green transition

Stockholm offers the perfect environment to start, run, and scale a successful enterprise, from digital infrastructure and relevant education and mentorships to innovation hubs, incubators, and accelerators. Not to mention, there is access to venture capital, both domestic and foreign, through several venture capital stakeholders. Moreover, the drive to create change is part of the city – and its inhabitants’ – DNA.

The city’s startup scene exemplifies this quality with its ongoing commitment to solving key sustainability challenges worldwide. As of April 2022, there are 240 impact startups in Stockholm, focusing on solar cells to AI-driven education.

Several key factors help push Stockholm forward towards a greener future.

Ambitious goals and the drive to meet them

Sweden and Stockholm measure progress in the green transition against the Sustainable Development Goals set up by the UN.

Since 2017, the Swedish Government has been required by legislation to present an annual climate report in its Budget Bill and ensure that climate and budget policy goals match up. The Swedish business sector is truly committed to the country’s ambition. A recent analysis of the annual reports of Swedish companies valued over €1B showed that no less than 96% of companies reported their progress on the SDGs compared to 72% globally.

In December 2024, The City of Stockholm adopted a new road map for its green transition Miljöprogram 2030 (report in Swedish). The city aims to be climate-positive by 2030 and fossil-fuel-free by 2040.

Getting there means a holistic approach to sustainability that runs through all important city departments, government agencies, and national institutions is essential. From education and public transportation to logistics, city planning, start-up infrastructure, and more, here are some concrete examples of how Stockholm is making its green transition.

Continued development of sustainable public transportation

As Stockholm grows, so does its metro system - the most sustainable way to travel in town, save for walking and bicycling. An extension of the Blue Line's northern branch opens for traffic in 2027. The Blue Line will also be extended southward to Nacka with six new stations, and connected with the Green Line at Gullmarsplan (in service 2030). Construction on a new line, The Yellow Line, between Fridhemsplan and Älvsjö is expected to start in 2025.

Several measures have been taken to ensure that the continued development is sustainable; water from construction sites is filtered before it's released into the water supply; sustainable materials are used; transports are carefully planned and coordinated to keep CO₂ emissions at a minimum. Read more about steps towards a sustainable construction process at Region Stockholm (page in Swedish).

Sustainable development projects

The neighborhood of Hammarby Sjöstad was one of the first to have sustainability as a key focus when it was planned and constructed in the late 90s/early 00s. The ElectriCITY innovation platform keeps on pushing Hammarby Sjöstad forward and aims to make it the most climate-friendly district in Sweden.

Other projects are just taking shape, like Wood City in Sickla, just a stone's throw from Hammarby Sjöstad. When completed it will be the world's largest wooden urban area, with 7,000 office spaces and 2,000, setting a new benchmark for sustainable city planning. The first buildings will be completed in 2027.

Just a stone's throw from Wood City, another important infrastructure project is in the works; Henriksdal's new water purification plant (page in Swedish). Estimated to be completed in 2031, the new facility will use unique membrane technology to clean and purify sewage water. New technology will reduce the plant's nitrogen emissions by 40 %, phosphorous emissions by 35 %, and eliminate contaminants like microplastics. Additionally, a new wastewater tunnel will eliminate several discharge points, reducing the overflow during heavy rainfall and improving Lake Mälaren's water quality. Learn more about the project.

Another sustainability-profiled project is Stockholm Royal Seaport, covering a large former industrial area north of Gärdet. The first residents have already moved in, but when finished in the 2030s, the new district will feature 12,000 new housing units and workplaces for 35,000 people.

One of the SRS's most notable features will be the new BECCS facility (Biogenic Energy with Carbon Capture and Storage; operational in 2027). Here, carbon dioxide will be captured, compressed into a liquid form, and transported to permanent storage where it will become part of the bedrock. The BECCS technology is a further development of discharge heating and open district heating, two areas where Stockholm has been at the forefront since the late 1950s.

Cooperation with private companies and organizations

Reaching these ambitious goals requires a laser focus and ongoing collaborative efforts. The Swedish Government, academia, the City of Stockholm, and its business community continuously work together to achieve the objectives and pave the way for others around the world to do the same.

Since 2007 Sockholm's Environment and Health Department has coordinated Miljö -och Klimatpakten ("The Environment -and Climate Pact"; page in Swedish) – a network of +350 businesses and organizations sharing knowledge and insights on how to make a green transition. The list of members is diverse, covering all aspects of Stockholm; transport, IT/Tech, real estate, hospitality, retail, education, construction, finance, energy, and more.

