Newsletter #8: A Scaled Approach to the Green Transition – Cities, Industry, and International Exchange

A look at climate-neutral cities, innovative start-ups, industrialized housing solutions and the COP28 worldwide climate summit

Welcome to the final edition of GTI’s 2023 newsletter. This past year has shown more progress in reaching the goals of green transition than ever before. However, there is still much to be achieved to create a more resilient, sustainable future. To recognize important milestones and envision a path forward, this final edition focuses on three scales of the green transition: cities, industry, and the global community.

First, cities play a crucial role in advancing the green transition at a local level. GTI is proud to publish two guest articles from Emily T. , Assistant City Manager at the City of Tigard , Oregon, and Lars Johansson , Coordinator for Viable Cities . As a local leader in the United States, Emily provides a novel perspective to the urban climate discussion. Lars Johansson, Coordinator for Climate Neutral Cities 2030, introduces the Viable Cities Initiative, examining how cities can adapt in the face of climate change.

Industry is the next important scale of the green transition. Innovation facilitates adaptation, which is increasingly led by forward-thinking companies. Start-ups, in particular, play an important role in catalyzing transformation. GTI is proud to introduce the leaders behind the six Swedish companies participating in Berkeley SkyDeck , a premier incubation platform. Entrepreneurs and climate tech innovators Hanns Hallesius , Martin Walian , Robel Samson , Johan Winlund , Shwan Lamei , Anders Waller , and Ivan Martinovic showcase their start-up and share their ambitions for SkyDeck. GTI extends its thanks to the Swedish Energy Agency for spearheading the Swedish SkyDeck initiative and to GTI’s own Marcus Rönngren Liu for coaching the teams through the accelerator program.

The industry spotlight also explores the growth of green buildings and modular housing. Federal legislation is expanding energy-efficient and affordable homes in the United States, spurred by the country’s growing demand for green housing. Increased American investments present opportunities for greater US-Sweden collaboration, as sustainable home design and development is a Swedish strength. Helena Lidelöw from Volumetric Building Companies shares her insights into green housing construction solutions in the US and Sweden.

Finally, international exchange is vital to advancing a global green transition. The recent COP28 summit held in Dubai, United Arab Emirates, underscores the role of diplomacy and international collaboration in the green transition. Business Sweden organized the official Swedish business delegation and proudly hosted at the Swedish pavilion. We spoke with Darja Isaksson , Director General at Vinnova , one of GTI’s founding agencies, to hear her insights into COP28 and Sweden’s role in shaping the global green transition.

GTI wishes everyone happy holidays and warm wishes into the new year. Thank you again to all who collaborated over our newsletter and throughout 2023.

Cheers to further collaboration and exchange in 2024!

Happy holidays and best regards,

The GTI Team

Washington DC | Palo Alto

Sweden and the United States: Partners in Climate-neutral Cities

Cities and Climate Adaptation: Insights from the United States

Emily Tritsch, Assistant City Manager, City of Tigard, Oregon

With the historic commitment of resources for climate action in the Inflation Reduction Act, the United States is poised to be a leader in clean energy, environmental justice, green jobs, investments in mitigation and adaptation while making progress to become a net-zero economy by 2050. With this move, the United States intends to make up lost ground in greening its economy and infrastructure, and begin the virtuous cycle of investment towards a carbon-responsible future.

A participant in COP28, the United States reaffirmed its commitment to carbon goals and acknowledged the role of cities in driving implementation of this vision. December 6, the COP-designated Cities Day (“Multilevel Action, Urbanization, and Built Environment Day”), provided opportunity to highlight the role of cities and local governments in combatting climate change through mitigation, adaptation, and innovation. In addition to Cities Day, the COP28 saw a gathering of local leaders, including Mayors and Governors, from around the world. The Local Climate Action Summit introduced presentations on adaptation and resilience at the local level as well as discussions on transforming climate finance and fast-tracking the energy transition. This year also marked the first ever Global Stocktake, where countries evaluate their progress towards goals identified in the Paris Climate Agreement. The resulting Stocktake report card is intended to help policymakers and stakeholders strengthen their climate policies and commitments in their next round of investments.

