Making sustainability and innovation a strategic policy issue
The tech industry is the driving force behind both digitalization and the green transition. Yet policy and innovation are moving at different speeds - and as TechSverige often points out, Sweden is at risk of losing its position as a technological role model.
If we want to remain a digital leader, we need to realize that sustainability and innovation are not opposed to each other - they are each other's prerequisites.
When EU environment ministers gathered on 21 October to agree on the Union's position ahead of COP30 in Brazil on 6-7 November, the emphasis was on renewable energy, energy efficiency and decarbonization. But again, there was no mention of the role of digitalization. This reveals a clear gap between the language of politics and the reality of the tech sector - where data, AI and digital infrastructure are already crucial to achieving climate goals. The EU talks about technology shift, but fails to recognize that it is digital technology that makes the shift possible.
The Swedish government likes to talk about green growth and digital competitiveness. This year's budget proposal contains welcome investments in areas such as education and productivity, and the ambition to lead the implementation of Agenda 2030 and the EU's Green Deal is clear. But the concrete policy initiatives that actually link digitalisation and sustainable development are still conspicuous by their absence.
This is the key to both climate goals and competitiveness"
This is unfortunate - because the tech industry is an enabler. Digital solutions can reduce emissions, streamline transport and optimize energy use. This is the key to both climate goals and competitiveness, but policy has not yet provided the industry with the necessary tools and incentives.
Companies that are already integrating sustainability into their business strategy are not only more attractive - they are the winners of the future. But for the tech industry to continue to be Sweden's engine of the future, policy makers need to see the infrastructure of digitalization - telecom networks, data centers and digital skills - as fundamental investments in society.
We need a long-term policy direction that makes it easier for companies to be both innovative and sustainable. It is about creating clear rules, stable conditions and the right incentives - not more national taxes (read electronics tax) or unclear signals.
Sustainable tech is a competitive advantage - for companies, for Sweden and for our exports. Therefore, policies should include:
- Making digital solutions an integral part of Sweden's climate action
- Open data so that businesses can develop services that help reduce climate impact
- Facilitate the establishment of climate-neutral data centers through rapid permitting processes
- Require circular hardware with reuse and resource efficiency requirements in government and municipal procurement of IT equipment
- Repeal the electronics tax and target incentives to actual environmental benefits instead of penalizing reuse
- Supporting the development of circular business models
When policies falter, uncertainty arises. But for many tech leaders, sustainability is already a strategic issue for the future, a matter of survival in global competition. Companies that integrate sustainability into their entire business will be more attractive to customers, talent and investors.
Back to the title: Why is sustainability and innovation not a strategic policy issue?
Frida Faxborn
Business policy expert, TechSverige