SNS Climate

Climate change is one of the most defining challenges of our time. How can climate policy effectively limit emissions in a world shaped by technological shifts and geopolitical upheavals? What is required for the climate transition to be both effective and legitimate? And how can Sweden and the EU contribute to reducing global emissions? 

Through the research project SNS Climate, we aim to deepen our understanding of the opportunities and limitations of climate policy – and to shed light on how policy can be designed in a rapidly changing global environment. 

Hans Forssman from Skandia is the chair of the project’s reference group. You can find the full list of reference group members further down the page. 

Policies for Emission Reductions 

Achieving Sweden’s and the EU’s climate targets requires policy instruments that effectively reduce emissions while being socio-economically sustainable and politically anchored. At the same time, questions arise about how carbon leakage can be prevented and how policy instruments can be made robust in a technically, economically, and geopolitically complex landscape. How can climate policy be designed to reconcile high ambition with competitiveness, legitimacy, and long-term stability? What adjustments are needed as EU regulations evolve, and how should Sweden act within the Union as part of this process?  

Conditions for the Transition 

The climate transition requires changes across the entire structure of society, from transport and energy to education, public administration, and industrial transformation. What institutional and economic conditions are necessary for the transition to be effective and credible? How can regulatory frameworks and permitting processes be developed to enable the rapid expansion of fossil-free energy without compromising environmental protection? And how can different actors cooperate to manage goal conflicts and distributional effects, while creating long-term stability and trust? 

Global Climate Impact 

Despite declining emissions in the EU and Sweden, global emissions continue to rise. This places demands on a climate policy that not only focuses on national targets but also contributes to emission reductions in other parts of the world. How can Sweden and the EU contribute to global emission reductions through trade, technology transfer, and diplomacy? What role do international frameworks and climate diplomacy play in promoting the green transition, particularly in developing countries? And how can global climate benefits be taken into account in the design of national and European policy? 

Ongoing Studies 

Economic Impacts of CBAM for Sweden and Beyond 

Climate policy affects the competitive conditions of industry in an international economy. One way the EU addresses the fact that firms within the Union face higher emissions-related costs than competitors outside the EU is through the Carbon Border Adjustment Mechanism (CBAM). This report analyses the effects of CBAM on Swedish industry, trade and emissions, and compares the mechanism with alternative approaches, such as the previous system of free allocation of emissions allowances. Using detailed data on production and trade patterns combined with quantitative economic analysis, the report examines the implications for carbon leakage and competitiveness. 

Authors: Christoph Böhringer, Professor of Economics, University of Oldenburg; and Knut Einar Rosendahl, Professor of Economics, Norwegian University of Life Sciences (NMBU). 

To be published: autumn 2026 

Renewable Energy and Permitting in the Nordic Countries 

High climate and environmental ambitions require not only political targets, but also legal frameworks and permitting processes that function in practice. The EU Renewable Energy Directive (RED III) aims to accelerate the deployment of renewable energy by streamlining and shortening permitting procedures, while clarifying how climate objectives should be balanced against environmental protection and legal certainty. This report analyses how RED III’s key legal instruments – such as acceleration areas, modified environmental assessment requirements, binding time limits and the presumption of overriding public interest – are implemented across different Nordic permitting systems, and identifies common challenges, legal tensions and potential solutions in the implementation of the directive. 

Authors: Helle Tegner Anker, Professor of Law at the Department of Food and Resource Economics, University of Copenhagen; Birgitte Egelund Olsen, Professor at the Department of Law, Aarhus University; Niko Soininen, Professor of Environmental Law at the Center for Climate, Energy and Environmental Law, University of Eastern Finland; Jan Darpö, Professor Emeritus of Environmental Law at the Department of Law, Uppsala University; Aðalheiður Jóhannsdóttir, Professor of Environmental and Natural Resources Law at the Faculty of Law, University of Iceland; and Ole Kristian Fauchald, Professor at the Department of Public and International Law, University of Oslo. 

To be published: spring 2027 

Final Report 

John Hassler, Professor in Economics at the Institute for International Economic Studies, Stockholm University, will follow the project on an ongoing basis and write a concluding synthesis report during the project’s third year.  

To be published: autumn 2028 

More reports to be added. 

Previous SNS Research Projects on Climate and Energy 

SNS has conducted research on climate and energy issues for a long time. The new research project builds on insights from, among others: 

The Green Transition and the Business Sector  

Energy Systems of the Future