Lund. Photo: Unsplash.com
11. Sweden
Case: Lund
Background information
Lund is the twelfth largest municipality in Sweden, with a population of 130,288 people living in an area of 439.91 km2 (SCB, Statistics Sweden, 2024). Approximately 80% of the population (94,393 inhabitants) lives in the city of Lund, which occupies only 6.18% of the municipal area (26.37 km2). It is one of the densest cities in the Nordic Region with a population density of approximately 3,580 inhabitants/km2 inhabitant. Its speedy growth, with 1,904 new residents in 2023, is expected to continue as forecasts indicate that the population will exceed 140,000 people by 2029 and reach approximately 146,000 people by the end of 2032 (Lund Municipality, 2024f).
Proximity to Malmö, the third-largest municipality in Sweden, along with a knowledge-based economy supported by the presence of Lund University (from 1666) and the European Spallation Source (ESS) – a major science facility involving more than 40 research institutes in Europe – contributes to a thriving labour market with a high share of employees in both the public sector (Region of Skåne and Lund Municipality) and private sector (e.g. Tetra Pak Packaging Solutions and Axis Communications AB).
Strategic level: municipal goals and policies
By 2030, Lund aims to become a climate-neutral and fossil fuel-free municipality that has adapted to a changing climate. The main programme addressing climate neutrality is “Lunds kommuns programme för ekologisk hållbar utveckling 2021-2030” (also referred to as LundaEko III) (Lund Municipality, 2021). The programme is divided into six topics: (1) consumption and production, (2) substances hazardous to the environment and health, (3) climate and energy, (4) housing and local environment, (5) biodiversity and (6) surface and groundwater. For each area, the document lists specific goals and the key parties responsible. In the online version of the document, the status of each goal’s achievement can also be viewed.
- Annual consumption-based GHG emissions per inhabitant must be decreased. The emissions of municipal councils should not exceed 0.3 tonnes. (Consumption and Production, 1.3)
- Emissions and use of substances hazardous to the environment and health, including plastic particles, must be minimised in buildings, roads and facilities in the municipality. (Environmentally harmful substances)
- To become climate-neutral and fossil fuel-free with the aim of adapting to the changing climate, the municipality must work on areas including reduction in GHG emissions, tackling air pollution, carbon storage, energy efficiency and climate adaptation. (Climate and Energy, Objective)
- GHG emissions must be reduced by at least 65% by 2025 and by at least 80% by 2030 compared to 2010 levels. In 2045, the municipality must be climate-positive, with emissions approaching zero. (Climate and Energy, 3.1)
- Carbon storage must increase between 2021 and2030. The municipal group must work on carbon dioxide capture. Climate and Energy, 3.3)
- Energy use must be decreased by at least 15% between 2015 and 2030. (Climate and Energy, 3.4)
- The local production of renewable electricity, heat and fuel must be at least 1,300 GWh in 2025, of which solar and wind must account for at least 100 GWh. In 2030, solar and wind must account for at least 150 GWh. (Climate and Energy, 3.5)
Currently, this document has been updated to include the main changes expected in relation to quantification of the emissions that should be curbed in the following years (Interviewee 31, 2024). A steering group and various working groups, involving a range of departments, municipal companies and even other municipalities depending on the thematic scope (e.g. public transport, water management), have been established to provide input into the new document.
Achieving climate neutrality by 2030 requires emissions to be reduced by at least 80% compared with the levels recorded in 2010 and for climate compensation measures to be implemented within the municipality (such as CO₂ absorption and storage in soil and vegetation). The municipality aspires to be climate-positive and with emissions approaching zero by 2045 (Viable Cities, 2023). These goals have been defined on the basis of the estimated GHG emissions that occur within the municipality’s geographical boundaries (Scope 1) (Lund Municipality, 2024d). However, the municipality recognises consumption-based emissions under the goal of “consumption and production” and the adoption of several strategies for circular production and consumption (e.g. procurement, good, waste, business models and knowledge).
Lund’s climate policy council plays a pivotal role in critical analysis of the municipality’s emissions and strategic advice. The latest report warns that, to meet the targets, the municipality must double its emission reduction, achieving an average of 10% per year until 2030 (Lund Municipality, 2023). The municipality has been tracking emissions for many years, even prior to its engagement in national and international networks. The various municipal departments provide information about their climate performance in the yearly sustainability report. The municipality also reports to the networks it participates in, including ICLEI and the Covenant of Mayors, using the Climate Disclosure Project (CPD) as a platform for emission reporting.
Source: A climate-neutral Lund
According to the latest statistics from 2021, emissions dropped by 45% compared to 2010, with the heating and electricity sectors being the main contributors to this decrease. Over the last 15 years, the municipal power company Kraftringen has enabled conversion of the district heating system to fossil-free biofuels, which has contributed to lowering the total emissions significantly. The planning process for the next district heating plant KKV2 will take Lund to the next level, as Kraftringen is implementing the largest low-temperature district heating in Brunnshög, powered by surplus heat from the nearby research facilities. Kraftringen is investigating the possibility of storing wind power as hydrogen, allowing homeowners to use clean energy even in periods of lack of wind (Lund Municipality, 2024d). On the other hand, despite a reduction in emissions of almost 30% compared to 2010, the transport sector is the largest source of emissions, corresponding to about half of total emissions in the municipality.
While there are limits in steering society towards climate neutrality, the municipality has successfully driven its own operations in that direction, claiming to have achieved 99.4% fossil-fuel-free status. This is due to several measures, including investments in solar panels on new and existing municipal buildings (for example, the installation of five new solar systems on existing buildings in 2023 provided total output of 353,668 Kw/h per year) (Lund Municipality, 2024b).
The municipality considers the trade-offs between climate objectives and social and economic goals. Like Lunda Eko, the municipality has a document for social sustainability and a business programme that takes economic sustainability into account. The interrelations between ecological and social sustainability are perceived in different ways. Pursuit of climate goals in the transport sector can go hand in hand with positive social and economic outcomes (e.g. biking and walking improve people's health, as well as providing cheaper opportunities for mobility). However, the municipality recognises the need to examine social differences in more detail. For example, the elderly are likely to be severely affected by climate change, and these nuances should be reflected in policymaking. Awareness of the implementation of policies that may be beneficial for one sector at the expense of another is also important. For example, Lund has made significant advances in terms of fossil-fuel-free heating and biogas from agriculture and food waste. While this has a positive impact on decreasing CO₂ emissions, there is also a risk that this circular system may jeopardise food security (Interviewee 32, 2024).
