As a global green industry center, northern Sweden has attracted approximately SEK 1.1 trillion in investment, covering key projects such as battery manufacturing and green steel.

However, high infrastructure construction costs and delays in some projects, such as the bankruptcy of Northvolt and the delay in LKAB's fossil-free sponge iron plan, have led to a sharp increase in financial pressure on local governments. The local government needs approximately SEK 100 billion to support infrastructure construction, but it is unable to afford it due to existing social welfare burdens.

Local governments have called on the central government to share risks, but support is limited and difficult to alleviate the current predicament.

In addition, the contradiction between the surge in energy demand and insufficient supply, as well as the slowdown in demand for electric vehicles, have further affected project progress. Although some plans, such as the Stegra green hydrogen-powered steel plant near Lulea, show potential, local financial pressures and long-term risks still require caution.