At the centre of Swedish environmental legislation is the Swedish Environmental Code (miljöbalken), which regulates key policies and principles for environmental protection. There are a large number of ordinances and regulations (förordningar och föreskrifter) under the code. Besides this core environmental legislation is sectoral legislation that regulates specific areas, such as physical planning, extraction of natural resources, transportation, and ionising radiation. Additionally, there are laws and general legal principles that do not regulate the environment directly but still have an impact on its quality (eg, rules relating to right of public access).

Laws are enacted by Parliament, while ordinances are issued by the government and environmental regulations by authorities such as the Swedish Environmental Protection Agency (Naturvårdsverket).

Several authorities are responsible for environmental supervision but the county administrative board (länsstyrelsen) or the municipality is often the main supervisory authority for environmentally hazardous activities (miljöfarlig verksamhet).

Certain less impactful environmental activities are often reviewed by the environmental permit office at the county administrative board (miljöprövningsdelegationen inom länsstyrelsen) or by the municipality.

Within the general courts, there are special land and environmental courts that handle the more impactful environmental activities, including water activities (vattenverksamhet) as well as general environmental law cases. The final and precedent-setting instance for environmental law cases is often the Land and Environmental Court of Appeal, but in some cases the Supreme Court or government.

The Swedish government has recently presented an official inquiry into how to make the environmental permitting process shorter and more efficient. The report, SOU 2024:98, was presented in January 2025. The inquiry proposes (among other things) a new national permitting authority, the Environmental Permitting Agency. It will replace the environmental permit offices at the county administrative boards and, to a certain extent, the Land and Environmental Courts regarding permit proceedings at first instance. The new agency will be established 1 July 2027. Other alterations to the permitting system, not yet decided, are proposed to enter into force on 1 January 2028.

Authorities collaborate and co-ordinate in various ways to optimise environmental supervision and to effectively handle complex environmental issues. They share information, co-ordinate and streamline supervisory measures, and strive to unify policy development. Both in legislative matters as well as consultation processes for specific activities and measures, various authorities with different areas of expertise are normally heard.

There are laws and rules that specifically aim to protect various environmental assets – eg, the area and species protection rules. There are also environmental quality standards (miljökvalitetsnormer) that regulate the quality of land, water, air and the environment. Further, activities that can impact or alter the environment have to undergo permit, notification or consultation procedures and may require special approvals and/or exemptions before initiation. Through such procedures, their impact on the environment can be reviewed and regulated on a case-by-case basis.

Violations of law may result in administrative legal consequences such as revocation of permits, environmental sanction fees (miljösanktionsavgifter), injunctions or prohibitions (förelägganden och förbud). Certain breaches could lead to criminal penalties or an obligation to pay damages.

Supervisory Authorities

Supervisory authorities have broad authority to investigate and address environmental incidents and breaches of laws or permits. However, the supervision must aim to ensure the purpose of the applicable rules, and any measures taken must always be proportionate. Supervisory powers include:

• conducting inspections;
• accessing sites;
• collecting samples;
• reviewing records; and
• issuing orders to cease harmful activities or take corrective actions.

It should be noted that the supervisory authority is obliged to report violations of law immediately to the police or the public prosecutor’s office if there is reason to assume that a crime has been committed.

Permitting Authorities

Permitting authorities do not have hands-on investigative powers in the same sense as supervisory authorities but can reconsider and amend or revoke permits (eg, if a permit has not been followed). Permit reconsiderations cannot lead to amendments that are so intrusive that the permitted operations cannot be carried out, or their performance is made significantly more difficult. Revocation of a permit can be partial or full. Any decision to amend or revoke a permit must always be proportionate. Since reconsideration of a permit is less intrusive for the operator than revocation, reconsideration should first be assessed.

Regulatory bodies can introduce new rules to address identified problems but cannot target specific activities and/or incidents.

