Environment at a Glance: Sweden
Table of contents
The OECD Environment at a Glance Country Notes are designed to support transparent, evidence-based information. They provide concise and descriptive overview of progress across major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity conservation. They feature selected environmental indicators, building on harmonised datasets available on OECD Data Explorer. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. The text of this country profile is complementary to and has benefited from the OECD Environmental Performance Review of Sweden 2025. See the Reader’s guide to the Environment at a Glance Country Notes for more information.
Sweden has an open, knowledge-based economy with high living standards, low inequality and good environmental conditions. Its innovation-oriented economy is built on rich reserves of timber, iron ore and hydropower, a strong industrial base and a highly skilled labour force.
Services are the largest sector, while industry is export-oriented and has traditionally focused on processing the country’s abundant forest and mineral resources. Energy supply is characterised by high shares of hydropower, nuclear power and bioenergy, mainly from domestic forest resources.
Sweden is one of the largest countries in Western Europe. It occupies about two-thirds of the Scandinavian Peninsula and has a coastline of around 11 000 km. Sweden remains sparsely populated, with most of the population living in the south, with roughly one-third in the metropolitan areas of Stockholm, Gothenburg and Malmö.
More than two-thirds of Sweden’s territory is flat, covered by forests and with abundant water resources. The countryside is dotted with nearly 100 000 lakes, and thousands of islands lie off its jagged coast. Almost all forest land is used for forestry.
Sweden has managed to decouple production-based (i.e. produced within the territory) carbon dioxide (CO2) emissions from real gross domestic product (GDP) growth, as well as from energy consumption. The per person production-based and demand-based (or footprint, i.e. including emissions incorporated in imported goods) greenhouse gas (GHG) emissions have been steadily declining since 1995, and remain well below the OECD averages. Demand-based emissions are higher than production-based ones, meaning that Sweden is a net importer of GHG emissions embodied in its final demand (i.e. demand for goods and services by all residents).
GHG emissions have declined by 30.3% since 2000, excluding the land use, land-use change and forestry (LULUCF) sector. Thanks to its vast forest area, the LULUCF sector compensates for about 70% of emissions.
Transport has traditionally been Sweden’s largest source of GHG emissions, although they have been declining since 2007. The reduction in these emissions mainly reflects the use of more energy-efficient vehicles and increased use of biofuels, although these effects have been partly offset by increased traffic. Emissions from electricity and district heating production, the second major source of emissions, fluctuate over the years mainly due to weather conditions. The decrease in energy-related emissions is due to a decrease in the use of oil for heating in residential, commercial and institutional buildings.
Emissions from industrial processes and product use, mainly metal (iron and steel) and mineral industries (cement), represented approximately 14% of total emissions in 2024, excluding LULUCF. The trend for the sector shows a stabilisation since 2011, with the exception of 2020 where emissions decreased as a result of the COVID-19 pandemic. Agricultural emissions represented 13% of the total in 2024. The sectoral emission reduction is due to several factors, such as reduced number of animals, as well as lower emissions from organic soils and, to some extent, reduced use of mineral fertilisers. (SEPA, 2026).
Sweden has little fossil-energy resources and relies on imported oil and natural gas. Fossil fuels accounted for 24.7% of Sweden’s total energy supply in 2025, among the lowest shares in the OECD. Energy consumption per person is high compared to other OECD countries, due to the availability of natural resources such as forests and hydropower, which led to the early and rapid expansion of energy-intensive industries. Sweden’s climate, with low mean temperatures, also explains the high demand for energy for heating (SEPA, 2026). Yet, the country possesses important supplies of renewable energy, mainly in the form of biomass and hydropower, and has improved its self-sufficiency (more than three quarters of its energy supply in 2023) thanks to its production of hydropower, nuclear power, bioenergy and, increasingly, wind power. Non-fossil energy sources, including nuclear power, contribute 98.8% of the country’s electricity production, the highest share of any OECD country after Iceland. In 2020, renewable energy accounted for 60% of gross final energy consumption, the highest share in the European Union (EU), well above the target of 49% set for Sweden in the EU Renewable Energy Directive. The updated National Energy and Climate Plan projects to reach 67% of renewable energy in gross final energy consumption by 2030. This is below the 76% recommended by the European Commission but is the most ambitious target among EU countries. In 2022, Sweden replaced its target of 100% renewable electricity generation by 2040 with a target of 100% fossil-free electricity production. (OECD, Environmental Performance Review of Sweden, 2025).
Air pollution levels in Sweden are among the lowest in the OECD. Emissions of air pollutants have been steadily decreasing since 2000, and emission intensities, both per unit of GDP and per person, are lower than OECD averages. A less marked decrease can be seen for ammonia. This is reflected in the relatively stable GHG emissions from agriculture.
Sweden is one of the few OECD countries to be very close to the 2021 World Health Organisation threshold of 5 microgrammes/m3 of population exposure to fine particulates (PM2.5). Central and Northern regions are even below this threshold. Nevertheless, some exceedances of EU air quality standards were recorded for PM10 and nitrous oxide (NO2) in 2022, and for PM10 and carbon monoxide in 2023 (OECD, Environmental Performance Review of Sweden, 2025).
Sweden is a water-rich country and, freshwater abstractions being below 2% of total renewable resources, is under low water stress. However, despite overall water abundance, water scarcity has been an issue for some time in southeastern Sweden and is an emerging concern in other regions, with risk of shortages during dry summers. Increased variability of rainfall and higher temperatures due to climate change are expected to exacerbate scarcity, decreasing available supply and increasing demand for water (OECD, Environmental Performance Review of Sweden, 2025).
