WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.26 
23 December 2009 
 
 (09-6596) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of the European Communities
* relates to subsidy 
programmes of Sweden . 
 
_______________ 
 
                                                      
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On  29 November 2009, the WTO received a Verbal No te (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.26 
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  SWEDEN 
 
TABLE OF CONTENTS 
 
 
Page 
 
1. INTRODUCTION ................................................................................................................... .4 
1.1 METHOD AND SCOPE OF THE NOTIFICATION ..............................................................................4  
2. SUPPORT FOR RESEARCH  AND DEVELOPMENT .......................................................4  
2.1 SUPPORT FOR TECHNOLOGICAL R&D ........................................................................................5  
2.2 ENERGY RESEARCH PROGRAMME ..............................................................................................6  
2.3 THE ENERGY TECHNOLOGY FUND .............................................................................................7  
2.4 GRANT FOR NEW ENERGY TECHNOLOGY ...................................................................................8  
2.5 PROJECT FINANCING THROUGH THE FUND FOR INDUSTRY ........................................................9  
3. AID TO SMALL AND MEDI UM SIZED COMPANIES...................................................10  
3.1 THE REGIONAL DEVELOPMENT COMPANIES , ALMI ................................................................10  
4. EXPORT PROMOTION .......................................................................................................11  
4.1 GENERAL EXPORT PROMOTION ................................................................................................11  
5. REGIONAL AID TO ENTERPRISES.................................................................................12  
5.1 REGIONAL INVESTMENT GRANT ...............................................................................................12  
5.2 EMPLOYMENT GRANT ...............................................................................................................14  
5.3 REGIONAL TRANSPORT GRANT ................................................................................................15  
5.4 THE FUND FOR NORTHERN SWEDEN ........................................................................................16  
6. ENVIRONMENTAL AID......................................................................................................17  
6.1 SUPPORT TO WIND POWER PRODUCTION .................................................................................17  
6.2 ENERGY TAX CONCESSION .......................................................................................................18  
6.3 GRANTS FOR CLIMATE INVESTMENT PROGRAMMES (KLIMP) ................................................19  
6.4 INVESTMENT AID FOR SOLAR HEATING ...................................................................................20  
7. INVESTMENT AID TO FI SHING ENTERPRISES ..........................................................21  
1(a) Aid for Fleet Renewal and Modern isation of Fishing Vessels .................................................21  
1(b) Aid for Adjustment of Fishing Effort .......................................................................................21  
8. INVESTMENT AID TO AQUA CULTURE ENTERPRISES............................................22  
9. INVESTMENT AID TO FISH ING PORT FACILITIES...................................................24  
10. INVESTMENT AID TO INLAND FISHING......................................................................25  
11. INVESTMENT AID FOR PROCESSING AND MARKETING.......................................26  
12. INVESTMENT AID FOR PROTECTION OF COASTAL WATERS .............................27   G/SCM/N/186/EEC/Add.26 
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  13. COLLECTIVE INVESTMENT AID IN SMALL-SCALE COASTAL AND 
FRESHWATER FISHING ....................................................................................................28  
14. INVESTMENT AID FOR SOCIO-ECONOMIC MEASURES.........................................29  
15. AID FOR PROMOTIO N/MARKETING.............................................................................30  
16. AID FOR OPERATIONS BY MEMBERS OF THE TRADE ...........................................31  
17. AID FOR TEMPORARY CESSATION OF FISHING ACTIVITIES..............................32  
18. AID TO STUDIES AND PILOT PROJECTS .....................................................................33  
19. PAYMENT OF COMPENSATION TO PRODUCERS' ORGANIZATIONS.................34  
 
ANNEX The Net Cost Method............................................................................................................ .................35
 
 G/SCM/N/186/EEC/Add.26 
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1. INTRODUCTION 
1.1 M
ETHOD AND SCOPE OF THE NOTIFICATION  
 In Sweden, the budget of the central government is the only source of aid to industry.  Local 
governments are in principle prohibited by law to gran t aid to enterprises.  However, administration of 
aid programmes funded by the central government may take place at the local level. 
  The notification covers aid to the business sector, in broad sense, i.e. trade and industry.  It is not possible to separate aid figures to the mining and manufacturing industry (SITC 2 and 3).  
 The description of the various aid schemes follo ws the outline suggested by WTO.  However, 
it is not possible to present statistical data permitting an assessment of trade effects.   The quantitative information is based on the net cost to government method.  This method is 
used for the annual follow-up of stat e aid in Sweden.  The approach h as also been used by OECD in 
its "Public Support to Industry" project.  The method is described in appendix. 
 
2. SUPPORT FOR RESEARCH AND DEVELOPMENT 
 The major operators of Swedish Support for Re search and Development to the industry sector 
are the Swedish Agency for Innovation Systems, Vinnova, and The Swedish Energy Agency, STEM.  
During the reporting period, the aid programmes operated by these authorities have been reviewed, 
following an up date of European Community Stat e aid rules, i.e. the Community Framework for 
Research and Development and Innovation (2006 C/323/01).   Hence, Support for Technological R&D  through Vinnova, has been subject to changes 
coming into force as from early autumn 2008.  The b asic features of the progra mme have remained in 
place in the new legal basis, Governmental ordi nance 2008:762, but possibilities for somewhat higher 
aid intensities through the application of certain aid bonuses have been introduced, for instance an 
extra 15 percentage units in the case of R&D collaboration between independent companies.  
Furthermore, aid for R&D costs have been compleme nted with rules concerning aid for the promotion 
of innovation.  This concerns  aid for young innovative enterprises (maximum support €1 million per 
company), aid for innovation advisory services (m aximum support €200,000 per company during a 
three year period), aid for the loan of highly qua lified personnel (maximum support is 50 per cent of 
the relevant staff cost during a three year period)  and aid for innovation cl usters (maximum support 
for investments is 15 per cent for large companies with a bonus facility of either an extra 20 or 
10 percentage units for small or medium sized co mpanies respectively).  For the establishment of 
innovation clusters there is a possibility to grant aid during a five-year period (maximum aid level 
could be 100 per cent year one, decr easing gradually to zero at the end of year five).  With respect to 
administration of the aid programme, Vinnova is the ma in operating state body at central level.  At the 
regional level the County Administrative Boards are allowed to grant aid for R&D purposes.   Earlier Swedish energy research programmes, i.e. the Energy Research Programme, the 
Energy Technology Fund and the Grant for new Energy Technology  have been merged into one single 
programme.  These changes have also been intr oduced in early autumn 2008.  The new STEM-
programme, Energy Research, development an d innovation scheme (Govermental ordinance 
SFS 2008:761), is similar to Vinnova's ne w programme by providing support for R&D and 
innovation.  The STEM programme aims at promoting energy research and innovation in order to create conditions for effective energy markets, se cure energy supply and the protection of the 
environment, health and climate. 
  G/SCM/N/186/EEC/Add.26 
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   In this report covering the years 2007-2008, information about R&D programmes is however 
still provided according to the legal context valid for the main part of the period, i.e. until autumn 
2008.  Future reports to the WTO will of course in fu ll reflect the new legal structure described above. 
 2.1 S
UPPORT FOR TECHNOLOGICAL R&D 
(a) Form of subsidy 
 
 Grants or loans with conditional repayment  
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007: 686   2008: 502   Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The primary objective is aid for R&D and the secondary objective is aid to SMEs.  
(d) Duration 
 
 The programme commenced as from 1st of July 1993.  Duration until further notice, i.e. has 
not been specified.  
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects. 
 