To finance the transition to climate neutrality, the municipality has had access to “green bonds” since 2017. These are loans issued by governments organisations and companies to finance sustainable projects worldwide, with unique tax benefits. The loans support investments in renewable energy (such as wind, solar and hydro), recycling efforts, clean transport and sustainable forestry (Lund Municipality, 2024c). The municipality also has an internal fund that draws on the business trips of civil servants. The department requiring the trip is charged 50% more than the travel costs. The extra payment goes to the funds used to finance sustainable projects. This is a smart mechanism for decreasing transport emissions from business trips and gaining resources for climate efforts.
Challenges to coordinating climate objectives across some departments arise in those departments not directly involved in reducing emissions. For example, the school department's core activity is education; incorporating sustainability practices into working routines is perceived as an extra task that needs to be performed with a limited budget. However, the opportunity to collaborate with local businesses and academia and develop methods and innovative solutions that can be replicated in other contexts, along with the possibility to tackle social goals while reducing emissions, are aspects mentioned with enthusiasm (Interviewee 31, 2024).
Land use sector
Lund’s climate neutrality goals align with the ongoing revision of the comprehensive plan, which is expected to be published in 2025. The municipality is striving for a compact urban form to accommodate the expected growth of 30,000 new homes by 2050, with 20,000 planned to be built in the city of Lund and the remainder in the other eight urban cores and countryside. The master plan is based on six principles that guide the densification approach: (1) Development should encompass the whole of Lund; (2) Growth should occur through densification in a resource-efficient way; (3) Lund should be a sustainable and innovative driver of development in the Scania region; (4) A safe and attractive environment should be ensured for everyone; (5) Lund should achieve climate neutrality; and (6) Lund’s unique identity and attractiveness should be preserved.
Densification and a resource-efficient urban structure – preserving the development of agricultural land and focusing on developing areas with existing investments (infrastructure, schools, parks, services, multifunctional buildings etc.) are among the strategies pursued to achieve a compact urban form (Lund Municipality, 2024e). With the expansion of core areas and densification along the routes and nodes that connect neighbouring areas and promote mixed development, the strategy of “growing from the inside out” reinforces efficient public transport while maintaining a human-scale environment with boulevards in some of the main corridors. The projected 20,000 homes in Lund by 2050 are expected to be built in the existing neighbourhoods (e.g. Brunnshög, Sådra Råbylund and Västerbro), with the city centre accommodating multi-functional buildings (e.g. Lunda C. and Söderport).
Source: Lund Municipality, 2024e
Lund is one of the Nordic cities with the highest population density and can be considered a 15-minute city due to its “sun shape” and the short distance from the city centre to its edges. A quick bike ride can easily cover the four kilometres that separate the city centre from the outskirts. Prioritising the development of areas where basic services (such as schools) are available is a densification strategy that optimises the capacity of the existing infrastructure and prevents the development of new infrastructure, thereby saving costs (Interviewee 30, 2024). However, the city’s compact urban form and the resulting efficient mobility come at the expense of green areas as Lund has notably low green space in square metres per inhabitant (Interviewee 32, 2024).
The city's rapid growth – driven by the presence of universities and research facilities such as the European Spallation Source (ESS) – and compact urban form have inevitably led to the use of agricultural areas for urban expansion. Unfortunately, the densification of existing areas and brownfield developments do not provide sufficient housing stock to support a thriving urban economy. However, the densification of brownfields raises concerns as these areas usually have low population density. To tackle this issue, Lund has developed a study that explores several alternatives, such as possibilities to build on top of existing buildings or subdivide the ownership of properties, as well as analysis of mobility patterns in these areas and ways in which different uses (residential, commercial) can coexist.
To address diverse housing needs, the municipality has promoted the development of mixed communities featuring apartments, townhouses and small villas. However, the higher price of single-family houses limits demand, contributing to maintenance of the compact development pattern.
Despite the absence of a document solely dedicated to climate adaptation and mitigation, the city places considerable emphasis on these issues, which are addressed in various documents. Safeguarding and strengthening ecosystem services in urban areas, preparedness to deal with extreme weather conditions and an urban design responsive to the changing climate are some of the aspects referred to in the ecological plan (Lund Municipality, 2021). The mitigation efforts, involving the mapping of areas with potential for carbon capture and storage, are worth mentioning here. For example, the upcoming comprehensive plan maps areas with organic-rich soils, which are significant sources of biogenic CO₂ emissions. Raising water levels in areas where they have been lowered can help to reduce emissions of strong greenhouse gases (Markensten et al., 2018). The municipality also recently invested in a tool called Climate Calculator for Early Planning Stages, developed by Spacescape, IVL and Uppsala municipality (Interviewee 32, 2024). This tool assesses the suitability of various locations for development, which is important for estimating future climate impacts.
Regarding incentives for stakeholders to implement carbon-friendly measures in the land use sector, the municipality's decision to adopt compact urban forms with high densification is economically very attractive to developers, as maximisation of land use enables them to generate higher profits (Interviewee 32, 2024). Dense population structures also facilitate sustainable mobility and efficient resource utilisation. Nevertheless, densification should be implemented with caution and care to preserve, strengthen and develop green areas, which are fundamental not only for recreation but also for counteracting the effects of climate change, such as heavy precipitation, increasing heat waves and droughts (Lund Municipality, 2024e).
Buildings and construction sector
As outlined in the climate plan, emissions from the construction sector must be halved by 2025 and reach net zero in 2030. To achieve this goal, Lund is adopting a climate-neutral approach to the construction sector based on circularity principles. It is outlined in four steps guiding the construction and maintenance of municipal buildings:
- In step 1, maintenance is a prerequisite for ensuring the long service life of buildings, with refurbishment and adaptation prioritised over demolition
- Step 2 encourages the re-use of materials in facades or frames, indoor environments and public spaces, as well as recycling of excavated soil to avoid extraction of virgin materials
- Step 3 recommends the selection of renewable, recycled and low-impact materials
- Step 4 recommends the rational use of climate-harming materials only where strictly needed and in appropriate quantities. (Lund Municipality, 2023b)
The concept of circular buildings includes efficient use through multifunctionality. For example, schools are planned or renovated in such a way that other stakeholders can access parts of the building on evenings or weekends for other purposes. This reduces the need for the municipality to construct new buildings. Similarly, densification is pursued by extending existing structures (adding new floors to existing buildings) or converting them.
Cooperation between departments and dialogue with the buildings sector, especially with companies active in the region, have been key to integrating circular practices into building and planning. The lack of legal means to regulate the actions of the private sector is, to a considerable extent, overcome through the LFM30 partnership, a network of stakeholders committed to making Malmö’s construction, civil engineering and management sector climate-neutral by 2030. This network provides comprehensive and ambitious methodologies for estimating the emissions of the buildings sector, taking into account the entire value chain (e.g. from the manufacturing of materials and products to the operation and management of properties) and going beyond the climate declaration guidelines (Boverket, 2023) (Interviewee 30, 2024). The LFM30 framework is used by the municipality for calculating buildings’ climate emissions (LFM30, 2023)
The municipality estimates emissions not only for new buildings but also for large refurbishment and renovation projects. Furthermore, through detailed planning, it is possible to compare emissions from the adoption of different solutions (such as preservation of existing buildings in new developments), providing a strong basis for decision-making that accounts for climate benefits.
Lund also strives to promote the use of fossil-fuel-free machinery to reduce emissions from the construction sector. The municipality owns electric machinery, reuses concrete for road construction and engages in dialogue with the private sector to discuss opportunities for accelerating the transition. For example, discussion with a logistics company led to the installation of a faster recharging station on the construction site, optimising the transport of materials and facilitating the use of electric vehicles (Interviewee 30, 2024).
Regarding energy efficiency, Lund has been active in renovating municipally owned housing. Indeed, the municipality owns approximately 20% of rental housing and is therefore well-positioned to drive refurbishment of the existing building stock. Furthermore, the municipality is responsible for the production of approximately 300 apartments per year (Interviewee 30, 2024). For example, LKF renovated houses built in 1969-1972 in Havamal and several stakeholders collaborated on the energy-efficiency renovation of the Linero
The municipality provides energy and climate advice free of charge to households, associations and SMS enterprises to reduce energy use and increase the share of renewable energy (e.g. installation of solar panels, which can assist in reducing costs and the climate impact (Lund Municipality, 2024a).
Lund Municipality Real Estate Company (LKF) is leading the construction industry towards sustainability, a journey that began with the financing of Xplorion, an innovative residential building located in Brunnshög district. The building serves as a living lab, showcasing climate-smart solutions for tenants’ everyday lives (e.g. car-free living, car and bike sharing, energy self-sufficiency through solar energy, layout flexibility in apartments, reduced use of construction materials) and was named Building of the Year 2021 by the construction industry and Climate-Smart Housing of the Year by Public Housing Sweden.
In the current residential development, “Levla”, which is set for occupancy in 2026, 61 apartments and six terrace houses are under construction. Some of the apartments are built with timber while others are constructed using climate-improved concrete that does not emit carbon and removes GHG from the atmosphere. The six terrace houses will feature recycled bricks, windows, doors, sanitary porcelain and floors, showcasing circularity and sustainability in the construction industry, which is responsible for 39% of carbon emissions. The limited number of parking spaces (only 35) and the use of the old manor house with cultural-historical value, as well as trees and nature being at the centre of the block, are further aspects that reinforce the commitment to sustainability and circularity.
Transport and mobility sector
Transport is responsible for 50% of climate emissions in Lund, making it the largest emission source. Compared with the sector’s emissions across Sweden, where transport accounts for approximately one-third of total emissions, this share is significant and urgently needs to be decreased if Lund aims to achieve the goal of becoming climate-neutral by 2030. In fact, by 2030, transport emissions need to drop by 90% compared with the levels recorded in 2010 and there is a high risk that this goal will not be met (Lund Municipality, 2023). As shown in Figure 19, emissions have decreased but not sufficiently and passenger cars are responsible for the highest levels of CO₂ emissions in the sector.
Source: Lund Municipality, 2023
Despite having twice as many electric vehicles as the national average of 4%, the pace of electrification is slow. Considering the lifetime of a vehicle, many fossil fuel-driven vehicles are likely to still be in use by 2030. In addition, the number of kilometres travelled by bike per inhabitant has slightly decreased, so other strategies must be implemented to accelerate decarbonisation of the sector (Lund Municipality, 2023a).
The traffic strategy LundaMats has been providing approaches and tactics that rely on the connection between urban planning and traffic since 1999. Now in its third version, this document outlines six focus areas to support a sustainable transport system in Lund: (1) Development of the villages; (2) A vibrant city centre; (3) Business transport; (4) Regional commuting; (5) A growing Lund; and (6) Innovative Lund campaigns. (Lund Municipality, 2014). These focus areas address various aspects of transport planning.
Calculations of GHG emissions from the transport sector are performed at a higher level. The department specifically responsible for transport uses various indicators (e.g. number of users of different modes of transport) and the climate view framework
The core of the methodology is outcome-based. It shows that reaching a particular outcome requires identification of specific levers for change, which are influenced by city attributes and modified by interventions resulting from formal decisions.
Climate goals are perceived as aligned with social and economic goals. For example, use of public transport fosters social interactions and is cheaper than using private vehicles. Cycling and walking bring health benefits, which in turn can reduce the strain on the healthcare system’s budget.
Case: Växjö
Växjö. Photo: Anders Bergön
Background information
Territorially, Växjö is the second largest municipality and the economic and cultural centre of the Kronoberg region, which encompasses seven other municipalities in southern Sweden. The slightly hilly geography with dense forests and almost 150 inland lakes make up the unique landscape. The area of 1,914 km2, of which 1,665 is land and 249 water, includes 12 urban areas with a total population of 97,574 inhabitants, resulting in a population density of 51 inhabitants/km2.
The largest city is Växjö, which occupies an area of 38 km2 and is home to over 72,200 inhabitants (around 74% of the total population in the municipality and about half of the population of the Kronoberg region), with the remaining 26% residents living in the other 11 urban cores. The city anticipates 30,000 new inhabitants by 2030 (Växjö Municipality, 2024).
Växjö boasts a thriving business community with a strong presence in the IT, forestry and wood industries. Proximity to Linnaeus University fosters collaboration, innovation and development, particularly at Växjö Linnæus Science Park. The university, with 36,000 students, is a hub for national and international research, bolstered by a SEK 950 million donation from the Kamprad family and Inter IKEA. The establishment of the Information Engineering Centre (IEC) further solidifies Växjö's position as a leading IT region, offering businesses and researchers valuable networking and research opportunities (Växjö Municipality, 2022).
Strategic level: municipal goals and policies
Växjö has a long history of sustainable action. Restoration of its heavily polluted lakes in the 1970s and the transition to biomass district heating in 1980 are often regarded as early commitments to sustainability. The vision of becoming fossil fuel-free was defined back in 1996, prompted by climate concerns raised at the Rio Conference in 1992. In line with the conference outcomes on the role of the local level in driving sustainability, Växjö politicians sought and gained assistance from the Swedish Society for Nature Conservation on how to address sustainability at the local level. Between 1995 and 1998, meetings and discussions among researchers, local politicians, civil servants, the private sector and civil society were paramount to embedding the sustainability perspective in local governance. These efforts were internationally recognised when Växjö received the European Green Leaf Award 2018.
