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PRESENTED BY INVEST STOCKHOLM

Is this a wake-up call? Stockholm experts on coronavirus and climate change

Coronavirus has raised big questions not only about public health but about how billions of people can co-exist. But will history view humankind’s response to the pandemic as a forerunner of an even bigger collective challenge?

Is this a wake-up call? Stockholm experts on coronavirus and climate change
Photo: Getty Images

The Local spoke with two of Stockholm’s leading scientists about how the current crisis will influence our actions on climate change. We look at five key areas – attitudes, food, energy, work and travel – to consider today’s problems and what hope they see for tomorrow.

The art of changing attitudes

“We’ve been experts in the negative storyline and the pessimistic message,” says Johan Kuylenstierna, Vice Chair of the Swedish Climate Policy Council. He wants scientists and policymakers to emphasise the benefits of tackling climate change – not the consequences of failing.

The challenge may be stark. But Kuylenstierna is “much more optimistic” on climate and sustainability now than five years ago. Why?

“Because the climate debate has shifted from the political sphere to the private sector,” he says. Businesses now view the transition as inevitable. “Even more interestingly, they see it as an opportunity,” he adds. “And coronavirus has highlighted that it needs to move even faster.”

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Broad behavioural changes are constant in any case, says Kuylenstierna. “Think of smartphones or the internet,” he says. “Just say this is part of societal change: we changed from horses and carriages to cars and now we’re changing to electric cars. It’s not a big deal.

“This year helps us make an even stronger case for the only way forward, which is systems transformations. Pushing that forward as individuals is our biggest responsibility as citizens in a democracy.” 

Line Gordon, director of the Stockholm Resilience Centre, is less optimistic. But she agrees that how we respond to the challenges of the pandemic is crucial. 

“In many places in the world, I think it does awaken us on climate,” she says. “We need to rethink our relationship with nature and reflect on how we can live a better and fairer life.”

She believes we still need stronger global climate change targets and is concerned that things could become “even worse” amid pressure to turn things around economically.

But Gordon says a certain Stockholm schoolgirl has proved our power to influence each other’s attitudes. “Greta Thunberg was one person sitting down for a climate strike,” she says. “But she mobilised so many people and then they became a force for change.”

Line Gordon and Johan Kuylenstierna. Photos: Stockholm Resilience Centre/Mats Linde

The future of food

Do you want the good news or the bad news first? According to research co-ordinated by the Stockholm Resilience Centre, it is possible to feed 10 billion people within our planetary boundaries by 2050. But it will require huge changes in three areas: food waste, diet and food production. 

A third of food produced for human consumption is lost or wasted, according to the United Nations. Households, supermarkets and transportation can all play a part in reducing that number. 

Gordon recommends a holistic approach to food to address both personal and planetary well-being. “The way we consume food is the largest driver for poor health,” she says. “How can we find healthy food that is also sustainable? In general, especially for Sweden, we’d have to eat less meat and more plant-based foods and nuts and pulses.”

With food production, she highlights that 70 percent of the freshwater we withdraw globally is used for agriculture “so we need to make it really efficient”. Precision agriculture – using big data, satellites, drones and so on – is already making farming more efficient in some areas.

A number of Stockholm-based start-ups have made important contributions – such as Ignitia, the world’s first tropical weather forecasting company. It provides “hyperlocal” forecasts to help farmers in West Africa avoid the worst effects of climate change.

Kuylenstierna, an adjunct professor at Stockholm University’s Department of Physical Geography, says food supply chains have coped well with the challenges of the pandemic so far. But he believes greater awareness of their potential vulnerability should be welcomed.

“Trying to deal with that and develop resilience will make you more resilient to potential challenges due to climate change as well,” he explains.

Read also: Why ‘urban villages’ are the future in Stockholm

The cold facts for clean energy

With energy, like food, Kuylenstierna says he is encouraged by signs of governments rethinking the status quo. Renewable energy should be supported for offering security of supply, as well as due to climate change, he says.

“The coronavirus crisis has helped highlight our extreme dependence on very few countries so long as we depend on fossil fuels,” he says. “In Sweden, we joke that when Americans come here and meet someone who doesn’t speak English, they just talk louder. 

“It’s been a little like that in trying to convince some people on climate change. But tell them we can have energy security and not be dependent on Saudi Arabia or Russia, how we can create new business – then you can win them over.” 

Photo: Getty Images

One factor everyone understands is much more favourable now than following the last financial crisis in 2008: price. The climate, geopolitics and pure financial logic all therefore support the case for greater investment in renewables, says Kuylenstierna.

“It was high on the agenda 10 or 12 years ago but solar and wind were very expensive,” Kuylenstierna says. “Today, they are not and they’re competitive even without subsidies.”

Return to work – or remain remote?

Before the pandemic, just 2.9 percent of employees globally were estimated to work exclusively or mainly from home. That figure has surged by an almost unimaginable degree.

When Sweden’s state epidemiologist Anders Tegnell asked “whether we will ever go back to work in exactly the same way as before”, he gave voice to a question on the minds of businesses and workers around the world.

“Suddenly, tens or even hundreds of millions of people have started to go online remotely and I’m surprised how well it has worked,” says Kuylenstierna. 

The advantages and disadvantages of working from home more regularly are now the topic of healthy debate for both businesses and individuals. But a mass reduction in commuting clearly has benefits in terms of cutting carbon emissions.