Permit Requirements

There are different types of permits and approvals for different types of activities, but the main permit type is an environmental permit required for an operation or other activity classified as environmentally hazardous (miljöfarliga verksamheter). The permit requirements are regulated in the Environmental Assessment Ordinance (2013:251) (miljöprövningsförordningen) and the Ordinance on Environmentally Hazardous Activities (1998:899) (förordningen om miljöfarlig verksamhet och hälsoskydd). In addition, permit requirements for water activities are regulated in the Swedish Environmental Code (1998:808) (Miljöbalken). Permits are obtained through an application process that includes consultations with the public and an environmental impact assessment (EIA).

Appealing a Permit

A permit can be appealed by the natural or legal person whom the judgment or decision concerns, if the decision goes against them. This includes both the person to whom the decision is addressed and people in the surrounding area that are affected by the decision. Environmental organisations and other organisations have the right to appeal permit decisions in accordance with the above and in accordance with the principles set out in the Aarhus Convention. A permit can also be appealed by authorities that are affected by the permitted activities in accordance with the above, as well as by authorities that have been given specific right to appeal by law. The right to appeal permit decisions is not affected by whether the person expressed an opinion in the decision-making process or argued the case in the first instance.

Government Inquiry

The Swedish government has recently presented an official inquiry into how to make the environmental permitting process shorter and more efficient. The report, SOU 2024:98, was presented in January 2025. The review aims to secure competitiveness, increase the willingness to invest and promote an effective industrial climate transition in support of Sweden’s climate and environmental goals. The report now awaits further consideration in the legislative process.

The proposed provisions regarding a new permitting and review process are due to enter into force on 1 January 2028.

Legislation, self-control, supervision and guidance from the relevant authorities are the key tools used to enforce environmental policy and to achieve its purpose in Sweden.

Environmental permits/approvals can be transferred to another person or legal entity.

If an activity which is subject to a permit or notification requirement is conducted by a new person or entity, the new operator (verksamhetsutövare) must inform the supervisory authority of the changed circumstances as soon as possible according to Section 32 of the Ordinance (1998:899) on Environmentally Hazardous Activities and Health Protection (förordningen om miljöfarlig verksamhet och hälsoskydd).

Only permits can be transferred. Supervisory decisions are issued and directed to specific operators and do not apply to new operators. Such decisions can therefore not be transferred. Instead, the supervisory authority can issue a new decision to a new operator upon receival of notification of transfer of the operation in accordance with the above. The new decision may be identical with the previous decision or include new precautionary measures.

Violations of environmental permits or approvals can lead to supervisory review and supervisory injunctions and prohibitions which can limit the operator’s ability to carry out the permitted or approved activities. However, injunctions and prohibitions must always be proportionate and may not limit a permit that has legal force (rättskraft).

In serious cases, issued permits can be revoked entirely (see 4.1 Investigative and Access Powers).

Violations may also lead to environmental sanction fees, penalties/criminal liability, and/or obligation to pay damages.

Persons or entities responsible for environmental incidents or damage can be liable to perform investigations and to carry out remediation and restoration measures. They can suffer administrative consequences such as revocation of permits, prohibitions and environmental sanction fees. Certain breaches could lead to criminal penalties or an obligation to pay damages.

Environmental damages which, through contamination of a land or water area, groundwater, a building or a facility, can cause damage or inconvenience to human health or the environment are covered by Chapter 10 of the Environmental Code. Past and previous operators and property owners have specific responsibilities for such damages. The person or entity responsible for this sort of environmental damage can argue that the responsibility should be limited or waived for some reason – eg, with regard to subjective and/or objective circumstances or that the responsibility should be adjusted (jämkning). Recourse claims can also be directed against other responsible parties, regarding their part in the incident or damage. It should be noted that the responsibility under Chapter 10 of the Environmental Code does not become statute barred.

The key types of liability are:

• civil liability for damages;
• administrative liability for non-compliance with regulations, permits or supervisory decisions; and
• criminal liability for certain violations.

New operators and landowners can be liable for historical environmental incidents or damage but can direct recourse claims against previous operators. The main legislation regarding this can be found in Chapter 10 of the Environmental Code.

