represent
a broad spectrum of areas from within
the Swedish business world, including
textiles, telecom, transport, and
health. Some also conduct their own
manufacturing in underdeveloped
countries, while others depend on
low- and middle-income countries as
markets to be able to grow and invest.
“I am convinced that when the
Swedish business world cooperates
and assumes an active role, it can
serve as a global role model for others
to imitate in the fight to reduce
poverty and ensure sustainable
development,” says Charlotte Petri
Gornitzka, Director General of Sida.
Work to draw up new global
targets for sustainable development
from 2015 onwards is currently
ongoing. The business world’s
commitment and experience will be
key in achieving the ambitious aims
set for the future, which will increas-
ingly require the formation of
partnerships between parties other
than traditional aid donors and
recipients.
“In connection with the drafting of
the UN’s new sustainable development
goals, we have the opportunity to
acknowledge the role the business
world can play in contributing to a
solution-oriented agenda. The UN’s
Sustainable Development
Solutions Network, led by Jeffrey
Sachs, is an important part of
this work,” says Ericsson CEO
Hans Vestberg.
Through Sida, Sweden is
playing an active role in
ongoing global efforts for a
new, coordinated develop-
ment agenda and wishes to
bring together actors from
many different areas of
society to join the work.
“The Swedish business
world is now taking the
international lead in the work of
contributing to new and feasible
development goals. The Swedish
business community is far ahead of
the field in its work in areas like
cleantech, innovation, openness, and
global responsibility,” adds Petri
Gornitzka.
The executives for the Swedish
companies involved have identified
four key areas in which the Swedish
model for enterprise and leadership
can have an impact and make a real
difference. The idea is to integrate
sustainable development into opera-
tions and business models, to system-
atically reduce environmental impact
and improve efficiency in the use of
resources, and to create jobs with
decent conditions and development
opportunities in both their own
labor forces and their supply
chains as well as combat
corruption and unethical
business practices in the
countries in which they
operate. Technical
solutions and innova-
tion are emphasized as
especially important
for developing
sustainable and
value-for-money
products and services
that benefit the
underprivileged. ■ Ericson Green Site on Sumatra, Indonesia. The energy-efficient base stations is a self-contained power solution
using a hybrid diesel-battery solution and solar panels. ■■ Ericsson CEO Hans Vestberg. ■

17. 32 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 33
Eight years
ahead of schedule
In 2012, 51 percent of Sweden’s energy supply came from renewable
sources. This meant that the country exceeded the EU’s 2020 goal for
the proportion of renewable energy used eight years ahead of schedule.
“It’s a fantastic achievement that also goes to show that it’s a lot easier
to change energy systems than many people think,” says Gustav Melin,
Managing Director of the Swedish Bioenergy Association (Svebio).
I
n 2012, 51 percent of Sweden’s
energy supply came from renew-
able sources. This meant that the
country exceeded the EU’s 2020
goal for the proportion of renew-
able energy used eight years ahead of
schedule. “It’s a fantastic achievement
that also goes to show that it’s a lot
easier to change energy systems than
many people think,” says Gustav Melin,
Managing Director of the Swedish
Bioenergy Association (Svebio).
SO FAR, Sweden has succeeded very
well when it comes to switching to
renewable energy and has already
reached the EU requirement of 49
percent renewable energy use nation-
ally. The Swedish Parliament has set its
own target of 50 percent renewable
energy-use by 2020. Several factors
have contributed to renewable energy’s
strong development in Sweden, but
good natural resources and effective
political control mechanisms are two
important ones.
“We are world leaders in modern
bioenergy and are also among the most
competent nations in cost-efficient
wind power. That’s why Sweden has
reached the target so quickly,” says
Professor Tomas Kåberger, Chairman
of Sweden’s Förnybarhetsrådet
[Renewables Council]. Förnybar-
hetsrådet is a cooperative association
made up of the industry organizations
Swedish Wind Energy, Svebio, Swedish
Solar Trade Association, and Energi-
effektiviseringsföretagen (a joint
platform for Swedish businesses
providing energy-efficient products
and services). Förnybarhetsrådet’s
purpose is to develop knowledge, expe-
rience, and visions within the field of
renewable energy.