The “Sustainable Växjö Programme 2030” (Växjö Municipality, 2019) is the overarching document that describes what a sustainable Växjö 2030 means by outlining five overall target images, nine challenges and three principles for implementation. The target images represent the vision of becoming a municipality that is (1) climate- and environmentally smart; (2) safe and trustworthy; (3) fair and responsible; (4) growing and inclusive; (5) green and healthy. Each of these images recognises more than one challenge related to (1) biodiversity and ecosystems; (2) transport and travelling; (3) urban planning and community building; (4) consumption and production; (5) knowledge, lifelong learning and education; (6) labour market and business life; (7) health and well-being; (8) equity and equality and (9) safety and community. As each target image addresses several challenges, the document recognises the interdependence between nature and the environment, society and individuals. It emphasises the indivisibility of Agenda 2030 and the need to involve and cooperate with all stakeholders to transition to a sustainable future.
The principles underlying this document are (1) the transition to a sustainable society is implemented, developed and followed up in the best possible way by being an integrated part of the existing management process and control model; (2) everyone contributes to and works towards all target images and challenges in different ways and (3) Sustainable Växjö 2030 is the shared responsibility of everyone who lives and works in Växjö municipality.
The “Sustainable Växjö Programme 2030” serves as the basis for developing other sector-specific steering plans (e.g. energy, transport, waste management, climate adaptation, use of wood) and other plans that contribute to pursuit of climate neutrality in various ways. Accordingly, the municipality does not have a standalone climate action plan. Instead, the Climate Contract (Viable Cities & Växjö Municipality, 2023), developed in partnership with Viable Cities, supports the development of a climate investment plan that sets out specific actions to achieve the long-term objectives of the sustainability programme in diverse areas (energy, transport).
Växjö’s early commitment to sustainability is reflected in its continuous improvement in decreasing CO₂ emissions across sectors (see Figure 1). Compared with levels from 1993, total CO₂ emissions have decreased by 62% and the per capita figure has fallen by 72%. Between 2021 and 2022, the municipality achieved a reduction of approximately 14,260 tonnes or 10%, driven in particular by the obligation to reduce emissions from the transport sector (Växjö Municipality, 2023). These data show that the municipality has the capacity to drive progress towards climate neutrality.
In terms of governance, sustainability efforts are integrated into the ordinary work and decision-making processes of the municipality through a monitoring system that includes 50 indicators across a range of areas (such as waste management and transport). These indicators are assessed annually against the target images in the sustainability programme. The 15 budget goals have separate indicators, which sometimes overlap with the sustainability indicators covering several topics (such as education, environmental goods and planning). The annual monitoring of these indicators, along with comparison of performance with cities of a similar size, provides a structured approach to advise politicians on prioritisation of investments. Nevertheless, despite being easy to communicate, this system has flaws as the annual comparison does not include trends over several years, which may lead to misinterpretations. For example, the indicator for bus travel seems to show very strong performance, but that is largely due to the significant drop in use that occurred during the pandemic (Interviewee 34, 2024).
On the other hand, the variety of indicators (such as air quality, gender equality and unemployment) within the monitoring systems allows for a reasonable evaluation of trade-offs between environmental, social and economic goals (Interviewee 34, 2024). Despite integration across sectors being facilitated by the monitoring system, some challenges still remain as every department has its own set of issues to address and priorities to place on the political agenda (Interviewee 34, 2024).
Regarding financing of the transition, taxpayer resources can be used to implement some inexpensive measures such as cycle paths. Furthermore, loans are used for larger climate investments. Unlike most municipalities in Europe, Swedish municipalities have easy access to loans due to their strong financial returns and stability. Nevertheless, political will is needed to secure resources as well as effective administration to ensure sustainable financial management. Lastly, Växjö has been successful in obtaining national and European funds, which, though modest, have been helpful for building know-how (e.g. building knowledge on passive housing) and facilitating exchange of experiences with other municipalities.
Land use sector
Växjö is a large municipality in geographical terms, with 25% of residents living in the countryside or in the smaller villages and the remaining population residing in Växjö city. The urban-rural character of the municipality reflects the polycentric regional structure. As shown in Figure 2, the “sun shape” spatial model consists of green fingers that converge towards the centre of Växjö city. These fingers also delineate five main functional areas (light pink shapes), with two of them having a regional function (fully filled light pink) as they link the city with two other important settlements, Gemla and Ingelstad, in the municipality. The other three functional areas (dashed light pink) host primary urban functions and support the highest levels of densification in the areas where the city’s tallest buildings are situated.
This spatial model is influenced by the presence of lakes and forests, which limit the local administration in pursuing a compact urban form (Interviewee 35, 2024). The green and blue wedges that reach the city centre, in addition to creating easily accessible recreational areas for the population, also contribute to climate adaptation (stormwater management), noise reduction and biological diversity (Växjö Municipality, 2021). Nevertheless, the green and blue infrastructure limits densification in the urban core, widening the urban boundaries and resulting in a spatial growth pattern that follows the road system. However, densification along axes and brownfield development are strategies used to reinforce public transport, enable the easy use of bikes and reduce emissions from transport, while limiting green land development (Interviewee 34, 2024). Mixed-use developments also serve to shorten distances for residents.
Upward densification in the city centre is limited by cultural heritage considerations and mostly takes place in specific areas in the southern centre of Växjö city, particularly in Telestads, where Linnaeus University is located, in Bäckaslöv, inTeleborg and in the northern part of Växjö city close to the airport in Nylanda. Despite encouraging single-family houses in the neighbouring settlements of Gemla and Ingelstad, the city of Växjö also permits low-density housing, with smaller plots for single-family homes available, as a strategy to provide a diverse urban environment that appeals to people with varying needs and expectations (Interviewee 35, 2024).
Source: Växjö Municipality, (2021)
In terms of incentives and instruments to drive urban development in a climate-friendly direction, the public ownership of land is a major advantage. Swedish legislation (Swedish Parliament, 2014) allows municipalities to set specific requirements and guidelines for land allocation agreements based on their targets. This enables the co-design of urban developments with various public and private actors, as the requirements are translated into the criteria for selecting developers to whom land is allocated for housing development.
Buildings and construction sector
Increasing energy efficiency and using renewable sources are the main strategies for reducing building-related GHG emissions. A building's climate footprint is largely determined by its total energy consumption, which depends on several factors such as climate, building envelope, building services and energy system, operation and maintenance, occupants' activities and behaviour and indoor environmental quality.
In Växjö, energy systems that supply the housing sector are approaching fossil-fuel-free, with a 96% share of renewables. However, to sustain the provision of green energy in the future, energy use must be reduced, especially electricity use. In 2022, CO₂ emissions from the housing sector totalled 358 tonnes, 80% of which resulted from electricity use and 20% from district heating (Viable Cities & Växjö Municipality, 2023).