Besides claims for non-contractual damage compensation, affected parties can bring civil claims for damages against parties responsible for contamination in accordance with Chapter 32 of the Environmental Code. In a civil claim, the affected party must show that damage has been caused by an activity on a property, that there is an adequate causal connection, and that the injury should not reasonably be tolerated if it is local or common (orts- eller allmänvanlig). A pure economic loss that has not been caused by a crime is compensated only if the injury is of some significance. Special rules apply for contamination caused by activities conducted in accordance with a permit for water operations. In these cases, the responsible party can argue that the responsibility should be limited or waived for reasons other than in a case regarding responsibility under Chapter 10 of the Environmental Code – eg, with regard to the prescriptive period (preskriptionstid).

Corporate entities are generally subject to the same rules as private individuals (see 5.1 Key Types of Liability).

If an environmental crime is committed during business activities, it is the company’s management that is criminally liable (ie, the board and the director). However, a corporate fine (företagsbot) is often the only relevant consequence of a breach of environmental law. Normally, only in more serious cases or cases concerning an act that was committed intentionally will individual personal liability for the management come into question. The corporate fine amounts to a minimum of SEK5,000 and a maximum of SEK10 million. However, for larger companies, a higher fine may be imposed if the gravity of the offence so warrants and taking into account the financial circumstances of the company. If the sanction value amounts to at least SEK500,000, the corporate fine for larger companies shall be set higher than would otherwise apply. The definition of a “larger company” follows the criteria set out in the Swedish Annual Act, Chapter 1, Section 3. As the sanction value may not exceed SEK10 million, the enhanced corporate fine can amount to a maximum of SEK500 million, since it may not exceed fifty times the sanction value.

In Sweden, primarily the following environmental taxes and fees apply:

• energy taxes – energy tax on electricity, carbon dioxide tax, tax on fuels, emission permits, and sulphur tax;
• transport taxes – vehicle tax, congestion tax, tax on air travel, and road charges;
• taxes on pollution – tax on chemicals, NOx fee, tax on plastic bags, tax on waste, tax on pesticides, tax on chemicals, and fee for chemical products; and
• taxes on natural resources – natural gravel tax.

This is not applicable in Sweden.

The polluter pays principle (PPP) is central in Swedish environmental legislation. The principle dictates that polluters should bear the costs for the effects of their pollution and for any measures required to prevent, limit and remedy these effects. In line with this principle, the entity primarily held responsible for environmental damage or breaches of environmental law is the operator of the business or activity that caused the damage or committed the violation. Parent companies and shareholders can be held responsible if they are considered operators.

Sweden’s ESG requirements incorporate national and international legislation and voluntary guidelines to ensure corporate responsibility and promote sustainable development. There are several reporting requirements relating to ESG.

ESG reporting shall be made in line with the Swedish implementation of the EU Corporate Sustainability Reporting Directive (CSRD), which requires certain companies to report and disclose ESG information as part of their annual accounts. It shall contain the information needed to understand the company’s impact on sustainability issues and how these affect the company. The sustainability report must be prepared in accordance with EU reporting standards, the so-called European Sustainability Reporting Standards (ESRS).

The Swedish Financial Supervisory Authority (Finansinspektionen) monitors compliance with the reporting requirements in Sweden. Non-compliance can result in administrative sanctions as well as criminal liability. As the reporting is part of the annual accounts, the board and the managing director are both responsible for the annual accounts being prepared in accordance with reporting requirements.

The Swedish government has proposed that the obligation to prepare sustainability reports be deferred by two years for certain companies. This is due to an amending directive from the EU. The legislative amendments are due to enter into force on 31 December 2025.

The environmental law requirement to submit an annual environmental report (or in some cases an annual report) is the main environmental audit requirement (see 6.5 ESG Requirements). There are general tax audit requirements related to environmental tax but these are not labelled environmental audits.

If an environmental crime is committed during business activities, the company’s management is criminally liable (see 6.1 Liability for Environmental Damage or Breaches of Environmental Law). Insurance can be taken out by companies for employees and representatives of the company. Several providers offer insurance subject to their individual terms and conditions.

