sou · GWB324 · 2008-03-05 00:00:00 — This will presuppose a radical transformation of its energy systems and other parts of the economy. The future direction of Swedish energy policy, community planning and infrastructural investment will to a great extent determine how successfully manages to reduce emissions. The transformation should be implemented gradually and continuously. Policy instruments should be tightened and developed by degrees. It will be necessary to implement measures that are not only beneficial in terms of emission reduction in the short run but also lay the groundwork for far-reaching emission reductions in the long term. began introducing measures against climate change at an early stage. We have already succeeded in reducing GHG emissions to relatively low levels in several sectors of society. However, growing import volumes and increased international and are having a countervailing effect, at least in part, on emission reductions. Although the transport sector and industry offer the largest scope for continued reductions, there is also considerable potential in other areas. The action plan for 2020 which the Committee is now presenting is a step towards the long-term objective. The action plan comprises the following action areas: Strengthening cross-sectoral measures and instruments An EU-wide reduction of the EU ETS emission ceiling Emission reductions in sectors not covered by the EU ETS Action at international level The action plan also addresses the importance of carbon sinks. In addition, the Committee is submitting proposals concerning certain public revenues generated by climate policy. The action plan proceeds from the recognition that already has many general and specific climate policy instruments in place. It contains proposals aimed at developing and tightening certain existing instruments and provides for various supple- mentary measures in a number of areas. The proposals in the plan have been subjected to consequence analyses to the extent that access to relevant data has been available and the Committee has been able to undertake analyses of this kind given the short time scale allowed. has concluded that the consequence analyses of proposed measures and instruments which were conducted indicate that the economic outcome of most of its proposals are reasonable in relation to their benefits in terms of reduced GHG emissions (Chapter 19). participation in international climate negotiations is dealt with separately (see Section 5 below). The Committee considers that its proposed target for 2020 can be met on the basis of the measures and policy instruments set out in the action plan. It is estimated that these measures and policy instruments will result in emission reductions of just over 6 million tons. The action plan also contains proposed measures and policy instruments which the Committee has been unable to quantify due to lack of data, but which could result in further emission reductions. Already existing measures and instruments for activities not covered by the EU ETS will, according to forecasts in the background reports drawn up by the agencies for the 2008 Climate Strategy CheckPoint, contribute to a substantial reduction in emissions and are a significant factor in the Committees assessment that the target can be met. International initiatives will yield further reductions through participation in climate projects in other countries. also assumes an EU- wide lowering of the emission ceiling for activities covered by the EU ETS. Measures and instruments will need to be reviewed on an ongoing basis. In its proposal for a national environmental quality objective, the Committee accordingly recommends that the Government, in a special written communication to the Riksdag include an assessment of the likelihood of achieving the 2020 target and propose measures where necessary. It is also proposed that an in-depth review be undertaken every four years (see Chapter 10). Committee proposals in the 2020 action plan (Headings A-F) The proposed action plan, which proceeds from the recognition that already has many general and specific climate policy instruments in place, seeks to develop and tighten existing instruments. It also provides for a numer of supplementary measures in various areas. A Cross-sectoral measures and policy instruments (Chapter 12) has submitted proposals on research and technological development, energy efficiency enhancement and investment programmes. Chapter 12 also deals with carbon dioxide and energy taxes from a general perspective. Specific proposals on carbon dioxide and energy taxes, which are powerful and economically effective instruments, have been raised elsewhere. This chapter also addresses the issue of climate information. Research and technical development New technology is particularly important to achieving the far-reaching emission reductions needed in the longer term. The imperatives in this respect are research and development, and policies that help create markets for the commercialisation of these technologies. AU new research programme A new research programme should be established with a view to finding ways of ending our dependence on fossil fuels and developing new, efficient, low climate impact technologies, thus laying the groundwork for far-reaching, long-term GHG emission reductions. TechnologyU procurement and public procurement Technology procurement should be systematically and consistently aimed at bringing new technology into the market. Public procurement should contribute more effectively and on a wider scale than at present to energy efficiency enhancement and the attainment of climate goals. InvestmentU support for breakthrough technologies A special, new investment support programme should be set up with a view to promoting breakthrough technologies that could significantly reduce GHG emissions. StudyU of climate-related technological development A study