19 November 2025 – What can European cities learn from the Swedish concept of “lagom” – “just the right amount”? A recent study of 1,300 European cities and regions provides a comprehensive sustainability overview and highlights patterns from Swedish municipalities that can provide lessons for their counterparts.
As Europe faces accelerating climate, resource, and social challenges, cities and regions play a central role in translating sustainability objectives into tangible outcomes. Local governments are not only implementing policies but shaping the daily lives of millions, influencing energy use, mobility, waste management, and social cohesion. Understanding what drives sustainability at this level is essential for guiding broader transformations.
Our recent study examined the sustainability performance of over 1,300 European cities and regions, providing a comprehensive benchmark across environmental, social, economic, and governance dimensions. This extensive dataset allowed us to identify patterns, compare practices, and highlight the characteristics of the most sustainable municipalities. The results are striking: Swedish municipalities consistently rank at the top of sustainability metrics, outperforming other European counterparts by a significant margin.
Among the most sustainable municipalities in Europe are Stockholm, Gothenburg, Malmö, and Umeå. Swedish leadership in this context is not incidental but reflects a combination of cultural, policy, and economic factors that foster systemic sustainability. These cities excel across multiple dimensions, including environmental efficiency, social cohesion, and economic resilience. Stockholm and Gothenburg, for instance, demonstrate high renewable energy utilisation, extensive district heating networks, and low per capita carbon emissions. At the same time, strong social welfare systems, equitable access to services, and workforce inclusion policies ensure that these municipalities remain socially resilient while achieving environmental goals.
At the heart of Swedish sustainability success lies the cultural principle of Lagom, which translates roughly as “just the right amount.” Lagom promotes moderation, balance, and sufficiency rather than excess – values much needed across many industries, as pointed out by Club of Rome members Anders Wijkman and Janez Potocnik in their analysis of the fashion industry. In practice, this cultural ethos manifests in urban planning, consumption habits, transportation choices, and energy use. Citizens and municipal authorities alike prioritize reducing waste, optimizing energy efficiency, and promoting sustainable transportation. This focus on balance also extends to urban development, with growth managed carefully to avoid overexpansion and ensure long-term resilience. Lagom is thus not merely a cultural value but a practical driver that aligns everyday behaviour and municipal policy with sustainability objectives.
The Swedish socio-economic model provides an additional structural foundation for sustainability. Characterised by strong social safety nets, public investment in healthcare and education, and equitable wealth distribution, this model fosters social cohesion and supports long-term sustainable development. Municipalities benefit from robust public funding for renewable energy initiatives, public transport systems, and sustainable infrastructure, which reduces reliance on private incentives alone. Social safety nets ensure that policies promoting sustainability do not disproportionately burden vulnerable populations, while inclusive governance and participatory decision-making processes strengthen trust and encourage civic engagement. These features collectively create municipalities that are both socially resilient and environmentally proactive.
Sweden’s global leadership in climate policy further reinforces municipal sustainability. The country introduced a carbon tax in 1991, which has become one of the highest in the world, currently standing at approximately €126 per tonne of CO₂. This policy incentivises municipal authorities, businesses, and residents alike to reduce emissions, invest in renewable energy, and pursue energy efficiency measures. The impact of this approach is evident: Sweden reduced greenhouse gas emissions by 33% between 1990 and 2021, and many municipalities are actively working toward ambitious targets for 2030. Carbon taxation has facilitated the adoption of renewable energy, the development of low-emission transportation options, and the expansion of energy-efficient urban infrastructure, demonstrating the effectiveness of integrated policy tools.
Swedish municipalities have also embraced innovative urban solutions that reinforce their leadership. District heating systems, for example, are widespread and often use renewable sources such as biomass or recovered waste heat, significantly reducing fossil fuel dependence. Energy efficiency in buildings and transportation is a central focus, and public investment supports technologies that optimize energy use and reduce environmental impact. Combined with inclusive social policies and equitable access to public services, these practices create municipalities that are simultaneously low-carbon, socially robust, and economically resilient.
Examining the broader European context, several characteristics emerge as common features of the most sustainable cities and regions. High-performing municipalities integrate environmental, social, and economic objectives rather than pursuing them in isolation. They ensure that sustainability policies are aligned with cultural values, thereby facilitating behavioural adoption among residents. Strategic infrastructure investments in energy, mobility, and urban planning underpin long-term resilience and environmental efficiency. In addition, municipalities with strong governance capacities—transparent decision-making, long-term strategic planning, and adaptive policy frameworks—demonstrate the ability to continuously improve sustainability outcomes and respond to emerging challenges.
The implications of these findings for other European cities are clear. Policy integration is essential, with environmental, social, and economic goals pursued simultaneously to generate mutually reinforcing benefits. Cultural alignment is equally important, as municipal policies are most effective when they resonate with societal norms and values. Long-term strategic investments in energy and mobility infrastructure, coupled with rigorous monitoring and performance evaluation, create durable gains in sustainability. Swedish municipalities provide a living example of how these elements can be combined to achieve outstanding results.
