Alexander Wahlberg
Innovationsledare
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From risk to resilience – municipalities in climate transition
48 Swedish municipalities are aiming for climate neutrality by 2030. But how do we pay for the transition – and how do we avoid the costs of not doing so? Circular economy and new financing models can show the way towards both climate goals and economic resilience.
Climate goals exist. So do solutions. But what about the financing?
48 Swedish municipalities have set their sights on becoming climate neutral by 2030.
This is Sweden’s most ambitious joint effort for sustainable cities – and it raises a critical question:
How do we pay for transformation – and how do we avoid paying for inaction?
The Climate Crisis as a Systemic Risk
According to Allianz, one of the world’s largest insurers, we are approaching a tipping point where the global financial system itself is at risk due to climate impacts:
“Flooded homes lose value. Entire regions become uninsurable. This is what a climate-driven market failure looks like.”
Science backs this up. A recent Nature study links emissions to $28 trillion in economic losses from heat-driven impacts.
This is no longer just about climate. It’s about how economies function.
Meanwhile – a Movement Already Underway
From small villages like Klutmark to cities like Eskilstuna, from reusing old houses to forming local energy communities – Swedish municipalities are already leading change.
Not just as a response to climate change, but as a strategy for economic resilience, community pride, and future-proofing.
This is not about future scenarios. This is happening now.
And it takes courage.
Innovation Leadership at the Local Level
Municipalities face a crossroads:
- Continue treating climate as a cost.
- Or see it as a design challenge – and lead the transformation.
Circular economy is about designing resilient systems where value, responsibility and resources circulate over time:
- Furniture-as-a-service instead of purchasing
- Upgradable IT systems instead of disposable tech
- Local energy solutions that generate revenue instead of costs
- Shared, extended, and reused public infrastructure
Financing Tools That Enable Courage
We know what needs to be done – but we must rethink how we finance it. Here are models already in use:
- 💰 Green bonds – tied to measurable climate benefits
- 🎯 Performance-based financing – pay only when functionality is delivered
- 🌍 Impact investing – where returns include societal and environmental outcomes
- 📑 Circular procurement – prioritizing lifecycle value over lowest upfront price
Inaction is now the most expensive route:
Australia’s disaster recovery costs increased sevenfold between 2017 and 2023.
Circular Economy Is No Longer a “Nice to Have”
It’s our smartest response to three converging pressures:
- The rising cost of climate-related damage
- Fragile global supply chains
- Growing financial pressure on local government
It’s about building systems where value, decisions and benefits remain local – and are shared.
RISE Supports Municipalities – Right Now
At RISE, we collaborate with municipalities that are already in motion.
We develop decision support and economic models that link climate benefits to financial logic and local opportunity.
Each tonne of avoided emissions is not just a win for the planet – it’s also a future cost avoided and often a new business model gained.
The Future Isn’t Coming – It’s Already Here
When 48 Swedish municipalities take the lead, they’re doing it not just for the environment.
They’re doing it to protect their economies, build capacity – and create pride in everyday life.
“We can make footprints others will follow.”
– Resident of Skråmträsk
This is not an added cost.
It is the pathway forward.
It’s not about spending more.
It’s about spending smarter.
And doing it together.
Published: 2025-05-05
