Climate neutral cities – estimating the financial investments needed

The research develops a model to calculate the investment needs for nine Swedish cities to reach climate neutrality by 2030. Using five 'strategy mixes' and three emission forecasts, the study assesses the financial feasibility of these transitions. Preliminary results indicate that while targets are achievable and financially viable, they require significant shifts in food consumption and substantial investments from private citizens, governments, and industry. For example, in Malmö, total mitigation reductions could range from 17% to 51%, with annual per capita investments between 19,790 and 23,765 SEK.

• The study's preliminary calculations suggest that achieving climate neutrality in the sampled Swedish cities is financially feasible, although it would require a "substantial shift in food consumption behaviours".
• Across the nine municipalities, the required annual per capita investment varies based on socio-economic conditions, ranging from a low of 19,271 SEK in Nacka (under Strategy Mix 1) to a high of 30,083 SEK in Östersund (under Strategy Mix 5).
• Private citizens bear the largest share of the investment burden, with estimated annual costs ranging from 3% of annual income in Nacka to 8% in Östersund.
• In the city of Malmö, the potential for mitigation reduction ranges from 17% (Strategy Mix 1, Option 1) to 51% (Strategy Mix 5, Option 3), with annual per capita investments between 19,790 SEK and 23,765 SEK.
• Vellinge is projected to experience the largest emission reductions among the nine cities due to its high current reliance on air travel and private cars, potentially reducing its carbon footprint by up to 52% under Strategy Mix 5 and the Business as Usual (BAU) option.
• The model assumes that any increase in electricity demand resulting from the electrification of vehicles will be met by renewable energy sources, which provided 54% of Sweden's energy consumption as of 2021.

APA

F., V., & T., P. (2021). Climate neutral cities – estimating the financial investments needed. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2020/03/conference-paper-investing-in-climate-neutral-cities-final-4.pdf

Chicago

F., Vanhuyse,, and Piseddu, T. Climate neutral cities – estimating the financial investments needed. Stockholm Environment Institute, 2021. https://www.sei.org/wp-content/uploads/2020/03/conference-paper-investing-in-climate-neutral-cities-final-4.pdf.

Wikipedia

{{cite report |last1=F. |first1=Vanhuyse, |last2=T. |first2=Piseddu, |title=Climate neutral cities – estimating the financial investments needed |publisher=Stockholm Environment Institute |date=2021 |url=https://www.sei.org/wp-content/uploads/2020/03/conference-paper-investing-in-climate-neutral-cities-final-4.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{f2021climate, author = {F., Vanhuyse, and T., Piseddu,}, title = {{Climate neutral cities – estimating the financial investments needed}}, institution = {Stockholm Environment Institute}, year = {2021}, url = {https://www.sei.org/wp-content/uploads/2020/03/conference-paper-investing-in-climate-neutral-cities-final-4.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }