Aside from these financial instruments, the economic incentives to drive greater work on climate adaptation have been quite weak in Sweden. In fact, the Expert Council has stressed the need for greater, long-term, and more integrated financial instruments and other economic incentives to advance climate adaptation across Sweden (Nationella expertrådet för klimatanpassning, 2022a). In fact, the council called on the government to provide greater funding for municipalities to support local adaptation measures, as well as to put in place innovative financial mechanisms that allow municipalities to capitalize on linkages between adaptation, biodiversity, and nature-based solutions. According to the council, there is also a strong need for some type of co-funding mechanism, like public-private partnerships, that can create incentives for private property owners to implement adaptations. According to policy experts consulted, the insurance industry in Sweden is currently considering possibilities to implement some kind of premiums to incentivize adaptation measures, although companies have not yet taken any actions in this matter.
6.3. Best practices and main challenges
Despite calls for a national adaptation strategy for Sweden as early as in 2007, and especially in the wake of the catastrophic impacts of cyclone Gudrun the following year, subsequent governments dragged their legs on this issue and the country’s first national adaptation strategy only saw the light of day, eleven years later in 2018. Even after its long-awaited publication, the strategy was widely perceived as being in many cases vague and not sufficiently detailed (Interviews, Sweden). In its 2022 report on the state of climate adaptation in Sweden, the Expert Council stressed that the forthcoming national adaptation strategy needs to be clearer and more concise to avoid the ambiguity; a frequent criticism levelled against the existing strategy. For example, the council called for a clearer signal on expectations, risk ownership and responsibilities for adaptation (including financing), in the new adaptation strategy (Nationella expertrådet för klimatanpassning, 2022a).
A greater clarity on responsibilities and risk ownership will be essential to address the disparity on the subnational level between statutory obligations of the CABs on climate adaptations on one hand, and the responsibilities and remits of the municipalities in the absence of such legal mandate. While the CABs have been legally assigned with the responsibilities to report on adaptation work that is carried out on a regional and municipal level, the municipalities do not have any legal requirements to report on their adaptation work to the CABs – let alone implement adaptation measures beyond those measures that are covered by the amendments of the Planning and Building Act and the Land Act, or within other existing remits of municipalities (e.g. in context of rescue services and security). Although much of the legislative underpinning for adaptation is anchored on spatial planning, the requirements for factoring climate hazards into decisions are confined to permits based on new building plans and thus do not apply to existing plans (Interviews, Sweden). Furthermore, despite the legal mandate of the CABs to ensure that adaptation measures are implemented on a municipal level in line with the national adaptation strategy, they do not have any control-mechanisms to ensure compliance or enforce actions on the part of the municipalities.
Greater clarity on legal and financial obligations between public authorities and private sector actors (e.g., businesses and property owners) is needed, since existing construction and land-use legislations are too vague with respect to the responsibilities for climate adaptation (Interviews, Sweden). This is particularly pertinent given the lack of legal and financial incentives and actions on climate adaptation, with respect to private property and infrastructure. Whereas the national adaptation strategy from 2018 stipulated that private property owners are themselves responsible for adaptation for their own assets, this has not been clearly communicated to the property owners and thus many assume that the municipalities are responsible for safeguarding private property within the limits of the municipalities (Interviews, Sweden). In fact, a strict interpretation of the Act on Local Government (Swedish Ministry of Finance, 2014) would mean that municipalities are not authorized to use tax-payers money for measures that would substantially benefit private property owners and increase the value of said property. As such, municipalities would not be able to fund and implement adaptation measures to address a particular climate hazard (e.g., cloud burst) even though these measures would benefit both the property owner and the wider municipality (e.g., by safeguarding critical services).
Another related concern relates to the fact that a given adaptation measure taken by the property owner may not necessarily contribute to wider municipal resilience, and in fact, could simply transfer or exacerbate the risk for the neighbouring property owners or the broader municipality. Against this backdrop, the Expert Council stressed that there is a strong need for innovative policy frameworks or other arrangements to strengthen public-private partnerships to bridge the current gap on risk ownership, such as by developing and enabling co-financing models and cooperative business models.