Cities across the US are hosting their own mini-COPs and local stocktakes to bring this global dialogue to the local scale. Results of local stocktakes will highlight opportunities to advance climate action at the city or regional level. The work of local governments often exceed state or national targets as urban centers work to embed climate action in their budgets, policies, goals, and value statements. Additionally, many American cities link climate work with social justice, looking to transition away from carbon while prioritizing healthy communities: supporting a just transition.

American cities have long been the nation’s innovation hubs and testing grounds for new policy, priority, and partnership. There are numerous examples across the US where local and regional governments have worked to catalyze private sector finance for climate action, such as in new housing developments. Partnership with academia and industry further advance the progress of government, community leaders, and stakeholders in realizing communities healthful for people and planet.

Opportunities persist for American cities, some of which would be aided by top-down intervention. While mutually supportive organizations exist in many cities across the US, connections across sectors fall short. For example, as Governors and Mayors seek to encourage major investment in affordable housing, they would do well to incent connection to accessible transportation, clean energy utilities, and investment in alternative energy sources. Another challenge in local government is the sustainability of investment. While the national government is often to slow to start a new program or initiative, these investments tend to have staying power; unfortunately momentum can be lost at the local level where changes in local government can see stark changes in political tides. Finally, community engagement, particularly with historically-underserved groups, continues to challenge many American cities with varying levels of trust in local government, widening economic disparities and social conditions, changing methods of communication, and limited pressure or accountability.

For these learning opportunities, the US would benefit from looking to other nations – leaders in this work that have the benefit of time and continued investment over years of practice. While the US looks to learn the language of climate action, it is well served to take a lesson from those who are becoming fluent.

The Viable Cities Journey – From an Idea to Cascading Climate City Contracts

Lars Johansson , Coordinator for Climate-Neutral Cities 2023, Viable Cities

In March 2023, the UN's Intergovernmental Panel on Climate Change (IPCC) released its report, emphasizing the urgent need for swift and decisive actions to address the climate crisis. Concurrently, several crises coincide with the climate crisis: wars, the energy crisis, mineral shortages, loss of biodiversity, and a democratic challenge where an increasing portion of the population feel left out. These crises and challenges create an increased need for systemic innovation and transformative societal change. We can no longer only focus on new solutions to isolated problems. We basically have to reinvent the way in which society works. 

The majority of the world's population reside in cities, making cities play a crucial role in achieving climate neutrality and a good life within the planetary boundaries.

The Swedish innovation programme Viable Cities was launched in 2017, with former Finance Minister Allan Larsson as chairman and funding from three government agencies:  Swedish Energy Agency , Formas, a Swedish Research Council for Sustainable Development , and Vinnova . The mission-driven approach, based on the ideas of economics professor Mariana Mazzucato, is central to the programme. This approach implies to gather all efforts toward a common visionary, clear, and time-bound goal. In the context of Viable Cities, the mission the programme is striving towards is climate-neutral cities by 2030 with a good life for all within planetary boundaries.

Six years on, the programme has spurred the mobilisation of a growing number of cities - where city administrations work with a breadth of actors from industry, academia, public sector, civil society and citizens - to accelerate the local transition to climate-neutral and sustainable communities. The mobilization takes place at multiple levels simultaneously – local, regional, national, and international.

A key initiative in the mission-driven approach of Viable Cities was launched in 2018 with the initiative Climate-Neutral Cities 2030, initially including nine Swedish municipalities. In 2021 it expanded to include 23 municipalities, all with high ambitions for climate and sustainability transition. Together, they represent 40 percent of Sweden's population. The 23 cities have committed to be forerunners to enable many more cities to transition easier and faster, in Sweden and elsewhere. Viable Cities acts as a platform for accelerated learning where cities try new methods and solutions, learn from each other, and work together for the mission: to create cities that work well for the people living in them, are good for the economy of citizens, businesses, and society – and – are good for the climate.