(f) Legal basis 
  The legal provisions are laid down in the Governmental ordinance 1995:1254 (Förordning om 
statligt stöd till teknisk forskning, industriellt utv ecklingsarbete och uppfinnarverksamhet).  This 
ordinance has been replaced, as from 2008-09-11, by  Governmental ordinance 2008:762 (Förordning 
om statligt stöd till teknisk forskning  och utveckling samt innovation). 
 (g) Rules and conditions 
 
 The programme is administrated by the Swedish Agency for Innovation Systems, VINNOVA and partly, i.e. seedfinancing, by the Swed ish Agency for Economic and Regional Growth, 
Tillväxtverket (former Swedish Busi ness Development Agency, NUTEK). 
 
 The Swedish Agency for Innovation Systems, VINNOVA´s mission is to promote sustainable 
growth by financing R&D and deve loping effective innovation systems.   Tillväxtverket is Sweden's 
central public authority for industrial policy i ssues.  Together with ALMI Business Partner 
Tillväxtverket forms a competence centre for financi ng, entrepreneurship, industrial development and 
regional business development. 
 
 Support is granted to universities, technologi cal research institutes fo r basic research, co-
operative research institutes (i.e. institutes finan ced jointly by government and industry) and to G/SCM/N/186/EEC/Add.26 
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  individual firms and inventors.  A precondition for recei ving support in the form of grants is that the 
result of the supported project is made public.   All firms, regardless of industry, are eligible.  However, the support is focused on small firms and individual innovators.  The support to firms and individual inventors is in the form of loans with 
conditional repayment.  A loan can cover up to 50 per cent of project costs.  Repayment, including 
market interest rate, is required if a project b ecomes commercially successful.  The duration and other 
terms of the loan are dependent on the objective of the loan and various economic factors.  Costs for 
personnel, material and supplies related to R&D,  instruments and equipment, consulting bought-in 
research, etc. are eligible for aid.  Other possible aid should be taken into account before the decision 
of support is made.  In practice,  projects supported by other state aid schemes do not normally receive 
support from VINNOVA.  To the extent that this occu rs, the aid ceilings apply to the combined aid. 
 2.2 E
NERGY RESEARCH PROGRAMME  
(a) Form of subsidy 
 
 Grants or loans with conditional repayment  
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007:  137 
  2008:  146 
  Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The primary objective of the programme is to establish fundamental competence and expertise, to facilitate the transformation of th e Swedish energy system in order to reduce the 
environmental and climatic effects of energy syst ems.  The emphasis of th e programme is long-term, 
i.e. on technology that can be expected to be implemented beyond the year 2000.  The programme has 
its main focus on basic research, while applied research only plays a minor role. 
 
(d) Duration 
 
 Programme commenced originally in 1975 and has been prolonged several times.  The programme has been altered as from June 1998 in order to reflect the objectives of the political 
agreement on Swedish Energy Policy reached in 199 7.  The programme has been replaced in 2008 by 
Governmental ordinance SFS 2008:761, see point (f) below. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
 
 As from June 1998 legal provisions are laid  down in Governmental ordinance SFS 1998:222 
(Förordning om statligt stöd till en ergiforskning).  This ordinan ce has been replaced by a new 
programme as from 2008-09-11, i.e. Governmental ordinance SFS 2008:761 (Förordning om statligt 
stöd till forskning och utveckling samt innovation inom energiområdet).   G/SCM/N/186/EEC/Add.26 
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  (g) Rules and conditions 
 
 The main part of the programme is administrated by the Swedish Energy Agency, STEM, but the Swedish Agency for Innovation Systems,  VINNOVA, the Swedish Research Council for 
Environment, Agricultural Sciences and Spatia l Planning, FORMAS and the Swedish Research 
Council, Vetenskapsrådet are responsible for some el ements of the programme.  Support is granted to 
universities, institutes of technology, co-operative res earch institutes (i.e. institu tes financed jointly by 
the government and industry) and to firms.  The general rule is that all results from the Energy 
Research Programme are official and shall be made  publicly available.  Aid to firms accounts for a 
minor portion of the expenditure.  Costs for pers onnel, materials and supp lies related to R&D, 
instruments and equipment, consulting, bought in r esearch etc. are eligible for aid.  Maximal aid 
intensity is 50 per cent of eligible costs.  Other po ssible aid shall always be taken into account before 
decision of support is made.  2.3 T
HE ENERGY TECHNOLOGY FUND 
(a) Form of subsidy 
 
 Grants, soft loans and guarantees.  
(b) Amount of subsidy 
  Net cost in SEK millions:  calendar year 2007:  5 
  2008:  0   Support is granted to a variety of projects and cannot be broken down per unit . 
 (c) Policy objective 
 
 The primary objective is aid for R&D with a focus on new technology for energy production and for environmental protection.  
(d) Duration 
 
 The programme commenced as from 1 July 1988.  The programme has been altered as from June 1998 in order to reflect the objectives of the political agreement on Swedish Energy Policy 
reached in 1997.  The programme has been replaced in 2008 by Governmental ordinance 
SFS 2008:761, see point (f) below. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 (f) Legal basis 
 
 The legal provisions are laid down in Go vernmental ordinance SFS 1998:653 (Förordning om 
statligt stöd till energiteknik).  This ordinance has been replaced by a new programme as from 
2008-09-11, i.e. Governmental ordinance SFS 2008: 761 (Förordning om statligt stöd till forskning 
och utveckling samt innovation inom energiområdet). 
 G/SCM/N/186/EEC/Add.26 
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  (g) Rules and conditions 
 
 The programme is administrated by the Swedis h Energy Agency, STEM.  Support is granted 
to the development, testing and de monstration of new techniques in the form of test plants, pilot 
projects, full scale plants, etc.  Support is also granted to applied research jointly co-financed by 
industry.  The beneficiary is normally the user of the new technique, mainly small-scale private 
energy producers and public utilities in the energy sector.  The maximum possible aid is 50 per cent of 
the project costs where SME:s can receive an additio nal 10 per cent.  In accordance with the state aid 
rules within the European Commun ity, there are restrictions to which extent the grant may be 
combined with other aid schemes. 
 