Several providers offer insurance subject to their individual terms and conditions. It can cover costs of judicial proceedings, contamination clean-up costs, third-party claims for damages and regulatory fines, etc. However, exemptions often apply when it comes to environmental law matters. Companies that seek legal advice from law firms can get assistance with applying for insurance coverage.

There is no compulsory environmental insurance. However, for certain activities, there are requirements to provide financial securities (ekonomisk säkerhet). These aim to protect society from having to bear the cost of remediation in situations where the responsible operator has gone bankrupt or for some other reason cannot fulfil their obligations.

The entity in actual and legal control of the business, that is, the operator, can be liable for environmental damage caused by the business. Consequently, a financial institution/lender cannot be liable for environmental damage or breaches of environmental law unless it has some form of actual or legal control of the business.

Loan agreements typically include limitations of liability for the lender.

Civil claims for compensation or other remedies can be brought in cases where individual persons or legal entities have suffered damage due to environmental incidents or violations of laws. These claims may concern compensation for property loss or damage, health impacts, or economic losses. Affected parties can bring civil claims for non-contractual damage compensation. They can also bring civil claims for damages in accordance with Chapter 32 of the Environmental Code (see 5.3 Key Defences).

This is not applicable in Sweden.

This is possible when multiple plaintiffs have suffered similar damage from a common source of pollution or contamination.

There are several landmark cases that have shaped and developed environmental liability law in Sweden – eg, cases that address adequate causality, burden of proof, reasonableness assessment, and liability rules in contractual relationships. As these cases illustrate how different types of environmental damage and compensation for such damage have been handled in case law, they are central to understanding how environmental liability law is applied in Sweden.

Asset transfer agreements or share purchase agreements usually include warranties and, if needed, specific indemnities in respect of environmental and permitting issues. Such indemnities concern specific issues and are usually contractually limited in time and amount. The responsibility in accordance with public law can, as such, not normally be altered, although agreements/indemnities are binding between the contractual parties.

The key legislation is Chapter 10 of the Environmental Code, which contains provisions that regulate the responsibility of operators and property owners for contaminated land. The general approach taken by regulatory authorities to remediation requirements is that the requirements should involve thorough assessment of the contamination, followed by the implementation of necessary measures to mitigate and remediate the contamination.

The main rule is that the one who conducts or has conducted the activity or has taken an action that has contributed to the contamination (the operator) is responsible for investigation and remediation. A property owner can also be held responsible. The responsibility can be delegated to another party through contractual agreements but not always with certain effect in relation to the public, that is, criminal liability and regulatory law obligations. This matter addresses both public and private law.

When more than one party has contributed to contamination, liability is finally determined based on the extent of each party’s contribution to the contamination. The reviewing authorities assess the degree of involvement and the impact of each party’s actions to apportion liability accordingly. This ensures that all responsible parties are held accountable for their respective contributions to the contamination. However, under certain circumstances, contractual agreements can be taken into account.

Any member of the public can initiate a supervisory matter which can lead to proceedings against polluters/landowners/occupiers by those affected by contamination. Anyone can also report an environmental crime and, if affected by the crime, be plaintiff in a criminal case.

Affected parties can also bring civil claims for damages against parties responsible for contamination in accordance with Chapter 32 of the Environmental Code (see 5.3 Key Defences).

Supervisory authorities play a key part in the investigation process. Investigations involve some form of incident reporting followed by site inspections or other investigations aimed at identifying causes and responsible parties while ensuring that corrective measures and/or preventative actions are taken accordingly. Chapter 26 of the Environmental Code contains provisions that can be applied by supervisory authorities to impose requirements for investigations and examinations of suspected contamination on those responsible.

