differences between the text of the summary and that of the Bill
itself, the text of the Bill is the authentic text.
The summary is available on the Ministry of the Environment website(www.miljo.regeringen.se). It can also be ordered from the Ministry of theEnvironment, phone 08-405 10 00.
Stockholm, Sweden, March 2003.
Article no. M 2003.01

Summary Gov. Bill 2001/02:55

This is a summary of the Bill, and where there are any

The Swedish
ClimateStrategy
Summary Gov. Bill
2001/02:55

Table of contents
1 The purpose of the Bill ________________2

Environmentally Oriented Product Policy __17

2 The question and its preparation ________4

Settlement __________________________18

3 The climate system and the impactof greenhouse gases __________________5

Refuse policy decision ________________18
Tax as an instrument for reducing
carbon dioxide emissions ____________19

The climate issue – a global challenge ____5

Work at local level ____________________19

Long-term reductions of greenhouse gas emissions and consideration of global justice 5

Voluntary activities ____________________19

The greenhouse effect __________________6

International Initiatives ________________19

In what way is the world’s climate liable tochange? __________________________6

Preparatory measures for achieving theintermediate objective ______________20

The carbon cycle ______________________6
Greenhouse gases

General direction of climate policy ______20____________________7

Tax as a policy instrument ______________21

4 International climate policy ____________8
Global co-operation ____________________8

State grants for climate-related measures inlocal climate investment programmes 22

Decision on mechanisms

Information drive______________8____________________23

Decision on sinks ______________________9

Energy policy ________________________23

Decision on consequences ____________10

Transport policy ______________________24

Decisions affecting developing countries __10

Promotion of alternative fuels____________25

EU climate policy

Environmental agreements____________________11____________26

Reduction of carbon dioxide emissions throughenvironmentally driven business development ____________________________27

The EU and emissions trading __________11
The European Climate Change
Programme, ECCP ________________11

Swedish implementation of the Flexibility
Mechanisms of the Kyoto Protocol ____27

The Sixth Environment Action Programme andthe EU Sustainability Strategy ________12

Advanced construction ________________28

Integrated environmental considerations __12

Reduced emissions of methane andfluorinated gases __________________29

The Commission’s Green Paper on security ofenergy supply ____________________12__13

Climate measures for sustainable development
in developing countries ______________31

6 Sweden’s strategy for reducing emissionsof greenhouse gases ________________16

The role of the sectors ________________31

5 Objectives of Swedish climate policy

Climate research ______________________31

Emission trends ______________________16

Environmental Objectives Council

Climate policy decisions ________________16______32

Legislative questions __________________32

The energy policy programme __________17

Environmental accounting and indicators__33

Transport policy decisions ______________17

Follow-up and evaluation ______________33

Local investment programmes __________17

7 Ratification of the Kyoto Protocol ______34

1

1 The purpose of the Bill
The purpose of the Bill is to put forward a strategy, i.e. to present a concerted picture of current
climate policy activities in Sweden, in the EU
and on the international plane. The problem, as
everyone appreciates, is supremely manifold,but, as the Bill shows, there exist a diversity ofpolicy instruments for solving it. An immense
political and administrative machinery has now
started up and is accelerating.
It is not the purpose of the Bill to present a listof new policy measures and to say exactly whatemission reductions will result from every measure taken.

tled to increase its emissions by up to 4 per
cent.
The Government Bill, then, means Sweden
reducing by 4 per cent instead of increasing by 4
per cent. Other countries have also announced
stricter targets than they are legally committed
to under the Kyoto Protocol and the agreement
within the EU. The greenhouse gases affected
are carbon dioxide, methane, nitrogen oxide,
HFCs (hydrofluorocarbons), sulphur hexafluoride and perfluorocarbons. They are to be calculated as indicated in the Kyoto Protocol and by
the UN Intergovernmental Panel on Climate
Change. Strictly speaking, the target here is not2010 but the average of the years between 2008
and 2012, because a single extreme year (inmeteorological terms, for example) must not bemade decisive.
Swedish climate policy and the national target
are to be continuously followed up. If emissions
do not diminish according to the target, theGovernment may propose further measures orif necessary review the target. Account shall betaken of the competitive strength of Swedish
industry. Checkpoints are proposed for 2004
and 2008.
Sweden shall act internationally to preventthe concentration of greenhouse gases exceeding
the equivalent of 550 ppm (parts per million)
carbon dioxide equivalents. By 2050, emissionsof greenhouse gases in Sweden should total lessthan 4.5 tonnes or carbon dioxide equivalents
per capita per annum and emissions should continue to decrease thereafter.
Limitation of climatic impact shall beachieved through an active climate policy integrated with the entire community. Each individual must assume his share of responsibility. Thisapplies to both national and local authorities aswell as to business undertakings, organisations

Here targets are set for climate policy.
Swedish emissions of greenhouse gases are to
be at least 4 per cent lower in 2010 than they
were in 1990.
This aim is to be achieved without any compensation for uptake in carbon sinks or by use of
Flexible Mechanisms. At the checkpoint in2004 the Government intends, as an adjunct,
to consider a target which incorporates theFlexible Mechanisms.
This is a substantial unilateral commitment over
and above what Sweden needs to do under the
Kyoto Protocol to the United Nations
Framework Convention on Climate Change.
When the Protocol has entered into force, theEuropean Union as a whole shall reduce its
emissions by 8 per cent during the period ending in 2010, counting from the base year of
1990. This reduction target, however, has been
divided between the countries in such a waythat some will have to achieve heavy reductions
while a few will be entitled to increase theiremissions. Sweden, which has relatively low per
capita emissions and which had reduced its
emissions a great deal before 1990, became enti-

2and individual persons. The policy instruments
to be used are economic instruments (such asenvironmental taxes, subsidies, removal of subsidies), legislation, voluntary agreements and a
dialogue between the state and business enterprise.
Sectorial responsibility needs to be developed,
i.e. clarification as to which authorities are
responsible for climate policy in a sector of society (e.g. in the sectors of transport, industry,
power and heating, buildings and regional policy). Inter-sectorial working methods are also to
be developed, including environmental management systems, environmental declarations, environmental labelling, development of environmental technology and environmentally appropriate procurement.

• Promotion of alternative fuels, for example
ethanol.
• Promotion of electricity from renewable
power production sources, through compulsory quotas under what are termed green certificates (in accordance with an impending
Government Bill).
• The Environmental Objectives Council - asprovided in the Environmental Objectives
Bill - will be tasked with co-ordinating thework of national authorities in the climate
sector.
The climate objectives are to be cost-effectively
achieved. The strategy comprises the energy andtransport policy decision now in force, theGovernment Bill on a sustainable transport system and an Energy Bill to be introduced by theGovernment in the spring session of the Riksdag(parliament) in 2002. Further measures and definitions may become necessary. Monitoring,accordingly, is an essential part of the strategy.
The Government proposes that the Riksdag
give it a mandate to recognise the Kyoto
Protocol on condition that the EU has made abinding decision on mutual and location ofemissions within the EU and ratification takes
place together and simultaneously with the EU
and its other Member States.

To achieve the goals, the Government proposesa number of measures to be launched at theearliest possible opportunity, namely:• Information to raise the level of knowledge
concerning the climate issue.
• Climate measures in local investment programmes. Several billion crowns have alreadybeen invested through these programmes inprojects yielding both environmental benefits
and employment, but in future these are tofocus predominantly on climate-related measures.

32 The question and its preparation
The climate problem is global by nature. Sweden
has signed and ratified the UN Framework
Convention on Climate Change which was
adopted at the UN Conference on Environmentand Development in Rio de Janeiro in 1992.
Since that Convention entered into force, theparties have held regular conferences. At theThird Conference of Parties, in Kyoto in 1997,
a Protocol was adopted, setting out times andquantitative targets for reducing emissions.
The text of the Convention itself includes theexpress aim of stabilising emission in the industrialised countries at their level in 1990. Sweden
resolved, through a Riksdag resolution in 1993,
to make this its objective, in the sense of emissions of carbon dioxide (the most important
greenhouse gas) from fossil sources being stabilised at the 1990 level by 2000 at the latest
and being reduced thereafter.
A target resolved on by the Riksdag previously, in 1988, to stabilise emissions at “the presentday level”, on the other hand, was elevated as aneffect, because emissions in 1990 were lower
than they had been in 1988. This decision led tothe introduction of the world’s first significant
carbon dioxide tax, in 1991. The 1993 Riksdag
resolution stressed that climate policy should beframed in an international perspective and bycomparison with measures in other industrialised
countries, so that Sweden would not assume asignificantly heavier economic burden that thecountries we have to compete with.
The Riksdag resolution on energy policy,
passed in 1997, laid down guidelines for a climate strategy in the energy sector. Those guidelines call for Swedish emissions of carbon dioxide in the energy sector to be limited as far as
possible, having regard to competitive strength,

employment and welfare. In the energy sector,
the guidelines also mean that the climate strategy is to be framed against a background of comparisons with measures actually taken by othercountries, so as to avoid imposing a substantiallyheavier burden on Swedish industry than thecompetitor countries impose on theirs.
The Environmental Objectives Bill, passed by
the Riksdag in April 1999, established that theobjective of Reduced Climate Impact meansthat international activity should focus on stabilising the concentration of carbon dioxide at lessthan 550 ppm, and on concentrations of othergreenhouse gases not increasing. It is also statedthat initiatives in other countries will be crucial
to the attainability of the objective.
In its Bill Transport Policy for Sustainable
Development, the Government judged that by2010 emissions of carbon dioxide from transportshould have been stabilised at the 1990 level. To
achieve this intermediate objective, a strategy isneeded for improving the efficiency of transportsystems, coupled with leaner vehicles and theintroduction of renewable fuels.
In April 2000 the Parliamentary Climate
Committee presented its final report, and theGovernment Bill is to a great extent based onthat report and the comments received on it.
In its work on the Bill, the Government has
also given the National Environmental
Protection Agency three assignments to shedlight on carbon dioxide emissions from cars in
relation to transport capacity, the effect of landfill sites on global warming, and instruments forminimising emissions of fluorinated greenhousegases.
The proposals in the Government Bill havebeen framed in co-operation with the Left Party.

4

3 The climate system and the impact ofgreenhouse gases
The climate issue – a global challengeLong-term reductions of greenhouse gas
emissions and consideration of global justice

The climate issue is one of the greatest global environmental problems and affects all sectors of society. Climate changes can have major and adverse
effects on agricultural, urban development, culture,
the economy and ecosystems. Every long-term
decision, therefore, must be made in the light ofthese risks. The caution principle must apply. The
way in which the climate issue is handled will beof great consequence for the whole of social development. To restrain climate changes, changes need
to be made to our social system. The industrialised
countries bear a large part of historical responsibility for the growing concentration of greenhousegases in the atmosphere, and they account for
more than half of present-day emissions. The USA
releases 21 tonnes of greenhouse gases per capita
annually, Europe 8, Sweden 6 and Africa 1 tonne
per capita.
Emissions are unevenly distributed, and it isprobably the poor countries which are worst hit byclimate changes. For this reason, according to the
Framework Convention, the industrialised nations1
must set an example. In the long term, however,
emissions also need to be restrained in the developing countries.
Sweden’s carbon dioxide emissions are among
the lowest capita in the OECD countries, and inproportion to GDP (a measure of industrial carbon
dioxide intensity) Sweden accounts for roughly 0.2
per cent of global emissions. This is not to say thatwhat Sweden does is of no importance. For one
thing, Swedish climate policy can contributetowards the development of techniques and policy
instrument combining reduced emissions withgrowing prosperity, high employment, good competitive strength for Swedish enterprise and gooddevelopment for the poor countries.