The overall target of a 30% reduction in energy use by 2030 will require significant efforts to be made by the buildings sector. The wood house building strategy is one of the key initiatives to achieve the goal of fossil-free Växjö 2030 through the buildings sector. Compared with concrete and steel, timber construction can lessen carbon emissions substantially, as the production of building materials accounts for one-third of emissions from the construction sector, which is responsible for 40% of global emissions (Giacometti & Salonen, 2023). Wood is a non-fossil and renewable material that enables circularity and also binds carbon dioxide during the lifetime of the building (Växjo Municipality, 2018).
This strategy reflects the municipality’s tradition of building with wood, which has developed since 1995, when legislation allowed wood-frame buildings with more than two floors. At that time, the city was a pioneer in showcasing the potential of this technology with the first five-storey wood-frame building in Sweden. Prompted by new legislation in 2004 that encouraged wood construction in Sweden (Regeringskansliet, 2004), Växjö formulated a wood-building strategy titled “More Wood in Construction 2005’ (Växjö Municipality, 2005), followed by “Växjö – the modern wood city 2013” (Växjö Municipality, 2013).
The latest document set the target of 25% of new municipal buildings being constructed with timber. In the updated version of the strategy (Växjö Municipality, 2018), this target became more ambitious, with the share of municipal wood-based buildings being increased to 50% by 2020 and the additional requirement that the new timber constructions need to include some form of climate impact reporting. (Växjo Municipality, 2018). In 2022, the goal was reached, with 50% of public buildings having wood frames
The proportion of wood buildings is measured as a changing trend and is expected to increase over the years. Therefore, the statistics are compiled for each year’s wood construction and aggregated over a period.
This method considers the entire environmental footprint of a building – from cradle to grave – from raw material extraction and production to disposal.
Regarding energy efficiency of the existing building stock, the Växjö energy plan (Energiplan för Växjö kommun, 2021) outlines refurbishment and property management as important pathways to reduce energy use and thereby curb emissions from the buildings sector (Viable Cities & Växjö Municipality, 2023). Innovative solutions for lessening energy consumption can be readily implemented in public buildings, while private buildings are subject to national legislation, with energy declarations being the most common instrument.
Ownership of a significant share of public housing is also advantageous in terms of refurbishments. (Viable Cities & Växjö Municipality, 2023). In 2021, Växjöbostäder began the renovation of 220 apartments in the Äpplet and Päronet blocks, located west of Växjö (Appelgren, 2021). Limitations arise with respect to lowering energy use in privately owned buildings. In such cases, the municipality relies on its sustainability programme (Växjö Municipality, 2019) and national legislation. Engagement in European projects is also beneficial; the municipality's participation in the READY project, which drove the refurbishment of 376 apartments and the City Hall building, is a case in point.
It is worth noting that the use of renewable energy in buildings has been incentivised at the national level, with legislation providing an exemption from building permits for installation of solar panels in single- and multi-family houses since 2020. In 2023, the share of renewable energy used in the residential sector in Växjö was 97.7%. The remaining 2.3% is from oil (0.5%) and nuclear energy (1.8%), produced outside the borders of Växjö.
With respect to incentives at the local level, the municipality awards an annual wood building prize, thereby encouraging engagement of the private sector. The municipality also enjoyed European
Besides supporting wood construction for public buildings, the municipality actively uses land allocation and land development agreements to incentivise uptake of the technology by the private sector. Land allocation and development agreements have been an important instrument for the development of the Välle Broar neighbourhood, which showcases different phases of timber construction (see Text box 1).
Situated between Växjö city centre and the Linnaeus University campus, Välle Broar is an innovative area highlighting the municipality's leadership in modern wood construction. The multi-storey wood buildings showcase the architectural and design potential of this technology, driven by an innovative land allocation competition that encourages private sector adoption. Building on this success, the municipality has developed the Torparängen wood building project, consisting of 300 homes, including villas, rental apartments and tenant-owned apartments. In this project, the municipality collaborated with Linnaeus University, VKAB and local developers to study the entire process from planning to completion.
Transport and mobility sector
Transport and machinery account for 97% of Växjö’s fossil carbon emissions and almost 60% of greenhouse gas emissions. In 2022, the amount of CO₂ emissions was 128,138 tonnes, which is the second lowest amount recorded to date. The steady decrease in emissions corresponds to the growing use of renewables such as biogas, which are produced locally from sewage sludge and food waste.
Nevertheless, to achieve climate neutrality by 2030, the most transformative work needs to be done within the transport sector. Efforts to lessen the environmental impact of transport are strongly linked to citizens’ mobility needs, as approximately 54% of emissions are from passenger vehicles, 18% from heavy trucks and buses, 15% from work machines, 9% from light trucks and other vehicles and 4% from airplanes that are re-fuelled at the airport.
Decreasing private vehicle trips is a challenging prospect, considering that the municipality includes rural settlements. Nevertheless, the distance travelled by car per inhabitant has been declining (Viable Cities & Växjö Municipality, 2023). The number of trips by bus has been strongly affected by COVID-19 and has not yet reached levels similar to before the pandemic despite a steady increase from 2011 to 2019. On the other hand, the number of bike users in the municipality is increasing.
Transport and mobility planning relies on emission data as well as regional statistics that provide information on public transport, travel surveys covering users’ preferences, modes of transport used for trips, travel destinations and strategically placed meters that inform about the number of vehicles circulating in the city (Interviewee 37, 2024).
The municipality employs a three-step approach to enhance sustainable mobility: (1) ensuring good bicycle and public transport infrastructure, (2) informing people and (3) changing behaviour (SWECO, 2023). These steps are supported by measures that prioritise bicycles and public transport while restricting accessibility and discouraging the use of private vehicles (narrow lanes, increasing parking fees, temporary car-free areas). The municipality implements campaigns to change the behaviour of citizens and businesses. In addition, the municipality has established partnerships with schools and associations. For example, collaboration with schools has led to the adoption of measures that promote safety (e.g. designated pick-up areas for kids).
Challenges and opportunities: a multilevel governance perspective
Swedish municipalities have substantial autonomy in spatial planning. Within the framework of the Planning and Building Act and the Environmental Code they manage land use through two key instruments: (1) the municipal comprehensive plan (översiktsplan), which provides non-binding strategic guidance aligned with national and regional goals and (2) the detailed development plan (detaljplan), which is legally binding (Boverket, 2013).
In the building sector, Sweden adheres to the EU Energy Performance in Buildings Directive (European Parliament, 2018), requiring long-term strategies for energy-efficient renovations. National energy efficiency standards are set by Boverket, which regulates primary energy thresholds (Boverket, 2019) and mandates energy declarations for large public and leased buildings to track consumption and improve performance (Boverket, 2016; Swedish Parliament, 2006).
