The alarm: Sweden lacks capital for climate action

According to a report by the consulting firm McKinsey, climate technology is on average six times more capital-intensive than existing technology, and as it is often previously untested technology, the risk is high for investors who take the chance.

But today’s tough situation is still unique. One aggravating factor is the recession, which has reduced the availability of risk capital. At the same time, the sums required are greater than ever before. The reason for this is that many of the companies have come so far that it is no longer a question of financing product development in a laboratory environment, or even an initial test facility.

Instead, we are talking about investments in the billions, to finance everything from full-scale facilities and infrastructure to international expansion. So-called scale-up investments.

Major risks

Many companies are ready to take the next step, but fail to raise the necessary capital. The result can be companies looking abroad or, in the worst case, bankruptcy.

It is a crisis situation. Sweden risks losing a whole generation of green technology companies.

Stina Lantz, CEO SISP

Other countries are investing for the long term

Stina Lantz highlights France, Germany and even Spain as examples of European countries that have invested more in financing green innovation.

Internationally, we see large financial support packages, for example Germany has earmarked €10 billion until 2030 to support innovative technology companies during their growth phase, the so-called Future Fund. Some countries also offer tax breaks not only for companies but also for investors who choose to invest in the sector.

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