Whereas the affluent countries will have to reduce
their emissions, the poor countries may need toincrease their use of fossil fuels for some time tocome. But it is also supremely important that thedeveloping countries should have the possibility ofinvesting in ecologically sustainable solutions. Thiscan be achieved through transfers of technology
and know-how. The UN Commission for
Sustainable Development maintains that the decisive challenge lies in increasing the supply of energy and transport for the developing countries
without the environment suffering as a result.
The Intergovernmental Panel on Climate
Change (IPCC) has described a number of scenarios of future emissions of greenhouse gases which
illustrate how much will have to be done if unduly
drastic climate change is to be avoided. The medium term scenario points to a rise in the carbon
dioxide concentration to 550 ppm, twice the preindustrial level, which was 270 ppm, and worth
comparing with the present-day (2000) level of368 ppm. According to the Committee on
Climate, 550 ppm carbon dioxide would mean
excessively great risks, and it therefore proposesthat the objective be made to equal 550 ppm, also
including the effect of the other greenhouse gases.
This means that global emissions of carbon dioxide
will have to be reduced from 4.8 tonnes per capita
today to 3.2 or 3.6 tonnes in 2050. Sweden, as
mentioned earlier, releases about 6 tonnes per
capita annually. The distribution of this reduction
is a question of justice.
Patterns of emission differ a great deal from one
country to another. Sweden’s emissions declined
heavily during the 1970s and 1980s, above all as aresult of the policy of reducing dependence on oil.
Sweden has small emissions from electricity pro-1
For the purposes of the Framework Convention, the industrialised nations comprise the so-called Annex 1 countries: Australia, Austria,
Belarus, Belgium, Bulgaria, Canada, the Czech Republic, Denmark, the European Community, Estonia, Finland, France, Germany,
Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal,
Romania, the Russian Federation, Slovakia, Spain, Sweden, Switzerland, Turkey, the Ukraine, the United Kingdom and the USA.

5

duction, whereas many other countries have agreat deal of coal-fired power production.

the actual stratosphere is now also starting to
decline. Cooling of the stratosphere can mean theozone layer taking longer to recover.

The greenhouse effect
In what way is the world’s
climate liable to change?

The growing concentration of greenhouse gases in
the atmosphere means that more heat from solar
irradiation is trapped in the earth’s atmosphere,
rather in the way that a teapot with a tea cosy
keeps a higher temperature than a teapot withoutone. This has the effect of raising the earth’s average temperature, which in turn changes the patterns of precipitation, winds and marine currents.
There is also a natural variation of climate, but
if we wait until we can definitely distinguishincreased greenhouse effect from natural variations, it will be too late for serious effects to beprevented. We are therefore thrown back onmodel calculations. These have been performed
since the 1980s and the method has been
improved since then, resulting in a convergence ofmodel predictions and observed data and, accordingly, more dependable predictions.
The greenhouse effect also existed before
human activity started to impact on climate.
Water vapour, carbon dioxide, methane andNitrous oxide have made the earth a great deal
warmer than it would have been without thesegases. As a result of human activity, however, theconcentration of these gases has increased, andindustrial gases have been added which neverexisted previously.
The earth’s climate is affected by many factors
apart from greenhouse gases. Particles from volcanic eruptions can cause temporary cooling, as
can emissions of sulphur and particles from industry and traffic.
The increasing greenhouse effect concerns theatmosphere closest to us, up to an altitude ofabout 10 kilometres. In the next stratum, thestratosphere, the greenhouse effect can result incooling. Returning to our simile of the tea cosy, it
is colder on the outside of a tea cosy than on theoutside of a tea pot without a cosy – the heat istrapped. This is disquieting, because it is with thestratosphere at its coldest that “ozone holes”
develop. True, emissions of ozone-destructive
CFCs have diminished, and their concentration in

Even with vigorous counter measures, the concentration of greenhouse gases will go on increasing,but the increase can be restrained.
During the twentieth century, the global average temperature rose by approximately 0.6°,
which is probably the greatest warming rate tohave occurred in the past 1,000 years.
According to the IPCC Third Assessment
Report (TAR) for 2001, globally averaged surface
temperature will increase by 1.4-5.8°C in a hundred years. The span is mainly due to a variety ofassumptions and to a lesser extent to uncertainty
inherent in the model.
Warming will be unequally distributed over theyears. Precipitation too is expected to be redistributed, with some regions becoming more arid andothers receiving much heavier rainfall. A drastic
climatic change of this kind is liable to have serious social, economic and ecological consequences.
Some of the consequences will be abrupt rather
than gradual. Certain models point to the possibility of the Gulf Stream being brought to a complete standstill in the long run if warming continues for any length of time.
Animal and plant species which are unable or
do not have time to migrate can be eliminated, as
can perhaps entire ecosystems.
Special and biotopes which are now protected
through national parks may, for example, have difficulty in both remaining and migrating.
Changed conditions for agriculture and forestry,
as a result of more frequent flooding and thewider extent of tropical diseases, may have direct
economic consequences.

The carbon cycle
Carbon is present in the soil, in living animals andplants, stored as fossil fuels in the earth’s crust,and in the atmosphere and the oceans. In the natural carbon cycle, carbon uptake by plants is balanced through photosynthesis, by an equal

6amount of carbon dioxide being emitted fromdegradation.
This carbon cycle has been disrupted by the
combustion of fossil fuels, but also by deforestation. According to the IPCC, combustion of fossil
fuels yields an increment of 6.3 billion tonnes ofcarbon annually, deforestation 1.6 billion tonnes.
Of this, 2.3 billion tonnes are absorbed by growing biomass and the same quantity by the oceans,leaving a net increase of 3.3 billion tonnes of carbon, the equivalent of 12 billion tonnes of carbon
dioxide.
There are several points of uncertainty about
these estimates and even greater uncertainty
regarding non-carbon greenhouse gases.
The IPCC points out that increased carbon
uptake in so-called carbon sinks - for example,
through afforestation - can be an important
adjunct to emission reductions.

lution to stabilise emissions in 2000 at the 1990
level has been accomplished.
What has happened is that emissions fromheating have declined, while those from transport
and industry have increased.
Year-on-year comparisons are made difficult bycertain years being warmer or yielding morehydropower than others.

MethaneMethane comes mostly from agriculture and landfill sites. Emissions in 1999 totalled 6.2 million
tonnes carbon dioxide equivalents, 0.6 million lessthan in 1990, due mainly to a reduction of landfill
emissions.
Nitrous oxide
Nitrous oxide is emitted from combustion processes, from farmland and manure and from theproduction of artificial fertiliser. Emissions in 1999
totalled 7.2 million tonnes carbon dioxide equivalents, which was roughly the same as in 1990

Greenhouse gases
The Kyoto Protocol lists six greenhouse gases:
carbon dioxide, methane, nitrous oxide, hydrofluorocarbons (HFCs), perfluorcarbons (FCs) andsulphur hexafluoride (SF6). Ozone-degradinggases (CFCs) can also have an impact on climate,
but these are being phased out under theMontreal Protocol.
As an easy way of comparing the climatic
impact of different gases, reference is made totheir GWP (Global Warming Potential). Mostoften this is calculated in a 100-year perspective.

Fluorinated gases (HFC, FC and SF6)
The three fluorinated gases accounted in 1999 for
0.8 million tonnes carbon dioxide equivalents, asagainst 0.5 million in 1990. HFCs are used mainly
as a CFC substitute in refrigeration plants, and useof this kind has increased. SF6 is emitted, forexample, from high voltage switches. FC comesmainly from aluminium production and declined
during the 1990s.
Breakdown of greenhouse gas emissions
Sweden’s emissions of the six gases in 1999
totalled 70.7 million tonnes, a slight increase on
70.5 million tonnes for 1990. Corrected, however,for a normal year, emissions declined somewhat
between 1990 and 1999.
The biggest sources of greenhouse gases are“energy”, above all heating, which contributes
nearly half, transport (nearly 30 per cent), agriculture (about 10 per cent) and process industry etc.
(about 8 per cent).
International shipping and aviation are notincluded in the national commitment but are separately accounted for all the same.

Table 3.1 GWP (100-year) values of certain greenhouse gases

Gas
GWP (100 years)
Carbon dioxide, CO2
1
Methane, CH4
21
Nitrous oxide N2O310
HFC 134a (a hydrofluorocarbon)
1,300
CF4 (a perfluorcarbons)
6,500
Sulphur hexafluoride, SF6
23,900Carbon dioxide
Carbon dioxide is the most important of the six
gases. Emissions in Sweden totalled 56.3 million
tonnes in 1999, as compared with 55.9 in 1990.
Preliminary data suggest that emissions in 2000
were lower than for 1999. If so, the Riksdag reso-

7

4 International climate policy
Global co-operationagreement required endorsement by practicallythe whole of the industrialised world.
The main question on which unity wassought and finally achieved at The Hague, Berlinand Marrakech were:• conditions and rules for Flexibility
Mechanisms,• rules for the use of carbon sinks,• support for the developing countries andtools for co-operation between industrialised
and developing countries, and• the development of rules on sanctions andother consequences in the event of a party
failing to fulfil its obligations.

The UN Framework Convention on Climate
Change was negotiated in Rio de Janeiro in1992. At the First Conference of Parties (COP1) in 1995, the parties resolved to negotiate alegally binding Protocol setting quantified limitation and reduction objectives for action by
developed countries according to specified timeframes. It was also resolved not to introduce any
new commitment for developing countries during the initial period.
A Protocol of this kind was negotiated in
Kyoto in December 1997 and signed by 84
countries, Sweden among them.
In this Protocol, the industrialised nations
pledged themselves to reduce their emissions by
an average of 5.2 per cent, but variously distributed. The EU commitment is –8 per cent, USA’s–7 per cent and Japan’s –6 per cent.
At Kyoto the EU expressed its intention ofreapportioning its commitment between theMember States.
Many questions could not be resolved at
Kyoto. The Sixth Conference of Parties in The
Hague, in November 2000, failed to solve them,but when this conference was resumed in Berlinin July 2001 agreement, to the delight of theparticipants, had been reached on all the big
issues, and at the Seventh Conference of Parties
in Marrakech, in November 2001, a Protocol
was finally achieved, ready for ratification.
Great drama ensued after the USA, having
ratified the Framework Convention on Climate
Change and signed the Protocol, pulled out ofthe process in April 2001. The agreement will
not enter into force until it has been ratified byat least 55 countries representing, between
them, 55 per cent of greenhouse gas emissions
from the industrialised countries. Since the USA
accounts for about roughly 25 per cent of theworld’s emissions and a far greater share ofemissions from the industrialised nations, theThese terms are explained further on in the
text.
The agreement reached applies only to thefirst commitment period, 2008-2012, but,
according to the Protocol, negotiations for the
next period, 2013-2017, are to be opened notlater than 2005. In the Government’s opinion,
long-term and much more far-reaching reduction target will have to be established.
The Government also takes the view that thedeveloping countries should in someway participate in post-2012 commitments. This shall bedone as part of a concerted approach contributing towards development and the fight against
poverty in the developing countries.
Both within the EU and as representing an individual country, the Government will work for a
return of the USA to the negotiating table.

Decision on mechanisms
The Conference of Parties at Kyoto in 1997
established the three Flexible Mechanisms:• Joint implementation, i.e. one developed
country carrying out projects in another andbeing credited with the resultant reductionof emissions.