In the transport sector, Trafikverket oversees long-term transport planning. It is revised in each government term (Trafikverket, 2018), with the current plan covering 2022–2033. In line with national directives, regional councils develop regional transport plans, while municipalities are responsible for local roads, harbours, airports, stations and land use planning. However, municipalities have limited authority over transport infrastructure, including cycle path expansions linking various areas.
Policy capacity: vertical and horizontal governance tensions
Land use sector
Vertical governance tensions
Coordination challenges between climate objectives and governance levels are evident in both Växjö and Lund, though their urban conditions shape these dynamics differently. In Lund, the compact structure of the city limits the potential for densification. As a result, growth pressures have led to the expansion of urban areas into agricultural land (Interviewee 32, 2024). This sprawl trend creates a direct conflict between the environmental law, which prioritises the protection of farmland, and municipal autonomy in urban planning, highlighting the need for better alignment between the Swedish Environmental Code and the Planning and Building Act.
Other national policies also influence the conversion of agricultural land into urban areas. For example, the central government's decision to locate the European Spallation Source (ESS)
The European Spallation Source (ESS) is a multi-disciplinary research facility that uses high-energy protons to create neutrons. It is a pan-European project with 13 European nations as members, including the host nations Sweden and Denmark. Some 2,000-3,000 guest researchers are to carry out experiments at ESS each year.
By contrast, Växjö’s large territorial boundaries and lower density provide flexibility for infill development while preserving green areas. However, historical preservation – designed to protect the city’s cultural heritage – limits upward densification, creating tensions with climate-focused urban strategies that emphasise higher-density development (Interviewee 35, 2024). Furthermore, national legislation places sole responsibility for stormwater management on municipalities, restricting collaboration with private landowners for more effective solutions to the challenges posed by increased precipitation (Interviewee 35, 2024).
Efforts to influence national policy offer one avenue for overcoming these barriers. Indeed, Växjö’s participation in the Swedish municipalities' association has proven to be an effective platform for lobbying for national policies that support climate neutrality at the local level (Interviewee 34, 2024). On the other hand, lack of regional planning coordination with neighbouring municipalities is seen as hindering shared infrastructure development and integrated approaches to housing, transport and mobility in Lund, resulting in inefficiencies.
Horizontal governance tensions
One of the greatest challenges in Lund is the pressure to grow while achieving carbon neutrality. While densification is seen as climate-friendly, it reduces green spaces and gives rise to issues like pollution and noise (Interviewee 32, 2024). Land use conflicts can arise when deciding whether to develop new projects on agricultural land or recreational areas. Similarly, afforestation projects near the city spark land use debates, as they also compete with agricultural land (Interviewee 32, 2024).
In Växjö, land use planning faces challenges due to stakeholder disagreements and social trade-offs, which have slowed the implementation of climate strategies (Interviewee 35, 2024). Moreover, entrenched public sector practices (path dependencies) and the time required to legitimise transformative urban policies further slow climate adaptation (Interviewee 35, 2024). Lastly, a municipal official also noted that the broad scope of Växjö’s sustainability and climate neutrality agenda has made it more difficult to focus efforts on specific priorities (Interviewee 35, 2024).
(Interviewee 35, 2024; Växjö Municipality, 2021)
Buildings and construction sector
Vertical governance
Misalignment between national and local policies remains one of the greatest obstacles in the buildings and construction sector across the analysed Swedish municipalities. In both Växjö and Lund, improving the energy performance of buildings is a major challenge, as municipalities cannot directly influence the refurbishment of privately owned housing.
In Växjö refurbishment and building management are recognised as crucial pathways for lowering energy consumption (Viable Cities and Växjö Municipality, 2023; Energiplan för Växjö kommun, 2021). While energy-saving innovations are relatively easy to implement in public buildings, private sector buildings remain subject to national regulations, with performance certificates serving as the primary policy instrument. Municipal officials expressed scepticism about the effectiveness of energy performance certificates in motivating individual homeowners to adopt efficiency measures (Interviewee 36, 2024), due to the lack of follow-up and enforcement mechanisms as well as their weak impact on property values (Swedish National Audit Office, 2021). Nevertheless, owning a significant share of public housing allows Växjö to implement refurbishment on a large scale (Viable Cities & Växjö Municipality, 2023).
Municipal officials in Växjö also noted that national taxation policies on renewable energy sources in buildings disproportionately burden local governments. Rather than being calculated based on the energy output of photovoltaic (PV) systems, these taxes are levied on the owner, significantly increasing costs for municipal companies installing solar panels on public buildings (Interviewee 34, 2024). Additionally, the discontinuation of support for energy efficiency improvements of at least 20% in multi-dwelling buildings consuming over 100 kWh/m² per year has further hampered efforts to reduce CO₂ emissions from the buildings sector (Energimyndigheten, 2021), 2021).
Beyond promoting wood construction in public buildings, Växjö actively uses land allocation and land development agreements to incentivise private sector adoption of timber technology. However, municipal officials noted a misalignment between European climate policy and Växjö’s climate strategy. Specifically, European legislation questions wood’s sustainability as an energy source. These regulations fail to account for Swedish and Finnish forest management practices, where reforestation is integral and use of wood residues for energy production is considered a circular practice (Interviewee 34, 2024) . Ultimately, these regulations shape definitions of sustainability and, by doing so, steer the allocation of financial resources to specific solutions.
In Lund, the regulatory framework outlined in Boverket’s Building Regulations raises concerns (Boverket, 2019). While these regulations safeguard the quality of living environments, they may be restrictive when applied to the renovation of existing buildings (Interviewee 30, 2024). At the same time, the current CO₂/m2 targets for new buildings were considered too lenient and insufficiently ambitious to drive meaningful reductions in the construction sector. The lack of legal means to regulate the actions of the private sector is, however, partly mitigated by LFM30, a partnership-driven initiative that brings together actors from Malmö’s construction, civil engineering and property management sectors. This network has played a pivotal role in decarbonising the construction sector by developing robust methodologies to steer the industry towards higher environmental standards in buildings.
Horizontal governance tensions
Various questions and perspectives arise when transitioning to climate-friendly buildings. In Lund, one of the greatest challenges for cross-sectoral governance is the often limited time available to explore different solutions while adhering to tight schedules, as well as the need to adjust procurement routines to acquire the best materials and/or services. (Interviewee 30, 2024). Other obstacles are the need for further resources (e.g. finances and expertise) to raise awareness, build consensus and comply with the requirements (e.g. climate calculations) to fully implement administrative routines that support the sector's decarbonisation (Interviewee 30, 2024). However, the cooperation between different departments in Lund and dialogue with the buildings sector, especially with companies active in the region, has been instrumental in anchoring circular practices in building and planning.