A central instrument is Viable Cities’ Climate City Contract 2030, launched in 2020. It is a unique governance tool that specifies what the 23 cities commit to and implement to accelerate climate transition. Six government agencies participate in the process: the Swedish Energy Agency , Vinnova , Formas, a Swedish Research Council for Sustainable Development , Tillvaxtverket - the Swedish Agency for Economic and Regional Growth, the Swedish Transport Agency , and the Swedish Environmental Protection Agency . They commit to work collectively to facilitate the cities' climate and sustainability transition. Every year, on European Viable Cities Day in December, the collaborative work is manifested through a signing ceremony with the highest political leadership in the cities, the director generals of the government agencies, and Viable Cities. However, Climate City Contract 2030 is more of a co-creative process than the content of a signed document. The contract is revised and sharpened each year – by the cities, the government agencies, and Viable Cities. The climate city contract creates a long term strategic process, where new actors are mobilised step by step and the collective capacity to accelerate the transition is strengthened over time. 

The Swedish mobilization for the mission on climate neutral cities 2030, is now also part of the one in Europe. In the Green Deal for Europe, the EU has set the goal for Europe to be a climate-neutral continent by 2050. In 2022, the EU Commission launched the mission "100 Climate Neutral and Smart Cities 2030," also known as the Cities Mission. A central platform for implementing the Cities Mission is NetZeroCities, an initiative that brings together over 30 partners, among them Viable Cities, to support the cities' transition. In 2022, 112 cities, including seven Swedish ones, were selected as forerunners in accelerating climate transition in Europe. A crucial tool in the Cities Mission is a European Climate City Contract, inspired by the Swedish contract introduced in 2020. Additionally, Viable Cities is working in CapaCITIES where national platforms are being created in a number of European countries to support climate transition in cities, similar to Viable Cities in Sweden.

The Climate-neutral and smart cities 2030 (Cities Mission) has already accomplished a significant mobilisation for accelerating the climate transition in cities. The establishment of the Cities Mission has been important and timely in addressing the "implementation gap" and the systemic challenges that individual cities' climate efforts can never solve on their own.

Over the years, together with our co-actors, we have gained many crucial insights for the programme's development.

1. Cities and municipalities have a significant opportunity to involve local actors and make decisions within their geographical areas. In addition to the municipality, many other actors are crucial for the local transition journey, such as SSAB in Borlänge or the petroleum industry in Gothenburg. There is a need for local mobilization of businesses, civil society, citizens, and educational institutions. That's why we talk about cities and not just municipalities. Municipalities can lead, but all other actors also need to be involved in the mobilization. By bringing different actors across society together in a local transition arena to work collaboratively and learn from each other, over time they can build capacity and collectively accelerate the local transition journey.
2. Numerous efforts have been made and are ongoing, both to reduce greenhouse gas emissions and for sustainable urban development, often in the form of projects. However, projects come to an end, and there is a significant risk that experiences and lessons learnt will be forgotten. A key part in Viable Cities’ mission driven approach is to find ways to collaborate beyond "projectification" – initiatives should be part of a portfolio of efforts contributing to the common goal: climate-neutral and sustainable cities, aiming to create the "new normal".
3. It is not sufficient to rely on isolated efforts; we need to build an infrastructure for shared development, scaling, and dissemination of knowledge and concrete solutions, ranging from policy labs to our latest development track: system demonstrators. We need to change the societal system – from specific initiatives, through laws and regulations, to behaviours and cultures. Parents and retirees, as well as CEOs, ministers, and directors-general, need to be engaged and involved. The climate transition affects everyone; it is not something that the municipality's environmental department or the Swedish Environmental Protection Agency can solve by themselves. We need to work both from the grassroots to the top and horizontally instead of in silos. Changing ingrained and sometimes invisible cultures, routines, and structures is not easy, and we need to work together to achieve it.

In the 23 cities participating in the Climate-Neutral Cities 2030 initiative, numerous efforts are underway to contribute to all of this. They work to reduce greenhouse gas emissions, save energy, create mobility for all, engage more people, and govern in new and more networked ways. And they all share their experiences to collectively create the new normal: climate-neutral cities by 2030 – with a good life for all, within the boundaries of the planet.

Now we are getting ready to step up our work to provide even more momentum to the climate and sustainability transition - from the local to the global. From 23 cities to 112 cities in Europe to 300 cities and more globally 2024.