Sweden adopted a climate policy framework in 2017, consisting of a Climate Act, a Climate Policy Council, and climate goals according to which Sweden is to achieve net-zero emissions by 2045. The Climate Act entails an obligation for the government to pursue a policy based on the climate goals and to regularly report on progress. According to the Climate Act, the government must develop a climate policy action plan every four years to show how its policies contribute to achieving the emission targets. The first climate action plan was submitted in 2019 and the second one in 2023.

As an EU member state, Sweden is a part of the EU emissions trading system (EU ETS). The system has been progressively expanded and now includes not only industrial and energy installations and aviation, but also maritime transport. From 1 January 2025, a separate emissions trading system (ETS 2) was introduced, covering fuel suppliers for buildings, road transport and certain other sectors. In Sweden, the EU ETS currently encompasses approximately 750 industrial and energy facilities, around 49 shipping companies and around ten airlines. With the implementation of ETS 2, a significantly larger number of operators – particularly fuel suppliers for buildings and road transport – will be required to hold and surrender emission allowances equivalent to their emissions, in accordance with the latest amendment to the EU ETS Directive and corresponding Swedish legislation. This expansion is expected to further reinforce the role of emissions trading as a central element of both Swedish and EU climate policy from 2025 onwards.

The emissions trading under ETS 2 will start in 2027. However, on 1 January 2025, requirements for permits for greenhouse gas emissions were introduced, and emissions must be monitored and reported.

The long-term goal is that Sweden should have no net emissions of greenhouse gases into the atmosphere by 2045 and thereafter achieve negative emissions.

There is legislation aimed at minimising the use of and impact from asbestos and PCBs. Asbestos and PCBs are regulated by environmental and occupational health and safety laws. The regulation (2007:19) on PCBs etc prohibits the handling of PCB goods, with certain exceptions, and imposes requirements for the notification and decontamination of equipment containing PCBs. The municipalities, county administrative boards and the Swedish Environmental Protection Agency can guide operators on questions relating to PCBs and asbestos.

There are several Swedish laws and regulatory controls governing waste. The main provisions on waste are found in Chapter 15 of the Environmental Code and the Waste Ordinance (2020:614) (avfallsförordningen).

There are situations in which a producer or consignor of waste can retain certain liability after waste has been disposed of by a third party. Producers of waste have specific responsibilities. Furthermore, according to Chapter 5 Section 18 of the Waste Ordinance, anyone who produces or handles waste in a professional activity must ensure that recipients of their waste has made the necessary notifications or holds the required permits for handling the waste. If the waste has not been handed over to someone who is permitted to conduct such operations and assume responsibility for the waste, the original producer or consignor can become responsible, for example, for pollution caused by the disposed waste.

There are several rules regulating the responsibilities of producers of goods. The rules are based on the “polluter pays” principle, but the requirements differ for different types of products. Certain rules require the producer to design and label their products in specific ways; others require the producer to collect products once they become waste and to ensure that they are recycled or otherwise disposed of accordingly. For some products, the producer is responsible for paying for collection in public systems.

Waste operators have a range of rights and obligations under waste management regulations. Operators must comply with regulations governing waste treatment activities which, among other things, ensure that their activities do not harm human health or the environment, and they must maintain accurate records and documentation. They must also obtain the necessary permits and authorisations, which regulate their specific rights and obligations. Violations can have several consequences, such as:

• revocation of permits and authorisations;
• enforcement and remediation action;
• penalties or fines;
• lawsuits; or
• criminal charges.

Besides general corporate reporting obligations, the following could be mentioned.

• Issues may need to be disclosed in connection with environmental control, eg, if the supervisory authority requests certain information during an inspection. Non-disclosure could lead to administrative sanctions or, for some regulated forms of non-disclosure, criminal liability for obstruction of environmental control (försvårande av miljökontroll).
• Operations and activities covered by environmental permits must submit environmental reports (miljörapport) by March 31st each year, in which certain issues must be disclosed. Activities covered by notification requirements may be required to submit annual reports (årsrapport). In the event of a missing or late submitted environmental report, an environmental sanction fee will be imposed.

