Clickbait- and misleading headline. The story is about one private property developer project in a suburb of Stockholm. Not some government initiative.
Given conflict in that part of the world, are wooden buildings a security risk since they can more easily be set on fire? I’ve read that mass timber has fire resistance but I can’t imagine that’s comparable to the fire resistance of concrete and steel.
It’s not cheap. I think it’s mainly a sustainability and prestige thing.
It is cheaper than the other option, concrete.
I read an Astrid Lindgren children's book which had one of the characters die while saving his brother from a fire that burned part of the (Swedish) city.