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Financing sustainable city goals in Sweden: preliminary findings
The document reports that while Swedish cities are actively pursuing climate neutrality and social sustainability, there is a lack of national coordination, leading to varied levels of ambition and format in sustainability plans. External financing is not considered a bottleneck for achieving these goals due to low interest rates and the ability to borrow for capital expenditure. Green bonds have been issued primarily for non-financial reasons, such as marketing or avoiding political criticism, rather than financial necessity. Conversely, there is low interest in social bonds and social impact bonds, which are perceived as too small-scale, complex, or difficult to measure. The brief also notes a 'silo effect' where sustainability projects are disconnected from finance departments, and highlights that political changes can lead to the abolition of sustainability goals.
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Document type: Briefing