Viable Cities and The Sweden-US Green Transition Initiative have announced a new partnership to advance climate neutral cities. Viable Cities and GTI will collaborate with Swedish, European and American stakeholders to promote knowledge transfer for climate neutrality and showcase solutions through system demonstrators and systempilots. The project aims to secure strong collaborations with great potential for knowledge exchange in climate-neutral cities between Sweden and the United States in 2024.

For further request or information, please contact: Linda Andrén, linda.andren@gti-sweden.se

Industry and the Green Transition: A Look at Innovative Start-ups and the Green Building Sector

Berkeley SkyDeck – Meet the New Start-up Cohort Bringing Swedish Innovations to Silicon Valley

Swedish innovations have arrived in Silicon Valley, California. On November 1st, six Swedish start-ups entered Berkeley SkyDeck , the University of California, Berkeley 's flagship start-up accelerator program. SkyDeck offers a novel opportunity for growth-stage companies to scale their innovations and enter the American start-up ecosystem. With great support from the Swedish Energy Agency and guidance from GTI, these Swedish innovators are participating in SkyDeck’s Innovation Partner Program (IPP), strengthening global collaboration to advance cutting-edge start-ups.

Thank you to SkyDeck participants Hanns Hallesius - Tructric , Martin Walian - CommuteSaver , Robel Samson - Elonroad , Johan Winlund - Echandia , Shwan Lamei and Anders Waller - Emulate , and Ivan Martinovic - Polar Light Technologies for sharing their insights. This fantastic Swedish cohort has catalyzed a range of innovative technologies which offer solutions for electronics, transportation, and energy. These entrepreneurs are leading the future of innovative technology, demonstrating how creative ideas can bring positive change to communities and the planet.

Tructric is a sustainable transportation company which develops innovative loading systems. Tructric’s Assisted RoRo (roll-on, roll-off) system optimizes shipping solutions for semi-trailers and railway wagons, making transportation more efficient and sustainable. Hanns Hallesius, Founder of Tructric, shared his perspective on SkyDeck and his innovative company, Tructric.

Tell us about the SkyDeck opportunity: What does your team hope to gain from the accelerator program?

As an early stage startup we need to grow and develop in a number of directions such as tech development, market development and fundraising. Having access to great mentors and advisors, we aim to accelerate our path to the next stage. And a particular target is evaluating the opportunities of the US transport market. It’s a huge market, but quite different from the European one.

How does your team envision the role of technology in the green transition?

As we see it, there are two basic ways to meet the challenges of climate change - either to change behavior or to implement new cleaner technologies. Understanding that a big portion of the fossil energy produced is used for basic human needs, we will probably have to do a bit of both. And in this regard, we believe that the development of new technology is instrumental for the transition to a net-zero society, if we are to keep a relevant basic standard of living for people around the world.

Tructric develops solutions for combined transport between road and rail. How does Tructric’s technology optimize current transportation processes?

Combined transportation is a combination of the best of two worlds, the sustainability of rail over long distance and the flexibility of road first and last miles. But the transition between road and rail is presently quite inefficient and combined transportation is therefore often not a competitive alternative. With our new loading technology, using precision driving, a seamless transition between road and rail can be achieved. This way, we intend to make combined transports an attractive alternative for most long-distance transports.

Survey the shipping and logistics industry: how will your team position Tructric to support the industry’s low-carbon evolution?

A key problem to resolve on the path to a net zero transportation system, is that we will need sustainable and competitive alternatives for long distance trucking. Trains are considerably more energy efficient than trucks, and therefore in different ways a better choice. But we must also consider the fact that most long-distance transports start and end on a trucking terminal. Therefore, we aim to raise competitiveness of combined transports to ultimately provide a better alternative to long distance trucking.

CommuteSaver offers solutions for tracking and reducing CO2 emissions related to employee commuting. CommuteSaver’s app detects user’s transportation habits and offers recommendations for reducing their carbon footprint. We spoke with Martin Walian, CEO and Founder of CommuteSaver, to learn more:

Tell us about the SkyDeck opportunity: What does your team hope to gain from the accelerator program?