The largest renewable energy
source in Sweden is bioenergy,
followed by hydroelectric power, which
is half as large.
Wind power and heat extracted
from heat pumps each provide
just under five percent of renewable
energy. Solar power is the smallest
of all sources, providing less than
one percent of all energy produced
from renewable sources in
Sweden.
Tomas Kåberger believes that
a global migration to renewable energy
sources may take several decades to
complete. “Nonetheless, it’s a thor-
oughly realistic goal, both technically
and financially,” he concludes.
■ Gustav Melin, VD Svebio. ■
SVEBIO GOTHENBURGS SCHOOL OF BUSINESS, ECONOMICS AND LAW
C
arbon dioxide emissions
from energy production
have a major impact on the
global climate. “Sweden is
at the forefront of sustain-
able development within the energy
sector, especially when it comes to
district heating networks and utilizing
waste heat from industry. This makes
it interestingtostudystrategiesby
Swedishenergycompaniesforenviron-
mentalsustainabilityandhowthey
realizethem,”Schaadcontinues.
Inherdoctoraldissertationentitled
Strategies for Environmental Sustain-
ability of Municipal Energy Compa-
nies. Pathways of Sustainable Develop-
ment Between Business and Society,
presented at the University of Gothen-
burg’s School of Business, Economics
and Law, Schaad studied municipal
energy companies that expressly strive
to provide social benefit and promote
the transition to a more sustainable
energy system. Three case studies of
municipal energy companies of
varying sizes were included in the
dissertation. “Studying the companies
owned by municipalities is interesting.
They have a special responsibility
to promote positive social develop-
ment that transcends the interests of
the company itself,” says Schaad.
Thus, the study examines not only
the companies’ strategies for environ-
mental sustainability and how these
are put into practice within the compa-
nies themselves, but also provides a
picture of how the strategies can
simultaneously contribute to the
positive development of both the
energy companies and the community.
“Marrying strategy with sustainable
development requires that the
companies tackle a broad range of
challenges.
Actually, I thought that the
strategies would be more general and
similar, but, in reality, they differ quite
a lot from company to company. They
can be based on everything from
regional development to what image
the company wishes to promote,”
Schaad explains.
The results of the study are
positive. Not just because the compa-
nies themselves are taking the issue
seriously, but because they also have
the surrounding communities on their
side:
“It is very pleasing to see that
municipal energy companies, irrespec-
tive of their size, are well placed
to contribute to the sustainable
development of the energy system.
Their capability owes much to the
support they receive from local
communities.
Cooperation and collective goals
make for a positive outlook. The
willingness of the community is a
major advantage,” Schaad believes.
Swedish municipal energy companies have a big lead when it comes to the
sustainable development of the country’s energy system. “It is very pleasing
to see that municipal energy companies, irrespective of their size, are well
placed to contribute to the sustainable development of the energy system.
Their position owes much to thwe support they receive from local communi-
ties,” says researcher Gabriela Schaad from the University of Gothenburg’s
School of Business, Economics and Law.
Taking the lead
in sustainable
development
■ Sweden is at the forefront of
sustainable development within
the energy sector”, says Gabriela
Schaad. ■

18. 34 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES | 35
VENTURE CAPITAL
The number of venture capital investments in
Swedish cleantech companies continues to fall,
at the same time as the number of buyouts has
tripled in recent years. This is the situation as
revealed in statistics published by the Swedish
Private Equity & Venture Capital Association
(SVCA).
Decline in cleantech
investments part
of major trend
Photo:MagnusHjalmarsonNeideman.

