Water and Sewage – Sweden’s Next Major Infrastructure Test

Swedish business grinds to a halt without water, yet our water and sewage (VA) networks are part of the invisible infrastructure that rarely receives attention, until problems arise. When companies hesitate to invest due to uncertain supply and growing risk costs, water and sewage suddenly take center stage. Sweden’s next major stress test is literally happening underground.

What has long been hidden beneath the surface is now emerging as a decisive issue for both business and national preparedness. VA networks are taken for granted by companies, until they stop working. The need for modernization is huge, and the consequences of disruptions can be severe; halted production, higher insurance costs, and postponed investments.

– An interruption can hit production directly, especially in the food and manufacturing industries. But it’s also about rising insurance premiums and regions becoming less attractive for investment when VA infrastructure fails to keep pace, says Marcus Wangel, Head of Environmental Policy at the Confederation of Swedish Enterprise.

The Hidden Infrastructure Becomes a Strategic Issue

The matter has thus grown into one of the most pressing challenges for Swedish infrastructure. Wangel explains that their members increasingly point to water as a limiting factor.

– Water and sewage are a kind of hidden infrastructure. You rarely think about it until something serious happens, he says, stressing that while the systems largely work today, there are no guarantees for the future.

– We still face major challenges, and these must be addressed soon to avoid the risk of things deteriorating quickly, he adds.

In the food industry, the development is particularly noticeable. Patrik Strömer, Business Policy Expert at the Swedish Food Federation, highlights how vulnerable production is to interruptions.

– Beyond water often being an ingredient in the product, we must have clean water to meet food safety laws. Without water, production halts, he notes.

He emphasizes that consequences can be significant, even if consumers always have alternatives.

– You don’t have to have fresh bread if crispbread is available, but for the individual company, it’s catastrophic. As we stress in the report Recipe for Resilience, food production itself is something we can manage, no one is better at producing food than our companies. But we depend on electricity, water, and transport and those responsibilities lie elsewhere.

A Growing Maintenance Debt

In early 2025, the Swedish Food Federation published the report Recipe for Resilience. At the same time, the Confederation of Swedish Enterprise released A Robust VA System for a Competitive Economy, warning that neglected maintenance threatens Sweden’s competitiveness. The organization calls on municipalities, the state, and industry to jointly develop an investment plan and long-term strategy.

– The reason we produced the report is that member companies and trade associations increasingly raise this as a growing challenge, says Marcus Wangel.

The report estimates that Sweden’s VA system requires investments of about SEK 31 billion annually. Today, the level is around SEK 21 billion, creating a growing gap of SEK 10 billion per year. A maintenance debt already felt in business operations.

– I’ve followed the issue from the sidelines and seen how the maintenance debt figures climb by billions each year. This isn’t just of interest to VA equipment suppliers; it’s a societal problem if we fail to act, says Patrik Strömer, adding that Sweden still has favorable conditions:

– We have lakes and waterways that are almost unique in a European context. Finland and Norway also have their particular advantages.

When the Water Runs Dry, Competitiveness Is at Stake

For companies, the consequences can be immediate if production stops, deliveries fail, and restarting operations can take a long time. Hotels and restaurants risk closures, and data centers may suffer overheating. On Gotland, reduced water pressure has already caused problems for both food producers and restaurants, when municipal information arrived too late.

– What caused the most frustration was that the notice came so late. Had the information been shared already in spring, around Easter, companies would have had room to adapt, says Patrik Strömer.

But the issue isn’t only about acute disruptions. Financing is equally critical. The report shows that the SEK 10 billion annual shortfall cannot be covered solely by water and sewage fees.

Marcus Wangel points out that in theory, it could be covered by higher fees, but this would be expensive for households and especially burdensome for small businesses. The alternative, he warns, is that Sweden risks becoming less attractive for investment if companies cannot rely on the long-term capacity of the VA system.

Patrik Strömer stresses that for food companies, it’s not just about cost:

– Knowing that the supply is secured for a ten-year period is often more important than the price per cubic meter, though a low price is of course a competitive advantage for Swedish firms, he says.

Looking Ahead: Cooperation Is Key

So what are the alternatives? Marcus Wangel highlights the potential of opening up to other forms of financing, for example, through pension funds or public-private partnerships, rather than fully burdening water and sewage fees. He warns that neglected VA infrastructure could block new establishments, leading to fewer jobs, slower growth, and weakened competitiveness.

– In theory, fees can be raised, but politically it’s impossible. We must find alternative financing solutions, says Wangel.

Both Wangel and Strömer emphasize that municipalities cannot carry the responsibility alone.

– Responsibility today is split across nearly 20 agencies and 290 municipalities. We need clearer national coordination, says Marcus Wangel.

Patrik Strömer adds:

– Even if the water price were to double, it would still be a small part of a product’s total value. But if water doesn’t exist at all, competition becomes impossible. That’s why security and long-term agreements with municipalities are crucial.

A Central Forum for the Issue

At Vatten2025, Sweden’s largest meeting place for the water sector, the very issues raised by Strömer and Wangel will be in focus: the growing investment gap, possible financing solutions, and how municipalities, businesses, and the state can share responsibility. Here, the discussion continues on how Sweden will face its next major infrastructure challenge.

Vatten2025 is a event that welcomes numerous visitors and exhibitors from the water and wastewater industry to the Swedish Exhibition & Congress Centre Group in October. It serves as a platform for innovation, influence, inspiration, and new business opportunities.

Tickes Vatten2025