Transport and mobility sector
Vertical governance tensions
Despite advances in curbing emissions, the transport sector is still the largest emitter in both municipalities, requiring drastic measures to meet the 2030 targets. A major governance challenge is the misalignment of transport planning priorities across different levels of government and limitations in local autonomy (Interviewee 33, 2024). Lund officials point out that Trafikverket (the Swedish Transport Administration) prioritises national objectives while overlooking regional commuting needs, making it difficult for municipalities to implement coherent mobility strategies (Interviewee 33, 2024).
In Växjö, the city faces delays in improving pedestrian and cycling infrastructure due to Trafikverket’s control over key roadways. For example, a planned pedestrian and bicycle path between Växjö and Gemla (13 km southeast of Växjö) has yet to be realised because it falls under Trafikverket’s jurisdiction rather than that of the municipality. Trafikverket’s low budget (around 1%) for bicycle lane construction is also noted as a shortcoming in improving Växjö’s sustainable mobility. Additionally, a lack of financial support for awareness campaigns limits the promotion of sustainable travel behaviours.
Both municipalities express concern over Sweden’s relaxation of biofuel blending regulations, which could increase CO₂ emissions by 16% compared to 2022 levels (Interviewee 33, 2024; Interviewee 34, 2024). Växjö also warns that national policies discouraging electric vehicle production undermine local decarbonisation efforts. With Sweden favouring a CO₂-intensive economy, Växjö perceives EU-level policies such as Fit for 55 (European Council, 2024) as the most reliable driving force for national governments to make progress on climate action (Interviewee 37, 2024).
Ultimately, a lack of political will is seen as the greatest barrier to implementing the necessary changes. In Växjö, officials emphasise that transport directly affects people’s daily lives, making politicians reluctant to adopt bold measures that could significantly cut emissions but may meet with public resistance (Interviewee 37, 2024). Lund officials also noted that the effect and response to transport policies are usually slower than in other sectors (e.g. energy), where the government can swiftly influence behaviours. Dependence on private cars, the force of habit and the passive attitude to climate issues create additional hurdles in reducing fossil-fuel-based transport (Interviewee 33, 2024).
Horizontal governance tensions
Lund has long maintained a well-integrated governance approach to transport, with policies anchored across various municipal departments. The LundaMaTs strategy (since 1999) has ensured continuity across political cycles, allowing for long-term planning, implementation and management of mobility initiatives. As a university city, Lund has a large population of young people, who are more open to behavioural change (Interviewee 33, 2024). Collaboration with academia and businesses has also driven transport innovation in the municipality. Nevertheless, sustainable transport alternatives are not yet sufficiently attractive to replace private car use on a large scale. Making transport data more visible to increase public awareness and urgency is a challenge. Additionally, a lack of strong advocates and champions in the transport system limits momentum for decarbonisation (Interviewee 33, 2024).
Växjö also benefits from strong cooperation between internal departments, but municipal officials lack political support to implement necessary emission reduction measures in the transport sector. In both cities, fear of public backlash and re-election concerns have led to hesitancy at the political level, delaying critical policy changes.
Institutional capacity: knowledge, relational resources and mobilisation capacity.
Lund and Växjö demonstrate strong institutional capacity in climate governance, yet knowledge gaps, coordination challenges and political inertia slow down the transition to carbon neutrality. This section explores the municipalities' knowledge capacity, relational resources and mobilisation efforts.
Knowledge capacity
Both municipalities have established expertise in climate-related governance but continue to face knowledge gaps in certain areas. In land use planning, Lund has advanced competencies in water management, climate mitigation and circular economy strategies. The municipality has invested in tools such as the Climate Calculator for Early Planning Stages, which assesses the suitability of different locations for development based on climate impact. However, despite these advancements, there is a recognised need for further knowledge on the carbon sink potential of soils and green spaces as well as strategies to counteract the increasing impact of extreme precipitation.
Växjö, by contrast, has a long history of climate performance monitoring, which provides a solid foundation for identifying priority areas and emission reduction strategies. The city actively shares experiences with other Swedish municipalities through the Climate Municipalities Association, which has been instrumental in refining its climate governance approach. Nevertheless, it still lacks methodologies to estimate emissions from land consumption and the built environment, relying instead on a learning-by-doing approach (Interviewee 34, 2024).
In the buildings sector, Växjö has positioned itself as a leader in wood construction, benefiting from Sweden’s early adoption of cross-laminated timber (CLT) technology. The local market for CLT production has expanded significantly, creating favourable conditions for further integration of timber construction into the city’s climate strategy. However, despite this expertise, the municipality recognises the need to strengthen its capacity in climate calculations and emission declarations to enable accurate comparisons of building materials and life cycle impacts.
Lund, on the other hand, has focused on circular construction and material reuse, working closely with the LFM30 network to establish ambitious methodologies for assessing emissions across the entire construction value chain. The municipality is optimistic about the growing interest in circular buildings, yet uncertainties remain regarding the quality and risks of using recycled materials as well as the economic trade-offs between new construction and renovation. Additionally, knowledge gaps persist in balancing energy efficiency with material resource use, making it difficult to determine the most climate-friendly building choices.
In the transport sector, Lund has developed extensive knowledge in sustainable mobility through long-standing cooperation with academia, external consultants and European-funded projects. Programmes such as BASE – Brunnshög automated sustainable electromobility – have contributed to advancing the city’s transport policies. However, despite this expertise, Lund lacks a clear roadmap for meeting its 2030 climate targets. A draft roadmap has been developed, but due to the politically sensitive nature of its proposed measures, it has not yet been formally presented to decision-makers.
Växjö, meanwhile, has turned to alternative methods to gather insights on mobility patterns, including public surveys that examine attitudes towards traffic safety, pollution and transport behaviour. The municipality has successfully challenged the assumption that car dependency is essential for economic vitality by demonstrating that cyclists and pedestrians contribute nearly as much to local businesses as car owners, despite taking up significantly less space. This data-driven approach has strengthened Växjö’s argument for prioritising sustainable transport infrastructure.
Relational Resources
Both municipalities actively engage in national, European and international networks that enhance their institutional capacity. In the field of land use and climate governance, Växjö is heavily engaged in multiple climate action networks, including the Global and European Covenant of Mayors, ICLEI and Energy Cities. The municipality also participates in Sustainable Småland, a regional network that fosters collaboration between local businesses, academia and government institutions. These partnerships provide Växjö with access to best practices and external expertise, strengthening its ability to influence policy at the national and EU levels.
Similarly, as a member of the European 100 Climate-Neutral Cities initiative, Lund has positioned itself as a key player in international climate governance. Through its involvement in the NetZero Cities EU Programme, the municipality collaborates with Louven to address governance challenges related to cross-sectoral coordination and financial partnerships. Additionally, Lund received recognition from WWF as Climate City of the Year 2022, further cementing its role as a frontrunner in municipal climate action.