Regarding the accelerator program, it’s a great opportunity to see how things are done. Already after one month, I’ve learned more than the last two years. In general, you learn from the culture, how it works, in the epicentre. When it comes to funding, but also the way to build a start-up and a team, the whole entire experience is very different. It is very real here and hard to replicate in other places. We are seeking a very authentic experience with regard to fundraising, team structure, product sales, and getting advice from the best people in the world.

How does your team envision the role of technology in the green transition?

It is quite interesting because we came here to see if there were any other applications of our technology in the California sector. As soon as you start working with CO2 emissions you also immediately look at reducing and measuring, you also look at legislation which is different in California compared to Europe. We are trying to find a way to implement our technology within the California legislative framework. This was also something we were thinking about before we came so we can target our technology specifically towards electric vehicles so we can measure the CO2 saved and other information. We are specifically targeting electric vehicles, their charging, and how much they are saving, because in California you can translate that into money if you can show it in a compliant manner. That is particularly what we are focusing on here. We are also looking for funding from Future Mobility and Vinnova. We have also developed partnerships with professors here to set up charging stations and they are interested in applying our technology in the setting here.

Tracking emissions can help reduce one’s carbon footprint. Tell us about CommuteSaver’s app and the future of tracking commute-related emissions.

In Europe, people like to bike and take public transport more so we can measure that based on European legislation. In the US, bicycling and public transport is not as prevalent and reducing CO2 from transportation is usually through electric cars. We can help measure the CO2 saved by electric vehicles, especially when they are charging we can measure how much the grid makes and while they are driving. For the US, we are setting aside bicycle and public transport to focus more on EV usage.

As we look to California, CommuteSaver is looking forward to building partnerships with companies transitioning their fleet to electric vehicles. We can provide cheaper charging by redeeming carbon offset credits in a streamlined way.

What do CommuteSaver’s users say about the app’s impact on their commuting habits?

During our past projects in Sweden, we showed a 22% decrease in car usage and an increase in bicycling. We were able to test and measure this change in Sweden.

Elonroad  develops electrical road technology which allows for continuous electrical vehicle charging while driving or parked. Electrical road systems (ERS) involve streaming energy to vehicles through a ground level feeding system, allowing for smaller and more cost-effective batteries. In our interview with Robel Samson, Head of Elonroad, we learned more about Elonroad’s cutting-edge approach to charging and electromobility.

Tell us about the SkyDeck opportunity: What does your team hope to gain from the accelerator program?

We hope to gain valuable mentorship, access to a diverse network of experts, and resources that will empower us to scale our impact in the sustainable transportation sector. We are also looking to connect with potential partners and investors in the region.

How does your team envision the role of technology in the green transition?

We see technology as the driving force behind the green transition. Our team envisions innovative solutions, like our electrified roads, playing a pivotal role in sustainable transportation, reducing carbon emissions, and fostering a cleaner, more energy-efficient future.

Elonroad places electric vehicle charging into road infrastructure. What are the benefits of integrating EV charging and road infrastructure?

Charging while driving has many benefits, including:

- Smaller batteries (which in turn should reduce EV purchase price)

- Balanced power output, reducing the required grid capacity

- Maximize vehicle uptime / no downtime to charge your EV)

- Space savings

-  Compatible with all vehicles

Echandia designs and manufactures energy storage solutions to electrify heavy-duty martime transport. Utilizing lithium titanate oxide (LTO) chemistry, Echandia’s technology is durable to withstand energy intensive applications. Echandia is also NATO qualified and continues to offer solutions for the defense sector. We spoke with Johan Winlund, Marketing and Communications Manager at Echandia to learn more about Echandia’s durable and efficient technology.

Tell us about the SkyDeck opportunity: What does your team hope to gain from the accelerator program?

We are very fortunate to be part of SkyDeck. We are already making a number of high quality connections. We hope to know more about how to most effectively break into the US market. Also, we are looking for advice on how to effectively deal with the rules and regulations that govern the US market as a whole but also specifically the maritime market.

How does your team envision the role of technology in the green transition?

We see the evolution of new technology as the driving force of the green transition. Technology that makes it easier, more effective and more profitable to reduce emissions and lower our footprint.

