At a time when climate and development finance is being cut across the globe, pressure increases to use remaining finance most efficiently and to find new sources of finance.
In a first-of-its-kind Study, our climate finance expert shows that Sweden is at a critical juncture: Climate-related development finance and export finance must work more closely together to keep Sweden’s climate footprint in the world. The study finds that Swedish public finance institutions have substantial untapped potential for synergies, but also significant structural obstacles, including fragmented mandates and a lack of shared financing instruments.
The report investigates the convergence of climate-related development finance and export finance, exploring how synergies can be found between Sweden’s four primary public finance institutions: Sida, Swedfund, EKN, and SEK. By benchmarking Sweden against European peers, the analysis reveals that while individual Swedish institutions have made significant strides, the national system remains constrained by structural fragmentation.
The report also highlights the opportunity to move beyond a fragmented, project-by-project approach toward a more integrated national system. By harmonising climate mandates and impact metrics, Sweden can better sequence its financial instruments—leveraging the distinct networks of development and export actors to scale successful climate pilots and bridge the investment gaps that neither sector can close alone.
Key findings:
- Untapped synergies between Sweden’s primary public finance institutions (PFIs: Sida, Swedfund, EKN, SEK) and Business Sweden, but also structural obstacles such as fragmented mandates and missing shared financing instruments.
- Swedish climate initiatives must be firmly anchored in partner countries’ own climate plans, so that aid is not driven by Swedish export interests.
- Clearer, harmonised methods to measure and report climate finance, along with more open data and common working methods to improve transparency.
- Stronger international cooperation and integration, including through the EU’s Global Gateway initiative, as a way for Sweden to achieve greater climate impact.