should be made of current needs in terms of support for and the appropriate overall volume, direction, and organisation of climate-related technological development in the long term. Energy efficiency is vital to the attainment of far-reaching climate goals and there is considerable potential in various sectors for energy efficiency measures. ThatU policy instruments aimed at enhancing energy efficiency be further developed The forthcoming proposals by the Energy Efficiency Inquiry should form a key point of departure for this undertaking. OtherU energy efficiency measures The following energy efficiency measures should be considered: an inquiry into ways of implementing a white certificate system, internationally harmonised technical standards (for electrical appliances, etc.), and better coordination of efforts to improve energy efficiency. In Chapters 14 and 15, the Committee also proposes measures in several of the areas identified by the Energy Efficiency Inquiry. Continued investment support for especially selected measures is significant when it helps obstacles that prevent effective climate measures from being implemented. Investment support can also support climate work at local and regional level. DevelopmentU of investment programmes Climate-related investment support should in accordance with the agencies proposal be transformed from broad-based programmes to investment support for specific, selected measures and sectors where other policy instruments are weak and where such measures will have a significant impact on GHG emissions. B Activities covered by the Scheme (Chapter 13) In the Committees view, the EU ETS is a very beneficial and important instrument for reducing GHG emissions. To ensure that the schemes considerable potential as an effective instrument is realised, a number of improvements will be examined and decided on in the impending review. Improvements to the EU ETS SwedenU should press for the following changes to the EU ETS greater harmonisation and centralisation of the system progressive lowering of the emissions ceiling allocation of emission allowances by auction to the power and heating sector and industries operating in the national or EU market. Allocation of a certain number of emission allowances free to enterprises that manufacture specific products that face competition from companies outside the EU. Such allocations should be based on benchmarking of the relevant products widening of the EU ETS to include the transport sector. This should be done gradually and in such a way as to ensure more effective emission reduction, which is not a given. Widening the EU ETS could, among other things, substantially affect the profitability of products subject to competition and will probably require supplementary instruments in the road transport sector. shares the agencies recommendation to carry out an in-depth examination of whether and how the transport sector can be incorporated into the EU ETS. The use of the project-based mechanisms provided for under the Kyoto Protocol, the Clean Development Mechanisms/Joint Implementation (CDM/JI) should be supplementary only. These instruments promote the transfer of technology to poor countries as well as the cost effectiveness of emission reductions stipulated in the Kyoto Protocol. Income from auctions should be returned to the member states, not accounted to the EU budget. C Activities not covered by the Scheme: TRANSPORT (Chapter 14) A series of measures will be needed to reduce GHG emissions in the transport sector. The energy efficiency of motor vehicles and must be increased and fossil fuels need to be replaced with renewable fuels and energy such as electricity and hydrogen. Energy efficiency across the entire transport sector must also be increased by ensuring that the various modes of transport are utilised and coordinated more effectively. Measures to reduce total demand for transport are also required. The use of wide-acting instruments such as taxes on fossil fuels or emission trading schemes generates incentives for all the above-mentioned changes. However, such instruments need to be supplemented by targeted instruments such as emission standards and standards that lay the groundwork for the necessary technological changes. Long-term investment in infrastructure and community planning must be aimed at creating conditions conducive to the development of an increasingly energy- efficient transport system with lower GHG emissions. The Committee considers that the and sectors should also bear the costs of their CO2B B emissions. InternationalU and national measures As a first step, effective international agreements must be sought. Pending the conclusion of such agreements, national measures should be considered, provided these will have an appreciable effect on GHG emissions. GreaterU controlling effect on within the EU ETS will be incorporated into the EU ETS from 2012. The effect of the scheme should be progressively intensified. One way of achieving this is to introduce supplementary fuel efficiency standards to enable emission trading outside the sector. In the long term, the impact of other GHG emissions should also be factored in. ReviewU of airport subsidies Airport subsidies should be reviewed and support extended only to localities with airports than lack viable alternatives to air transport. ShippingU should eventually be included in the EU ETS European should also eventually be included in the EU ETS. Here, too, the introduction of supplementary fuel efficiency standards should be considered. NationalU policy instruments should be introduced for the sector As will not be covered by the EU ETS in the foreseeable future, national instruments should be introduced for this sector. The existing national system for the differentiation of fairway duties should be extended to include CO2B B emissions. should be tasked with examining ways in which this can be accomplished. Decisions