8• Clean Development Mechanism, i.e. a developed country carrying out a joint emissions
reduction project with a developing country
and being credited with the emission reductions.
• Emissions trading between developed countries, in such a way that a country which
reduces emissions reduction in excess of its
commitment can, but need not, sell emission
rights to a country which has difficulty inmeeting its target.

certified project activities will go towards adaptation costs in countries particularly vulnerable
to the adverse effects of climate change.
Afforestation projects are permitted during
the first commitment period.
Nuclear power projects are not permitted.
Small projects are to be given special treatment under simpler rules.
An executive board of the Clean
Development Mechanism was elected at theConference of Parties in Marrakech.

The purpose of these mechanisms is to lower
the cost of emission reduction (all three), and toprovide technology transfer from affluent developed countries to poorer developed countries(joint implementation) and to developing countries (clean development).

Emissions trading
Trading shall be recorded so that all transactions
can be traced. The national records are toinclude the quantity of emission rights which
the country has according to the Protocol, withadditions and deductions for joint implementation and clean development projects. Countries
having such a record may trade with each other.
Trading is expected to begin in 2007 at the earliest.
At the end of the commitment period, eachparty shall give an account of compliance with
its commitment. If its emission reductions haveexceeded its commitment, it may sell the surplus or carry it over to the next period.
Governments may authorise business undertakings to trade emission rights with each other,according to principles of their choosing. On theother hand a Government can never divest itself
of responsibility for meeting its commitments.
The role of business enterprise, accordingly, is
not addressed in the Protocol.

Joint implementation
The emission reduction with which the investor
country can be credited are deducted from thehost country’s emission rights. In most cases
accounting presents little difficulty. The
Protocol does, however, foresee one situation,
namely that of the host country’s statistics being
inadequate. If so, stricter accounting of the project is required, with independent scrutiny. In
this way one single country’s inadequate
accounting can be prevented from wrecking thewhole system.
According to the Protocol, the host country
itself may decide what contributes to that country’s sustainable development. Nuclear power
projects, however, are excluded.
Emission reductions may be credited from2008.

Flexible mechanisms – principles, rules andguidelines
At the Conference of Parties in Marrakech, rules
were laid down for the calculation of mechanisms and sinks, other than sinks in CDM, andon the extent to which they can be carried overto subsequent periods after 2012. In practicethis imposes few limitations on a country like
Sweden.

Clean Development Mechanism
The Clean Development Mechanism (CDM)
exists for investments by developed countries indeveloping countries. Emission reductions from2000 onwards may be credited.
Projects are to be approved by an independent body, which will pre-examine project activities and verify the emission reductions actuallyachieved. A share of the proceeds from these

Decision on sinks
Growing forests absorbs carbon dioxide, i.e. acts9

as “sinks” for carbon dioxide. When the Kyoto
Protocol was adopted in 1997, the participant
countries agreed that it was to include sinks, butthat only directly anthropogenic carbon dioxide
uptake in sinks was to be counted. This may, forexample, be due to good forest management.
Since then the EU and Sweden have been trying
to limit sinks, in view of the great difficulty inquantifying the carbon dioxide uptake resulting
from human activities. Sinks involve otherproblems as well. For one thing, swiftly implemented afforestation projects can lead to depletion of biodiversity and other natural qualities. For another, sinks can reduce motivation
for reducing emissions, added to which there
are awkward questions of liability involved in
the event of forests being damaged by fire or
pest attacks.
Other countries, however, regarded sinks as aprecondition for ratifying the Protocol. The
Protocol knows two types of sink. One of theseis concerned with a distinct change in land use,such as afforestation and deforestation, visible
from satellite images. These sinks have to beaccounted for if they have a negative impact on
the carbon balance, for example if a forest isfelled so that the land can be used for grazing
cattle.
The other kind of sink is concerned withmore normal changes within the framework ofnormal forestry. In certain years, more timbergrows than is felled. In other years the opposite
applies. Forest growth is considerable in nearly
all developed countries.
To allow for uncertainties in relation to sinks
and for the stipulation of only counting uptake
resulting from human activity, the participant
countries decided at the Bonn meeting that not
more than 15 per cent of the carbon dioxide
absorbed by growing forest could be credited
for the first commitment period. Russia, Canada
and Japan, however, were permitted to use
more in achieving compliance.
To be credited with forest uptake, the country
concerned must, by resolution of COP-7 inMarrakech, have a correct forest inventory.
Otherwise the uptake may not be credited. Useof sinks to meet commitments during the firstcommitment period is also essentially voluntary.

Decision on consequences
The Kyoto Protocol is legally binding. Thisapplies both to the commitments themselves(that is, not emitting more than one is entitledto), to requirements concerning methods andreporting and also, finally, to the meeting of
requirements for taking part in the mechanisms.
For a country which does not meet its commitments during the first period, there will bethree consequences. Firstly, the country must
present a detailed plan, subject to approval by“the enforcement branch”, explaining how itwill meet its target. Secondly, the country will
not be able to use the Flexible Mechanisms.
Thirdly, it will incur a heavier commitment for
the next period, through the addition of 30 per
cent “interest” to its excess emissions.
If, then, a country is entitled to release 100
million tonnes carbon dioxide equivalent per
annum but emits 110 million, an additional
reduction target equalling the 10 million excess
plus another 3 million will be enforced in thenext period. This is quite a noticeable punishment, since it is reasonable to assume that theright to emit will be reduced for coming periods, e.g. to 95 million tonnes for 2013-2017 inour example. If so, emissions per 5 years will
have to be reduced from 110 to 82 million
tonnes, which implies a drastic structural change– or the necessity of making some very expensive purchases of emission rights.

Decisions affecting developing countries
Chapter 4 of the UN Framework Convention
on Climate Change imposes obligations on thedeveloped countries towards the developing
countries, e.g. with reference to capacity buildup (statistics, among other things), technology
transfer and adaptation. Adaptation means
adjustment to climate changes (e.g. evacuationof people from areas particularly prone to flooding, or supply of water to drought-ridden areas)
and adjustment to the new rules applying withthe entry into force of the Kyoto Protocol. This10

can mean, for example, that they suddenly lose
export markets or incur heavy administrative
burdens. A special fund has been set up under
the UN Framework Convention to finance initiatives in adaptation, technology transfer, energy, transport, agriculture, silviculture, waste
management and economic diversification. This
last mentioned means that countries particularly
dependent on fossil fuels shall be helped toovercome this one-sidedness.
There is also a special fund for the least developed countries.
In addition, a third fund has been set up for
adaptation in developing countries. This will be
partly financed by a charge on the Clean
Development Mechanism.
Furthermore, a number of developed countries have expressed their willingness to contribute a total of 410 million dollars annually,
starting in 2005.
The developed countries are also to report on
the efforts they are making to meet their commitments in a way which does not adversely
affect the developing countries environmentally,
economically or socially, and the measures they
are taking in order, for example, to reduce subsidies and tax release in sectors contributing
towards emissions of greenhouse gases.

The EU and emissions trading
The European Commission put forward a draft
Directive on emission rights trading in October
2001.
The draft Directive proposes opening up trading for power and heat producers and certain
other energy-intensive industries, such as steel,cement and pulp. It is not yet clear how theemission rights are to be allocated. Auctioning is
one possibility, while another is for enterprises
to be entitled to, say, 90 per cent of their emissions in 1990. An intermediate solution is also
possible, with, say, a steelworks being entitled tothe emissions averaged by a modern plant. If it
exceeds that performance it can sell rights, andif it falls short of the target it can purchaserights or close down.
Sweden has hitherto advocated auctioning.
EU trading is expected to proceed between
2005 and 2007.

The European Climate Change
Programme, ECCP
Under the European Climate Change
Programme, the European Commission has
worked out a number of possible ways of reducing emissions. They have shown that there aretechnically feasible and cost-effective methods
for reducing emissions by 700 million tonnes
carbon dioxide equivalents, twice as much as
the Kyoto Protocol demands. The cost is estimated at less than 20 Euros per tonne.
Six areas have been designated to begin with:• Use of non-fossil sources of energy supply
including support for CHP.
• Improved energy efficiency in industry,
households and the service sector including
energy specifications for buildings and ruleon energy-efficient public procurement.
• Reduction of nitrous oxide emissions fromthe nylon industry.
• Various measures for reducing methane emissions.
• Greater energy efficiency in the transportsystem.

EU climate policy
Sweden’s climate policy objectives will not only
be achieved through measures decided on in
Sweden itself, but also to some extent throughthe EU.
As yet, the “Burden Sharing” within the EU
only has the status of a Council Conclusion. To
become legally binding it has to be put forward
as a legal act. Sweden is under no obligation toshare any surpluses with other countries unless
this is resolved on in the legal act. Sweden
opposes any such “wider solidarity”. In such acase it will be futile to do more than one has to,
as Sweden has, for example, by reducing its
emissions by 4 per cent instead of exercising its
right of increasing them.

11

The Commission is working to frame and concretise additional measures to supplement initiatives within the Member States.

ments, committees and directorates.
In 1998 Sweden took the initiative in aprocess of integrating environmental considerations with other fields of EU policy. The councils of transport and energy ministers, for example, have on various occasions called upon theCommission to develop several new actions. In
the energy sector, this means, for example:• Pilot projects for international trading ingreen certificates (a certain proportion ofrenewable energy).
• Review of Member States’ energy subsidies.
• Measures to increase the use of renewableenergy, especially biomass.
In the transport sector, priority has been given
to developing a strategy for new techniques andrenewable fuels.
Many decisions which, as yet, are less concrete may subsequently yield more tangible
results.

The Sixth Environment Action
Programme and the EU Sustainability
Strategy
The Sixth Environment Action Programme,
which attaches great importance to the climate
issue, affirms that the EU shall work for ratification and entry into force of Kyoto in 2002, thatemissions shall be reduced by 8 per cent in the
period ending 2012, and that the EU shall work
for substantial emission reductions internationally after 2012. The programme also proposes
reduction of support for fossil fuels, both within
the EU (through Structural Funds etc.) andwithin the Member States.
For further details, see
http://europa.eu.int/comm/environment/newprg/index.htm.
The Sixth Environment Action Programme
was endorsed by the heads of Governments inthe sustainability strategy resolved on in
Gothenburg (Göteborg) in June.

The Commission’s Green Paper on
security of energy supply
In a Green Paper – a kind of normative debate
contribution – the Energy and Transport
Directorate-General of the European
Commission has proposed a long-term strategy
for preventing a growth of dependence on
imported oil and gas. Among other things, thismeans continued use of coal and nuclear power,
but also greater use of renewable energy andefficiency improvements.
The Council of Ministers (Energy) is expected to take a decision in December 2001.

Integrated environmental considerations
Environmental policy cannot only be conductedat the Ministry of the Environment, at meetingsof environment ministers and within theEuropean Commission’s Environment
Directorate-General. Environmental policy isalso conducted in other Government depart-12

5 Objectives of Swedish climate policy
The Government’s proposals : Swedish emissions of greenhouse gases, expressed as an average for the period 2008-2012, shall be at least 4 per cent lower than emissions in 1990.
Emissions should be counted as carbon dioxide equivalents and shall comprise the 6 greenhousegases as defined in the Kyoto Protocol and by the IPCC. This objective takes as its starting point
Sweden’s emission forecast in the third national report to the UN Framework Convention on
Climate Change.
Swedish climate policy activities and the national objective shall be followed up continuously. If
the emissions trend proves less favourable than is now predicted, or if the measures taken do not
produce the effect anticipated, the Government may propose further measures and/or if necessary propose a review of the objective. Account shall then be had of the consequences for
Swedish industry and its competitive strength. Checkpoints will be established at 2004 and 2008.
The national objective of reducing greenhouse gas emissions by at least 4 per cent shall beachieved without compensation for uptake in carbon sinks or with Flexible Mechanisms. At the2004 checkpoint, the Government intends to consider an objective which includes the Flexible
Mechanisms.
The Environmental quality objective of Reduced Climate Impact means that the atmosphericconcentrations, expressed as carbon dioxide equivalents, of the 6 greenhouse gases defined in
the Kyoto Protocol and by the IPCC shall together be stabilised at a level lower than 550 ppm.
Sweden shall work internationally to concentrate global efforts on this target. By 2050, Sweden’s
total emissions should be less than 4.5 tonnes per capita annually, expressed as carbon dioxide
equivalents, diminishing further thereafter. Achievement of this target will depend to a decisiveextent on international co-operation and initiatives in all countries.