How Stockholm tech firms adapted to working from home in 2020

Kuylenstierna admits he did a “tremendous” amount of international travel in his time as head of the Stockholm Environment Institute. “Now, we could really push digitalisation forward in terms of meetings,” he says.

Importantly, he believes developing countries could take a leap forward – and help restrict global warming – by rapidly adopting new technology for remote working.

Travel and transport: to fly or not to fly? 

Passenger demand for air travel has fallen almost 60 percent in 2020, according to the International Air Transport Association (IATA). Around 7.5 million flights were cancelled between January and July and IATA says demand may not reach pre-pandemic levels until 2024. 

While this marks a radical change for a globalised world, what should we expect in the long-term? Gordon and Kuylenstierna both expect international travel to remain part of our lives.

“My husband is Canadian,” says Gordon. “He lives in Stockholm and needs to travel to see his family. We need more sustainable travel using alternative energy sources, to travel shorter distances by train and so on – then you can afford some long distance travel.” 

Kuylenstierna says he and his wife have come to love staycations – or ‘hemesters’ as the Swedes now say – but he agrees. “If people don’t care, that’s a bigger risk than if they now and then take a vacation to Thailand,” he says.

Stockholm is a global tech and start-up hub with a strong focus on innovative problem-solving – find out more from Invest Stockholm

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PROPERTY

Should you buy a home in Sweden this summer?

Considering the fickle trends in the Swedish housing market, prospective homebuyers might find themselves at a crossroads this summer.

Should you buy a home in Sweden this summer?

After a period of falling prices driven by increased interest rates, the Swedish housing market is seeing a rebound, particularly in the biggest cities.

However, it’s also taking longer to finalise home sales.

READ MORE:

Recent data from Swedish property listings site Hemnet indicates that while home sales – and housing prices – are on the rise, the time to complete transactions has notably increased.

For instance, the average sale time for an apartment in Sweden increased to 27 days in the first half of the year, up from 22 days during the same period last year. Similarly, houses now take an average of 31 days to sell, compared to 30 days previously.

The slowest market is in the Gävleborg region, where it takes an average of 44 days to sell a home. The fastest transactions occur in Stockholm, with apartments selling in just 16 days and detached homes in 23 days.

This variation in market activity across the country calls for a deeper look into where the best opportunities might lie for homebuyers this summer.

Renewed market confidence in Sweden’s biggest cities

The confidence in the Swedish property market is on its way up in Stockholm, Gothenburg, and Malmö, Erik Holmberg, a market analyst at Hemnet, told The Local.

“I would say that we have seen a weaker market in the last couple of years, almost everywhere in the country, since the Swedish central bank started to increase the interest policy rate, which affected the market a lot,” he said.

“But in the last half of the year or rather in the last year, the confidence has come back in bigger cities – in Stockholm, Gothenburg, Malmö… When we look at price developments last year, in three of Sweden’s biggest cities, we see prices increasing again.”

However, the analyst warned that the opposite is currently true in other areas of the country, which have seen a continued decrease in market activity and flatter developments in the same time interval.

A new trend emerging in Stockholm?

As Hemnet’s analyst explained, in Sweden, housing market trends usually start in Stockholm, when the market begins to change, causing a ripple effect.

“And that’s what we have seen. Now, market activity and prices are increasing again in the bigger cities. Usually, when the market changes, other areas in the country follow, and that could be the case now,” said Holmberg.

“When the rates and inflation situation become clearer, other parts of the country might follow the market in the big cities. Our main scenario is that we will see this spread,” he said, adding that prices in Stockholm have picked up quite fast in the last year but that the demand is still affected by the high interest rates.

“I wouldn’t be surprised if we saw swift price developments in some areas with the highest demand, such as city centres.”

The effect on the rental market

Another aspect to consider is the rental market, which could see significant changes in the short to mid-term.

Holmberg pointed out that properties which fail to sell might enter the rental market.

“What we’ve seen is that it’s harder to sell properties today, so, probably, more people who own homes and can’t sell them will put these unsold homes on the market for a while. This could affect the supply of apartments for rent and, in turn, prices,” the analyst said.

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What different types of homebuyers should know

For buyers, the current market presents a mixed bag.

“In Sweden, we often talk of having a seller’s or buyer’s market. Today, it’s good for buyers that they have a lot to choose from; there’s a record-high supply almost everywhere in the country. That means it’s easy to find something,” said Holmberg.

However, he also cautioned that the slow market makes agreeing on terms with sellers challenging, with sales times at record highs.

“Sales take some time in today’s market, and that’s important to understand for both sellers and buyers, especially for homeowners who are changing homes, meaning they’re both buying and selling something; it’s a tough market for them.

“Today, this group often chooses to sell their home before they buy something new. That makes up a big part of record high sales times; we have people waiting for the right bid before moving from the selling to the buying side…” Holmberg said, noting that the market is different compared to two to three years ago when it was “very hot”.

“So, remember that even if prices grow, it’s still a tough or slow market.”

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On the other hand, first-time buyers might find a silver lining in the form of lower prices compared to a couple of years ago, making it a potentially favourable time to enter the Swedish housing market.

“First-time buyers are in another situation, which may be better because the prices are lower than two years ago, of course, and if you’re just buying something, you don’t need to worry about the selling part,” Holmberg told The Local.

“That’s why this could be a good situation to enter the housing market this summer, but even so, despite supply being really high, it could still be tough because many sellers have put down a listed price but don’t necessarily plan to sell at this price.”

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