2.4 G
RANT FOR NEW ENERGY TECHNOLOGY  
(a) Form of subsidy 
 
 Grants 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007: 14   2008: 18  
 Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The primary objective is aid to R&D with a focus on developing technology for the use of 
sustainable sources of energy. 
 
(d) Duration 
 
 The programme has been replaced in 2008 by Governmental ordinance SFS 2008:761, see point (f) below. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
 
 The legal provisions are laid down in the G overnmental ordinance SFS 1998:654 (Förordning 
om energiteknikbidrag).  This ordinance has been replaced by new provisions as from 2008-09-11, i.e. Governmental ordinance SFS 2008:761 (Förordni ng om statligt stöd till forskning och utveckling 
samt innovation inom energiområdet). 
 
(g) Rules and conditions 
 
 The programme is administrated by the Swedis h Energy Agency, STEM.  Support is granted 
to industrial research in order to develop new t echnology based on sustainable sources of energy and 
for efficient use of energy in industrial processes.  The maximum possible aid to projects concerning industrial research is 50 per cent of the project costs.  The maximum support to projects aiming at a 
market introduction of products or services is 25 per cent of the project costs where SMEs can receive  G/SCM/N/186/EEC/Add.26 
 Page 9 
 
 
  an additional 10 per cent.  In acco rdance with the state aid rules within the European Community, 
there are restrictions to which extent the gr ant may be combined with other aid schemes. 
 2.5 P
ROJECT FINANCING THROUGH THE FUND FOR INDUSTRY  
 The Fund for Industry is a public foundation.  Its main objective is to promote industrial 
development and marketing.  The Fund should earn e nough money to retain its  capital on a long term 
basis.  This calls for market interest ra tes to compensate for a few inevitable losses. 
 
(a) Form of subsidy 
  Project financing in the form of loans with conditional repayment, guarantees and grants with 
royalty repayments.  No calculated element of s ubsidy to individual enterprises, but high risk is 
accepted.  
(b) Amount of subsidy 
 
 Net cost
1 in SEK millions:  calendar year 2007: 31 
  2008: 30   Support is granted to a variety of projects and cannot be broken down per unit . 
 (c) Policy objective 
 
 The primary objective of the project financing is aid to SMEs and R&D.  
(d) Duration 
 
 The scheme commenced in 1979 and was altere d in 1993 and 1996.  Duration has not been 
specified.  
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
  The legal provisions are laid down in the G overnmental ordinance SFS 1996:880 (Förordning 
om finansiering genom Industrifonden).  
(g) Rules and conditions 
 
 Project financing:  the Fund concentrates on support to small and medium sized companies.  
There are no restrictions regarding industry or location.  To be eligible for support, a project must 
involve a substantial risk, but have a compensati ng potential to become commercially successful.  The 
maximum amount of an award cannot exceed 50 per cent of the costs of a project.  Expenditures connected with a development project (seldom land or buildings) are eligible for financing.  All 
successful SMEs pay back with market interest ra te or royalty.  Financing from the Fund may be 
combined with regional support, in accordance with the state aid rules in the European Community. 
 
                                                     
 
1 The net cost figures are not available, hence the reported figures are estimates. G/SCM/N/186/EEC/Add.26 
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  3. AID TO SMALL AND MEDIUM SIZED COMPANIES 
3.1 T
HE REGIONAL DEVELOPMENT COMPANIES , ALMI 
 ALMI, Regional Development Companies, cons ist of a parent company and 22 regional 
subsidiaries.  The objective of ALMI is to stre ngthen the competitiveness and profitability of small 
and medium sized enterprises and to promote the formation of new firms. 
 
(a) Form of subsidy 
 
 Loan guarantees, guarantees for bank guarantees,  loans, new business loans and development 
capital in the form of grants with royalties repayment and soft loans. 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007:  93   2008:  41 
 
 Support is granted to a variety of projects and can not be broken down per unit . 
 
(c) Policy objective 
 
 The primary objective of the scheme is aid to  SMEs.  The Regional Development Companies 
should strengthen the competitiveness and profitab ility of small and medium sized enterprises 
(defined as firms with less than 250 employees,  in accordance with th e European Commission 
definition) and to promote the formation of new firms.  
(d) Duration 
 
 The programme for loans and guarantees comme nced in 1978, development capital in 1982 
and new business loans in 1993.  Duration until fu rther notice, i.e. has not been specified. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
  The legal provisions are laid down in the follo wing Governmental ordinance:  SFS 1994:1100 
(Förordning om statlig finans iering genom regionala utveck lingsbolag), amended through 
SFS 1995:1196.  
(g) Rules and conditions 
  General rules for all forms of financing:  Th e scheme is strictly complementary to private 
institutions.  The scheme is intended for small fi rms, i.e. firms with less than 250 employees. 
(In practice, often under 50 employees.) The Regi onal Development Companies have discretion in 
respect of the terms of the loans, i.e. the rate of  interest, duration and repayment holidays.  However, 
the financing should be on commercial terms and aiming at a reasonable yield and risk-spread. 
 
 The lending should be on commercial terms but on a high risk level.  Only firms that are 
profitable or have reasonabl e prospects to become profitable are eligible.  The companies also provide  G/SCM/N/186/EEC/Add.26 
 Page 11 
 
 
  counseling.  The scheme may be combined with  regional support and support from NUTEK, in 
accordance with the state aid rul es in the European Community. 
  Loans:  high risk and slightly above market rates.  Bad collateral accepted. 
 
 Development capital:  high risk and bad or no collateral accepted. 
  Guarantees:  high risk and bad collateral accepted.  Guarantee fee required.   New business loans:  the loan to start-ups is either a personal loan made out to the 
entrepreneur (injected into the company as restricted  equity) or a risk-carrying (unsecured) debenture 
loan to the company.  Maximum is 30 per cent of  the amount of financing, but the limit is 
SEK 1 million.  The loan runs for 10-15 years and is installment-free during the first years.  The loan 
is interest-free for two years, with reduced interest fo r three years;  from the sixth year market interest 
is paid.  An opening charge of 2 per cent on granted loans is payable and is deducted when the loan is 
paid.  Security is normally not necessary. 
  Supplementary loan:  if a company which has been granted a loan for a new company requires further financing, a supplementary loan ma y be granted but only if there are good reasons for 
it, and if an application is received by the fund with in three years of the loan for a new company being 
granted.  Authorized applicants are private persons  or companies.  The applicant has to contribute 
with at least 10 per cent of the capital.  All sorts of businesses are eligible. 
 
