Sweden 2025 HIGHLIGHTS
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The OECD Environmental Performance Reviews (EPRs) provide evidence-based analysis and assessment of countries’ progress towards their environmental policy objectives. They promote peer learning, enhance government accountability, and provide targeted recommendations to help countries improve their environmental performance. They are supported by a broad range of economic and environmental data. Throughout the last 30 years, the OECD has conducted over 100 EPRs of OECD members and selected non-member countries.
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THE FOURTH EPR OF SWEDEN
This fourth EPR of Sweden follows previous reviews in 2014, 2004 and 1996. It examines the country’s environmental performance in the last decade. This includes the actions of the Ministry of Climate and Enterprise and central government, as well as those of other relevant government authorities, civil society and businesses. The process involved a constructive and mutually beneficial policy dialogue between Sweden and the countries participating in the OECD Working Party on Environmental Performance (WPEP). The OECD is grateful to the examining country: Denmark.
The EPR provides 28 recommendations.The WPEP reviewed and expressed support for the Assessment and Recommendations on 11 December 2024. They aim to help Sweden enhance policy coherence and progress towards its climate neutrality, biodiversity and environmental quality objectives. Particular emphasis is placed on climate change mitigation and negative emissions promotion.
http://oe.cd/epr
KEY ENVIRONMENTAL INDICATORS 2023
GHG intensity – GHG emissions per capita 4.3 tCO2 eq. per capita (OECD average is 10.7)
Energy intensity – Total energy supply per capita 4.3 toe per capita (OECD average is 3.7)
Renewables (% of total energy supply) 49% (OECD average is 13)
Mean population exposure to PM2.5 6 μg/m3 (OECD average is 12)
Municipal waste per capita 395 kg per capita (OECD average is 530)
Material recovery of municipal waste (% of composting and recycling in total treatment) 40% (OECD average is 35)
Wastewater treatment (% of population connected to tertiary treatment) 85% (OECD average n.a.)
Intensity of use of forest resources (harvest or fellings over annual productive capacity) 0.81 (OECD average n.a.)
R&D budget for environment and energy (% of total government R&D budget) 5.1% (OECD average is 6.6)
Passenger cars stock 48 cars/100 inhabitants (OECD average 49)
Share of CO2 emissions priced above EUR 60/tCO2 (excluding emissions from biomass) 67% (OECD weighted average 22)
Material productivity (USD, 2015 PPPs/Domestic material consumption, kg) 2.2 USD/kg (OECD average is 2.5)
Environmental protection expenditure (% of GDP) 0.6% (OECD average is 0.7)
Note: rounded figures.
Overview
Sweden has an open, knowledge-based economy, with high standards of living, well-being and gender equality. Its gross domestic product (GDP) grew faster than the OECD average between 2010 and 2022. Following a relatively strong performance during and after the COVID-19 pandemic, the economy shrank marginally in 2023, but signs of recovery are emerging. Sweden has rich reserves of timber, iron and other metals, as well as freshwater. Thanks to its production of nuclear power, hydropower, bioenergy and, increasingly, wind power, electricity generation is almost fossil free.
Over 2010-23, Sweden successfully decoupled emissions of greenhouse gases (GHGs) and major air pollutants, energy supply and freshwater abstractions, and to a lesser extent municipal waste generation, from economic growth. Domestic material consumption grew faster than GDP until 2021 but has since declined with the contraction of the construction sector. The country ranks high on many environmental indicators. However, 12 national environmental quality objectives out of 16 and the generational goal – to pass on to the next generation a society in which major environmental problems have been solved – are not expected to be met by 2030.
Although the Swedish economy is more energy intense than the OECD Europe average, it is among the least carbon intensive. Sweden aims to reach net-zero emissions by 2045, followed by negative emissions thereafter, with at least 85% of emissions reduced within its borders. Over the last decade, the country has cut its GHG emissions faster than the EU average. However, recent policy shifts, particularly in the transport sector, have put into question Sweden’s ability to meet EU and domestic climate targets. Supplementary measures such as verified emission reductions abroad, increased carbon sinks and bioenergy carbon capture and storage, can account for up to 15% of the total emission reductions needed by 2045. However, their contribution in meeting climate targets remains uncertain.
SWEDEN 2023
Population: 10.5 million
GDP per capita: USD 68 800 (current purchasing power parities) (OECD average is 59 500)
Total land area: 529 000 km2
Population density: 20 inhabitants/km2 (OECD average is 37)
Currency: Swedish Krona (SEK), USD 1 = SEK 10.6, EUR 1 = SEK 11.5
Note: rounded figures.