The Government regards a tightening up ofclimate policy here and now as an urgent
necessity. It is very important to minimise therisk of becoming tied to untenable structures
which are binding in the long term. A longterm policy ensures that adaptation can takeplace with no loss of stability in social development, so that allowance can be made forthe capital which is tied up in the present-day
infrastructure. Clear, stable targets of sustainable development are therefore essential. Thiscan give rise to a new wave of technical innovations and investments, generating growthand employment.
Through the proposed reduction target, theGovernment wishes to emphasise that climate
issues, both now and in the future, will be acentral concern in the pursuit of sustainable
development. The Government foresees thatthe proposed intermediate objective will befollowed by further emissions reduction targets after 2012, so that the environmental
quality objective can be achieved, and so thatnew international requirements can be met.
Investments in fossil-free, energy-efficienttechnology and in new techniques and new
methods leading to reduced emissions of othergreenhouse gases, may therefore be presumed
socio-economically profitable in the longterm.
By further intensifying the national target,
compared with the commitments agreed on in
the EU’s preliminary internal allocation of
burden for the period between 2008 and2012, which implies a 4 per cent increase on
the 1990 level, the Government wishes tounderscore the importance of attempting an
early response to the challenge posed by the
menace of climate change. Sweden shallendeavour to achieve this, both nationally and13

in partnership with other countries.
Article 3.13 of the Kyoto Protocol entitles
Parties to save the difference between an
assigned amount for the commitment period
and an emission quantity falling short of it for
subsequent commitment periods. Sweden shallassert this right, which is a fundamental precondition of the national climate objective proposed by the Government. When, therefore,
the EU defines the allocation of burden,
Sweden shall reject any demands for principles
of solidarity whereby Member States – whichat the end of the commitment period havespace remaining within their commitment – areto share their “surplus” with Member States
which have failed to meet their commitments.

adjustment to sustainable development and toshow that the developed countries are taking
the lead in the fight against climate change.
This is also a precondition for the long-term
acceptance by the developing countries ofquantitative commitments during coming commitment periods under the UN Framework
Convention on Climate Change.
The use of Flexible Mechanisms can contribute towards a further reduction of emissionsin Sweden. It is important here that the investments Sweden makes in other countries shouldhave the intended effect and that Sweden
should be amply prepared to take part in a
trading system.
The mechanisms supplement policy measuresin the individual country and contributetowards the achievement of cost-efficiency. In
addition, they open up possibilities of involving
the private sector in climate policy work, andthey are also an important means of disseminating climate-friendly technology and know-how(for Joint Implementation and Clean
Development). Cost-efficiency is a prerequisiteof subsequent, more far-reaching commitments.
On 5th June 2001 the Government appointed
a parliamentary delegation to investigate, prepare and draft a proposal for a Swedish system
for implementing the mechanisms.

Monitoring of the intermediate objective
The intermediate objective shall be continuously monitored. If the emissions trend proves lessfavourable than is now foreseen or the measures taken do not yield the anticipated effect,
the Government may propose additional measures and/or if necessary review the objective. At
the checkpoints a review shall also be made of
the consequences for other social objectives
such as employment, Swedish industry and its
competitive strength and energy supply. In particular, the consequences for Sweden’s baseindustries shall be kept under observation. In
addition, comparisons shall be made with othercountries regarding development and measurestaken. The Government proposes that checkpoints for evaluation of the climate objective
established for 2004 and 2008.

Sinks
There is an important qualitative difference
between reducing the concentration of greenhouse gases by reducing emissions at source
and reducing them by uptake in carbon sinks.
Uptake in carbon sinks implies carbon storageof limited duration. Sooner or later the carbon
stored is released in the form of carbon dioxide,e.g. as a consequence of tree-felling, insect
attacks, diseases or forest fires. Activities aimed
at increasing uptake of greenhouse gases in carbon sinks, therefore, are important primarily asa means of gaining time in the bid to reduce
atmospheric concentrations of greenhousegases. On previous occasions the Riksdag has
indicated that sinks are to be regarded as supplementary to the main strategy of reducing

Flexible Mechanisms
Under the Kyoto Protocol, the Flexible
Mechanisms shall be supplementary to national
measures. In the Bonn settlement, this is taken
to mean that a significant proportion of theefforts needed to achieve the emissions commitment under the Kyoto Protocol shall consistof national policy measures.
The Government attaches great importanceto all developed countries taking action within
their own borders, both to hasten a necessary

14

carbon dioxide emissions.
The IPCC has noted that uptake of carbon
dioxide in carbon sinks cannot be increased tothe extent which would be necessary in orderto permanently halt the accumulation of greenhouse gases in the atmosphere due to the combustion of fossil fuels. Emissions of greenhousegases will therefore have to be reduced.
The Government attaches importance to theexistence of motive forces for increasing carbon
dioxide in carbon sinks, so as to reduce
Sweden’s impact on climate as effectively as
possible. The Government therefore intends losing no time in investigating the feasibility ofpromoting carbon sinks, and at the same time ofilluminating any conflicts of goals with natureand heritage conservation interests, the development of biofuels and the raw material base offorest industry.
For the first commitment period Sweden canbe credited with 2.13 million tonnes expressed
as carbon dioxide equivalents. This is a possible
supplement to the target for Swedish emissions
and is not included in the domestic target itself.

next 50 years. With the proposed objective theGovernment wishes to emphasise that a processof adjustment must begin and that it is essential
to aim for justice between both countries andgenerations. As a matter of fairness, it is important to aim at bringing down emissions per capita to a common level in a global perspective.
Where Sweden is concerned, this means, on
the basis of the available forecasts of population
growth in Sweden and in the world as a whole,
the IPCC’s calculations and efforts to achieve
global convergence of emission levels, that
Swedish GHG emissions must by 2050 be
reduced to not more than 4.5 tonnes per capita,
expressed as carbon dioxide equivalents, withfurther reductions thereafter. Current Swedish
emissions of the 6 greenhouse gases correspondto about 7.9 tonnes per capita, expressed as carbon dioxide equivalents. This proposal, then,implies almost a halving of the total quantity ofemissions. For many other developed countries,
a reduction to 4.5 tonnes per capita annually
represents a far heavier reduction of emissions.
Sweden should vigorously pursue the questionof emissions, expressed as carbon dioxide equivalents per capita, converging globally, with thelong-term target corresponding to Sweden’s.
Achievement of this target will hinge on international co-operation and on policy measures inall countries.

Long-term climate quality objective
The Government shares the Climate
Committee’s view that Sweden will be better
equipped for coping with substantial emission
reductions in future by already now formulatingtargets for what needs to be achieved over the15

6 Sweden’s strategy for reducing
emissions of greenhouse gases
Where traffic is concerned, the Government has
found that the intermediate objectives of transport policy for a good environment should continue to apply. Those objectives also include one
for carbon dioxide, namely stabilisation by 2010at the 1990 level.
Economic instruments for reducing dependence on oil were already introduced via Swedenin the 1970s. Environmental taxes also began to
be used as an instrument in the 1980s. The carbon dioxide tax introduced in 1991 was a climate policy instrument. Other forms of energy
taxation also have an effect on carbon dioxide
emissions. The choice of fuels for industry, heating plants and dwellings is of course decided by
the total price, i.e. the actual fuel price plus energy tax plus carbon dioxide tax plus sulphur tax
etc. Trading in emission rights can become an
additional economic instrument. International
activity plays an important part in Swedish climate policy. Work has already begun for the purpose of achieving a global agreement for thecommitment period following 2012.

authorities to the UN Framework Convention on
Climate Change puts emissions at 71 million
tonnes in 2010.
The difference is due to differences of method
and in the assumptions made. The latest forecast,for example, expresses the belief:• that fluorinated gases will not increase so verymuch,
• that the introduction of “green certificates”
will augment the use of biofuels,• that hydropower will yield more electrical
power, due to a change in correction for normal years,• that the fuel efficiency of cars will increase, asa result of the voluntary agreement between
the EU and motor manufacturers (see below).
The latest forecast still does not include thereductions occurring in Sweden as a result of
local investment programmes and the climate
investment programme proposed in this Bill,
which partly supersedes local investment programmes. (See page 19). The effects of continuing tax changes are also excluded.

Emission trends

Climate policy decisions

The forecasts compiled by the Climate
Committee showed emission rising to just under
75 million tonnes, expressed as carbon dioxide
equivalents, by 2010 (the Swedish National
Energy Administration) and just under 82 million tonnes (the National Institute of Economic
Research). The forecast which has since been
prepared for the third national report by several

Sweden is a pioneer in the field of climate policy.
A climate strategy was already formulated in theenergy and climate policy resolutions of 1991.
Also in that year, Sweden introduced the world’s
first really effective carbon dioxide tax. The 1993
Riksdag resolution has already been mentioned
several times. In 1993, carbon dioxide tax reductions were introduced for industry and the num-

Table 6.1. Emissions of various greenhouse gases expressed as carbon dioxide equivalents. Millions of tonnes.
Gas emitted

Emissions in 1990

Emissions in 1999 Forecast for 2010
The National Energy(the national report) Administration’s
Forecast for 2010
(Climate Committee)

The National Instituteof Economic Research
Forecast for 2010
(Climate Committee)

Carbon dioxide
MethaneNitrous oxide
Fluorinated gases(HFC, FC and SF6)Grand total

55.9
6.8
7.1
0.5

56.3
6.2
7.1
0.8

57.7
4.7
7.4
1.1

58.5
4.6
8.8
2.7

65.5
4.6
8.8
2.7

70.4

70.4

70.9

74.6

81.6

16

ber of exceptions was reduced, at the same timeas the general tax on carbon dioxide wasincreased.
Since then the carbon dioxide tax has again
been amended on several occasions, and that has
generally meant substantial increases.

basis of a Riksdag resolution in June 1998.
Transport policy has many different objectives,
one of them being a good environment. This
includes the intermediate objective of stabilisingcarbon dioxide emissions from transport at the1990 level by 2010.
The EU environment ministers have set thetarget of carbon dioxide emissions from new cars
not exceeding 120 g carbon dioxide per km in
2005, or 2010 at the latest. Accordingly, theEuropean motor industry (ACEA) has voluntarily undertaken to reduce emissions to 140 g/km
by 2008. Similar pledges have been made by theJapanese and Korean motor industries.

The energy policy programme
The aim of Swedish energy policy is to secure, inboth the long and short term, supplies of electricity and other energy on competitive terms in
relation to other countries. Energy policy shallcreate the preconditions of efficient energy use
and cost-effective Swedish energy supply with alow negative impact on health, the environmentand climate, as well as facilitating adjustment toan ecologically sustainable society.
In 1997 the Riksdag adopted an energy policy
programme for sustainable energy supply whichamong things involves the closure of theBarsebäck nuclear power station. The purpose of
the adjustment programme is to develop an ecologically and economically sustainable energy
system in Sweden. The main focus of this programme is on a vigorous long-term commitment
to research, development and demonstration of
new energy techniques. As part of the programme, for example, energy research hasreceived additional funding and been given apartly new focus, emphasising international cooperation, above all with the countries of theBaltic Sea region. These measures extend over a
7-year period, up to and including 2004. The
programme also includes international climate
initiatives in the Baltic and Eastern Europe
prompted by considerations of energy policy. In
addition, the programme contains measuresdesigned over a 5-year period - up to and including 2002 - to reduce electricity use, encourage
the supply of energy renewables and to promote
more efficient energy use.
The Government plans to introduce a new
Energy Policy Bill in 2002.

