In 2021, Sweden made the progressive decision to be the first country in the Nordic region to introduce climate declarations on newly produced homes. This year, according to regulations, it will be mandatory for developers to declare the climate impact on buildings – which in time will develop into a complete life cycle analysis of housing. Since it is a new regulation, a risk analysis must be performed if there may be consequences for other economies such as socioandmicroeconomics, then examine measures to minimize the risks. From impact assessments, the declarations could affect production costs, competition, and increased rents among tenants.
The subject area is based on future conditions and consists of qualitative interpretations of dissertations, authorities, interviews, and electronic sources. The interviews consisted of municipal and government inspections from the City of Borås, the City of Malmö and the Swedish Competition Authority. A short interview was also conducted from an exponent of Tuve Bygg to get a brief overview of the market and input from the socio-economic part with the help of email communication by the head of administration from Bostäder in Borås.
It was concluded that environmental regulation did not have to have a major influence on future construction rates. Measures such as the considerable influence of the circular economy, construction technology consisting of wood, smaller living spaces and collective housing at thesame time as the conversion of old premises would reduce the pressure on housing shortages. That trustees could use climate declarations for the lease negotiations is an uncertainty for tenants; but that the price development of rents is no guarantee - If there were to be increased rents, segregation and gaps would occur. The pace of electrification of construction industryplayers could also generate energy loads; which would affect rural areas and homeowners themost; decentralization of electricity production would reduce the risk. Material product manufacturers also have a suitable argument for raising material prices for stricter requirements; something that affects private individuals and builders in the construction industry. The conclusion could also include that the subject is governed by other policies such as industry, energy, and housing policy. Environmental regulation can be costly, but parallelism of innovation, good competition policy position and instruments do not have to be a major strain on the industry.