Strategic choices: Swedish climate intervention policies and the forest industryʹs role in reducing CO2 emissions

Given adequate incentive, the forest industry could play a significant role in achieving Swedish objectives for reducing CO2 emissions. Whether or not this potential can be harnessed depends on the types of energy policy interventions that are introduced. An analysis of the potential impacts of four policy-intervention strategies on the forest industry is presented in this article. The focus of the analysis is on the four strategies’ impacts on forest industry electricity demand from, and renewable energy supply to, the energy system. The strategies analyzed include a reference strategy and strategies targeting electricity production, transportation and the energy system as a whole. The method applied combines scenario analysis with systems engineering modeling. Separate scenario sets were used to reflect visions of development from the forest industry and the energy sector. Separate models were used to enable a more in-depth analysis of the forest industryʹs role than is commonly the case in energy systems engineering studies.