New report confirms the need for system-wide transformation

Sweden has strong conditions to take a leading role in net zero technologies. At the same time, a new report highlights several barriers that risk slowing progress. To succeed, increased collaboration, the right policy instruments, and investments across the entire value chain are required.

A new report from the Swedish Agency for Economic and Regional Growth shows that Sweden is well positioned to develop and manufacture technologies that are critical for the climate transition. The country benefits from strong conditions for advancing net zero solutions—not least through fossil-free electricity and a high level of innovation—combined with a strong industrial base and growing global demand.

At the same time, the report points to several challenges. Global price pressure, dependence on imported components, skills shortages, and lengthy permitting processes risk hampering development.

– Sweden holds a strong position in net zero technologies and has solid foundations for manufacturing. However, to take the next step, long-term regulatory frameworks and investments that enable scaling are needed, says Leo Jansson, Policy Analyst at the Swedish Agency for Economic and Regional Growth.

One key conclusion of the report is that while Sweden is often at the forefront of developing new technologies, commercialization and scaling frequently take place in other countries. This risks limiting both climate impact and economic value for Swedish industry. To meet global competition, innovation alone is not enough—there must also be the capability to build strong industrial ecosystems and secure large-scale production.

The report also highlights the need for a clear national strategy, improved access to fossil-free electricity, and more active use of public procurement to create demand for net zero solutions.

For Net Zero Industry, the findings reinforce the importance of working across the entire system—from innovation to market, and from individual companies to value chains.

– This shows that net zero is not only about technological development, but about how we organise ourselves, collaborate, and create the conditions for transformation across the entire industrial system, says Sofia Wieselfors, Programme Director at Net Zero Industry.

Net Zero Industry brings together stakeholders from industry, academia, and the public sector to accelerate the transition to a competitive and resilient manufacturing industry with net zero greenhouse gas emissions by 2040. By funding projects and enabling new collaborations, the programme helps turn the potential identified in the report into concrete solutions.

The report underscores that the path to net zero will not be determined within individual factories—but in how entire value chains evolve, how investments are enabled, and how quickly new solutions can be scaled.