19. 36 | GREEN SOLUTIONS FROM SWEDEN AND THE NORDIC COUNTRIES
SWEDISH CLEANTECH INDUSTRY
V
enture capital is an
umbrella term for capital
for investments and
covers all capital contri-
butions made to a
company, with the exception of loans.
SVCA prefers to use the term “private
equity”, rather than venture capital.
There are different types of private
equity providers: buyout firms, who
invest in mature companies with
stable cash flows, and venture
capitalists, who invest in the early
stages of a company’s development.
Both public and private organizations
that provide equity are members of
SVCA and submit statistics to the
association.
“State organizations primarily
invest in the early stages, and their
role is to supplement that market. We
believe that state venture capital
should be able to collaborate with
private venture capital to a greater
extent. Doing so would allow public
venture capital to be utilized more
effectively. Politicians should keep a
reasonable distance and not make
decisions about which industries or
regions capital should be invested in.
Market players should be allowed to
decide which investment objects are of
interest,” says SVCA’s Managing
Director, Isabella de Feudis.
SVCA’s 2012 statistics show that
the number of venture capital invest-
ments made in Swedish cleantech
companies continues to decline. The
same downward trend is also clearly
evident in the amounts invested. The
size of venture capital investments in
cleantech has fallen by almost 80
percent since 2008.Approximately the
same number of investments was
made in cleantech in 2012 as in 2008.
“This is due to a sector rotation;
that is, capital-heavy projects within
cleantech, semiconductors, and
pharmaceuticals have been replaced
by IT and media, which require less
capital. Over time there have been
fewer investments in capital-intensive
industries like cleantech, and more
investments in less capital-intensive
industries,” de Feudis continues.
The trend for buyouts looks a little
different, however. The number of
buyouts has tripled since 2010 and
annual totals are also increasing
steadily. Private equity invests in
unlisted Swedish companies. The
money it invests comes primarily from
institutions, such as pension funds in
the US and the various national
Swedish pension funds (AP-fonderna).
“Private equity is responsible for
80-90 percent of capital imports to
Sweden. Generally speaking, private
equity has been less active over the
past year as a result of the recession
and low GNP growth,” de Feudis adds.
One reason for the decrease in the
willingness to invest is the prevailing
uncertainty about what rules will
apply in the long-term. “The invest-
ment horizons of private equity are
long; companies are owned for 5-10
years. The money comes from
institutions, foreign pension funds,
and American university investment
funds. The investment horizon is even
longer when the companies must have
gained in value before they are sold
off.
As such, private equity requires
long-term rules for areas like taxes,
energy, and the environment, if invest-
ments are going to increase.
At present, there is a large degree
of uncertainty concerning taxes and
other areas in Sweden, which affects
the willingness of institutions to invest
here,” de Feudis concludes.
NUMBER OF CLEANTECH INVESTMENTS
CLEANTECH INVESTED AMOUNT IN SEK
Luleå grows
sustainably
www.lulea.se
Electricity from renewable hydropower and stable
electrics have made Facebook want to build their
European data centre in Luleå. Together with Boden
and Piteå, we have created The Node Pole to become
a global hub for data traffic.
Luleå Science Park at Luleå University of Technology
has a leading role in creating innovations and attrac-
tiveness. The park houses around 100 knowledge
intensive businesses.
Surplus gas from SSAB´s steel mill heats large parts
of Luleå. District heating is the cheapest in Sweden.
Luleå is growing. Over the coming ten years, there
are plans for 5,000 new and climate-smart homes.
Public transport has Sweden’s most satisfied custo-
mers and the number of bus journeys made is
increasing steadily. This autumn, production of fuel
gas for vehicles will begin at the town’s sewage
treatment plant and we are to become Sweden’s best
town for cycling.
We collaborate globally. A collaboration with Austin
in Texas has recently been initiated to strengthen
Luleå’s creative powers. We have a different type of
collaboration with multimillion city Xi’an in China.
The list is much longer.
Get in touch, and we’ll tell you more.

