The European Investment Bank (EIB) is providing the City of Stockholm with a €470 million loan to fund the city’s largest environmental investment in decades, aimed at modernising its wastewater treatment system. The project will close the Bromma treatment plant and redirect all wastewater to an expanded Henriksdal treatment plant, which will incorporate advanced membrane technology to treat more water in the same footprint while improving efficiency.
The upgrade at Henriksdal is expected to reduce nitrogen discharge into the Baltic Sea by approximately 40% and phosphorus by about 35%. The plant will also capture microplastics, better manage future treatment needs such as pharmaceutical residues, and lower the risk of untreated wastewater overflowing into Lake Mälaren, Stockholm’s drinking water source. The project supports Sweden’s environmental commitments under the Baltic Sea Action Plan and the EU Water Framework Directive.
The total cost of the wastewater system upgrade is SEK 19.5 billion, with the EIB financing covering around 26% of the investment. The long-term loan aligns with the project’s completion timeline, set for 2031, and is part of the EIB’s broader climate and environmental priorities. Stockholm city officials highlighted that the project will strengthen public health, environmental protection, and the city’s resilience against climate change.
The EIB Group is the European Union’s financing arm and a major global supporter of water infrastructure. In 2025, it invested approximately €5 billion in water projects, improving access to safe drinking water and sanitation for millions. Through its Water Resilience Programme, the EIB plans to invest around €15 billion between 2025 and 2027 to modernise water systems across Europe. Its subsidiary, the European Investment Fund, supports small and medium-sized businesses and startups, fostering innovation and scaling high-impact projects.
