Swedish CEOs risk billions on green transition, but systemic issues stall progress

Swedish industrial leaders are expressing readiness to invest billions in the green transition, but their efforts are being hampered by systemic failures in policy and infrastructure. Companies are willing to take significant risks for environmental change, yet they encounter growing frustration over a lagging system.

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The business community can and should lead the way, invest, and transition, and we are already doing that at SSAB on a large scale. But we cannot bear the systemic risk alone. When electricity, permits, and rules do not align, it becomes a political responsibility, not just a business matter.

Key challenges include the high cost and delayed delivery of electricity, lengthy permit processes, and shifting regulations that occur mid-investment. These issues create uncertainty and risk, pushing companies to pause or reconsider their expansion plans.

CEOs from major Swedish industrial firms highlight the need for clear governmental responsibility. "The business community can and should lead the way, invest, and transition, and we are already doing that at SSAB on a large scale," stated Johnny Sjöström, CEO of SSAB. "But we cannot bear the systemic risk alone. When electricity, permits, and rules do not align, it becomes a political responsibility, not just a business matter."

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The business community drives innovation and investment, while the state ensures competitive neutrality, infrastructure, and long-term rules.

Martin Lundstedt, CEO of Volvo, echoed this sentiment, emphasizing that while the business sector cannot wait for perfect political conditions, there is a limit. He stressed the need for a clear division of responsibilities, with the state ensuring competitive neutrality, infrastructure, and long-term rules, while industry drives innovation. Scania CEO Christian Levin added that while EU regulations are necessary, the slow pace of implementation in Europe is a major concern, particularly regarding charging infrastructure and grid capacity, which delays the transition and impacts competitiveness.

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What works best is when politics creates long-term stability and clear economic incentives for emission-free solutions. The problem in Europe right now is that much is moving too slowly. We want to electrify heavy transport at a high rate, but without charging infrastructure, a strong power grid, competitive conditions for hauliers, and demand for sustainable transport, the transition is delayed.