Policies in Sweden

There are three types of energy efficiency measures used in Sweden: advisory services, financial support for R&D, and the survey of energy efficiency requirements for large companies, industries and energy producers. Energy efficiency policies take the form of support for small actors and obligations for larger stakeholders.

● Research grant for resource and energy efficient construction and housing. The current, 6th call is for R&D projects that foster the development of resource and energy efficiency housing. ● Energy efficiency advising for SME’s. The Swedish Energy Agency offers various types of information and advising about energy efficiency for SMEs, for example, online courses and tailored support for individual companies. ● Energy surveys for large companies. Large companies are obliged to carry out an energy survey every four years. The survey is executed by a certified surveyor. ● Mandatory cost-benefit analyses. It is mandatory for district heating companies and industrial companies planning to construct a new plant or to upgrade a plant to conduct a cost-benefit analysis for incorporating heat from waste in the generation process. ● Funding for energy and climate advising: Municipality and regional authorities can apply for funds from the Swedish Energy Agency in order to provide local stakeholders with climate and energy advice. In addition to funding, the scheme also providers training for persons working as energy and climate advisers.

● Swedish Energy Agency ● County Administrative Boards ● Land and Environmental Court

Sweden promotes RES through a handful of mechanisms: the quota system based on electricity certificate trading and a tax regulation mechanism. Most incentives are open to all RES technologies but some impose conditions regarding the capacity or specific renewable energy source (e.g., reduced real estate tax is aimed only at wind power or energy tax allowance supports wind, wave and solar power plants).
Sweden does not have a national 2030 target for renewable energy, but it has set a target of reaching 100% renewable electricity production by 2040 (NECP, 2018). The 2016 trajectory of the Swedish Energy Agency projects a 65% share of RES of final electricity consumption by 2030 (NECP, 2018).

● Quota system is the single largest and most significant RES support mechanism in Sweden. Energy suppliers are obliged to prove that a certain quota of their electricity production was generated by RES. ● Tax regulation mechanisms ensure different tax privileges to RES-E.

● County Administrative Boards ● Energy Authority ● National Board of Housing, Building and Planning ● Svenska kraftnät (TSO) ● The Swedish Tax Authority

In Sweden, tax exemptions are the main incentives to support renewable heating. The instruments are, in general, technology-neutral.
Sweden does not have a national 2030 target for renewable energy (NECP, 2018). According to the 2016 trajectory, the share of RES-H&C will increase slightly from the current level to 69% of final consumption by 2030 (ibid.).

● Tax reductions for households. Act 2009:194 sets rules for the tax-deduction of RES-related installation works in households. The installation of renewable energy devices and the replacement of conventional heating sources with renewable ones may be deducted from tax. ● Energy and carbon dioxide taxes. In Sweden, energy and carbon dioxide taxes are levied on the supply, import and production of fossil fuels for heating purposes. Renewable energy sources are exempt from these taxes. ● Nitrous oxide tax. The producers of heat are obliged to pay a tax according to their nitrous oxide emissions. Heat producers using renewable energy sources are exempt from this obligation.

● Energy Authority ● Swedish National Board of Housing, Building and Planning ● Swedish Environmental Protection Agency ● Swedish Tax Authority

The two large incentives for RES-T in Sweden are a biofuels quota and tax exemptions for biofuels.
Recently, Sweden has also begun to incentivise the purchase of electric and RES-fueled vehicles and their charging stations with subsidies.
Sweden’s target for 2030 is to reach a 47,7% share of RES in transport sector final consumption.

● Tax regulation mechanism. Companies supplying, importing and producing fossil fuels are obliged to pay energy and carbon dioxide taxes. Biofuels are exempt from these taxes. ● Biofuel quota. Fuel suppliers are obliged to increase the share of biofuels in diesel- and petrol fuels in order to reduce the greenhouse gas emissions. ● Climate leap. The broad R&D for local and regional climate measures also enables subsidies for RES-T projects. ● Electric bus premium. The government subsidises electric and hybrid buses in order to increase their share in public transport. ● Climate premium. The government subsidises electric and hybrid heavy machinery purchases in order to increase their share. ● Bonus system. The bonus-malus system incentivises legal persons (both private persons and companies) to purchase low-emitting vehicles by subsidising them and offering tax discounts, as well as taxes newly bought high-emitting vehicles more heavily.

● Swedish Energy Agency ● Swedish Tax Authority ● Swedish Environmental Protection Agency ● Swedish Transport Agency