Key recommendations
ADDRESSING KEY ENVIRONMENTAL CHALLENGES
Biodiversity
• Update the National Biodiversity Strategy and Action Plan with a long-term vision and measurable milestone targets aligned with the Kunming-Montreal Global Biodiversity Framework, the EU Biodiversity Strategy for 2030 and the EU Nature Restoration Law.
• Designate new protected areas to create an ecologically representative, coherent and functional network. Ensure predictable, stable funding for biodiversity and develop valuation of ecosystem services to prioritise management efforts.
• Encourage forestry and farming practices that better support biodiversity, particularly in areas of high conservation values.
Water
• Consider implementing an emissions trading system for diffuse water pollution.
• Accelerate the modernisation of permits for hydropower to include environmental provisions, balancing the benefits of improved freshwater ecosystems with hydropower production.
IMPROVING ENVIRONMENTAL GOVERNANCE AND MANAGEMENT
• Ensure the effective consultation and participation of the Sámi people in decisions that affect them and address or mitigate the potential adverse effects of development projects on Sámi land and traditional lifestyle, including reindeer herding.
• Secure the resources necessary for supervisory activities by regional and municipal authorities.
PROMOTING INVESTMENT AND ECONOMIC INSTRUMENTS FOR GREEN GROWTH
• Revert to a green tax shift with a view to applying the polluter pays principle more consistently. Systematically screen support measures, including
tax provisions, to identify those that are potentially harmful to the environment and develop a plan to phase them out.
• Improve the coherence of economic instruments that apply to transport.
CLIMATE MITIGATION POLICY
• Maintain Sweden's climate ambition. Calibrate actions in the EU Effort Sharing Regulation (ESR) and land use, land-use change and forestry (LULUCF) sectors to achieve the EU 2030 targets. Play a proactive role in setting ambitious EU targets for 2040, reconcile national energy targets with European objectives and avoid stop and go policy.
• Continue the reform of environmental assessments and permitting processes to speed up the development of renewable and fossil-free energy infrastructure, ensuring that environmental quality is not compromised. Identify and address skills gaps and support municipalities in the green transition.
SECTORAL MITIGATION MEASURES
Energy
• Accelerate expansion of renewable energy, preventing and minimising environmental impacts. With the renewed focus on nuclear energy, carefully consider the full range of costs and benefits, and the associated time horizons of different energy sources.
• Make energy and resource efficiency a cornerstone of climate transition policy.
Transport
• Recognise the role of price signals in discouraging the use of fossil-fuelled vehicles. Review carbon prices in line with climate objectives. Address distributional impacts through targeted support to vulnerable households while maintaining price incentives.
• Prepare for the inclusion of road transport in EU ETS-2 in 2027 through sustainable transport alternatives, increased energy efficiency and increased use of sustainable renewable fuels, including electrification.
Agriculture
• Further develop economic incentives to improve the climate performance of the agricultural sector (e.g. following the Danish agricultural tax or playing a proactive role in pricing agricultural GHG emissions in the EU), while maintaining its competitiveness.
• Explore opportunities for using the Common Agricultural Policy Strategic Plan and associated funding mechanisms to increase the level of climate ambition in the agricultural sector.
SUPPLEMENTARY MEASURES
Land use, land-use change and forestry
• Scale up efforts to increase net removals from LULUCF across all land-use categories in line with Sweden’s 2030 EU commitment. Establish a long-term strategy promoting synergies between biodiversity conservation and carbon sequestration in Swedish forests and wetlands. Encourage private forest owners to adopt practices that will increase the capacity of forests to act as carbon sinks.
Technology-based measures
• Continue engagements with relevant actors to bring clarity on the feasibility of bioenergy carbon capture and storage to contribute to negative emissions by 2045.
• Develop a clear overview of legal and environmental risks and continue to champion within the European Union the development of an associated regulatory requirement for cross-border transport of captured CO2
Transfer of emission credits from other countries
• Continue supporting implementation of co-operative mitigation approaches and the development of a high-integrity rulebook under Article 6 of the Paris Agreement.
Towards green growth
ENVIRONMENTAL PERFORMANCE: KEY TRENDS
Sweden needs an action plan to halt and reverse biodiversity loss by 2030. The National Biodiversity Strategy and Action Plan is outdated, lacking milestone targets and concrete actions to meet the requirements of the Convention on Biological Diversity’s KunmingMontreal Global Biodiversity Framework, the EU Biodiversity Strategy 2030 and the EU Nature Restoration Law. More than three-quarters of habitats and half of species of conservation importance are in poor or bad states (Figure 1). With 15% of land and marine areas protected, Sweden has achieved the 2020 Aichi target for marine and coastal areas (10%) but not for terrestrial areas (17%). It is not on track to meet the 2030 target of 30% (Figure 2). The 2024 law on marine environment aims to strengthen the protection of marine areas.