20. THIS ARTICLE WAS PAID FOR BY GOTHENBURG ENERGY & BUSINESS REGION GÖTEBORG AB
GOTHENBURG: THE SMALL CITY
WITH BIG IDEAS
Gothenburg harbour.
A
lthough newspapers
are often more inter-
ested in showing
world-famous land-
marks shrouded in
smog, the small
Swedish city may actually have
more to offer the global dialogue
than its bigger, better-known
counterparts. Because not only
does Gothenburg suffer from
many of the same problems found
elsewhere in the industrialized
world, it is also responsible for
some of the most innovative
approaches to countering these
shared environmental threats.
The movement towards creating
a greener Gothenburg is well
underway. One of the most visible
examples is RiverCity, an urban
development project at the heart
of the historic center that uses
principles of sustainability to
improve accessibility and ameni-
ties for residents. But investment
in energy, transport and waste can
be found in all corners of the city.
THE SWEDISH GOVERNMENT has
vowed to create a public transport
system free of fossil fuel by 2030
and Gothenburg is ahead of
schedule . Technology pioneered
by Volvo sees the city’s buses run
with emission levels that are 80
percent lower than their diesel
counterparts. The low-carbon fleet
has even attracted the interest of
While Beijing,Paris,London,Los Angeles and Sao Paolo may all make
the headlines for their poor air quality,Gothenburg is understandably
less likely to feature in the media’s narrative on pollution.
38
Barack Obama when he visited the
country in 2013, explains Volvo
president and CEO Olof Persson.
“We wanted to show the
president how we [have taken]
bus transport into the future in a
sustainable way,” he says. “This
technology is already used daily
in Gothenburg where we [have]
created the world’s most modern
and innovative bus route.”
SPEARHEADING the city’ transport
revolution is the GoBiGas project,
an initiative by energy supplier
Gothenburg Energy that turns
waste from the forestry industry
into methane gas. The facility is
the first of its kind in the world
and already helps provide clean
fuel to 15,000 cars. By 2020 the
project’s leaders hope to provide
the equivalent of 1TWh of biogas,
enough to fuel 100,000 cars.
“The focus on GoBiGas is
something we do for the conver-
sion of the transport sector which
is one of the most important
things needed to save our
climate,” explains Gothenburg
Energy’s Strategy Director,
Andreas Rydbo. “We do this both
because we are willing and able,
but also because we see that it
must be done.”
Thankfully other major stake-
holders share his sense of urgency.
The project has attracted invest-
ment totaling around EUR150
million from state, municipal and
EU agencies. As well as directly
contributing to the reduction of
pollution in Gothenburg, such
initiatives have also demonstrated
the potential for the companies
involved to share and export their
services to larger cities, says Bernt
Svensén of Business Region
Gothenborg.
“Gothenburg is, together with
the Stockholm and Malmö, a city
that is considered worldwide to
be [a model] of best practice in
3GOTHENBURG ENERGY7
Western Sweden’s leading energy
company, we provide our customers
with energy services, broadband,
district heating, cooling, natural gas
and the electricity supply network.
Gothenburg Energy is subsidiary of
Göteborgs Stadshus AB.
Postal address: Göteborg Energi AB,
Box 53, 401 20 Göteborg
www.goteborgenergi.se/English
39
THIS ARTICLE WAS PAID FOR BY GOTHENBURG ENERGY & BUSINESS REGION GÖTEBORG AB

21. 40
reducing its climate impact,” he
says. “Bioenergy and systems
engineering solutions in heating
and other energy plants win
attention and market success
for Swedish cities.”
Svensén argues that coopera-
tion between public and private
stakeholders has been essential for
transforming the city’s approach
to energy. The incentives provided
by state players have been a cru-
cial part of the success of initia-
tives like GoBiGas, according to
Gothenburg Energy’s Andreas
Rydbo.
“As a municipality-owned
corporation our contribution to
the development of our city is one
of our most important missions.
This work has been going on for
several decades,” he says.
