The experiences of past efforts of industrial pollution control while maintaining competitiveness should be of great value to research and policy practice addressing sustainability issues today. In this article, we analyze the environmental adaptation of the Swedish pulp industry during the period 1970–1990 as illustrated by the sulfite pulp producer Domsj？ mill. We investigate how this company managed to adapt to heavy transformation pressure from increasing international competition in combination with strict national environmental regulations during the 1960s to the early 1990s. In line with the so-called Porter hypothesis, the company was able to coordinate the problems that were environmental in nature with activities aiming at production efficiency goals and the development of new products. Swedish environmental agencies and legislation facilitated this “win-win” situation by a flexible but still challenging regulatory approach towards the company. From the early 1990s and onwards, the greening of the pulp industry was also a result of increased market pressure for green paper products.
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