Mainstreaming biodiversity in forestry and agriculture. Nearly 70% of the land area is covered by forests and 7% by agricultural area. Longstanding intensive forestry and standard clear-cutting practices have adversely affected forest habitats. Sweden is not on track to meet its objective on sustainable forest for 2030.
Figure 1. Many habitats and species are in an unfavourable state Note:
The Common Agricultural Policy 2014-22 has helped prevent land abandonment – a key threat to biodiversity – but has also contributed to further intensification in areas already subject to intensive agriculture. Reaching water quality objectives requires faster progress. Only 40% of surface water bodies have good ecological status and none have good chemical status, when considering mercury and other widespread persistent toxic substances. Eutrophication, caused by excess nutrients from agriculture, wastewater and atmospheric deposition, remains a major challenge. Hydropower exerts extensive pressure on lakes and rivers. Most hydropower concessions were granted decades before adoption of modern environmental legislation. Sweden adopted a plan to reassess permits, but the process has been delayed. Further, a recent legislative proposal will likely prioritise electricity generation over environmental objectives when permits are reassessed. Despite low water stress at national level, water scarcity is a recurring issue in southeastern Sweden and emerging in other regions. Reviewing the system of water abstraction permits would be timely.
Figure 2. Sweden is not on track to meet its 2030 targets for protected areas Protected areas by IUCN categories, 2022
2030 target
Non IUCN category
Landscapes/seascapes, areas with sustainable use of natural resources (V-VI)
Natural monument, habitat/species management area (III-IV)
Strict nature reseve, wilderness area, national park (I-II)
Note: IUCN: International Union for Conservation of Nature. CBD: Convention on Biological Diversity. Some protected areas have not been designated under a specific international category. This includes areas with international or regional labels (like Natura 2000) that might actually fit an IUCN standard category. Because they have not been officially classified yet, they are listed as "No IUCN Category”. Source: OECD (2023), OECD Environment Statistics (database).
Swedes enjoy good air quality (Figure 3). Nevertheless, the country continues to record exceedances of EU air quality standards. Sweden met its 2020-29 emission reduction commitments under the National Emission Ceiling Directive, except for ammonia (NH3). Since the mid-2010s, stricter emission standards, fuel switching, improved abatement technologies and the charge on nitrogen oxides (NOx) emissions have helped to further reduce air pollutant emissions. However, additional efforts are needed for NH3 and NOx emissions to meet the 2030 targets. Improving manure management, broadening the NOx charge and introducing a distancebased charge for heavy goods vehicles would help reach the goals.
Air pollution levels in Sweden are among the lowest in the OECD
PM2.5 average concentrations, bottom 10 OECD Europe countries, 2022
Further progress is needed on the circular economy. Swedes generate less municipal waste per capita than the EU average (Figure 4). With less than 1% of municipal waste sent to landfills, the country is well ahead of the EU target of 10% by 2035. The landfill tax and ban on landfilling for combustible and organic waste introduced in the 2000s were key factors in this success. However, the country did not meet the target of recycling 50% of municipal waste by 2020. With the focus on incineration with energy recovery, it is at risk of not meeting the target of recycling 55% of municipal waste by 2025. Sweden's circular material use rate remains low, at 6%, just over half the EU average in 2022.
Figure 3.
Source: EEA (2024), Europe’s air quality status 2024.
Figure 4. Sweden's municipal waste generation per capita is low, but most is incinerated with energy recovery Municipal waste generation and treatment, 2022
Source: OECD (2024), OECD Environment Statistics (database); Eurostat (2024), Waste generation and treatment (database).
Improving environmental governance and management
Improved compliance and enforcement co-ordination. While the Swedish Environmental Protection Agency (SEPA) co-ordinates and implements environmental policy, county administrative boards (CABs) and municipalities ensure environmental compliance. The National Strategy for Environmental Supervision for 2022-25 has strengthened SEPA’s oversight. Increased appropriations for licensing and guidance have supported more effective and uniform supervisory activities by regional and municipal authorities. However, CABs lack resources and municipalities have skill shortages.