Elektrifieringspakten ("The Electricity Pact"; page in Swedish) is a similar network but focused on electricity and speeding up Stockholm's journey towards a future of fossil fuel-free cars and vehicles. The network is coordinated by The Traffic Department of Stockholm and at the time of writing has close to 90 members representing businesses like energy, transportation, retail, logistics, the automobile industry, and more.

Green Pioneers in Stockholm

To make a green transition, we need companies that strive to make an impact. That's why many green innovators are identified as "impact companies/impact startups". Their impact is measured against the UN's Sustainable Development Goals.

Startups in Stockholm are encouraged to concentrate on the lesser-covered goals for a broader push towards a sustainable tomorrow. But otherwise, the diversity of companies and startups covers many business sectors. Transportation, logistics, tech/IT, fashion, and food.

Here are some examples paving the way for a greener future:

• Altered – Innovation company Altered was founded in 2016 and aims to make life more sustainable with easy-to-apply consumer products. The company has developed several retrofit water nozzles and shower handles that reduce water consumption by 75-96%.
• Candela Technology AB – Candela has been developing their line of electric, hydrofoil boats since 2014, both for commercial and private use. In 2023, The Candela C-8 won the European Power Boat of the Year Award. M/S Nova – a Candela P-12 passenger shuttle – became the world's first electric public transport hydrofoil ferry in 2024, as it took its maiden voyage between Ekerö and central Stockholm.
• Circulose – Formerly known as Renewcell, Circulose has set out to change the fashion industry. Its branded ‘dissolving pulp’ (named Circulose) is made from 100% textile waste such as worn-out jeans and production scraps. In the past, Circulose has partnered with fashion brands like H&M, Levi's, and Tommy Hilfiger to create new garments from its unique material. Founded in Stockholm, the company is now headquartered in Sundsvall.
• Climate View – Climate View helps local governments around the world to make a green transition. The Stockholm-based company has developed ClimateOS; a platform that plans, manages, and simulates transitions to a zero carbon economy with data, agent-based modeling, and interface design.
• Einride – Founded in 2016, Stockholm-based Einride specializes in electric and self-driving vehicles; The Einride Truck and the Einride Pod. The company has partnerships with Lidl, DB Schenker, and Coca-Cola, among others. The company also offers the Einride Transform: a planning service that helps companies find optimal routes, streamline their fleet, and lower CO₂ emissions.
• Aira – Electric heat pumps are a common sight in Swedish suburbs, but millions of homes in Europe still use gas furnaces and oil heaters. Stockholm company Aira hopes to change that in a big way and in the process cutting CO₂ emissions by reducing Europe's dependency on fossil fuels. The company's first model was introduced in March 2024, aimed at the consumer market, and Aira is currently operating in Italy, Germany, and the UK.
• Syre – With backing from Swedish fashion chain H&M and investor Harald Mix, Syre is a textile-to-textile recycling company focused on polyester. Founded in 2023, the company plans to build its first recycling plant in North Carolina, USA, with commercial sales starting in 2025. By 2032 Syre hopes to have 12 plants operational, producing 3 million metric tons of recycled polyester.
• Novatron Fusion Group – Nuclear fusion is a hot topic in the energy community, as it has the potential for clean, near-limitless energy. However, many hurdles remain for it to be a viable source of energy. Stockholm company Novatron hopes to overcome one of the crucial hurdles; stable plasma confinement in reactors. Fusion plasma (electrically charged particles) needs to reach temperatures of 100,000,000 °C for reactions to occur. Novatron's unique confinement system keeps the plasma stable with the help of magnetic fields.
• Stegra – Stegra, formerly known as H2 Green Steel AB, wants to transform the steel industry. At the time of this writing, the company is still busy constructing its first steel mill in Norra Svartbyn, in northern Sweden. When finished, the factory will be the first in the world to use a unique process with hydrogen gas, producing steel but with dramatically reduced CO₂ emissions.
• Volta Green Tech – Stockholm-company Volta Green Tech is focused on one of the world's biggest greenhouse gas emitters; farm cattle. The company has developed an algae-based additive – mixed with the regular protein or mineral feed – that reduces the methane released when a cow burps or passes gas.
• Stockholm is home to several hubs, incubators, and accelerators focusing on impact startups. Norrsken runs a hub and co-working space in Stockholm – as well as Kigali (Rwanda) and Barcelona (Spain) – and is one of the organizers of the Impact Week seminar. Impact Hub Stockholm is the local branch of an international network of hubs, that encourages sustainable and inclusive innovations.