on infrastructural investment should aim at creating conditions conducive to the development of an increasingly energy-efficient, low-carbon transport system. FurtherU developed Infrastructure planning Infrastructure planning for all modes of transport should be further developed. The feasibility of merging national traffic agencies should be examined. ExpansionU of the railway system The railway system in needs to be expanded. This will call for substantially increased investment. Goods and passenger capacity on the railways must be increased by at least 50 per cent by 2020, provided that the investments are profitable in economic terms. Priority should be given to investment that will lead to the replacement of air by rail . The possibility of running high-speed trains between metropolitan areas should be studied without delay. ClimateU -friendly infrastructural investment in the EU should press for targeted EU infrastructural investment designed to promote the transportation of more goods by rail and sea. In the Committees view, the effort to minimise GHG emissions should be reflected in spatial planning at all levels. SpatialU plans must contribute to reduced GHG emissions The Planning and Act and/or the Environmental Code should be revised to include a provision requiring every newly created or revised plan to show how it contributes to the reduction of CO2B B emissions by minimising the need for transport and energy use. CountyU administrative boards should be empowered to amend a spatial plan on climate-related grounds In matters concerning CO2B B emissions, a county administrative board should be empowered to amend a spatial plan that does not meet legislative criteria, as it is in matters relating to health and security TheU coordinating functions of county administrative boards should be strengthened County administrative boards should be given a wider role in coordinating trans- municipal spatial and transport planning. They should have a clear mandate to initiate and pursue coordinating activities. Fuel, kilometre and congestion taxes/charges Petrol and diesel prices will need to higher if the Swedish 2020 climate target is to be met. finds that a significant reduction in CO2 emissions in will necessitate higher petrol and diesel prices in the coming years. It therefore concludes that taxes on petrol and diesel fuel need to be raised to a level equivalent to an increase on current prices of approximately per litre. The adverse distributional effects that may result from higher taxes will have to be taken into account. This should be followed by further incremental rises, which should stay in line with changes in purchasing power (GDP) and inflation (CPI). DeterminingU tax increase levels Tax increase levels should also be weighed against GHG emission trends in relation to the set target. World market prices of oil and their impact on prices charged to Swedish consumers should also be taken into account. The income tax deduction for should be linked to distance only, i.e. unrelated to the mode of transport. Its specific form should be the subject of a separate inquiry. KilometreU tax on heavy goods vehicles A kilometre tax on heavy goods vehicles in should be introduced not later than , provided that a reasonably low-cost administrative system is sufficiently well developed by then. Special consideration should be given to vehicles used in the forestry sector, which lacks alternatives to road transport, provided this is in line with rules. The municipalities and/or regions should have the authority to introduce congestions charges if they so wish and to decide how the revenues should be used. Biofuels and other alternative technologies has among the highest ambitions and biggest potential of any country with regard to increasing the share of biofuels in the transport sector. is of the opinion that has a responsibility to help promote global conditions conducive to the production and use of biofuels which are climate-friendly, i.e. resource and energy- efficient, have a low impact on biodiversity and land use, and can help to alleviate other conflicts of objectives. IncreasedU use of non-fossil energy When sufficient data becomes available, the feasibility of introducing a more far- reaching target for the share of non-fossil energy used in the transport sector than the EU target of 10 per cent should be examined. AbolitionU of ethanol tariffs should continue to push for the abolition in the EU of tariffs on imported ethanol. CertificationU system for sustainable biofuel production should actively contribute to the development of a coherent and ambitious certification system for the sustainable production of biofuels. definition of a green car should be applied in connection with all government green car incentives. The energy efficiency standards for biofuel-driven cars laid down in the definition should be tightened. DevelopmentU of second-generation biofuels and investment in vehicle research Investment in pilot plants, demoplants and full-scale facilities for the development of second-generation biofuels should be supported. Vehicle research focusing on propulsion systems with very low emission CO2B B characteristics, such as electricity or hybrid drive trains, is essential and should also be supported. SupportU for development of biogas propulsion Special funds should be earmarked for the continued development of biogas propulsion. InquiryU on policy instruments to encourage biofuel use A should be appointed to propose measures designed to encourage the continued introduction of biofuels in in the long-term. efficient vehicles and machinery efficient vehicles and machinery can make a key contribution to the reduction of CO2B B emissions. EU regulations on CO2UBUUBUemissions from vehicles should seek to ensure that the highest permissible average emissions of CO2B B per kilometre for passenger cars, to be specified in forthcoming EU