Just as ground transportation is increasingly electrified, maritime transportation is also evolving. How does Echandia help reduce emissions from maritime shipping and travel?

We offer the safest and most durable battery systems on the maritime market. By offering systems with an exceptional lifetime, fast charging and outstanding safety we are lowering the threshold for our customers to electrify their ships and vessels. So far, we have delivered about 60 systems around the world, each contributing to the green transition.

How has Echandia tailored its technology to thrive in heavy-duty conditions?

Our solutions are designed to meet the highest quality, safety and lifetime requirements, and to withstand the toughest demands and operational profiles. In 2022, we obtained approval as a qualified supplier from two global system integrators, reinforcing our delivery capabilities. Combined with our ISO 14001 and ISO 9001 certifications, these achievements serve as testament to Echandia's commitment to quality.

Emulate  offers a software platform for the energy sector. Emulate’s technology leverages distributed energy resources (DERs) to help consumers reduce energy costs and energy companies to leverage the devices into the energy markets. Shwan Lamei, Co-founder and CEO, and Anders Waller, Chief Product Officer, shared their insights into SkyDeck and their company, Emulate.

Tell us about the SkyDeck opportunity: What does your team hope to gain from the accelerator program?

Our team is eager to tap into SkyDeck's startup ecosystem. We anticipate gaining valuable insights, forging strategic connections, and learning from the best in the industry. This will amplify our growth and innovation potential.

How does your team envision the role of technology in the green transition?

We believe technology is pivotal in addressing the climate crisis. It's about innovating with purpose, leveraging our collective ingenuity to create sustainable solutions. Our history shows we as humans tend to rise to challenges; the climate crisis is no exception, and technology will be our key ally.

Energy transition is critical to reach emissions reductions targets. How is Emulate re-shaping the energy sector?

Emulate is tackling a crucial challenge within the energy transition – smart integration of distributed energy resources into our grids. Our focus is on enabling homeowners to use energy more efficiently, facilitating a smoother transition to sustainable energy practices.

Emulate aims to improve the accessibility of renewable energy. What key differences does Emulate see between Swedish and American energy systems?

Comparing Swedish and American energy systems show distinct differences. Sweden has advanced further in implementing cost-reflective tariffs, like demand charges and dynamic pricing, driving the demand for smart energy management solutions. We're beginning to see similar trends emerge in the U.S., indicating a growing market for our services.

Polar Light Technologies develops innovative and energy efficient microLEDs, the worlds brightest display technology. Their technology is well suited for many applications, including displays for augmented reality (AR), and automotive displays. We spoke with Ivan Martinovic, Co-Founder of Polar Light Technologies, to learn more:

Tell us about the SkyDeck opportunity: What does your team hope to gain from the accelerator program?

SkyDeck and Silicon Valley is truly home turf for a semiconductor startup like Polar Light. It is a wonderful opportunity for us to learn from the vast network of mentors and advisors at SkyDeck and the whole Silicon Valley ecosystem. We are meeting investors and partners in our field, and it is accelerating our growth.

How does your team envision the role of technology to enable change?

We believe that change is enabled by disruptive technology, which comes from taking fundamental research to market.

Polar Light Technologies develops highly efficient and innovative microLED technology. What applications or industries can benefit from Polar Light Technologies’ products?

Our display technology enable you to intuitively access context relevant information in the field of your view. This is called Spatial Computing (or Augmented Reality) and we are developing this next-generation display technology for these and many more applications.

How does research and development drive your team and its mission?

R&D is at the core of Polar Light. We are spun out of decades of research on semiconductor materials, led by our founder Prof. Per Olof Holtz. At Polar Light, curiosity and dedicated hard work goes hand in hand to reach our goals!

GTI is honored to be supporting this inaugural group of Swedish start-ups through the SkyDeck accelerator program. These innovative, creative, and green solutions all bring unique strengths to Silicon Valley and the larger US tech ecosystem. The SkyDeck Innovation Partner Program has been made possible thanks to the Swedish Energy Agency and the hard work and dedication of each Swedish start-up. GTI also extends its thanks to Hanns Hallesius, Martin Walian, Robel Samson, Johan Winlund, Shwan Lamei, Anders Waller, and Ivan Martinovic for their insights and collaboration.