4. EXPORT PROMOTION 
4.1 G
ENERAL EXPORT PROMOTION  
(a) Form of subsidy 
 
 The Swedish Government maintains an export promotion regime, whic h is operated by the 
semi-governmental Swedish Trade Council.  The Council assists the Swedish industry by offering 
various international trade consulti ng and marketing services that are ma inly provided on a fee basis.  
A company operating in Sweden has an option to - fo r a fee - to become a member of the Council and 
it can thereby obtain a discount on services and publications. 
 
 The state funding provided to the Council comprises the basic export-services such as answering trade-inquiries, providing information on the Council's activities, etc. 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007:  1   2008:  0  
(c) Policy objective 
  The primary objective is to promote Swedish e xports and the internationalization of Swedish 
industry in order to achieve a long-term  development of the Swedish economy. 
 
(d) Duration 
  The Swedish Trade Council was formed in 1972 .  The government funding is allocated on a 
yearly basis but can vary somewhat from year to year.  Duration has not been specified. 
 G/SCM/N/186/EEC/Add.26 
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  (e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 (f) Legal basis 
 
 An agreement between the government and th e General Swedish Export Association forms 
the legal basis for the Swedish Trade Council.  Th e latest revision of the agreement was made in 
1998. 
 
(g) Rules and conditions 
 
 The services of the Swedish Trade Council are av ailable for all firms re gardless of industry 
and their export volumes.  The internationalization of SMEs is given priority.  The Swedish Trade 
Council's total turnover in 2008 was SEK 629 million. 
 
5. REGIONAL AID TO ENTERPRISES 
 The main goal of Swedish regional growth policy is to have development ability in all parts of 
the country with enhanced local and regional co mpetitiveness.  An active regional policy has for 
many years been of major importance due to the sp ecial living-conditions in large parts of Sweden.  
Regional aid to enterprises in Sweden is grante d within the framework following schemes reported 
below.  5.1 R
EGIONAL INVESTMENT GRANT  
 The former Regional Development Grant has b een modified and replaced by the Regional 
Investment Grant.  The modifications are made as a consequence of a review of European Community 
rules, i.e. Guidelines on national regional aid 2007-2013 (2006/C 54/08).  
(a) Form of subsidy 
 
 Grants for tangible or intangible investments.  The grants can be reclaimed if the objectives 
are not fulfilled. 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007: 398 
  2008: 308 
  Support is granted to a variety of sectors and reci pients and cannot be broken down per unit . 
 
(c) Policy objective 
  The programme is administrated by The Swedish Agency for Economic and Regional 
Growth, Tillväxtverket.  The programme supports inv estments in tangible and intangible investments.  
The primary objective is regional aid in designated areas.  The secondary objective is aid to SMEs, 
employment and R&D in designated areas.  The main  objective is to promote development of industry 
in designated areas. 
  G/SCM/N/186/EEC/Add.26 
 Page 13 
 
 
  (d) Duration 
 
 The programme commenced as from 1  July  1990.  Duration until 31 December 2013. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
 
 The legal provisions are laid down in the Governmental Ordinance SFS 2007:61 (Förordning 
om regionalt investeringsstöd) and SFS 1999: 1382 (Förordningen om stödområden för vissa 
regionalpolitiska företagsstöd).  (g) Rules and conditions 
 
 Eligible are natural or juridical persons ope rating in Sweden and public authorities working 
with viability in certain competitive sectors on mark et conditions.  In certain cases aid can also be 
granted to non profit associations.  The firm must be profitable.  The total grant element may not 
exceed the maximal aid intensity allowed in each designated area. 
 
 Regional Investment Grants can be awarded in connection with investments in buildings, 
machinery, etc.  It can also be awarded for in tangible investment, such as investments in patent, 
licenses, marketing activities, development of new pr oducts and education.  The form of the aid is a 
grant, which can be reclaimed if the objectives, are not fulfilled. 
 
 The grant is awarded discretionary accordi ng to the calculated need for each individual 
project, the size of the investments, the number of ne w jobs, etc.  Maximal intensity is 15 per cent of 
eligible investment costs in aid area A and 10 per cent in aid area B.  The maximum grant in regional 
aid area A can be increased to 35 per cent in the case of investments in a small company and 25 per 
cent in the case of a medium sized company.  In aid area B the maximum grant is 30 and 25 per cent 
for small and medium sized companies respectively. 
  The awarding of a grant has many reasons.  For example:  The cost of building is higher in the designated areas because of climatic reasons, trans port costs, etc.  It is more difficult to finance 
these investments on the regular credit market because of their low alternative value. 
 
 The main rule is that the grant is taxable as an  income to the recipient.  The general level for 
corporate income taxes is about 28 per cent flat  rate.  In Sweden, the value of buildings may 
depreciate at rates varying from 2 to 5 per cent pe r annum, depending on the type of the building.  
Machinery is normally depreciated during a 5 year period.  The grant can be awarded either by the Government, the Swedish Agency for Economic a nd Regional Growth, Tillväxtverket or the County 
Administrative Boards. 
 G/SCM/N/186/EEC/Add.26 
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  5.2 E
MPLOYMENT GRANT  
(a) Form of subsidy 
 
 Grants  (b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007:  28   2008:  21  
 Support is granted to a variety of sectors and reci pients and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The objective is regional aid to designated areas and employment in designated areas.  The 
scheme is aimed at creation of new employment by reducing the extra costs during the first years 
when taking on additional labour.  
(d) Duration 
 
 The programme commenced as from 1st of July 1990.  Duration formally decided for every 
new fiscal year. 
 
(e) Statistical data 
 
 The support is granted to a variety of sectors and recipients, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
 
 The legal provisions are laid down in the G overnmental ordinance SFS 1998:996 (Förordning 
om sysselsättningsbidrag). 
 