Local investment programmes
The local investment programmes have been allocated SEK 7.2 bn between 1998 and 2003, focusing both on sustainable adjustment and on
employment, and concentrating to a great extent
on the reduction of greenhouse gas emissions. The
investments for which support has been awarded
hitherto will, according to the applications, leadto the replacement of fossil fuels and electricity
by renewable energy corresponding to 2.6 TWh
per annum and to energy efficiency improvements equalling 2.2 TWh per annum. These
measures are expected to reduce carbon dioxide
emissions by 1.7 million tonnes per annum. The
figures are uncertain pending final reporting on
the programmes, but a recent evaluation of anumber of communities where programmes
began in 1998 show their targets to have beenreached and exceeded. Some emission reductions
occur abroad and cannot be credited to Sweden.
The policy measures are expected to achieve
full effect by 2008.

Environmentally Oriented Product Policy
The purpose of a product policy is to achieve, inthe long term, products which are highly efficient in terms of material and energy and whose
negative impact on the environment and humanhealth at the time of manufacture and use isminimised throughout their life cycle.
The Government has presented a strategy, An
Environmentally Oriented Product Policy, indi-

Transport Policy decisions
The Government Bill Transport Policy for sustainable development (1997/98:56) formed the17cating how this work should be conducted in
Sweden, within the EU and internationally.
This policy work addresses subjects such aslabelling, standardisation and development ofmarkets for “green” consumption. This may beelusive during an introductory phase, but it canassume great importance in the longer term.

Settlement
Efficient energy use in settlement is one of themost important means of achieving urgent environmental and climatic objectives. Settlement –housing, non-housing premises, services etc. –accounts for roughly 40 per cent of Sweden’s totalenergy use and has considerable environmental
impact. Vigorous measures are therefore needed.
First of all, the use of fossil fuels has to be reduced
by improving energy efficiency and augmenting
the use of renewable energy sources. The strategicrole is further underlined by the positive environmental impact of measures to reduce energy consumption, in the form of reduced resource inputs
and reduced emissions of greenhouse gases.
Many of yesterday’s solutions and products
were designed to minimise labour input and purchasing cost, e.g. for lighting, ventilation, heating,air conditioning, windows and other parts of abuilding’s climate shell, even at the price of additional inputs of materials or energy. With newtechniques and combinations of technical solutions, which already exist or are being developed,
great improvements and cost-savings can beachieved simultaneously.

The Environmental Advisory Council’s Dialogue
Project
The Council, acting on behalf of the Government,
has conducted a discussion with the enterprise
sector in two fields:• Building/Dwelling (property managers, developers, contractors, materials manufacturers,architects and consultants, banks, insurancecompanies and telecom companies). In theenergy sector, the group’s target is for space
and water heating, not later than 2025, toemploy only limited amounts of fossil fuels
and for more than half the energy requirement18

to be derived from renewable sources by
2015, with use of outsourced energy declining
by 30 per cent between the base year 2000
and 2025.
• The dialogue group Future Trade in
Convenience Goods (retail trade, hauliers, thefood industry and the IT sector) has focused on
the logistics and e-commerce, as well as thecontent of the product and its manufacture.
The target for 2025 is a halving of transport
operations (transport of convenience goods by
the food industry and retail trade, as well as
shopping journeys by households) and muchlarger proportion of renewable energy in the
foodstuff chain.
The dialogue as a working procedure also occurs
in product policy. The interest shown by businessenterprise has been predominantly positive.

Refuse policy decision
Methane emissions from landfill sites account for
3 per cent of Sweden’s greenhouse gas emissions.
Landfill sites also create other environmental
problems.
Methane emissions can be reduced either bycollecting the methane, which is done in someplaces, or by burning the refuse instead, which isalso common. Some substances which are now
sent to landfill sites can be upgraded to full-quality biofuels.
The quantity of refuse can also be reduced
through a growth of recycling or reuse and byimproving the quality of refuse for combustion byusing better systems for the collection of environmentally hazardous waste.
Combustion of carefully preseparated refuse
can also replace fossil fuels.
All these things are in progress. The
Environmental Quality Objectives Bill proposes
two intermediate objectives for landfill sites:• The amount of material dumped (mining
waste excluded) shall be reduced by 50 per
cent by 2005 compared with the 1994 level.
• All landfill sites shall, by 2008 at the latest,
have achieved a uniform standard and meetexacting environmental requirements in accor-

dance with Directives adopted by the EU on
landfill disposal of refuse.

ide emissions from municipal facilities by 2008.

Voluntary activities
Tax as an instrument for reducing carbon
dioxide emissions

Individual persons and small groups can also help
to reduce emissions of greenhouse gases. Eightyeight schools in Europe are mounting a “wager”
campaign to reduce carbon dioxide emissions by
8 per cent in 8 months.
Sweden has several activities gathered under
the klimat.nu project, which is being operated by
the Swedish Society for the Conservation of
Nature, all adult education associations, theUnited Nations Association of Sweden and the
Church of Sweden. This activity takes the formof popular education and is being conducted
through the medium of study circles, homepages,
media initiatives etc.
The Government has contributed funding forthe project.
Many other activities are being operated quite
independently of the Government but are also
contributing towards the attainability and intensification of climate objectives.

Energy taxation has been used as a policy instrument ever since the oil crisis of the 1970s. Energy
tax was reduced by half in 1991, simultaneouslywith the introduction of a carbon dioxide tax.
This tax coincided with a comprehensive tax
reform which had the effect of reducing taxationof incomes and capital. Since then, value added
tax has been levied on all use of energy, except
for aircraft fuel and bunkering oil. This can beseen as an early instance of green tax change.
In the 2001 Budget Bill, a strategy was presented for successively increasing the environmental
relation of the taxation system through green tax
change, which means raising environmental andenergy-related taxes to offset a reduction of taxes
on labour.
Carbon dioxide tax was raised in 2001 from
SEK 0.37 to 0.53 per kg carbon dioxide. Part ofthe increased carbon dioxide tax was offset by alower energy tax to increase physical steering infavour of reduced carbon dioxide emissions.
Electricity tax was raised by SEK 0.018.
Taxes on labour were reduced by raising thebasic deduction for wage-earners and pensioners
by about SEK 1,100 and lowering the corresponding charges payable for self-employed persons
by about 0.1 per centage points.

International Initiatives
As regards assistance to developing countries,“The Overriding Aim of Sweden’s Development
co-operation is to Raise the Standard of Living ofPoor Nations”.
One of the five intermediate objectives is “farsighted management of natural resources andconcern for the environment”.
Four intermediate objectives have been definedfor assistance to Eastern Europe, one of them
being to “support an environmentally sustainable
development”.
Both objectives accommodate many projects
serving to reduce climate impact.
Capacity development (build-up of administrative capacity) and research are an important partof Sida’s climate-related initiatives. (Sida = theSwedish International Development Co-operation Agency).
Between 1998 and 2002 Sweden contributed
about MSEK 448 to the Global Environment
Fund (GEF) under the UN Framework
Convention on Climate Change. Forty per cent ofWork at local levelNot all climate policy is a matter of national government or international activity. At local government (municipal) level, together with theSwedish Society for the Conservation of Nature,a network has been formed of “challenger municipalities” – Lund, Växjö, Säffle, Uppsala andÖvertorneå – which have defined more far-reaching carbon dioxide targets of their own. In addition to these challenger municipalities, climate
targets have been adopted by about 80 othercommunities. Sixty or more municipalities havejointly described how they could achieve something like a 20 per cent reduction of carbon diox-19

Preparatory measures for achieving theintermediate objective

this founding is being applied to climate-related
initiatives. The Government attaches importanceto the continuation of GEF’s activities.

The Government’s assessment: Sweden should pursue an active, cost-effective climate policy aimed at
reducing emissions of greenhouse gases both nationally and internationally. This climate work should be
integrated with society’s activities, and each andevery one should assume his or her share of responsibility. This applies both to national and local authorities and to business enterprises, NGOs and individual persons. Broad participation by all agents willaugment the possibilities of limiting effects on climate. Legislation and economic instruments can besupplemented by various agreements and by the dialogue between the state and business enterprise.
Various forms of climate work, such as use of environmental management systems, environmental
declarations, environmental labelling, developmentof environmental technology, environmentally appropriate procurement and a dialogue between different
agents, should be developed and deepened. Thiscan be accomplished partly within the framework ofan environmentally oriented product policy, which
also has an important role to play in climate policy
work. The climate work conducted by NGOs should
also be observed and supported by national authorities. The effects of these measures should be continuously monitored, so that an assessment can bemade of the need for further initiatives. Checkpoints
are being introduced for 2004 and 2008.

Experiment with Joint Implementation
Since 1993, Sweden has implemented, commenced or planned more than 70 projects forenergy efficiency improvement and conversion ofoil-fired boilers for biofuels etc., mostly in theBaltic countries.
The project, which is a pilot project for thejoint implementation of measures to reducegreenhouse gases, is being undertaken with a view
to further developing the flexible mechanisms of
the Kyoto Protocol.
The World Bank Prototype Carbon Fund
Together with other countries, as well as businessenterprises, Sweden is taking part in the WorldBank’s Prototype Carbon Fund, which is a kind oftest bench for the Flexible Mechanisms of the
Kyoto Protocol, serving to provide practical experience of projects for reducing greenhouse gas
emissions which can be carried out and credited
to the investor country. This work is an important
contribution to the negotiations on rules for themechanisms.

General direction of climate policy
The climate issue affects the entire globe,
regardless of each country’s individual contribution to emissions, and it therefore has to beresolved in an international context. At the sametime, each country must assume its share of
responsibility for minimising the risks of climatechange. This calls both for a development of sectorial responsibility, i.e. the allocation of responsibility where it is easier for measures to betaken, and for their impact to be assessed andtheir progress monitored. Generally effective
instruments and working procedures must also
be developed.
The climate issue also includes questions offairness both towards poorer countries andgroups of the population and towards future
generations. Efforts to achieve a fairer distribution between the nations of the world of thegreenhouse gas emissions which the climate sys-

Baltic co-operation
The Nordic Council of Ministers has proposedthat an experimental area for Flexibility
Mechanisms begin operating in the Baltic Sea
region in 2003. This is to be undertaken within
BASREC, Baltic Sea Region Energy Co-operation.
The climate issue and export credits
Sweden is to be a prime mover within the EU
and the OECD as regards taking account of theclimatic effects of exports receiving
Governmental export credits or guarantees.
In the review of the Swedish Export Credits
Guarantee Board’s Environmental Policy, special
attention will be paid to the climate issue. The
Swedish Export Credits Guarantee Board should
also investigate the possibility of facilitating
exports which make use of the Flexible
Mechanisms

20

Tax as a policy instrument

tem can cope with are therefore an importantpart of Swedish climate policy. The climate
issue must be handled conjointly with a numberof other development objectives which can andshould be mutually supportive.
The long-term character of the climate question calls for a policy which is cost-effective inthe long term and, accordingly, factors in thecosts and the human suffering which futureenvironmental disasters caused by a changed climatic system will presumably entail.