One of the main objectives of the new national climate adaptation strategy, that will be published in 2023, will be to ensure greater integration of climate adaptation across different sectoral strategies. For this reason, the Swedish government established a cross-governmental working group in preparation of the strategy, to ensure that the strategy incorporates both the recognized climate risks and adaptation needs across different sectors, and to enable a greater harmonization between climate adaptation policies and other relevant policy portfolios. In addition, the assignment of responsibilities for climate adaptation across different government departments within their own remits and mandates, is also aimed at ensuring a “whole-of-government” approach and stronger cross-sectoral integration (Interviews, Sweden).
Yet, the policy framework and institutional arrangement as set out by the government’s ordinance around the assignment of risk-ownership and obligations on adaptation, can at times make an integrated approach to climate adaptation somewhat difficult on an operational level, since each national agency is responsible for these assignments within their own respective mandate and remits. As such, the cross-institutional network for climate adaptation which the national agencies and the Swedish Association of Local Authorities and Regions participate in, plays an important role in strengthening coordination on adaptation between institutions and sectors (Interviews, Sweden). On the municipal level, an integrated approach to climate adaptation is even more challenging in the absence of a legal mandate. Because of this, municipal work related to adaptation is often carried out by different departmental units in context of their own sectoral remits and in silos, without any proper coordination around climate adaptation, except on the regional level by the CABs.
To bolster Sweden’s resilience to the consequences of climate change, a significant increase in financial investment is needed to advance the conduct of climate risk analyses and provide the much-needed market pull (Interviews, Sweden). In terms of the former, greater resources are needed to enable more detailed climate risk assessments on a national level that account for different climate change scenarios, coupled with an economic analysis that is largely missing today, while also enabling municipalities greater access to locally developed scenario analyses and other relevant risk information. Dedicated financial instruments and stronger economic incentives are also needed to facilitate the implementation of adaptation solutions against the wide array of climate hazards facing Sweden, whereas innovative co-financing solutions between public and private sector actors can play an important role in addressing some of the problems mentioned above with respect to issues around shared liability (Interviews, Sweden).
The Expert Council argued that transboundary consequences of climate change could be at least as great for Sweden as the domestic climate risks, with implications for trade, food security, infrastructure, aid, international disaster preparedness and security policy (Nationella expertrådet för klimatanpassning, 2022a). This point has been echoed in consultations with government officials and policy advisors. For instance, a recent report from the Stockholm Environment Institute showed that Sweden is more vulnerable than previously thought to the cross-border impacts of climate change through its import reliance of food and agricultural products (Benzie & Lager, 2022).
Sweden has made some early strides on so-called just transition, which alludes to the importance of embedding justice and fairness considerations into adaptation decisions, similarly as it has been more commonly discussed in context of mitigation (i.e., just transitions). In 2021, the government issued a decree on financial support for projects to enhance sustainability and resilience (e.g., via nature-based solutions) in socially and economically disadvantaged neighbourhoods (Swedish Ministry of Rural Affairs and Infrastructure, 2021). NKCCCA has also carried out an internal needs-assessment on just adaptation with focus on gender, which has resulted in several actionable proposals around awareness-raising, knowledge exchange, method development and collaborations. Following this work, NKCCCA is working with partners on developing a methodological framework to work on just adaptation in Sweden.
Taken together, the Swedish government has made important progress on developing some of the governance structures and policy frameworks needed to accelerate climate adaptation in Sweden, and the upcoming national adaptation strategy presents an opportunity to address some of the outstanding challenges to adaptation, regarding both horizontal and veridical integration, risk ownership, finance, and transboundary climate threats. However, as stressed by the Expert Council, the development of a national adaptation plan (NAP) is much needed to signpost action plans across national agencies and subnational authorities against overall national aims and objectives on adaptation.