(g) Rules and conditions 
 
 The programme is administrated by the Swedis h Agency for Economic and Regional Growth, 
Tillväxtverket.  Eligible for aid are public authoriti es, natural or juridical persons operating in Sweden 
and working in competitive sectors on market conditions. 
  In some cases aid can also be granted to non profit associations.  Grants are awarded according to the amount of new jobs created measured  in additional man-years (i.e. total net increase 
of working hours performed by employees in compan ies applying and eligible for aid).  Support is 
only granted for employment that is considered fi xed and the employer shall supply training in the 
form of theory or practice of at least 125 hours during a period of two years. 
  The aid intensity in regional aid area A:  a total sum of SEK 198,000 per additional year of 
work allocated according to a uniform scheme during a three-year period.  
 The aid intensity in regional aid area B:  a total sum of SEK 120,000 per additional year of 
work allocated according to a uniform scheme during a three-year period.   G/SCM/N/186/EEC/Add.26 
 Page 15 
 
 
  Year Aid area A Aid area B 
1 66,000 40,000 
2 66,000 40,000 
3 66,000 40,000 
Total 198,000 120,000 
 
5.3 REGIONAL TRANSPORT GRANT  
(a) Form of subsidy 
 
 Grants 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007: 312   2008: 565 
 
 Support is granted to a variety of sectors and reci pients and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The primary objective is regional aid to designated areas.  The objective of the grant is to 
partly compensate for high transport costs due to long distances to the main markets.  It is important 
to create new employment and to maintain employme nt in those areas in Sweden where the cost of 
transport is considerably higher than in the rest of the country.  Hereby these companies are put on 
more equal footing when competing with compan ies situated closer to the large markets. 
 (d) Duration 
 
 The scheme commenced in 1971.  Duration until 31 December 2013. 
 
(e) Statistical data 
 
 The support is granted to a variety of sectors and recipients, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
  The legal provisions are laid down in th e Governmental ordinance:  SFS 2000:281. 
(Förordningen om regionalt transportbidrag).  
(g) Rules and conditions 
 
 The programme is administrated by the Swedis h Agency for Economic and Regional Growth, 
Tillväxtverket. 
  Eligible are Swedish natural or juridical pe rsons, foreign company branches in Sweden or 
foreign natural persons living in Sweden.  
 The assisted projects:  actually paid domestic  transport costs from the regional aid area for 
goods that have been produced or manufactured (p rocessed) in this area (except for certain products 
like pulp, paper, metals, certain st eel products and iron ore).  Trans port costs for raw materials that G/SCM/N/186/EEC/Add.26 
Page 16  
 
  shall be processed in the regional transport aid area are also eligible.  However, in principle, materials 
from outside the aid area that are also produced in the aid area are not eligible.  The goods transported 
must be highly processed in order to be eligible.  The grant is awarded automatically after application 
if all the conditions are fulfilled.  
 Aid for transport can be granted for transport for the stretch that exceeds 401 kilometres.  The 
aid is calculated based on the stretch and a rate of aid in per cent that depends on the location of the 
company receiving aid.  Accordingly, transport aid intensity can vary between 10-45 per cent.  The maximum amount for the total transport aid that can be granted per production site in a calendar year 
is SEK 15 million. 
 
5.4 T
HE FUND FOR NORTHERN SWEDEN  
 The Fund has been operating with two different types of activities: 
  - Loans, including guarantees and conditional loans given primarily to small and 
medium sized companies within the industrial and service sector; 
  - guarantees and project support given to institutions or projects and research of 
infrastructure character (for example, resear ch activities at universities and colleges, 
foundations of research bodies outside the uni versity sphere).  As from 1994 the Fund 
has primarily concentrated on the loan operation. 
 
(a) Form of subsidy 
 
 Mainly loans at market conditions.  No subsid ies, risk-sharing.  Conditional loans, guarantees, 
grants and project support. 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007: 19   2008: 29   Support is granted to a variety of projects and recipients and cannot be broken down per unit. 
 
(c) Policy objective 
 
 The primary objective is regional aid to designa ted areas.  The secondary objective is aid to 
SMEs and R&D.  The aim of the fund is to promot e development mainly of SMEs, at present, in the 
five northernmost counties.  
(d) Duration 
 
 The scheme commenced in 1961.  Duration has not been specified. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
  G/SCM/N/186/EEC/Add.26 
 Page 17 
 
 
  (f) Legal basis 
 
 Government Decision 1961, the latest revision in 1995.  
(g) Rules and conditions 
 
 Expenditure eligible for financing is pr oduct development, marketing, fixed assets and 
working capital.   
6. ENVIRONMENTAL AID 
6.1 S
UPPORT TO WIND POWER PRODUCTION  
(a) Form of subsidy 
 
 Tax reduction  (b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007: 70   2008:  75   Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The objective of the support is to ensu re viability for producers of wind energy. 
 
 To be commercially competitive within the deregulated Swedish electricity market, wind 
energy producers need compensation for additional production costs compared foremost to operators 
providing electricity from trad itional and non-renewable energy sources.  However, due to 
particularly high production costs for wind power, add itional compensation in the form of tax relief is 
awarded and can be cumulated with support fo r small scale electrical producers, see 7.3 above. 
 (d) Duration 
 
 In January 2005 the European Commission approv ed the state aid until 31 December 2009.  
At the end of 2008 the scheme ended for land based wind power and the government's intention is to 
also end the subsidy for off-shore wind by 1 January 2010. 
 
(e) Statistical data 
 
 The share of small scale and renewable electri city production, including a.o. wind power, 
corresponds to 1,5 per cent of total energy production.  Trade effects are estimated to be negligible . 
 (f) Legal basis 
 
 The legal provisions are laid down in SFS:  1994:1776 (Lag om skatt på energi), Act of 
Excise Duties on Energy, chapter 11, § 10.  G/SCM/N/186/EEC/Add.26 
Page 18  
 
  (g) Rules and conditions 
 
 The subsidy was 18.1 öre per KWh produced at wind power plants in 2003.  In 2004 the subsidy was differentiated and reduced.  For la nd based wind power the level was 12 öre per KWh 
and for offshore wind 17 öre.  The subsidy has been  further reduced since that.  In 2007 the subsidy 
dropt to 4 öre per KWh for land based wind power and to 14 öre/KWh for off-shore wind.  In 2008 
the subsidy amounted to 2 öre/KWh respectively 13 ör e/KWh.  The amount of aid corresponds to the 
tax level for energy paid by individual consumers.   For administrative reasons the relief is given to 
purchasers/distributors of electricity, which subsequently  is to be transferred to the producers of wind 
power. 
 