Almost 90% of the population is connected to wastewater treatment plants, the vast majority of which treat the wastewater with advanced methods. Overall, 97% of the urban wastewater is treated according to the requirements of the EU Directive, well above the EU average of 76% (OECD, Environmental Performance Review of Sweden, 2025).
With 425 kg per person in 2024, municipal waste generation intensity is well below the OECD average. The majority of municipal waste is incinerated with energy recovery. The share of composted municipal waste has more than doubled since 2000, whereas the share sent to recycling has declined. The introduction of a landfill tax and bans on landfilling for combustible and organic waste in the 2000s has led to a drastic reduction in the amount of municipal waste sent to landfill (OECD, Environmental Performance Review of Sweden, 2025).
Sweden achieved the EU target to limit the share of municipal waste landfilled to 10%, well ahead of schedule (2035). However, it did not meet the target of recycling 55% of municipal waste by 2025 (OECD, Environmental Performance Review of Sweden, 2025).
Sweden is one of the few OECD countries where per person domestic material consumption has increased since 2000, albeit with large fluctuations, reflecting increased extraction of non-metallic minerals and metal ores. Like many OECD countries, material footprint is higher than domestic material consumption, although the difference is less marked than in smaller, open economies.
Sweden has a varied landscape with many different ecotypes. Much of the country is covered in forests and, in spite of a significant decline in the 20th century, Sweden still has the largest area of old-growth boreal forests in Western Europe.
Some of the most species-rich habitats are found in the rural areas and the semi-natural grasslands, which cover 8% of the total land area. In the past century, these grasslands have been reduced to only a fraction of their previous extent, and almost half of the red-listed species (2 020 of 4 338) can be found in the agricultural landscapes. Between 2000 and 2005, more red-listed species in the agricultural landscape showed signs of deterioration, being mainly threatened by small population size and fragmented distribution. Of these species, 132 have become extinct. Vascular plants, macrofungi, butterflies and beetles are groups of flora and fauna comprising particularly large numbers of threatened species, and the proportions of such species among brachiopods, amphibians, reptiles, anthozoa and mammals are especially high (CBD). The situation is particularly worrying for forest, grasslands and coastal habitats. Improvements have nevertheless been recorded for amphibians, reptiles and mammals. Despite signs of recovery in the North Sea and for certain species in the Baltic Sea, the state of marine species and habitats remains critical, and their use is not sustainable (OECD, Environmental Performance Review of Sweden, 2025).
With about 15% of terrestrial protected areas and 16% or marine protected areas, Sweden is below the OECD average, and more efforts are needed to achieve the 2030 Global Biodiversity Framework (GBF) target of protecting 30% of terrestrial and inland water areas, and of marine and coastal areas.
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
Sweden has been a forerunner in environmental taxation and continues to have high carbon prices by international standards. However, the green tax shift implemented in the first half of the 2000s, has stalled and even reversed in recent years. While taxes on labour have fallen only marginally and remain high, revenues from environmentally related taxes decreased from 2.57% of GDP in 2010 to 1.58% in 2024. This is partly explained by the shrinking tax base, i.e. lower fuel consumption and increased electrification of vehicles, but also by the drastic cut in fuel tax rates. Over 2021-24, combined carbon and energy taxes fell in real terms by 29% for petrol and 26% for diesel (OECD, Environmental Performance Review of Sweden, 2025).
With an average effective carbon rate1 (ECR) of EUR 90 per tonne of CO2 in 2023, Sweden continues to have one of the highest carbon prices in the world. However, this rate has dropped by almost 20% over 2021-2023, compared with a 10% fall in the EU. About 70% of Sweden’s GHG emissions (excluding emissions from biofuel combustion) are priced through fuel excise taxes, carbon tax and the EU Emissions Trading System (ETS). While most emissions from road transport, buildings, electricity and industry are priced at over EUR 60 per tonne of CO2, most emissions from agriculture (methane and nitrous oxide emissions) are unpriced (OECD, Environmental Performance Review of Sweden, 2025) (OECD, Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, 2024).
The share of environmentally related government research and development (R&D) budget in total R&D budget hovers around 2-3%, higher than many other countries. By contrast, the share of renewables in public energy research, development and demonstration (RD&D), after having reached a high of 45% in 2010, declined to below 13% in 2025.
The share of environmentally related inventions in total inventions has followed quite closely the trend in OECD countries, increasing from 5.7% in 2000 to 15% in 2014, to then decrease to 11.1% in 2023.
Sweden is an ambitious and influential actor in sustainable development with a strong track record of delivering support for poverty reduction and a particular focus on sub-Saharan Africa. Swedish co‑operation is currently focused on Ukraine, humanitarian support, democracy, climate action, gender equality, trade and migration. An important part of its official development assistance (ODA) is provided through multilateral channels, which explains the relatively low shares of its bilateral ODA targeting climate and biodiversity, at 26.7% and 12.5% in 2023-24, respectively (OECD, 2026).
References
CBD. (n.d.). Country profiles: Sweden. Retrieved from https://www.cbd.int/countries/profile/?country=se#facts
OECD. (2024). Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down. OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris. doi:10.1787/b44c74e6-en
OECD. (2025). Environmental Performance Review of Sweden. OECD Publishing, Paris .
OECD. (2026). Development Co-operation Profiles. OECD Publishing. Retrieved from https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/sweden_557d7c2d-en.html
SEPA. (2026). National Inventory Document Sweden. Swedish Environmental Protection Agency. Retrieved from https://unfccc.int/documents/656093
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← 1. Effective Carbon Rate (ECR) is the sum of fuel excise taxes, carbon taxes and tradeable permits that effectively put a price on carbon emissions. The Net ECR equals the ECR minus fossil fuel subsidies that decrease pre-tax fossil fuel prices.