Ensuring effective participation of the Sámi people. The green industrial revolution (including hydrogenbased steel production and battery manufacturing) in northern regions is creating conflicts with the traditional land use of the Sámi people. The Constitution and the National Minorities and Minority Languages Act protect
and promote the preservation of Sámi culture. The 2022 Act on Consultation requires the government and local authorities to consult Sámi representatives on issues significant to the Sámi people. However, in practice, it does not always lead to effective consultation in decision making that affects them, or to their free, prior and informed consent.
Sweden is a front runner in green budgeting. The Budget Act requires the government to report to Parliament on progress towards environmental goals and the Climate Act requires a separate report on climate mitigation progress to be attached to the budget bill. The update of the regulatory impact assessment ordinance and the development of guidance have helped improve the assessment of the budget's contribution to environmental and climate objectives. However, the climate report highlights inconsistencies between fiscal and climate policies.
Promoting investment and economic instruments for green growth
Investment in environmental and low-carbon infrastructure has grown, but needs are high. Over 2010-22, public expenditure on environmental protection grew from 0.4% to 0.6% of GDP driven by increased subsidies to reduce GHG emissions and municipal investment in wastewater treatment. However, the environmental investment gap is expected to reach EUR 7 billion over 2021-27, more than half of which for biodiversity and ecosystem protection.
97% of urban wastewater is treated according to the EU Urban Waste Water Treatment Directive.
Publicly financed climate measures, including for adaptation, could amount to EUR 2-4 billion per year over the coming decades, on top of the planned EUR 6 billion in annual investment for transport infrastructure. Sweden should prioritise transport investments with the highest social return. In 2010-22, investment in rail infrastructure increased by 6% compared with 31% for roads. New urban environment agreements for the development of cycling and public transport are no longer being signed.
Figure 5. Revenue from environmentally related taxes fell Environmentally related taxes by tax base, 2010-23
Note: 2023 provisional data.
Source: Pricin SCB (2024), Environmental taxes.
The green tax shift has reversed. In the first half of the 2000s, Sweden reallocated the tax burden from labour to environmentally harmful activities. However, revenue from environmentally related taxes decreased from 2.5% of GDP in 2010 to 1.6% in 2023 (Figure 5). This is partly explained by lower fuel consumption and increased electrification of vehicles but also by the drastic cut in fuel tax rates. Sweden continues to have one of the highest effective carbon rates in the world. However, this rate has dropped significantly (Figure 6), weakening incentives to reduce emissions. Moreover, like other OECD countries, Sweden supports fossil fuels through tax expenditures. These include reduced energy tax for diesel used in motor vehicles; reduced energy and carbon taxes for diesel used in agriculture, fishing and forestry; and exemptions for domestic shipping and aviation. Over 2022-23, these measures represented almost 0.3% of annual GDP. In addition, the income tax deduction for car commuting expenses increased in 2023.
Road pricing would help address transport externalities. As the use of electric vehicles increases, road pricing will be needed to address transport impacts and loss of fuel and vehicle duty revenue. Increased congestion charges in Gothenburg and Stockholm have yielded positive environmental and mobility outcomes.
There is potential for other cities such as Malmö and Uppsala to implement congestion charges or parking charges to internalise externalities and shift to other transport modes. Sweden should also modify road tolls for heavy goods vehicles to consider the distance travelled and better reflect the climate and air pollution costs of their use.
Figure 6. Effective carbon rate dropped between 2021 and 2023 Average effective carbon rate, 2021 and 2023
Climate change mitigation and negative emissions promotion
GHG EMISSIONS DROPPED SIGNIFICANTLY, BUT RECENT POLICY SHIFTS HAVE CREATED UNCERTAINTY
Sweden is a leader on many climate-related indicators. In 2022, Sweden’s GHG emission intensities per capita and per GDP were the lowest in the European Union. Over 2010- 22, GHG emissions, excluding LULUCF, fell by 29%, faster than the EU average of 19% (Figure 7). A large share of Sweden’s emission reductions can be attributed to a practical phase-out of fossil fuels to produce electricity and heating. A shift to renewable energy and large-scale nuclear power development have played prominent roles in reducing dependence on fossil fuels. Renewables account for over two-thirds of electricity generation (Figure 8).