6.2 E
NERGY TAX CONCESSION  
(a) Form of subsidy 
 
 Tax reduction 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2007: 19,697   2008:  19,288  
 Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The tax measure aims at reducing emissions of CO2.  The objective of the concession 
provisions is to safeguard that enterprises with ener gy intensive production ar e not burdened with an 
unreasonably high tax level.  
(d) Duration 
 
 The present system started 1 July 1997.  Duration until further notice. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
 
 The legal provisions are laid down in the Act of Excise Duties on Energy (SFS 1994:1776), 
chapters 1.9, 2.11, 6.1, 7.3, 9.9, 11.3, 11.4 and 11.7.  (g) Rules and conditions 
 
 In 1957, an energy tax on fossil fuels used inter alia  for heating was introduced in Sweden.  
The full tax is levied from households, companie s in the service sector and from manufacturing 
companies as regards fuels used for heating othe r than in production processes.  In 1991, a CO2 tax 
was introduced.  That tax is al so levied on fossil fuels used inter alia  for heating and is due in full by 
households, by companies in the service sector and by manufacturing companies as regards fuels used for heating other than in production processes.  Sp ecific rules within the tax system provide for 
possibilities to deviate from full taxation in certain c ases.  Hence, a tax exemption is made for the use  G/SCM/N/186/EEC/Add.26 
 Page 19 
 
 
  of certain biofuels when being used for heating pur poses and an exemption is also made for the use of 
biofuels and certain alternative fuels when bein g used for the operation of stationary motors.  
Furthermore, companies in the manufacturing sector and combined heat and power (CHP) plants receive a reduction by 79 per cent of the CO2 tax for fossil fuels when used for heating and operation 
of stationary motors.  An additional reduction fo r those beneficiaries covered by the EU Emission 
Trading Scheme (ETS) have been introduced, prov iding for a gradual reduc tion as from 1 July 2008 
by 6 percentage points compared to existing tax leve l.  For industrial activities and heat production in 
CHPs, the tax burden was reduced from 21 per cent to 15  per cent.  For other heat production, the tax 
burden decreased from 100 per cent to 94 per cent.  With  regard to the energy tax on electricity, there 
is a tax reduction for companies within the ma nufacturing sector and a full exemption for energy 
intensive companies.  A regional reduction of energy  tax is also possible for companies in the service 
sector operating in the northernmost part of Swed en.  Finally, as regards CO2 tax, further tax 
reductions can be applicable to energy intensive companies.  If the CO2 tax paid exceeds 0.8 per cent 
of the sales value of the products sold by the compan y, it is possible to apply for a further reduction of 
the excess tax amount so that only 24 per cent of that amount is paid.  The tax rates that the remaining 
tax amount corresponds to must on the average resp ect the EU minimum tax rates for the consumed 
heating fuels.  6.3 G
RANTS FOR CLIMATE INVESTMENT PROGRAMMES (KLIMP) 
(a) Form of subsidy 
  Grants 
 
(b) Amount of subsidy 
 
 Net cost
2 in SEK millions:  calendar year 2007: 174 
  2008: 86 
  Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
  Primary objective are to reduce emissions of greenhouse gases, to help to bring about 
conversion to alternative energy sources and to save energy.  The programmes focus on the areas of energy, waste management and transport sectors.   The programmes must also include measures 
focusing on public education and information.  (d) Duration 
 
 The first Klimp grants were allocated in Dece mber 2003.  The programme has been in effect 
until 31 December 2007.  
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
                                                     
 
2 The reported figures for payments and the share to industry are estimated figures. G/SCM/N/186/EEC/Add.26 
Page 20  
 
  (f) Legal basis 
 
 The legal provisions are laid down in the G overnmental ordinance SFS 2003:262 (Förordning 
om statliga bidrag till klimatinvesteringsprogr am) and SFS 2003:566 (Förordning om ändring i 
förordningen (2003:262) om statliga bidrag till klimatinvesteringsprogram. 
 
(g) Rules and conditions 
 
 Support is granted to local climate investme nt programmes administered by municipalities, 
which contributes to the reduction of greenhouse gases in Sweden.  The programmes should be 
formed in cooperation with other participants. 
  Grants can be approved to specific measures or  to a package of measures without a complete 
investment program if those measures are regarded as especially efficient in reducing the emissions of 
greenhouse gases.  Grants can only be given to cost effective measures. 
 
6.4 I
NVESTMENT AID FOR SOLAR HEATING  
(a) Form of subsidy 
 
 Direct grant.  (b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2008: 0
3 
 
(c) Policy objective 
 
 Promotion of solar heating forms part of the Sw edish Government's strategy to phase out oil.  
The objective is to have 1 million m2 glass solar cells installed by 2020.  In the period 2008-2012 the 
Swedish authorities are expecting 50 000 m2 glass solar cells to be installed annually. 
 
(d) Duration 
 
 1 July 2008 - 30 June 2013.  
(e) Statistical data 
  Trade effects are estimated to be negligible. 
 
(f) Legal basis 
 
 The legal basis is Governmental or dinance SFS 2008:1247 (Förordning om stöd för 
investeringar i solvärme). 
 
(g) Rules and conditions 
 
 The eligible investments are investments in in stallations of glass solar collectors with liquid 
heat carrier, which fulfil the European standard EN 12975-1:2006 and are tested by a body accredited 
under the European standard EN 12 975-2:2006.  Beneficiaries of the aid can be enterprises of any size 
and from any sector in any Swedish region.  The aid will be granted with an amount corresponding to 
                                                     
 
3 Actual start of the programme has taken place as from 1.1.2009.  G/SCM/N/186/EEC/Add.26 
 Page 21 
 
 
  SEK 2.5 per estimated yearly kWh of heat productio n, with a maximum of SEK 3 million per project.  
Estimated annual budget for the programme is about SEK 25 million of which the major part will be 
granted to other beneficiaries than enterprises, i.e. natural persons ow ning their own dwellings. 
  As from 2009 this programme has been adju sted, providing for additional support to the 
instalment of solar heating. 
 
7. INVESTMENT AID TO FISHING ENTERPRISES 
1(a) Aid for Fleet Renewal and Modernisation of Fishing Vessels 
(a) Form of subsidy 
 
 Grant  (b) Amount of subsidy  (Total commitments) 
 
 2007:  SEK 832,200 (Community funds) 
   SEK 277,400 (National funds)   2008:  SEK 4,620,693 (Community funds)    SEK 3,102,701 (National funds)  (c) Policy objectives 
 
 To strengthen the structure, and to develop economically viable enterprises, in the sector. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regul ation (EC) No 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No 1198/2006. 
 
(e) Statistical data 
 
 Estimated number of recipients of aid in 2007:  approx. 22  Estimated number of recipients of aid in 2008:  approx. 95  Information concerning effects on trade is not available. 
 