IN THIS TIME, climate change initia-
tives in Gothenburg have extended
into all corners of life in the city.
Rydbo also cites the transforma-
tion of the district heating systems
that he claims now takes 60
percent of its heat from other
sources, such as industrial process-
es and garbage-burning. As with
the overhauled transport network,
this has proven a success story
from the perspectives of both
climate change and energy
efficiency.
By replacing dirty energy with
heat that would otherwise go to
waste, Gothenburg’s heating
initiatives have contributed
significantly to improvements in
air quality. The city’s heating
facilities closely control and treat
emissions, and production takes
place in cogeneration plants
fuelled by natural gas or biomass.
Gothenburg Energy’s goal is to
make 50 percent of the district’s
heat renewable by 2025, far
beyond the proposed EU target of
27 percent by 2030.
“I see us as a partner in urban
development where our role is to
contribute to sustainable energy
solutions. One of the important
parts of this is to combine large-
scale solutions such as district
heating and GoBiGas with small-
scale production, such as solar
cells,” says Rydbo.
THE OUTLOOK was not always so
optimistic, however. Like many
cities today, Gothenburg too
struggled with problems of air
quality and greenhouse emissions
from energy production, housing
and traffic. In the 1980s Sweden’s
environment minister singled out
Gothenburg as a city with substan-
tial environmental problems,
prompting city planners and
industry to more seriously address
its shortcomings. Bernt Svensén
argues that this wake-up call not
only led to significantly reduced
emissions from sectors including
transport and energy, but also
instigated growth of sustainable
businesses and green jobs. Because
in the decades that followed,
Gothenburg was transformed
from a city of heavy industry
city to a world-leading network
of green systems.
Today, the environment is an
issue that has been integrated into
many aspects of life in Gothen-
burg, as demonstrated by the
fast-charging hybrid buses, trucks
using liquefied biomethane as fuel
and the development of one of the
world’s greenest sea ports. But
social challenges remain. The city
is now facing one of the largest
redevelopment projects in Swe-
den, which will house 45,000 more
residents and create 60,000 new
jobs in central parts of the city by
2030. This urban development
presents obvious environmental
and climate challenges.
IT IS ALREADY EVIDENT from early
planning that we will se more
energy-efficient buildings and
well-developed public transport.
But Gothenburg has created a
new green financial tool — Green
Bonds — that will increase invest-
ment in sustainable solutions.
Gothenburg is the first city in
the world to introduce Green
Bonds totaling 2,3 billion SEK
already issued.
This means there are even
more opportunities to reach
those investors concerned about
the environment, while also show
casing the city’s environmental
projects. There is already huge
interest from investors, both in
Sweden and internationally,
which bodes for more interesting
projects in the future.
Ambition is rife in Gothenburg.
Other world cities with greater
environmental challenges, and
larger populations affected by
them, could do well to learn from
the integrated, sustainable solu-
tions that are transforming the
way that energy is produced and
consumed in the city. Gothenburg
may be small but it continues to
think big.
3STUDY VISITS ORGANISED
BY GREEN GOTHENBURG 7
Sustainability organizes study visits with an
environmental and sustainability theme.The
study visit programs focus on areas like
D Sustainable City development
D Biogas technology
D Liquid gas for heavy vehicles
D Sustainable transport of goods in cities
D Plug-In hybrid bus development
D District heating and cooling
D Towards sustainable waste management
D From dockland to sustainable
urban harbor area
3CONTACT DETAILS 7
Green Gothenburg :
Phone: +46 31 367 62 62
mailto:info@greengothenburg.se
www.greengothenburg.se
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Stockholm’s district heating is derived from waste heat drawn from
wastewater, offices and data centers; the city’s household waste; solar
energy; and forestry waste products, among other things. We circulate
the energy that already exists in the community and also harvest
renewable energy from nature. In doing so, Fortum Värme creates a
positive energy cycle that helps make Stockholm a more sustainable city.
Read more at fortum.se
Staying warm
together