With effect from the New Year 2001, theGovernment has raised carbon dioxide tax aspart of the green tax change, and has also raised
it by effecting a redistribution between carbon
dioxide tax and energy tax. Certain further
increases are included in the Budget Bill for
2002.
The green tax change is to continue, and thereform of the energy tax system is a centralcomponent of it. That reform shall:• contribute towards more efficient energy use,
• facilitate national production of electrical
power,• favour the use of biofuels,• simplify the energy taxation system and place
it on firm foundations,• reduce the environmental impact of industry(in other fields as well as that of greenhousegases).
At the same time, the competitive strength ofindustry is to be safeguarded and distributive
and regional aspects taken into account.
Properly implemented, a green tax change cancontribute towards full employment. It is a central component of efforts to make Sweden amodel of ecologically sustainable development.

The Government’s assessment : In the Budget Billfor 2001 a strategy was presented for successively
increasing the environment relation of the taxation
system by means of a green tax change. Basicallythis strategy means heavier taxation of the energy
and environmental sector offsetting a reduction oftaxes on labour. The tax change strategy is expected
to involve a total of SEK 30 bn over a 10-year period. Continued tax change, according to the strategy,
should be based on the environmental quality
objectives defined by the Riksdag. Readjustment of
the energy system, with a limitation of carbon dioxide emissions, is a central task in this connection.
By contributing towards more efficient energy use, atax change can also facilitate the phase-out of
nuclear power. In the Budget Bill for 2002 it is proposed that a second step be taken in the tax
change process. When this step has been accomplished, environment and energy taxes will havebeen raised by SEK 5.6 bn within the framework of
the tax change strategy, at the same time as the tax
on income will have been reduced by the corresponding amount. In addition, a revenue-neutral
shift in the levying of taxation from energy tax tocarbon dioxide tax will have been effected, imparting additional weight to the carbon dioxide tax.
Other important elements of continuing work withthe tax change strategy are the review now inprogress of industrial exemptions from energy andcarbon dioxide tax and the review, also in progress,of the combined effects of all traffic-related taxes,
the aim being to steer developments in favour ofsafer, more environment-friendly road traffic.

Review of rules on the reduction of energy
tax for certain sectors
A parliamentary committee is to review the various reductions of energy and carbon dioxide
taxes.
The general point of departure shall be thatenergy shall as far as possible be equally taxed
and that the exceptions shall not be greater thanis justified by considerations of competitiveness,by global environmental considerations and by
what is required in order for the system to be
manageable. The Committee shall report on its
work not later than 31st December 2002.
Closer environmental relation of road traffictaxation
A Commission is to consider the reintroductionof mileage tax and a differentiation of vehicle
tax according to carbon dioxide emissions etc.

21This enquiry is to be completed by April 2003.
The Government attaches importance to theencouragement of alternative fuels by means oftax reduction, both for private projects and on amore general basis.

Local climate programmes will replace the local
investment programmes which have hither toexisted. Development according to local condition is an important adjunct to the national policy instruments. State support for local climate
investment programmes should have long-term
results beyond the projects themselves, in theform of interest, organisation and co-operation.
Experience can be gained of new techniques.
Since 1998 the local investment programmes
have comprised a broad spectrum of measures,
and a large proportion of them have a bearing on
the climate problem. About 45 per cent of the
grants awarded have been for investments inenergy conversion and energy efficiency.
Calculations indicate that they will contribute
substantially towards reducing Sweden’s emissions of greenhouse gases.
The importance of the climate question justify
the expenditure of a large part of the remaining
allocation on measures which reduce greenhousegas emissions. In its Budget Bill, the Government
has therefore proposed that, respectively, MSEK
200 and 300 of the funding allocation be transferred in 2002 and 2003 to local climate investment programmes. The Riksdag has voted MSEK
400 for climate investment programmes in 2002.
Like the local investment programmes, the climate investment programmes are primarily
intended for concerted programmes and shouldbe part-financed by the applicants. This way themoney will yield a bigger return, and the environment commitment of the municipalities will
be strengthened, partly because these matterswill be elevated to municipal executive board
level as opposed, for example, to being dealt
with by a municipal committee. Individual projects will qualify for grants in certain cases.
One important lesson learned from the local
investment programmes is the great advantage oflinking up an investment programme with measures of information and popular education.
The Government will subsequently be defining criteria and conditions for the distribution of
grants for projects and programmes of different
kinds.
Follow-up and evaluation is a strategic issue,

Tax on refuse
Legislation came into force at the New Year 2000
imposing a tax on refuse, aimed partly at reducing the amount of refuse dumped at landfill sites
and, accordingly, the quantity of methane emitted from these sources. The Budget Bill for 2002
provides for this tax, at present SEK 250 per
tonne, to be raised to SEK 288.
A Commission to evaluate whether the tax
operates as intended in relation to various objectives is to report to the Government on 1st
February 2002.

State grants for climate-related measures in local climate investment programmes
The Government’s assessment : New support for local
climate investment programmes is to be introducedwith effect from 2002, as proposed in the Budget Billfor that year. Municipalities will be able to apply forsupport for action programmes reducing emissions ofgreenhouse gases in Sweden. These programmes areto be drawn up in partnership with business enterprise, NGOs and other agents in the municipalities. In
certain cases measures contributing towards the fulfilment of other environmental objectives and rated
especially important in a local or regional perspective
will qualify for inclusion in the programmes, which
are also to include measures of popular educationand information. Under certain conditions grants
should also be available for measures not included ina concerted programme. The cost-effectiveness ofprogrammes will be an important basis of assessment. More exact evaluation criteria are to be devisedfor the assessment of actions and programmes.
In its Budget Bill for 2002, the Government proposes that the grant amount to MSEK 900, spreadout over 3 years.

22one of the purposes of the scheme being to disseminate experience of various methods and solutions, e.g. to other municipalities. A special council, headquartered at the Swedish Environmental
Protection Agency, will be made responsible bothfor local investment programmes and for climate
investment programmes. This council will consistof representatives of, primarily, the Swedish
Environmental Protection Agency, the Swedish
National Energy Administration, the National
Road Administration and other important agentsin the climate sector.

The conditions applying to the programme
have been changed by the ongoing deregulationof the power market in the Nordic countries.
The Government is to appoint an expert committee to analyse developments in the Nordic
power market, e.g. as regards security of supply
and relation to the power supply systems ofneighbouring regions. The investigator shall also
analyse the effects of deregulation on emissions ofgreenhouse gases and shall assess the impact of
the regulation on the feasibility of renewableenergy sources.
Within the energy policy programme, several
processes are underway which have implications
for climate policy:• The report Trade in Power Certificates – A
New Way of Promoting Electrical Energy from
Renewable Sources was presented in 31st
October 2001. It proposes quotas for renewable electricity.
• In May 2001 the Swedish National Energy
Administration submitted proposed planningtargets for wind power.
• A working group on the promotion of morerational energy use presented its report on 31st
October 2001.
• A report on long-term agreements between
the State and Industry on energy efficiency
measures was also presented to theGovernment on 31st October 2001.

Information drive
The Government’s assessment :An information
drive is to be conducted on a broad basis
together with national authorities, municipalities,
schools/educational institutions, business enterprise and NGOs. The Government has earmarked MSEK 30 for 2002, and similar amounts
are anticipated for 2003 and 2004.

Energy policy
The Government’s assessment : Energy policy,
taking the 1997 energy policy resolution as its
starting point, should contribute towards theachievement of the intermediate objective for theperiod 2008-2012 and to the laying of goodfoundations for achieving the long-term climate
objective by 2050, as well as making it possible
for this to be achieved parallel to the ongoingreadjustment of the energy system.

Increased electricity production from renewableenergy sources
The 1997 energy policy programme defined anumber of production targets for increasing the
supply of renewable energy with investment support. The targets set for biofuelled CHP and wind
power will be achieved, unlike that for small-scalehydropower. More funding will be allotted forinvestment in wind power up to and including
2002.
The Government finds that a transition to amore commercially adapted system of support
will bring greater cost-effectiveness, promotetechnical development and create opportunities
for international harmonisation. The allocation oftasks will then be for the State to define targets

The 1997 energy policy resolution provided forthe phase-out of Barsebäck 1, and the closure of
Barsebäck 2 when the loss of electricity output
can be offset by the supply of new electrical
power or reduced electricity use. In this connection a programme was launched for researching,developing and demonstrating techniques. The
results of the energy policy programme shall be
evaluated and, together with experience from theclosure of the Barsebäck plant, will form the basisof future decisions on how the readjustment is tocontinue.

23

for the development of renewable energy sources(a mandatory part which has to be accomplished), while leaving the procedure for doing so
for the market to decide. The mandatory component of renewable electrical energy will be successively increased.
The Government intends introducing a Bill atthe beginning of 2002, with a view to the new
system of support taking effect at the New Year
2003.

Special remarks on wind power
The Swedish National Energy Administration has
proposed a planning target of 10 TWh wind
power per annum within 10 or 15 years.
Siting conditions are to be investigated by the
National Board of Housing, Building and Planningand a report submitted by 1st March 2002.
Bioenergy
Bioenergy use in Sweden is very high, approximately 94 TWh/year in 1999, and has been growing by several TWh annually for many years now.
The cost of both biofuel and combustion plants
has declined steeply.
In the short term, use of biofuels is expected tocontinue at roughly the same pace as in the
1990s.
Biofuels are mostly used in the district heating
sector, where they have replaced fossil fuels, both
directly in the boilers of heating plants and indirectly, as a result of district heating expanding to
replace individual oil-fired boilers.
Through the future system of green certificates,
it is believed that more biofuel will come to be
used for electricity production in forest industry.
Areas requiring additional research and development comprise techniques a small-scale combustion from other environmental viewpoints,
and production of ethanol from raw timber.
Standardisation is needed, to facilitate thegrowing trade in biofuels. The European
Commission is working on this.
Energy efficiency improvements
Effective resource utilisation, energy use included,
is a precondition of sustainable development. The

24

Government intends returning to the question ofenergy efficiency in its Energy Bill during thespring of 2002.

Limited use of fossil fuels
The Government is to appoint a special Commission to analyse fossil fuel replacement in various chronological perspectives. The Commission
shall analyse areas in which different types of fossil fuel use could be made more efficient or werefossil fuels could be replaced by other fuels.

Transport policy
The Government’s assessment :The transport systemneeds to be developed parallel to society, so as torespond to changing needs and demands. Thismeans transport policy being framed in such a way
as to contribute towards achievement of the national climate objective for the period 2008-2012 and of
the environmental quality objective Reduced
Climate Impact. The present intermediate transport
policy aims for a good environment should remain
in force. When the Riksdag has taken decisions on
the Environmental Objectives Bill, the InfrastructureBill and the present Bill on Sweden’s climate strategy, the intermediate objectives of transport policy fora good environment should be reviewed and updated and a concerted implementation strategy
defined for the transport sector.
Transport accounts for roughly 40 per cent of
Sweden’s emissions of carbon dioxide. Twothirds of those emissions derive from passenger
transport. Emissions have increased over the past
25 years, both per capita and in relation to emissions from all developed countries.
One positive development, though, is thedevelopment of co-ordinated freight chainsusing sea, road and rail transport on an integrated basis, creating for business enterprise the possibilities of both more efficient and more sustainable transport operations.
The present environmental policy objective,
stabilisation of transport emission by 2010 at the1990 level, remains valid for the time being. It is
to be updated subsequently.
Possible ways of inflecting the rising emissions
trend include:• encouragement of rail transport. The

Government believes that the heavy rail
investments provided for in its InfrastructureBill will make it possible for some road and air
traffic to be transferred to the railways.
• fuel efficiency improvements to cars (a voluntary agreement with the European motor
industry, see page 19).
• promotion of ethanol.

