The new climate act will come into effect from the start of next year.
Riksdag has also passed new intermediate climate targets between 2030 and 2040.
Backed by various political parties, the climate policy framework is based on the agreement in the Cross-Party Committee on Environmental Objectives last year.
Sweden International Development Cooperation and Climate Minister Isabella Lövin said: "All countries need to actively demonstrate how they are taking responsibility on climate change.
“Today's decision shows that Sweden will continue to be a leading country in global efforts to achieve the ambitious goals of the Paris Agreement.”
In March, the Swedish government introduced a bill on the climate policy framework setting new climate goals alongside a climate policy council and a Climate Act.
The Climate Act has provisions on the climate policy efforts of the Swedish government which in its annual budget bill has to submit a climate report to the legislature.
For each electoral period, the government will have to come up with a climate action plan as per the new Climate Act.
Under the provisions, each government will be obliged to report on the progress of the work it has carried out towards achieving the climate goals.
According to the Swedish government, the first climate report will be tabled in the second half of next year while the first action plan to be submitted in 2019.
The agreement is backed by the Social Democratic Party, the Green Party, the Moderate Party, the Liberal Party, the Centre Party and the Christian Democrats.
Image: Swedish Environment Minister and Deputy Prime Minister Isabella Lovin signs Swedish climate law. Photo: courtesy of Johan Schiff.
