Sweden Leads Europe in Reducing Greenhouse Gas Emissions

Known for IKEA, ABBA, and fermented herring, Sweden has added another impressive feat to its repertoire. The country has become Europe’s top performer in reducing greenhouse gas emissions. As of 1990, Sweden already emitted five times less CO2 per capita than the European average. Since then, it has further reduced its net greenhouse gas emissions by 80%, compared to the EU’s average reduction of 30%. Remarkably, this has been achieved while doubling its economic growth.

Natural Advantages and Early Investments

Sweden's landscape, dominated by lush forests and extensive coastlines, provides significant natural resources for combating climate change. Forests, covering 70% of the land, act as carbon sinks, while the windy coastlines and abundant lakes offer perfect conditions for renewable energy sources like wind and hydropower.

Recognizing its natural potential early on, Sweden began investing in renewable energy sources decades ago. “Sweden has had hydropower for more than a century,” says Mattias Goldmann, founder of the Swedish 2030-secretariat. Alongside hydropower, Sweden built out nuclear power in the 1970s following the global oil crisis, reducing its reliance on oil. Today, nearly 70% of Sweden’s electricity comes from renewables, with nuclear power covering the remaining demand. Consequently, the greenhouse gas emissions from electricity production are nearly zero.

Economic Growth and Environmental Stewardship

Sweden's success in reducing emissions while maintaining economic growth is a prime example of "decoupling." This approach is particularly notable given the country's industrial base, including steel, cement, and automotive production. The availability of cheap, self-generated electricity has been crucial in keeping production costs low and supply consistent.

A significant factor in Sweden’s progress has been its district heating systems. Instead of individual heaters, centralized systems serve multiple buildings, increasing efficiency and reducing emissions. Sweden transitioned from fossil fuels to biofuels and waste for heating, with heat pumps becoming widely used.

Policy and Innovation

Sweden's forward-thinking climate policies date back to the 1990s. The introduction of one of the world’s first carbon taxes, which remains among the highest globally, incentivized businesses and individuals to invest in renewable energy. This tax has significantly reduced CO2 emissions from transport and accelerated the shift to renewable energy in various sectors.

The steel industry, responsible for nearly 10% of Sweden’s climate impact, aims to produce fossil-free steel using green hydrogen. This shift underscores the synergy between ambitious environmental policies and industrial innovation. Sweden's strong focus on engineering and scientific education supports the development of new technologies and sustainable practices.

Challenges and Future Prospects

Despite its successes, Sweden faces challenges, particularly in the transport sector, which remains the largest source of emissions. Recent policy changes under the new conservative government, including reduced taxes on petrol and diesel and the removal of incentives for electric vehicles, have led to a temporary increase in emissions.