Fuel quality
More efficient engines require fuels of greater
purity. Within the EU, the Government intend
pressing the issue of future standard fuels within
the Community having a composition whichfavours fuel-efficient techniques.
Mileage tax etc.
Three Member States of the EU – Germany,
Austria and the Netherlands – have declared
their intention of introducing mileage tax on
HGVs. The purpose of the tax is to limit suchtraffic. The Road Traffic Taxation Commission is
to investigate whether this is also appropriate in
Sweden, though Community legislation may
cause problems here. These may possibly beresolved by a new road charges Directive which
is being drafted by the Commission.
Environmental road charges in urban communities
One way of dealing with both pollution and congestion problems is by conditioning demand. Thiscan be done, for example, through some form ofcongestion charge. Charges of this kind havebeen tested in several countries.
Since, in the eyes of the law, these charges are aform of taxation, they have to be decided on by
the Riksdag. One precondition for introducing
them, however, is that the municipalities orregions in question actually want them. If, after aconsiderable majority has voted in favour of sodoing, municipalities or regions request to beallowed to introduce congestion charges as part ofa wider strategy for dealing with the congestionand environmental problems entailed by traffic,
the Government will draft legislation on the subject.

25

Eco-driving and speed monitoring
The Government regards instruction in eco-driving (which reduces fuel consumption) as animportant part of drivers’ training. Increased
monitoring of compliance with speed regulations
is another way of reducing emissions. In the
Budget Bill for 2002 it is proposed that thepolice be allocated MSEK 50 for speed surveillance cameras.
Aviation
Air traffic in Sweden during 1999 emitted 2.5
million tonnes of carbon dioxide. Aviation is theform of traffic whose emissions are growing
fastest.
International solutions are needed for international aviation. The ICAO (International Civil
Aviation Organisation) recommends that continuing work be made to focus among other things
on levies for engine emissions and emissions trading. Sweden has since 1998 had a system of takeoff and landing charges based on emissions ofhydrocarbons and nitrogen oxides. This does notinclude carbon dioxide. In view of developments
within the EU, a system should be preparedwhich includes a carbon dioxide parameter inthe take off and landing charges.
Within Eurocontrol, the European
Organisation of the Safety of Air Navigation,
Sweden is pressing for an environmental differentiation of en-route charges according to carbon
dioxide emissions.

Promotion of alternative fuels
The Government’s assessment One importantmeasure to limit the climate impact of the traffic
sector is a policy promoting the introduction andgreater use of alternative fuels. To this end, theGovernment has already proposed a taxation strategy for alternative fuels and perquisite taxation
reliefs for environmentally adapted cars.
In view of decisions impending within the EU,
the Government intends returning with targets forthe further introduction of alternative fuels.
In order to achieve a distinct increase in the proportion of vehicles using alternative fuels, thecosts involved must be reduced in relation to
those of petrol and diesel oil. The Government
has proposed tax reliefs for fuel and a relief concerning the perquisite taxation of environmentally adapted cars.

dependence on imports and reducing emissions.
The Commission has proposed that the tax on
biofuels be reducible to 50 per cent of the corresponding tax on petrol and diesel fuel, with afurther reduction for local traffic (taxi traffic
included) and vehicles used for public activity.

Taxation strategy for alternative fuelsThis involves certain legal problems, partly in
relation to the EU, but the Government is confident of a solution being found.
Tax reduction is possible for pilot projects,
which are exempted from both energy tax andcarbon dioxide tax, and through a general carbon dioxide tax exemption under an article in
the Mineral Oils Directive.
MSEK 150 per annum is earmarked for pilot
projects. The cost of abolishing carbon dioxide
tax on carbon dioxide-neutral fuels is estimatedat MSEK 750 per annum. This applies both tothe admixture of ethanol, for example, and theuse of “pure” alternative fuels. The intention isfor this to come into force in 2003, following
approval by the Council and the Commission.

Environmental classification of petrol anddiesel fuel
The Government is to review the environmental
classification of vehicle fuels and in doing so will
see to it that alternative or more environmentfriendly fuels are not unfavourably treated. If
Community legislation creates problems, theRiksdag has assumed that the Government will
endeavour to bring about a change. This task
shall be entrusted to the National
Environmental Protection Agency.
Green certificates for alternative fuels
The green certificates, with mandatory quotasof renewable electricity in power production,
can perhaps also be used to promote the introduction of alternative transport fuels. After adecision has been taken on green certificates forelectrical energy, the Government shall investigate the feasibility of this and, assuming feasibility, how such a system can be constructed.

Perquisite taxation of environmentally adapted cars
The market for company cars is strategic,
because they represent a large proportion of
new car sales.
The Government has proposed reducing theperquisite taxation value of electric and hybridcars to 60 per cent of the perquisite value forthe nearest comparable car, though by not morethan SEK 16,000. For cars powered by alcoholor gases other than lpg (biogas, natural gas,hydrogen gas), the proposal is 80 per cent and
up to SEK 8000.
It is proposed that these rules enter into force
on 1st January 2002. In the case of cars alreadyrunning on ethanol and gas (not lpg), the rules
are to apply to tax assessments between 2003
and 2006.

Environmental agreements
Voluntary agreements between the State on the
one hand and businesses or branches of economic activity on the other with a view to achieving
environmental objectives are an alternative tolegislation and control by taxation. This method
has been used in other countries but only to avery limited extent in Sweden.
Work is now in progress in several quarters, onsomewhat varying lines:• Mention has already been made of theEnvironmental Advisory Council’s Dialogue
Project.
• The National Environmental Protection
Agency has compiled an inventory of values
where agreements would be an effective
method.
• The Ministry or Industry, Employment andWork within the EU
The European Union wishes to promote suchalternative propellants as natural gas, biofuels
and hydrogen gas, with a view to reducing

26

Swedish implementation of theFlexible Mechanisms of the Kyoto
ProtocolCommunications is studying the feasibility oflong-term agreements to achieve energy efficiency improvements in energy-intensive
industry.

The Government’s assessment :The Government
intends making the necessary preparations for
Swedish implementation of the Flexibility
Mechanisms of the Kyoto Protocol. These preparations will concern both a national and an international system of emissions trading and the product-based mechanisms, bearing in mind developments within the EU and especially in the Baltic
Sea region. The Government has adopted terms ofreference for a parliamentary delegation to further
investigate, draft and document proposals concerning a Swedish system for implementation of
the mechanisms. The Government intends to havea national system in place not later than 2005.
The Government also intends reviewing theforms of Sweden’s international climate initiatives
in the energy sector relating to project-based
mechanism when rules and guidelines for thesehave been defined by the Parties to the UN
Framework Convention on Climate Change.

The Government will be returning to this subject in its Energy Policy Bill in the spring of
2002.

Reduction of carbon dioxide emissions
through environmentally driven business development
The Government’s assessment :International demandfor climate-efficient technology and climate-efficient
services can be expected to grow rapidly when countries have to fulfil their commitments by reducing
emissions of greenhouse gases and in connection
with the use of the various mechanisms of the Kyoto
Protocol. The Government will therefore be reviewing
possible needs for action and, if necessary, the measures which could be taken to enable Swedish businesses and products to occupy the leading edge
once demand for climate-efficient technology and climate-efficient services comes into being.

Cost-effectiveness is an important criterion,
both nationally and internationally. By promoting certain measures abroad, one can achieve aheavier reduction of emissions for a given
amount of money than by taking those measures exclusively within the home country.
On 5th July 2001 the Government appointed
a parliamentary delegation to propose a system
and rules for the Flexibility Mechanisms. The
delegation is to report during 2002. It is then toframe criteria for mechanism projects and comment on project proposals from the Swedish
National Energy Administration. It is to investigate the connection between the mechanisms
and other policy instruments, such as carbon
dioxide tax. This work will continue until theend of 2004.
The Government is to appoint a negotiator to
prepare agreements on procedure for crediting
emission reductions in connection with joint
implementation. The participation of private
enterprise under voluntary agreements shall betaken into account.

Swedish industry has many products which are
efficient in terms of energy, environmental performance and climate impact, and has in thisway acquired competitive advantages which willgrow as a result of the Kyoto agreement and EU
enlargement.
In the report Sustainable Sweden – a successstory, it is estimated that the world market forenvironmental technology (known as end-ofpipe technology) will reach SEK 6000 bn by
2010.
In a report entitled (in Swedish) Swedish
Products reducing Carbon Dioxide Emissions – anoverview, the Swedish Delegation for
Sustainable Technology has highlighted examples from the energy, transport, construction
and industrial sectors. Its work should be carried
on. The Government will consider possible
needs for measures to ensure that Swedish
industry remains on the leading edge of thisdevelopment.

27

Advanced construction

Planning for sustainable urban development
The main responsibility for physical planningrests with the municipalities. Planning in municipalities and regions must be improved and coordinated in order for sustainable development
to be achieved. This is also a matter of thecharges applied to municipal activity, municipal
supervision, environmental planning, energy
planning and advisory activities. The
Government will be investigating the feasibilityof developing a new model of co-ordinatedplanning for a sustainable society.
One of the objectives of urban planning is to
reduce the need for daily transport by siting
shops and work places nearer people’s homes.
Analyses have shown out-of-town shopping
centres to mean longer transport distances andfewer small shops. Before new establishments
are decided on, therefore, it is important thatthe planning data should clearly indicate anticipated effects on traffic input, air pollution,
acoustic disturbance and interference with thenatural and man-made landscapes.
In its coming review of the Planning And
Building Act, the Government intends toaddress the question of out-of-town shopping
centres.

The Government’s assessment The climate
impact of settlement should be successively
reduced. More efficient use of energy above theresources and efficiently operating homes, nonhousing premises and services are important
prerequisites of sustainable development.
Planning, building and property management
should contribute towards achievement of theclimate objectives and other environmental
objectives. The use of fossil energy shall be
continuously reduced.
The construction sector accounts for roughly 40
per cent of carbon dioxide emissions. These fellby 20 per cent between 1990 and 1997 and are
expected by the Climate Committee to fall by
30 per cent between 1990 and 2010, mainly asa result of increased connection to district heating and the installation of heat pumps.
Newly built houses are normally more energyefficient. New buildings today can be made very
energy-efficient, simultaneously with theachievement of good functions in other respects.
Sweden’s real estate comprises almost 700 million square metres of heated space. More than
10,000 processing plants supply these properties
with water, sewerage, energy, refuse disposal etc.
About 40 per cent of all commercial energy and50 per cent of all electricity is used in this sector. Every year about 1,000 million tonnes ofwater and 8,000 million tonnes of air circulate
through the properties.
This, needless to say, has great environmental
consequences.
One important component of climate work is
to engage in a dialogue with players in the construction sector (see page 20) in order to identify opportunities and obstacles where sustainable
development is concerned. The energy efficiency
target must not come in to conflict with otherobjectives for the indoor environment. The
Government is preparing an Indoor
Environment Bill, to be introduced in the springof 2002.

Best techniques and research
Demand for goods and services must be moved
in an environment-friendly direction, with statesand major purchasers setting an example. Higher
demands will lead to a successive improvementof competence and of environmental management.
There is a great need for additional competence, research and development. This applies
above all to systematically appropriate solutions,with many intrinsically good components working together in one building.
A national research strategy should be framed
for sustainable urban development.
Life-cycle perspective
Industry, municipalities, county councils and private property companies purchase buildings andparts of buildings for very large sums of money

28

every year. Many equipments are relatively
cheap to buy but then cost a great deal in energy. Work is in progress to develop methods for alife-cycle cost perspective but needs to be
upgraded so as to give clients/developers tools
for formulating concrete stipulations in connection with the procurement of a building.
The Committee for Ecologically Sustainable
Procurement has obtained results which should
be used.

ronment, energy and resources will provide theconsumer with a readily available signal. Thesepossibilities are being explored within the dialogue project Building/Dwelling (see page 18).
Key ratios for energy use and environmental
impact are highly important, but for the sake ofcomparability they need to be less ambiguously
defined.
The National Board of Housing, Building and
Planning was commissioned to investigate thismatter and presented its final report in October.

