Sweden’s Government Faces Repercussions From Proposal to Slash Reduction Obligations
Criticism of the Proposal
Sweden’s government has proposed to cut reduction obligations for petrol and diesel to 6%. This has been met with criticism from authorities, businesses, regions, and environmental organizations. Critics say the government has not properly assessed the impact of the proposal and that it neglects to consider alternative ways of achieving its goals.
Risks of the Proposal
The proposal poses risks to Swedish biofuel production and could lead to a fuel price shock from 2027 when the reduction obligation may need to increase to meet EU climate requirements. The government’s estimate of significant price reductions at petrol pumps is also being disputed. The Swedish Growth Agency points out that companies use 73% of diesel, so the proposal would mainly benefit businesses.
Implications of the Proposal
The reduction of reduction obligations could also hinder Sweden’s ability to meet national and EU climate goals. The proposal could have consequences beyond climate policy. Notably, Sweden could lose billions in support from the EU’s recovery fund and could be fined by the EU if the Union’s climate requirements are not met.
Future of the Proposal
The future of the proposal is uncertain. Authorities are calling for an in-depth review, but slashing the reduction obligation to 6% prematurely could have drastic consequences. Finding a solution to this issue will be complex and require careful consideration of the potential implications on multiple fronts.
Among the proposal’s opponents are the Swedish Environmental Protection Agency, the Swedish Transport Agency, 2030 Secretariat, Mobility Sweden, Neste, Greenpeace, Scania, AB Volvo, and multiple regions, including Jämtland Härjedalen and Västra Götaland.