standards, are set at /km in 2012 and reduced thereafter in successive stages to below /km by 2020. The standards should be designed to encourage technological development for cars of all size and provide a flexible platform. Corresponding requirements for light-duty trucks and vans, and buses should also be introduced and successively tightened. COU 2UBUUBU differentiated vehicle taxCO2 differentiation of vehicle tax should be strengthened. InquiryU into tax benefits for company cars A should be appointed to examine the totality of effects on emissions of CO2B B and other greenhouse gases of the tax system for company cars. Taxation of free company cars should be designed to include incentives to reduce emissions and steer development towards modes of transport with very low CO2B B and other GHG emissions. Change to taxation of company car fuel The factor for calculating the value of free company car fuel should be raised from 1,2 to 2. InquiryU on tax exemption for company paid journeys on public transport A should be tasked to draw up a detailed proposal on the feasibility of introducing a tax exemption on company-paid journeys on public transport. D Activities not covered by the Scheme: OTHER AREAS (Chapter 15) The Chapter deals with climate measures in sectors not covered by the EU ETS, such as residential and commercial , waste management and agriculture. Industries outsider the EU ETS There is scope for additional measures in industries not covered by the EU ETS. CO2B B tax reductions in industries not covered by the EU ETS should be lowered so the tax rate reaches /kg CO2B .B EnvironmentalU tax on fluorinated greenhouse gases An environmental tax on fluorinated greenhouse gases should be introduced. IntensifiedU energy efficiency measures Efforts should be made to further develop energy efficiency instruments and measures for industries outside the EU ETS. These should be based on proposals by the Energy Efficiency Inquiry. Policy instruments that encourage the of energy-saving houses in new residential housing projects and the implementation of energy efficiency measures when renovating older houses are particularly important. IntensifiedU energy efficiency measures Instruments designed to promote greater energy efficiency need to be tightened. Efforts to this effect should be based on proposals by the Energy Efficiency Inquiry. wishes to emphasise the importance of incorporating energy saving requirements into Code without delay, as well as the need to successively tighten regulations governing energy saving in new residential and commercial projects. Policy instruments in the waste management sector should be designed to further encourage GHG emission reductions through measures to diminish waste and increase recycling. SpecialU support for biogas extraction from organic waste In view of the considerable potential in many areas for larger scale fermentation of organic waste, the Committee proposes that special funding should be allocated to facilities for the extraction and upgrading of biogas from organic waste (Section 12.5 and 14.6). Agriculture is likely to play an increasingly important role as a producer of bioenergy. Some measures can and should at this stage be taken in the agricultural sector to reduce GHG emissions. This applies to both crop cultivation and livestock farming. knowledge about emissions in this sector and possible measures is also needed. InvestmentU grants for biogas production The Commission of Inquiry on Swedish Agriculture as a Bioenergy Producer proposed extending a limited investment grant to develop biogas production from farmyard manure and co-fermentation with up to 50 per cent of other substrates. This proposal should be implemented. LowerU CO2UBUUBU tax reductions for diesel and fuel oil and diesel for machinery used in agriculture and forestry CO2B B tax reductions for fossil fuels and gasoil used in agriculture and other agriculture-related industries should be lowered until the tax rate reaches /kg CO2B ,B as in the case of industries outside the EU ETS. In view of the competitive position of the agricultural and forestry sectors, and of the overspill effect, the introduction of a higher tax on diesel proposed by the Committee should not apply to machinery used in agriculture and forestry until a three-year period has elapsed. StudyU of the climate impact of agriculture should be instructed to assess – in cooperation with other relevant authorities – the current state of knowledge on the impact of agriculture on climate and to draw up an action plan for measures to reduce GHG emissions. E Action at international level (Chapter 16) The industrialised countries must actively contribute to limiting emissions in developing countries by transferring technology and financial resources to the developing world. The Kyoto Protocol´s project-based mechanisms The Kyoto Protocols project-based mechanisms – the Clean Development Mechanism (CDM) and Joint Implementation (JI) – are expected to promote technology transfer and capacity in countries where the projects are implemented. The mechanisms allow Swedish climate policy to be more cost-effective and thereby increase acceptance of larger overall reductions in CO2B B emissions than would otherwise be possible. ContinuedU investment in the project-based mechanisms CDM and JI Continued government investment in CDM and JI is needed as these mechanisms are still in the build-up stage and because they allow projects to be strategically targeted at key technologies and geographical areas. Climate change will have adverse effects on development in poor countries and there will be a growing need for climate-related development assistance. AssistanceU for climate-friendly development Swedish development assistance should be explicitly aimed at helping recipient countries adapt their national development priorities to accommodate climate change considerations. F Carbon sinks (Chapter 17)