Financing the decarbonisation of heavy industry sectors in Sweden

The report shows large differences in how much the production costs increase in each sector as a result of net-zero transition. Increased production costs must be covered by either higher prices (which would mean that consumers would need to pay a higher price for reduced emissions), or new policy measures that would cover the additional costs, or by increasing the price of emissions.

However, the real barriers to decarbonizing heavy industry are not financial; they are linked to policies, regulations and technological development. From a business perspective, uncertainty about long-term policies make investments in transitioning risky. Clear and long-term policy frameworks reduce uncertainties and allow actors to better see what investments will be economically viable.