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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure SE-2022-38/2884 – measures in Sweden

Improved rules for climate bonus for electric vehicles

Förbättrade regler för klimatbonusen

Country Sweden , applies nationwide
Time period Open ended, started on 12 September 2022
Context Green Transition
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
Author Anna-Karin Gustafsson (Oxford Research) and Eurofound
Measure added 14 September 2022 (updated 10 October 2022)

Background information

The so-called bonus-malus-system, a part of regulation 2017:1334, to promote the transition from fossil fuelled cars to vehicles adapted for renewable energy has been in place since July 2018. It means that electric cars are eligible for tax reductions (bonus) whereas their fossil fuelled equivalents are taxed more (malus). To further advance the transition to a more sustainable fleet of vehicles, the criteria for bonus payments are changed.

Content of measure

The bonus-malus-system is changed to promote the transition to a sustainable fleet of cars. The CO2-emission requirement is increased from 60 gram/km to 50 gram/km. A new price limit will also be introduced, making only cars with a retail price below SEK 700,000 (€65,600) eligible for bonus. The government has not provided any estimations of how this will change the market for vehicles causing low levels of emission or electric cars. The system has however been underfunded. Last year the payments to car owners were stopped in August due to lack of funding, and this year the same thing happened already in January.

Use of measure

Last year, more than 300,000 new cars were registered in Sweden. More than 135,000 (45%) were hybrid or electric cars. The changes in the bonus-malus-system will make fewer cars eligible for bonus payments and could promote the continuing sales growth of electric and hybrid cars.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Sectoral or branch level

Involvement

No peak level employers organisations or trade unions have submitted answers during the consultation round. There are however sectoral actors within the transport industry that have given their view.

Views and reactions

The organisation MobilitySweden [BILSweden] that gathers producers and importers of vehicles is positive to the revised rules, but questions that the bonus changes are not accompanied by equivalent changes on the malus-side.

Sources

  • 12 May 2022: Compiled consultations: improved rules for climate bonus for electric vehicles (Remissammanställning av Ändringar i förordningen om klimatbonusbilar) (www.regeringen.se)
  • 13 June 2022: Improved rules for the climate bonus (Förbättrade regler för klimatbonusen) (www.regeringen.se)

Citation

Eurofound (2022), Improved rules for climate bonus for electric vehicles, measure SE-2022-38/2884 (measures in Sweden), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SE-2022-38_2884.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.