Greener Homes for Sweden and the United States: Industrialized Construction Solutions and Modular Housing

A greener home is not only more energy and resource efficient but also improves the wellbeing of those who inhabit it. The green transition has catalysed advancements making residential dwellings more sustainable for communities and the surrounding environment. However, greener homes must also be more affordable and accessible to meet the increasing demand for housing worldwide. In the United States, studies project that 16 million houses will need to be built to accommodate the growing population. The US is facing an immense challenge of expanding housing in a resource-efficient way to ensure American communities have access to affordable and green dwellings. Sweden, an important trade partner for the US, is a global leader in designing and constructing green buildings. Sweden is well positioned to support the United States’ growing demand for green buildings, representing a unique opportunity for greater binational collaboration.

Housing has become a growing focus for the American public and policymakers who seek to improve sustainability, energy-efficiency, and affordability. The Department of Energy (DOE) estimates that almost one-third of US greenhouse gas emissions are linked to the US’ 130 million homes and commercial buildings, utilizing 40% of America’s energy and 75% of its electricity. On October 12th, the Biden Administration launched the Affordable Home Energy Shot plan to reduce energy bills in affordable housing. This new Energy Earthshot initiative aims to decarbonize affordable housing by 50% within the next decade, setting an ambitious goal for the American green buildings industry. The Administration will also offer tax credits to incentivize construction of dwellings in multifamily buildings, presenting opportunities to re-imagine the way homes are built.

Modular housing solutions are growing in both the US and Sweden, reducing the environmental impact of building construction. GTI spoke with Helena Lidelöw , Chief Technical Officer at Volumetric Building Companies (VBC), to learn more about how modular approaches are transforming building construction. She explained that “modular construction reduces the carbon footprint foremost by using light-weight materials that are cut to fit, thus reducing waste. The transportation from factory to site is always included in these analyses and still modular construction presents a 40% lower carbon footprint than average US construction.” Industrialized construction lowers emissions and reduces waste, a benefit to any construction project, however these volumetric strategies are particularly fitting for developing housing. Helena noted that “the geometrical sizes of the rooms we live in happen to coincide fairly well with the shippable sizes of road transportation.” Construction modules or pieces of a building can be transported from the factory directly to the building site. Helena mentioned how “it is possible to ship with all the finishes complete, which decreases on site completion time substantially [which] can cut up to 1 year on time to completion.” Although the US is expanding industrial building capabilities, Sweden is already a leader in expanding resource and energy efficient dwellings. Helena shared that Sweden has refined industrialized construction overtime, given higher labor costs and short seasonal spans suitable for onsite conditions. She noteed that “when the EU began focusing on green building, many of those methods were already tested in Sweden.”

In addition to modular construction advancements, Sweden is home to many strengths related to green housing. Smart technology solutions help reduce energy consumption, improve indoor air quality, and optimize heating and cooling systems. Sweden is also a global leader in wood construction given the country’s robust lumber industry. Swedish wood is internationally recognized for its high-quality, sustainability, and durability which presents many applications for green housing and buildings. Utilizing wood as a construction material also boost circularity, as these resources can be re-used during construction to reduce waste. Aside from the energy and environmental benefits of greener housing, wood homes can improve one’s quality of life. Studies show that wooden homes have been linked to boosting the physical and mental wellbeing of its inhabitants.

The growing demand for housing which is both cost-effective and environmentally-friendly is reshaping how buildings are designed and constructed. Sustainable solutions like modular construction can be scaled to further reduce emissions and waste derived from the development process. International collaboration can also help expand green approaches to construction. Sweden’s strengths in innovative building development can support the United States’ ongoing aim to expand green, affordable housing – creating impactful change for communities and the environment. As Helena Lidelöw remarked, “the US strong innovation culture can hopefully join forces with Sweden and other countries to create a sustainably built future,” for all.

