Sweden’s exposure to climate risks via global trade requires a strong climate adaptation agenda
The report highlights what climate adaptation should really be about for countries like Sweden, where trade issues, business and international cooperation should be the key components. As similar research results from Germany and Austria show, the impact on trade of climate change in Sweden can be greater than the risks within the country’s own borders.
Climate risks linked to global trade are a relatively unexplored area of research and countries’ climate vulnerability is challenging to map. The report is a significant milestone in innovation in methods for assessing transnational climate risks. It provides new insights into the importance of climate adaptation policy and global governance.
The study examines Sweden’s dependence on soy from Brazil as an example of a commodity where climate risks in production (on Brazilian farms) and transport (via Brazilian road, rail and shipping networks) are expected to drive risks for consumers and companies in Sweden. The risk flow from farm to table is mapped and analyzed.
Ahead of the annual global climate conference COP27 in Egypt and the revision of Sweden’s national strategy for climate adaptation, as well as Sweden’s upcoming EU presidency, the authors make the following recommendations to the country’s decision-makers:
- Prioritize cross-border climate risks as a risk area in the new climate adaptation strategy.
- Establish a new cross-sector working group to improve and clarify the management of transboundary climate risks, especially those related to trade. It should include decision-making bodies for trade and foreign policy as well as civil emergency planning.
- Establish a department responsible for coordinating adaptation efforts between governments and other actors in Sweden to cross-border climate risks.
- Sweden should push for an ambitious operationalization of the Global Goal on Adaptation (part of the Paris Agreement) as part of the Glasgow-Sharm El-Sheikh work program, which will be discussed at COP27. Sweden is in a unique position to lead international coalitions and raise the level of understanding and management of transboundary climate risks.