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 (g) Rules and conditions 
 
 Recipients:  fishing enterprises.   Categories of expenditures eligible for aid:  RSW tanks, safety equipmen t, selective gear, etc. 
 1(b) Aid for Adjustment of Fishing Effort 
(a) Form of subsidy G/SCM/N/186/EEC/Add.26 
Page 22  
 
   
 Grant  (b) Amount of subsidy  (Total commitments) 
 
 2007:  SEK 3,783,200 (Community Funds) 
   SEK 3,783,200 (National Funds)   2008:  SEK 0 (Community Funds)    SEK 0 (National Funds) 
 
(c) Policy objectives 
 
 To achieve a sustainable balance be tween resources and their exploitation. 
 (d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regul ation (EC) No 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No 1198/2006. 
 
(e) Statistical data 
 
 Estimated number of recipients of aid in 2007:  10  Estimated number of recipients of aid in 2008:  0 
 Information concerning effects on trade is not available. 
 
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 (g) Rules and conditions 
 
 Recipients:  fishing enterprises   Categories of expenditures eligible for aid: 
 
 - Scrapping;  - permanent transfer to third country.   Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the Single Programming Document (SPD). 
 
8. INVESTMENT AID TO AQUACULTURE ENTERPRISES 
(a) Form of subsidy 
 
 Grant 
  G/SCM/N/186/EEC/Add.26 
 Page 23 
 
 
  (b) Amount of subsidy  (Total commitments) 
  2007:  SEK 820,043 (Community Funds)    SEK 126,997 (National Funds)  
 2008:  SEK 16,545,464 (Community Funds) 
   SEK 16,213,165 (National Funds)  
(c) Policy objectives: 
  To develop economically viable enterprises in the sector and assist structural improvements. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2007:  approx. 9 
 Estimated number of recipients of aid in 2008:  approx. 50  Information concerning effects on trade is not available.  
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  aquaculture enterprises and organi zations concerned with development projects 
within the aquaculture sector. 
  Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD.  
 Categories of expenditures eligible for aid: 
  - Construction, modernizati on and acquisition of buildings; 
 - investments to improve the product quality and to reduce pollution;  - acquisition of new plant and machinery.  
 The enterprise must be submitted to official animal health control. G/SCM/N/186/EEC/Add.26 
Page 24  
 
  9. INVESTMENT AID TO FISHING PORT FACILITIES 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 7,720,851 (Community funds)    SEK 6,366,485 (National funds)  
 2008:  SEK 3,380,720 (Community funds) 
   SEK 3,340,720 (National funds)  
(c) Policy objectives 
  To improve and adapt structure in the fisheries sector. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2007:  approx. 23 
 Estimated number of recipients of aid in 2008:  approx. 6  Information concerning effects on trade is not available.  
(f) Legal basis 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients: 
 
 - Local authorities & other public bodies;  - fishermen and fish processing enterprises connected to harbours;  - fishing harbour associations.   Maximum possible aid intensity:  participation rates are stipulated in Council Regulation (EC) 
No. 2792/99 and in the SPD. 
  Categories of expenditures eligible for aid:   - Investments to improve the conditions , under which fishery products are landed, 
handled and stored; 
 - investments to support fishing vessel activities;  - investments to improve the safety during the landing or loading of products.  G/SCM/N/186/EEC/Add.26 
 Page 25 
 
 
   
10. INVESTMENT AID TO INLAND FISHING 
(a) Form of subsidy 
 
 Grant 
 
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 150,330 (Community funds)    SEK 50,110 (National funds) 
 
 2008:  SEK 371,459 (Community funds)    SEK 300,020 (National funds)  
(c) Policy objectives 
 
 To improve and maintain a sustainable a nd a financially strong inland fishing sector. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
 
 Estimated number of recipients of aid in 2007:  approx. 7  Estimated number of recipients of aid in 2008:  approx. 13  Information concerning effects on trade is not available.  
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
  Recipients: 
  - Fishermen connected to inland fishing:    Maximum possible aid intensity:  Partic ipation rates are stipulated in Council 
Regulation (EC) No 2792/99 and in the SPD 
 
 - Categories of expenditures eligible for aid:    Renewal of fishing vessels   Security measures 
 G/SCM/N/186/EEC/Add.26 
Page 26  
 
  11. INVESTMENT AID FOR PROCESSING AND MARKETING 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 15,892,579 (Community funds)    SEK 5,047,280 (National funds)  
 2008:  SEK 4,272,294 (Community funds) 
   SEK 3,942,767 (National funds)  
(c) Policy objectives 
  To develop economically viable enterprises in the sector and assist structural improvements. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2007:  approx. 48 
 Estimated number of recipients of aid in 2008:  approx. 23  Information concerning effects on trade is not available.  
(f) Legal basis 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  the processing industry 
 
 Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD   Categories of expenditures eligible for aid:  
 - The construction and acquisition of buildings and installation; 
 - the acquisition of new equipment need ed for the processing and marketing; 
 - the application of new technology;  - investments to improve product quality and to reduce pollution.  
 
  G/SCM/N/186/EEC/Add.26 
 Page 27 
 
 
  12. INVESTMENT AID FOR PROTECTION OF COASTAL WATERS 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 9,489,199 (Community funds)    SEK 9,494,700 (National funds)  
 2008:  SEK 1,285,237 (Community funds) 
   SEK 1,285,237 (National funds)  
(c) Policy objectives 
  To achieve a sustainable balance be tween resources and their exploitation. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2007:  17 
 Estimated number of recipients of aid in 2008:  1  Information concerning effects on trade is not available.  
(f) Legal basis 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  public institutions or bodies designated for that purpose by the competent 
authorities. 
  Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD.   Categories of expenditures eligible for aid: 
 
 - Investments to improve water circulati on and other habitat conservation measures; 
 - re-stocking of species of importance for coastal fishing. G/SCM/N/186/EEC/Add.26 
Page 28  
 
  13. COLLECTIVE INVESTMENT AID IN SMALL-SCALE COASTAL AND 
FRESHWATER FISHING 
(a) Form of subsidy 
 
 Grant 
 
(b) Amount of subsidy (Total commitments) 
  2007:  SEK 956,712 (Community funds)    SEK 924,213 (National funds) 
 
 2008:  SEK 376,722 (Community funds)    SEK 279,223 (National funds)  
(c) Policy objectives 
 
 To achieve an ecologically sustainable and financially strong fisheries sector.  
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
 
 Estimated number of recipients of aid in 2007:  11  Estimated number of recipients of aid in 2008:  4  Information concerning effects on trade is not available.  
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
  Recipients:  associations of fishermen or fishermen families. 
  Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD   Categories of expenditures eligible for aid:   increase in value added, selective fishing 
equipment, improvement in landing facilities. 
  G/SCM/N/186/EEC/Add.26 
 Page 29 
 
 
  14. INVESTMENT AID FOR SOCIO-ECONOMIC MEASURES 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 0 (Community funds)    SEK 0 (National funds)  
 2008:   SEK 194,823 (Community funds) 
   SEK 194,823 (National funds)  
(c) Policy objectives 
  To recruit young fishermen into the fishing sector. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2007:  0 
 Estimated number of recipients of aid in 2008:  8  Information concerning effects on trade is not available.  
(f) Legal basis 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  fishermen younger than 35 years. 
 
