Stinging criticism of the Social Democratic government's investment in green transition

In 2018, the then Social Democratic-led government established Industriklivet, a major investment in the so-called green transition, which has since cost several billion kronor with the goal of reducing greenhouse gas emissions. The project is now being criticized by the Swedish National Audit Office, which questions its benefits.

Since its inception six years ago, Industriklivet has cost taxpayers 3.8 billion kronor, which has been allocated to research and investments. The Swedish National Audit Office’s criticism revolves around deficiencies in planning, implementation, and follow-up, which risk making the investments ineffective.

“The government’s design of Industriklivet has not been sufficiently well thought out,” states the Director General of the Swedish National Audit Office, Claudia Gardberg Morner.

The Swedish National Audit Office argues that Industriklivet has not been designed or managed in a way that can effectively contribute to the industry’s climate transition and climate goals.

It also notes that the initiative has been expanded on two occasions without the government analyzing the consequences. These expansions have meant that certain actors have been able to seek funding through both Klimatklivet, a similar support for so-called climate investments, and Industriklivet for the same purposes.

Concurrently, the Swedish Energy Agency is criticized for deficiencies in managing Industriklivet.

Recommendations

The review has resulted in the Swedish National Audit Office recommending that the government, among other things, consider changing the design of Industriklivet and coordinate the governance of the climate transition.

The Swedish Energy Agency is recommended to initiate a concrete and continuous process of monitoring and evaluating Industriklivet.