The first comprehensive analysis to quantify the necessary investments and measures required to realize the green transition in agriculture in Sweden.
Sweden faces a unique opportunity to become a leading nation in sustainable food production, but there is a need for investments. A total of SEK 20 billion annually, equivalent to EUR 1.7 billion, are required to meet environmental quality objectives and comply with various EU directives. These funds are needed not only for environmental and climate measures in crop and livestock farming, but also to ensure the resilience of Swedish food production in the face of extreme weather events such as droughts and floods.
While many other sectors view the green transition primarily as a path toward fossil-free operations, agriculture must also address biodiversity and climate adaptation. Here, investment areas include biogas production, restoring overgrown natural pastures to boost biodiversity, and constructing irrigation ponds to safeguard harvests during drought conditions.
Nearly 25 years have passed since the Swedish Parliament set out the country’s 16 environmental quality goals. No other branch of industry intersects with so many of these objectives as farming. Consequently, the agrarian sector’s environmental efforts are crucial to Sweden’s ability to meet its targets.
Currently, the Swedish state allocates around SEK 4 billion annually (approximately EUR 330 million) for green transition initiatives in the agricultural sector. This sum needs to rise significantly over the coming years to achieve the goals.
“As farmers, we are prepared to shoulder our share of the responsibility, but now both the government and the market need to step up,” says Palle Borgström, President of LRF.
The state must take the lead in the green transition by:
- • Quickly revising the National Food Strategy.
- • Further developing actions to achieve a fossil-independent agricultural sector.
- • Encouraging sustainable methods through green investments and favorable tax measures.
- • Increasing spending on research and development to drive innovation.
- • Maximizing the use of EU agricultural policy as a funding source.
Banks and credit institutions also have a crucial role in facilitating green investments. The government should collaborate with the financial sector to highlight the importance of sustainable financing, promote green loans, and ensure favorable terms—mirroring initiatives that supported the development of fossil-free steel. With the right economic incentives in place, banks can actively help companies invest in sustainable solutions.
About the report
This is the first comprehensive analysis to quantify the necessary investments and measures required to realize the green transition in agriculture, both in Sweden and across Europe. LRF produced this report in close cooperation with industry stakeholders such as Lantmännen, Arla, and HK Scan. The initiative is a joint effort by Lantmännen and LRF.
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Both government and financial sectors must increase funding to meet environmental goals and secure a sustainable future.