 Maximum possible aid intensity:  participation rates are stipulated in Council Regulation (EC) 
No. 2792/99 and in the SPD.   Categories of expenditures eligible for aid:  purchases of used fishing vessels. 
 G/SCM/N/186/EEC/Add.26 
Page 30  
 
  15. AID FOR PROMOTION/MARKETING 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 1,198,110 (Community funds)    SEK 1,022,516 (National funds)  
 2008:  SEK 2,383,000 (Community funds) 
   SEK 2,583,000 (National funds)  
(c) Policy objectives 
  To improve market supply and the value a dded to fisheries and aquaculture products. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of projects for which aid has been allocated in 2007:  7 
 Estimated number of projects for which aid has been allocated in 2008:  15  Information concerning effects on trade is not available.  
(f) Legal basis 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  public bodies, fisheries interest associations, private contractors 
 
 Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD.   Categories of expenditures eligible for aid:  consumers surveys and market studies, promotion 
campaigns, organization of and participation in trad e fairs, consumption advice, services and advice to 
wholesalers and retailers. 
  G/SCM/N/186/EEC/Add.26 
 Page 31 
 
 
  16. AID FOR OPERATIONS BY MEMBERS OF THE TRADE 
(a) Form of subsidy 
 
 Grant 
 
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 7,908,237 (Community funds)    SEK 6,039,005 (National funds)  
 2008:  SEK 1,048,313 (Community funds) 
   SEK 991,813 (National funds)  
(c) Policy objectives 
  To improve market supply and the value a dded to fisheries and aquaculture products. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of projects for which aid has been allocated in 2007:  39 
 Estimated number of projects for which aid has been allocated in 2008:  7  Information concerning effects on trade is not available.  
(f) Legal basis 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  public bodies, fisheries interest associations, private contractors. 
 
 Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD.  G/SCM/N/186/EEC/Add.26 
Page 32  
 
  17. AID FOR TEMPORARY CESSATION OF FISHING ACTIVITIES 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 850,000 (Community funds)    SEK 850,000 (National funds)  
 2008:  SEK 15,100,000 (Community funds) 
   SEK 15,100,000 (National funds)  
(c) Policy objectives 
  To achieve sustainable balance between resources and their exploitation. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000 2006, are adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2007:  approx. 1 
 Estimated number of recipients of aid in 2008:  approx. 2  
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  fishing enterprises.  
 Categories of expenditures eligible for aid:  compensation of the loss of income associated 
with a temporary cessation measure introduced  as a result of unforeseen and non recurring 
circumstances attributable to biological causes.   G/SCM/N/186/EEC/Add.26 
 Page 33 
 
 
  18. AID TO STUDIES AND PILOT PROJECTS 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 16,663,218 (Community funds)    SEK 10,826,189 (National funds)  
 2008:  SEK 9,872,779 (Community funds) 
   SEK 9,872,779 (National funds)  
(c) Policy objectives 
  To improve and adapt structures in the fisheries and aquaculture sector. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2007:  21 
 Estimated number of recipients of aid in 2008:  5  Information concerning effects on trade is not available.  
(f) Legal basis 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  universities, public and private institutions, enterprises 
 
 Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD.   Categories of expenditures eligible for aid:  the result of the study or pilot project should be of 
value for the industry. 
 
 Any result must be published and made accessible to the public.  G/SCM/N/186/EEC/Add.26 
Page 34  
 
  19. PAYMENT OF COMPENSATION TO PRODUCERS' ORGANIZATIONS 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2007:  SEK 761,683  2008:  SEK 76,429  (c) Policy objective 
 
 To grant financial compensation to producers'  organizations for losses when fish has been 
withdrawn from the market.  (d) Duration 
 
 From 1 January 1995.  
(e) Statistical data 
  Estimated number of recipients of aid in 2007:  1 (Producers' organizations) 
 Estimated number of recipients of aid in 2008:  1 (Producers' organizations)  Sweden considers that this measure has had very insignificant, if any, effects on trade. 
 
(f) Legal basis 
 
 Council Regulation (EEC) No. 104/2000 of 17 December 1999 on the common organization 
of the market in fishery and aquaculture products.  
(g) Rules and conditions 
  Article 21 and 24 in Council Regulation No 104/2000.  G/SCM/N/186/EEC/Add.26 
 Page 35 
 
 
  APPENDIX 
 
 
The Net Cost Method 
 The objective of the net cost to government (N CG-method) is to obtain a consistent measure 
of government aid, where support from various instru ments, i.e. grants, loans, guarantees, equity 
injections and tax concessions, are added.  The NC G-method is used by OECD in its project "Public 
support to industry".  
 Net costs are calculated as follows: 
  Grants
:  actual amounts paid out minus repayments and royalties if any. 
  Guarantees
:  claims paid minus fees received and recoveries; 
 
 Loans :  estimated capital cost based on the diffe rence between the government borrowing rate 
and actual interest payments received. 
  Equity capital
:  estimated capital cost based on the government borrowing rate and dividends 
received. 
 
 Tax concessions :  estimates of revenue forgone. 
  Capital against royalty
:  estimated capital cost based on the difference between the 
government borrowing rate and actual royalty payments received. 
 
 It should be noted that the net cost does not co rrespond to the actual transfer of funds from the 
government to the firms in any given year, i.e. th e expenditure as reported in the government budget.  
Instead the purpose is to indicate the net cost to  government of support to industry.  Since imputed 
capital costs on previous loans and equity injections  are included, the net cost figures to a certain 
extent reflect past policies.  If the net cost of a pr ogramme is negative, that is, if the government earns 
money because of high repayments or interest rates, the net cost is reported as nil (0). 
  The NCG-method is not a direct guide to determ ine the extent of distortion of competition nor 
to approximate the ultimate benefit to industry.  Ho wever, the NCG is a useful guide to the evolution 
and the structure of government support over time. 
 
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