In the buildings sector, Växjö has fostered strong public-private partnerships to advance timber construction. Collaborations with Linnaeus University, the forestry group Södra and national organisations such as CBBT and Trädstad Sverige have helped the municipality develop a comprehensive wood construction strategy. The establishment of a triple-helix alliance between the public sector, academia and private industry has enabled Växjö to integrate timber technology into municipal planning at multiple levels.
Lund, by contrast, has focused on strengthening internal expertise through partnerships with LFM30, Malmö, Helsingborg and private developers. Informal knowledge sharing between municipal planners has led to the creation of discussion forums on fossil-free construction, further facilitating regional collaboration. The municipality’s participation in the Viable Cities network has also allowed it to fund a specialised architect position dedicated to circularity in buildings, which has since been extended with municipal funding.
In the transport sector, Växjö and Lund participate in various networks that promote sustainable mobility. Växjö is a member of Fossil Free Sweden and Svenska Cykelstäder, a network of municipalities committed to advancing cycling infrastructure. Lund maintains long-standing collaboration with Malmö and Helsingborg on regional transport planning and has established regular stakeholder meetings to discuss mobility challenges. The municipality’s LundaMaTs strategy, established in 1999, has ensured continuity in its transport policies across political cycles, making it a key governance tool for long-term mobility planning.
Mobilisation Capacity
Both municipalities have adjusted their administrative structures to strengthen climate governance, but challenges remain in fully mobilising resources and implementing ambitious policies. Since 2019, Lund has consolidated its municipal-owned companies under Lunds Rådhus AB, creating a unified framework for environmental and climate action. The Climate Policy Council, established in 2018, provides independent oversight of municipal emissions, issuing annual reports that assess progress towards climate goals. A recent report warned that to stay on track for 2030 targets, Lund must double its annual emission reductions.
Växjö, despite its smaller municipal administration, has benefited from strong cross-sectoral coordination facilitated by its Sustainability Plan. However, entrenched public sector practices (path dependencies) continue to slow transformational change and the municipality faces challenges in legitimising bold urban planning decisions.
In the buildings sector, Växjö has assigned responsibility for its wood construction strategy to VKAB, a public company that oversees land sales, development agreements and municipal infrastructure projects prioritising timber. This has provided a mechanism for integrating sustainability into real estate transactions. Lund, on the other hand, has taken a more regulatory approach, embedding circular construction principles into municipal guidelines and requiring developers to adhere to high environmental standards. However, ensuring that all municipal departments are fully engaged in this transition remains a challenge, as interest and expertise vary among civil servants.
In the transport sector, political hesitation remains a significant barrier to implementation.
In Lund, integrating climate considerations into transport planning is still perceived as an additional administrative burden and staffing shortages have slowed policy development. The municipality has drafted a roadmap for transport decarbonisation, but its ambitious measures have yet to be presented to political leaders. Växjö faces similar governance challenges, particularly in its reliance on Trafikverket for road and cycling infrastructure improvements.
Despite strong municipal support for non-fossil mobility, national-level apathy has hindered the expansion of bicycle infrastructure. However, upcoming administrative changes in both municipalities, including the merging of planning and technical departments in Lund and improved coordination in Växjö, are expected to enhance the cities’ ability to align transport goals with broader sustainability strategies.
Key reflections and learnings from Sweden
Växjö and Lund face shared challenges in achieving climate neutrality while navigating Sweden’s decentralised land use planning system. The cities enjoy autonomy under national laws but must align local goals with broader environmental standards. Both Lund and Växjö strive for climate neutrality through brownfield redevelopment and densification along transit corridors. However, their distinct spatial patterns present different challenges and opportunities.
While Lund’s dense urban structure aligns with the 15-minute city model, its density limits its infill options, pushing expansion into agricultural areas – a trade-off between urban growth and environmental preservation. By contrast, Växjö’s more dispersed urban form, with more available land, allows for flexible development but restrictions arise from the need to preserve cultural heritage sites, limiting upward densification.
In the transport sector, both municipalities struggle with limited resources and conflicting governance priorities. Trafikverket’s national focus restricts funding for local transit initiatives, affecting cycling infrastructure in Växjö and slowing Lund’s mobility goals. Additionally, limited political support hampers bold climate policies in the transport sector, as leaders fear backlash from disruptive measures.
In the construction sector, both municipalities prioritise renewable energy and energy-efficient refurbishments but take distinct approaches. Växjö focuses on wood construction, particularly in public buildings, positioning it as a leader in climate-neutral construction. By contrast, Lund emphasises circular construction practices, collaborating with local companies through the LFM30 network to promote sustainable standards and support private sector decarbonisation. However, national energy mandates limit municipal influence over private sector improvements and high taxes on renewable energy act as barriers.
With respect to funding, Swedish municipalities, unlike most municipalities in Europe, can easily secure loans due to their strong financial returns and stability. Possible solutions include leveraging municipal budgets through instruments like water service charges and green bonds and seeking project funding from national programmes and EU grants. Measures to strengthen society’s emergency preparedness and mitigate climate disasters are also sponsored by the government. VINNOVA, Formas and Mistra also play an important role in funding the transition to climate neutrality (Klimatanpassning, 2021).
In addition, Swedish municipalities benefit from the support of Kommuninvest AB, a credit market company driven by Kommuninvest Cooperative Society, a voluntary membership-based organisation of Swedish municipalities and regions with 295 members. The organisation focuses on providing financing for local government sector development, offering secure investment opportunities for investors and serving as a centre of expertise in municipal financial management and long-term sustainability (Kommuninvest, n.d.).
Institutional capacity is strong in both cities, as they leverage local expertise and partnerships to drive carbon-friendly initiatives. Växjö’s wood-based strategy involves collaboration with academia and industry to deepen knowledge, while Lund collaborates with regional stakeholders, creating a model of integrative governance. Yet, both cities face resource constraints, particularly in time and funding, that limit their climate ambitions. Their approaches – Växjö’s focus on timber technology and Lund’s circular practices – showcase complementary strategies but emphasise the need for enhanced support, streamlined governance and political will to realise ambitious climate targets. In the following boxes, we provide an overview of the key challenges faced by the Swedish cities in achieving climate neutrality, reflecting on their implications and possible ways to address them.
Implement stronger incentives for green building certification and sustainable construction practices at the local level. Advocate for updated national building codes that require climate-friendly construction methods and materials.
Secure additional funding from national and international sources, including EU climate funds and green bonds, to support local initiatives. Foster collaboration among municipalities, private companies and academia to share resources, knowledge and funding for climate projects.