In
Recent policy shifts have created uncertainty. Sweden’s 2017 Climate Act and the associated governance system guide action on climate. Sweden aims to reach netzero emissions by 2045, followed by negative emissions thereafter, with at least 85% from domestic emission
reductions. Supplementary measures can compensate for the remaining 15%. Sweden’s climate policy is also shaped by EU obligations. The country met its commitments under the Kyoto Protocol and its 2020 target for sectors outside the EU Emissions Trading System (ESR, Figure 9). In 2023, Sweden significantly reduced the biofuel blending obligation, a key instrument for reducing emissions in the transport sector. Combined with other policy changes such as fuel tax cuts, this change has put into question the country’s ability to meet EU and domestic climate targets. It has also made the framework for action less predictable. More recently, Sweden decided to increase the blending obligation, albeit below the levels originally planned, starting in July 2025. While the budget for 2025 improves the conditions for achieving the 2030 ESR targets, it will not suffice to meet the domestic transport target. Further measures will be needed to achieve the 2030 LULUCF target and long-term goal of 2045.
Figure 7. GHG emissions have dropped significantly
Note: IPPU: Industrial processes and product use.
Source: Source: SEPA (2024), National Inventory Report 2024.
2023, 60% of cars sales were battery electric and plug-in hybrid vehicles.
Figure 8. Electricity generation is almost fossil free Electricity output by source, 2023
Source: IEA (2024), IEA World Energy Balances (database).
Creating an enabling environment for the transition to net zero. As Sweden enters the next phase of the climate transition, the role of government in defining priorities, establishing the enabling environment and managing inevitable trade-offs becomes increasingly important. Transformations of the scale foreseen entail both economic benefits (e.g. new industries) and costs (e.g. loss of employment). The government also plays an important role in supporting regions in meeting the changing demand for social infrastructure and services. It has only recently focused on the labour market needs of the transition. The central government is also well placed to coordinate the numerous actors in assessing skill needs and developing training for the climate transition. Further, the strong reliance of Sweden’s climate strategy on the electrification of sectors hinges on a potential doubling of fossil-free electricity use by 2045, as well as access to the electricity grid.
THE POTENTIAL CONTRIBUTION OF SUPPLEMENTARY MEASURES IN MEETING CLIMATE TARGETS REMAINS UNCERTAIN
Supplementary measures are complex and characterised by long lead times. Sweden’s Climate Act specifies the role supplementary measures – increased carbon sinks in forests and land, bioenergy carbon capture and storage (BECCS) and verified emission reductions abroad – can play to offset emissions that are difficult or costly to mitigate. Sweden is pioneering technology developments for carbon capture use and storage, especially BECCS. It has played an active role in the climate negotiations on Article 6 of the Paris Agreement. However, there are uncertainties and risks associated with the contribution of supplementary measures to climate targets. For example, the sequestration of carbon by forests in a changing climate is uncertain, as is the scale of mitigation outcomes that can be sourced from abroad due to stringent EU targets and the relatively immature Article 6 market.
Figure 9. GHG emissions trend downward but not at the pace required to meet climate targets
Historic and projected GHG emissions
Note: LULUCF: land use, land-use change and forestry. Dotted lines refer to national projections with existing measures as of March 2024, assuming average growth of forest land. ESR targets from EU law: 2020 under the EU Effort Sharing Decision (406/2009/EC); 2030 under the EU Effort Sharing amended Regulation (EU 2023/857). LULUCF 2030 target: under the LULUCF Regulation (EU 2023/839). ETS: emissions under the EU Emissions Trading System. Under the Swedish Climate Policy Framework, the national targets include possibilities to attain parts of the targets through supplementary measures. Such measures may be used to achieve up to 8% of the 2030 target and 2% of the 2040 target. For the long-term target, such measures can be used for the remaining reductions down to zero. National targets are therefore presented in ranges. 2023: provisional data; LULUCF: 2022 data.
Source: SEPA (2024), Sweden's emissions and removals of greenhouse gases, June; SEPA (2024), GHG emissions projections and approximated data for 2023 reported under the Governance Regulation (EU 2018/1999), July; EEA (2024), EU ETS Data Viewer, May; MoCE (2024), Sweden’s updated National Energy and Climate Plan 2021-2030.
Mt CO2e
OECD Environmental Performance Review of Sweden 2025
MORE INFORMATION
OECD Environmental Performance Reviews: Sweden 2025
The report and all data are available on http://oe.cd/epr-sweden
Environmental Performance Review programme http://oe.cd/epr
Find internationally comparable indicators and country profiles on OECD Environment at a Glance: http://oe.cd/env-glance
CONTACTS
Head of Division
Nathalie Girouard
Nathalie.Girouard@oecd.org
Report Co-ordinator
Frédérique Zegel
Frédérique.Zegel@oecd.org
Communications
Fiorella Cianchi
Fiorella.Cianchi@oecd.org
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