Operations and activities covered by environmental permits or notification requirements are obliged to have a certain self-control according to the Ordinance (1998:901) on Self-Control (förordningen om verksamhetsutövares egenkontroll). According to the said ordinance, if an operational disruption or similar event occurs in the business that may lead to inconvenience for human health or the environment, the operator must immediately notify the supervisory authority of this. This is linked to criminal liability.

The Freedom of the Press Act (tryckfrihetsförordningen) gives the public access to documents from public authorities, including documents containing environmental information, provided that they are not covered by confidentiality pursuant to the Public Access to Information and Secrecy Act (Offentlighets- och sekretesslagen). Public authorities are defined as anybody within the state or regional organisation. Some bodies are considered authorities according to the Aarhus Convention, but not under Swedish national law. For these specific bodies, access to environmental information is provided through the Environmental Information from Certain Private Bodies Act (2005:181) (lag om miljöinformation hos vissa enskilda organ). The Swedish Environmental Protection Agency is responsible for providing the public with information on where to locate environmental information. Its webpage contains links to different governmental authorities’ webpages and explanations of what can be found on these pages.

Under the Annual Accounts Act (1995:1554) (årsredovisningslagen), corporations are required to include a sustainability report in their annual reports. The sustainability report shall contain environmental information about the company’s impact on issues relating to the environment.

See also 16.1 Disclosure and Reporting Requirements.

Loans or bonds can be labelled green loans/bonds if the proceeds shall be used for projects with environmental benefits. Such green labelling is often based on internal guidelines which are based on international market standards such as the Green Bond Principles established by the International Capital Market Association (ICMA). To further promote green industrial investments, the Swedish National Debt Office has been mandated by the Swedish government to provide state credit guarantees to credit institutions that offer green loans meeting specific requirements.

In November 2024, the Act (2024:1085) containing supplementary provisions to the EU Regulation on European Green Bonds (lagen (2024:1085) med kompletterande bestämmelser till EU:s förordning om europeiska gröna obligationer) was enacted, as well as the Regulation (2024:1086) containing supplementary provisions to the EU Regulation on European Green Bonds (förordning (2024:1086) med kompletterande bestämmelser till EU:s förordning om europeiska gröna obligationer). The Act supplements Regulation (EU) 2023/2631 of the European Parliament and of the Council of 22 November 2023 on European Green Bonds and voluntary disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds. The Act contains provisions regarding, among other things, administrative fines. The purpose of the regulations is to prevent greenwashing.

Since 2020, the so-called EU taxonomy has applied for Swedish credit institutions.

In addition, there are several state and EU-funded grants earmarked for projects and businesses that support the climate transition.

Whether or not an environmental due diligence is conducted in connection with a transaction depends on the business of the target company. In Sweden, environmental due diligence is typically conducted in connection with transactions concerning energy and industrial projects (eg, wind, solar, water, hydrogen or battery projects as well as industries) and properties, as well as contemplated bank financing of such projects.

The scope of a legal environmental due diligence varies depending on the status of the project. Typically, the due diligence includes conducting a review of the project rights, that is, if all necessary permits have been obtained for the construction and operation of the business, and the permit holder’s compliance with such permits and environmental law. Depending on the scope and content of the purchase, liability issues relating to contamination of land would also be included.

The Swedish Land Code (Jordabalken) and the Swedish Sale of Goods Act (1990:931) (köplagen) include a duty for the seller to inform a purchaser of certain information about the property/goods (upplysningsplikt), which could require a seller to disclose environmental information to a purchaser.

In addition, transaction agreements concerning the sale and purchase of shares/other assets typically include warranties pursuant to which the seller warrants that it has provided the purchaser with a complete and true picture of the target/property and its business, which, if relevant, includes the disclosure of environmental information.

The most common environmental legal issues that arise in Sweden within the context of a transaction concern processing errors in connection with the permit process, issues and difficulties relating to permit fulfilment and compliance, as well as questions related to contemplated operational changes after completion of the transaction (eg, increase of production or something similar). In addition, again depending on the transaction, liability issues relating to contamination of land might also be included.