The Global Green Transition: International Exchange at COP28

Pioneer the Possible: Reflections from COP28 and the Swedish Value Proposition

This past week culminated with the end of COP28, the world’s most important summit for diplomacy and climate. COP28 was held in Dubai, United Arab Emirates (UAE), welcoming delegates, business leaders, and other participants from across the world. COP is an essential platform to bring global stakeholders together to build pathways to climate resilience and reach the Sustainable Development Goals (SDGs).

For the third year in a row, Business Sweden organised the official Swedish business delegation and proudly hosted the Swedish pavilion. In Dubai, 23 companies participated, together standing for a total turnover of SEK1.2 trillion — Sweden’s largest business delegation ever to COP.

Over the two weeks of the conference, these companies showcased their innovations and solutions to the world through 65 sessions with over 200 speakers, almost 100 bilateral meetings with clients, partners, and decision-makers. And over 9 million people tuned into our live streamed sessions, highlighting the tremendous impact Swedish companies possess. Even though COP28 has concluded, the work to accelerate a green and just transition continues. And Swedish companies have proven their commitment to this.

The agreement on the ‘transition away’ from fossil fuels is a leap forward and we know the solutions are available to accelerate the global transformation are available – but we need to scale these up at pace. Business Sweden offers support to Swedish companies to implement and scale up solutions needed to reach the Paris Agreement. You can read more about Sweden at COP28 here.

Darja Isaksson is the Director General of Vinnova , Sweden’s innovation agency. Vinnova supports Swedish research and development, scaling technological innovations to support sustainable growth, and is one of GTI's founding agencies. Darja shares her insights into COP28 and the role of innovation in the green transition.

COP28 has just taken place. How is COP28 relevant from Vinnovas perspective?

As we all know, research clearly shows that the transition to a sustainable society is extremely urgent. To accelerate this transition, innovation is required, both in terms of new technologies and new improved working methods. When agreeing on a way forward on climate change, we also have an opportunity to agree on new sustainable solutions.

Why is innovation important for sustainable development? How can new advancements enable a positive climate impact?

The world is facing a massive transformation, where old technology must be replaced by modern innovation that encourages behaviour change and stimulates demand for solutions that make a difference. Sweden has the potential to take the lead in climate transition and provide sustainable solutions while maintaining competitiveness.

Sweden has advanced energy, electromobility, and battery technologies, among other green innovations. Which Swedish strengths do you think will have the greatest impact to combat climate change?

I do believe the technologies mentioned will be really important, as energy use is key to climate transition. Whether it be in trade, industry or society, we need innovations that can accelerate the development of an electrified and sustainable mobility system. One way to work with this important system change lies in disruptive system solutions where small and medium-sized companies work together. A very important priority for the accelerated transition to sustainable mobility is linked to electromobility, advanced battery technology and electric charging infrastructure. To exploit the innovation potential of these technologies, investments are needed.

We also see disruptive solutions that emerge from deeptech, where research intense companies challenge our existing systems. Together with cutting-edge technologies such as AI, advanced materials, synthetic biology and quantum technology, they are changing value chains and markets, making it possible to solve major societal and climate challenges.

What impact does Vinnova expect from COP28 going forward and is there any that are of specific relevance in a Sweden-US context?

We need to be more ambitious and accelerate the green transition. Strong international partnerships are key for success, both in creating common objectives and frameworks, and in the solutions we need. Sweden is far ahead in climate technologies and solutions that can make a difference globally.

When it comes to collaborations outside of Europe, the US is a partner of increasing strategic importance. Silicon Valley is one of the world's leading innovation systems, and for many years Vinnova has had coworkers and operations in place to initiate, enable and drive innovation and collaboration between Sweden and Silicon Valley. 

The Swedish Research Council and Vinnova have a collaboration with the National Science Foundation (NSF), which should be developed and broadened in 2024. Through the collaboration, researchers in Sweden will be able to apply for grants to speed up the process from basic research to application. The Swedish-US collaboration focus on knowledge exchange in innovation, science and entrepreneurship as well as mobility for students and researchers between Sweden and the USA. The bilateral innovation partnership with the US and the collaboration with the NSF should include exchanges around research and innovation linked to key technologies. This will, among other things, strengthen Swedish handling of dual use technology, as well as provide conditions for increased exchange around the development of innovation ecosystems for startups and scaleups.