One of the biggest issues in the green transition is how a state can protect the climate without harming economic growth. And now Sweden seems to have found the magic recipe.

According to the European Environment Agency, Sweden it is at the top of the list of European states in reducing the emission of gases that cause the “greenhouse effect”.

Already in 1990, Sweden emits five times less carbon dioxide per capita compared to the European average. Since then, the country has reduced its gas emissions by 80%, while the corresponding EU average is only 30%.

And all this at a time when Sweden, a country with a strong industry that produces steel, cement and cars, has also doubled its economic growth. How has he managed it?

Investments in green energy sources

The Nordic country has some important advantages: 70% of its territory consists of forest land, which contributes the most to the reduction of carbon dioxide in the atmosphere. Sweden also has strong winds, as well as mountains, streams and lakes – a landscape ideal for renewable energy.

Sweden realized early on the dynamics of its environment and started investing in renewable energy just as early. “Sweden has had hydroelectric power for over a century,” emphasizes Mattias Goldman, its founder of the Swedish Secretariat 2030who is working to help the country achieve its climate goals in the national transport sector.

Since the 1970s and the oil crisis, Sweden had already begun to reduce the share of fossil fuels in its energy mix, while simultaneously investing in nuclear power. Today 70% of the country’s energy is produced from renewable energy sources – and gas emissions during energy production are almost zero

Progress in the production of heat

In fact, Sweden has not only eliminated the share of fossil fuels in the production of energy, but also heat.

The country has long invested in district heating, i.e. building heating systems with central burners and a special duct network.

“In order to install such infrastructures, the cooperation of the government and the private sector is necessary,” points out Asa Persson, an advisor to the Swedish government on climate issues. Although more expensive, such systems are more energy efficient, an advantage of great importance for a country as cold as Sweden.

In addition, these systems can operate with different types of fuel. In the past Sweden used for example oil and coal, while since the 1990s the country has invested in the use of biomass. Today 97% of the heat produced in the country comes from biofuels and waste burning.

“Over the past 30 years, Sweden has managed to reduce its energy and heat emissions by 70%, which proves that big, bold changes are possible,” adds Person

Incentives for individuals and businesses

During this time the country has implemented clear climate strategies, for example imposing one of the highest taxes on carbon dioxide, both on industries and individuals.

“For us things are clear: either we do something that is harmful to the environment and pay the corresponding tax, or we do something that is more beneficial to the environment and we are not taxed,” says Goldman.

As a 2019 study showed, it was the Swedish carbon tax that led to an average annual reduction of 6% in transport emissions. At the same time, it has also been an incentive to accelerate the green transition in the power and heat sectors, pushing individuals and businesses to switch to renewable energy sources.

“Environmental and climate policy in Sweden is widely accepted and supported, and the country can boast of being one of the pioneers in this area,” says Persson.

As almost all political parties are in favor of this climate policy, it is ensured that these strategies will continue to be followed even in case of a change of government

The effects of the Russian invasion of Ukraine

However, there are some sectors in Sweden that have not made equally impressive progress in decarbonisation, such as the transport and agriculture sectors, which are also the country’s biggest sources of gas emissions.

After the recent energy crisis caused by the Russian invasion of Ukraine the conservative government in Stockholm rolled back some important strategies and cut the tax on petrol and diesel by 25% – making Sweden one of the countries with the lowest petrol prices and diesel across Europe. It also introduced other measures that made it much more affordable to drive cars to support households, while removing some of the incentives to buy electric vehicles.

“We are currently increasing emissions by around 5 million tonnes of carbon dioxide per year. This is truly the largest increase in emissions in the transport sector in Swedish history,” says Goldman.

However, the expert believes that this retreat will not last long. The government promised that these new measures are in the short term. And anyway, Sweden can still meet its transport targets: a 70% reduction in emissions between 2010 and 2030

Important lessons for other countries

Sweden’s success story can be a valuable lesson for many other countries, showing them how they can produce energy while minimizing “greenhouse gas” emissions.

Goldman urges other countries to figure out the main ways they affect the climate and where they can make the biggest difference, each focusing on their own strengths. Every country is different, but the important thing is to decide to actively and practically pursue the green transition.

“The biggest lesson from Sweden is that we need a close cooperation between the government, the private sector, but also the local administration. Thus, there can be a common pursuit of systematic solutions, as well as the risk of large long-term investments being easier to take on. This was one of the factors that contributed significantly to Sweden’s successful decarbonisation,” agrees Persson.

Edited by: Giorgos Passas