✍ Read our final reply in Dagens Industri outlining why Sweden needs a robust, green industrial policy to make it easier for businesses and investors to bet on climate.💡

🏛 There’s a tendency to oversimplify industrial policy and the role of the state in societal transformations. Experiences from the U.S. show that green industrial policies have often been very successful. What’s important to note here is that we are talking about high-risk investments that private capital tends to avoid. While Sweden can’t replicate the U.S. model entirely, there’s no reason we can’t support innovation on a smaller scale. ⏳ Historically, it is also clear that private actors usually enter new sectors first after the public has absorbed the highest risks and uncertainties—especially in capital-intensive industries.

🛠 Public support is critical for breakthrough innovations in hardware. The financing models and scaling trajectories we see for software companies are simply not applicable here. 🔎A recent Swedish interview study on green industrial policy shows very positive experiences from strengthening existing funding programs in Sweden, and creating additional support for investments and scaling of new technology. While the private sector should bear most of the financial risk, public support is often necessary to unlock private capital and help build emerging markets.

🌍 We also need to look at the geopolitical realities of green industrial policy. The U.S. risks falling behind China, and the EU risks losing major investments to the U.S. This raises an essential question: which sectors are strategically important enough to retain within Europe? With billions earmarked for cleantech in the EU over the coming years, Sweden should aim to secure at least a portion of these investments.

💰 This isn’t about throwing money into a green void. We’re talking about blended finance, public guarantees, support for scaling new production, and catalytic capital to unlock private investments. Most importantly, we need a long-term green industrial strategy that provides the market with the signals it needs for stable, predictable investment.

🇸🇪 Sweden has the opportunity to lead the green transition – not just for the climate, but to create jobs, boost competitiveness, and take the next industrial leap. We are already impacted by global industrial policies, and it would be a mistake to not support the competence and innovation we foster here in Sweden.