A new kind of city is rising in Sweden - and it’s made mostly of wood. South of Stockholm’s center, the former industrial district of Sickla is being transformed into what developers are calling Stockholm Wood City - the world’s largest wooden construction project. With a $1.25 billion investment from developer Atrium Ljungberg, the city will cover 250,000 square meters, housing 7,000 offices, 2,000 homes, and a network of schools, shops, and public spaces - all built primarily from timber.

The construction industry is responsible for roughly 37% of global emissions, and Sweden’s developers believe building with wood can make a real difference. Cross-laminated timber - the project’s main material - stores carbon rather than releasing it, and a 2024 study found that timber buildings have up to 81% lower emissions than those made from concrete. Atrium Ljungberg aims to cut its construction emissions to near zero by 2030, a bold target in one of the world’s most polluting sectors.

Stockholm Wood City’s designers, Henning Larsen and White Arkitekter, are drawing on Scandinavia’s deep connection to nature. The buildings are meant to feel like extensions of the forest - complete with green roofs, exposed timber interiors, and large windows that flood rooms with light. “We wanted the serenity of a forest in an urban setting,” the developers said, describing a dense but calming neighborhood that thrives in harmony with nature.

Wood also brings practical benefits. Timber construction is faster, quieter, and more adaptable than traditional steel or concrete. The project’s dual-use buildings can shift from offices to apartments over time, giving them a “second life.” Fire safety rules are met through advanced engineered wood that naturally forms a protective char layer, and the city will even generate and store its own renewable energy. The first 80 apartments are expected to open by late 2025, with full completion targeted for 2027.