Reduction rate lowered in Sweden – effects on emission levels

On January 1, 2018, the so-called reduction obligation was introduced in Sweden – seven parties in Sweden’s Parliament voted yes to increase the mixing of biofuels in diesel and gasoline – to 30.5% on diesel and 7.8% on gasoline. (Compared to the EU minimum level which is 6% for both diesel and petrol).

By 2022, Sweden had reduced its emissions within ESR – sectors such as transport and agriculture –  preliminarily by 35.7 percent since 2005, which is the largest reduction in the EU, see graph 1 below. It can also be compared with the EU average during the same period of a preliminary 14.8 percent reduction.

The reduction obligation is an important piece of the puzzle in the 2030 goal: “According to the stage goal for domestic transport (excl. domestic flights), emissions must be reduced by at least 70 percent by 2030 compared to 2010. Emissions have so far decreased by 34 percent compared to 2010 and in the future need to decrease by just under one million tonnes per year on average so that the 2030 target can be reached.”

The Swedish government has announced a new policy that increases greenhouse gas emissions and states that Sweden’s ESR target 2030 “Not achieved”.

Large investments have been made to produce biofuels in Sweden, from e.g. waste and residues. Those actors are now demanding longer-term rules of the game and policy instruments from politics. When the reduction obligation is lowered at the turn of the year, the increase in emissions will be 5 million tonnes a year. At the same time, Sweden is becoming more dependent on fossil-based fuel from other parts of the world. There is a risk that the price will go up when demand increases, and then the price will not be lower – as the idea was – but risk increasing.

Source: Europaportalen and others