Quality and efficiency
Fragmentation of the building process is often
likened to a relay race. The entire construction
and management process requires co-ordinationin order to provide more of a holistic view ofthe building, a clearer focus on the management
stage and the finished product, and systematic
feedback of experience.
Clear responsibility, guarantees, continuity andcompetence development - especially on theordering side - are key concepts for greater coordination.
The Government will be closely observing thequality work which is being developed within
the Council for Quality in Building, set up at
the Government’s Initiative in May 2001.
During an initial phase, the developers in thenational Government sector will be co-operatingon competence development.
National property owners setting an example
The environmental quality objective A Good
Built Environment means among other things
that energy use and environmental impact inboth new and existing buildings shall be lower
in 2010 than in 1995.
The Government is to task national property
owners with describing opportunities for efficiency improvement and for the reduction offossil fuel use.

Wood as a building material
Wood is an environment-friendly material which
ought to be more extensively used for building.
Swedish industry is well to the fore. In its
Regional Policy Bill (2001/02:4), theGovernment proposes that a programme forpromoting sustainable growth in national wood
manufacturing industry be operated between
2002 and 2004 so that wood manufacturing
enterprises can co-operate in regional groups,
among other things to encourage optimum useof timber.
Information
Society has a duty, together with the players in
the construction industry, to develop effective
experience feedback and access to qualityassured knowledge. It is especially important toreach local ecocycle committees and businessnetworks.

Reduced emissions of methaneand fluorinated gases
The Government’s assessment :There should befurther investigation of measures which can betaken to reduce emissions of greenhouse gases
from agriculture.

Classification of housing and non-housing
premises
Properties are complex systems, and most customers do not know what energy and environmental solutions are available. A classification
system which takes account of the indoor envi-

Methane etc. from agriculture
According to the Climate Committee, agricultural emissions of methane and nitrous oxide
accounted for 12 per cent of total Swedish
emissions of greenhouse gases.

29

Nitrous oxide emissions are connected with thenitrogen in question, which is being addressed
under the environmental quality objective Zero
Eutrophication.
Gas-tight coverings for manure stores are one
method of reducing methane escapes. The
methane can then be utilised, at the same time asammonia emissions are avoided.
The usefulness of this and the expensive implies
to differently sized farms must be investigated. The
National Environmental Protection Agency shallbe commissioned, together with the Swedish
Board of Agriculture, to review the calculation
methods.
Biofuel cultivation on arable land is also ofimportance from a climatic viewpoint.
Agricultural land can also be a sink for carbon
dioxide.

Limitation of the use of the three fluorinated gases HFC, FC and SF6
The Government’s assessment Emissions of thefluorinated gases HFC, FC and SF6 should notincrease compared with emissions for 2000,
expressed as carbon dioxide equivalents. The
use of fluorinated gases should be limited toareas where alternatives are lacking.
The National Environmental Protection Agency
should be instructed to continue developing policy instruments for remaining areas of use, in collaboration with the industries and national
authorities concerned.
Emissions of fluorinated gases have increased far
less than was previously feared. To a great extent
they (HFCs) are used as a substitute for ozonedegrading substances, and phase-out of the latter isvirtually complete.
In addition, FCs occur as a pollutant from aluminium production and is emitted, to a lesser
extent, from use in other areas/applications.
Although the emissions are not very great, large
quantities are accumulated in technical systems.
They leak diffusely and are difficult to eliminate.
Since FCs and HFCs have extremely long dwell
times (up to 50,000 years), in the atmosphereemissions of these substances leads to an accumulation which is irreversible for a very long time. The
National Environmental Protection Agency hasreported on an assignment concerning prohibitionof the use of these gases and investigation of alternative policy instruments. Failing new measures,
the Agency believes that emissions will increase by
about 30 per cent over the next 10-year period,
while the quantity of these substances accumulated
in various technical systems will increase evenmore. New techniques, however, are being rapidly
developed.
The aim of preventing any further increase from2000 can be achieved if use is limited to thoseareas where alternatives are lacking, at the sametime as new use is prohibited and further measures
are deployed for reducing emissions. A Council
Directive, which Sweden is campaigning for within
the ECCP (European Climate Change Programme), could be an effective countermeasure.
The Government concurs with the National
Environmental Protection Agency’s view that environmental levies may be a good policy instrument,
together with a prohibition of certain uses.
Regarding the use of SF6 in electrical equipment, the National Environmental Protection
Agency proposes that an attempt be made to negotiate an agreement with the industry to minimiseemissions from production, use and scrapping andto develop alternatives.
The Government shares the Agency’s view that
there is a big potential for cost-effective emission
reductions in aluminium production and thatexamination under the Environmental Code andthe IPCC Directive is the best way of regulatingthese emissions.

Limitation of emissions of greenhouse gases
from landfill sites
The Government’s assessment :Emissions of greenhouse gases from landfill sites are expected to
decline considerably over the coming 20-year period,
as a result of measures already taken. Methods ofmeasurement are urgently needed for monitoring
methane gas emissions from landfill sites andresearch needs to be focussed on this subject.

30

The target, set in 1993, of reducing methane gas
emissions from landfill sites by 30 per centbetween that year and 2000 has not beenachieved. By 1999 the reductions stood at 15
per cent. As from 2000, however, a tax is being
levied on refuse sent to landfill sites, landfill
dumping of unseparated combustible waste will
be prohibited as from 2002, and a general ban
on organic waste will apply from 2005.
Partly as a result of these measures, theNational Environmental Protection Agency
expects methane emissions from landfill sites tobe halved between 2000 and 2010 and to be
reduced by 80 per cent between 2000 and2020.
Accordingly, the Government sees no needfor any further measures, but on the other hand
better follow-up and measurement are called
for, among other things to streamline the collection of methane where it occurs.

grate these strategies into overall plans. The
Government considers that support for suchaction is of crucial importance. Swedish climatelinked development cooperation, both bilateraland multilateral, is expected to increase in the
coming years.

The role of the sectors
The Government’s assessment Through sectorial
responsibility, responsibility for achieving the climate
objective is distributed within all sectors of society,with public authorities, businesses and other organisations in different sectors of the community
assuming responsibility for the climate issue within
their various fields of activity. Sectorial responsibility
thus means that climate considerations, like otherenvironmental considerations, are factored into thesector’s decision-making. Balances between the
sectors have to be struck by means of inter-sectorial
decisions. The introduction of environmental management within national authorities also implies anintegration of climate considerations. Environmental
management systems are a management tool forthe environmental activities of business enterprises
and other organisations, serving to structure andsystematise the activity itself.
The responsibility of national authorities for climate issues should be made more clear, e.g. bydefining more closely their sectorial responsibilities
for the environment.

Climate measures for sustainable
development in developing countries
According to the UN Framework Convention
on Climate Change, the industrial countries areto take the lead in endeavours to prevent climate change. The participation of the developing countries, however, is of great importance inachieving the objectives set forth in theConvention. Thus, in the long term, theirinvolvement in terms of commitments on emissions, for example, must increase, though it is
only reasonable that future commitments are inproportion to the level of development in eachcountry, and related factors.
Support from the industrialised countries forthe efforts of developing countries to prevent
and adapt to climate change can also help put
the developing countries in a better position totake on concrete commitments in future.
Accordingly, the Government considers that
Sweden should continue to play an active partin international cooperation.
Technological cooperation and capacity-building measures are required in order, for example,
to analyse vulnerability to climate change, toelaborate strategies for adaptation and to inte-

Climate research
Climate research is needed as a basis for participation in international negotiations and for
impact assessments, e.g. with respect to agriculture and forestry and dam safety.
The new Swedish Research Council for
Environment, Agricultural Sciences And Spatial
Planning (Formas), set up in 2001, is specially
responsible for climate research. Sweden has animportant research group at the SMHI (Swedish
Meteorological and Hydrological Institute)
Rossby Centre which devotes itself to regional
climate modelling (SWECLIM). This has to agreat extent been funded by MISTRA (theFoundation for Strategic Environmental

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Research). In the Government’s view, the futureof the Centre must remain assured after thefunding support from MISTRA is discontinued,
and it has instructed SMHI and others to submit proposal on the future organisation andfunding of Swedish climate modelling.

The Environmental Quality Objectives Council
should include representatives of the target andenvironmental authorities responsible. It should
also include representatives of county administrative boards, sectorial authorities, municipalities, NGOs and a business enterprise. The
Council will be appointed by the Government.

Environmental Objectives Council
Legislative questions

The Government’s assessment For the co-ordination and streamlining of work relating to the environmental quality objectives and climate issues atnational authority level, the Government intends
setting up a special Environmental Quality
Objectives Council, attached to the National
Environmental Protection Agency. The Agency
should be made the national authority responsible for the environmental quality objective
Reduced Climate Impact

Review of the Planning and Building Act
The Climate Committee regards physical planning as an important instrument of long-termclimate policy. The Planning and Building Act isalready a support with regard to the climate
issue and for climate policy, but its outline character and the scope for interpretation which it
allows the municipalities mean, according to theCommittee, insufficiently strong support for
long-term climate policy. The Committee therefore recommends a review of the Planning andBuilding Act, with a view to making it operate
in an ecologically sustainable manner, with climate and energy conservation as high priority
issues. (See also page 32)
In its Bill entitled Swedish Environmental
Quality Objectives – intermediate objectives
and remedial strategies (2000/01:130), theGovernment calls for a review of the Planningand Building Act to make it more effective inpromoting sustainable development. This also
includes climate aspects.

The Climate Committee proposed a special
Climate Council affiliated to the National
Environmental Protection Agency. The
Government sees no cause for a special Climate
Council. Climate issues should be co-ordinatedwith other environmental quality objects within
the Environmental Quality Objectives Council
proposed in the Environmental Quality
Objectives Bill.
The tasks of the Environmental Quality
Objectives Council will include the following:• Co-ordinating the work of the national
authorities with reference to climate issues
and the environmental quality objectives.
• Taking charge of the collection, processing,compilation and quality-auditing of emission
statistics.
• Taking charge of annual reporting to theGovernment and of the provision of input
data for a more comprehensive evaluation
every 4 years.
• Compiling supportive documentation forinternational reports.

The Environmental Code as an instrument ofclimate policy work
The Environmental Code is the basic legal
instrument for achieving the various environmental quality objectives. The overriding aim of
the Code is to promote sustainable development whereby present and future generations
will be assured of a healthy and good environment. The Code shall be applied in such a waythat human health and the environment areprotected from harm and inconvenience,
whether due to pollution or other influences.

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The rules of consideration in Chap. 2 of theEnvironmental Code have a bearing on work toachieve the climate objectives. It is the duty ofeach individual to take the protective measuresneeded in order to prevent, avert or counteract
harm or inconvenience to human health or theenvironment. The very risk of such harm orinconvenience occurring is sufficient to raise thedemand for protective measures. Furthermore,
the possibility of re-use and recycling shall beutilised and energy shall be derived primarily
from renewable sources.
The rules of the Environmental Code concerning environmental quality standards also
have implications for climate policy work.
Environmental quality standards are rules concerning the quality of soil, water, air or the environment generally which may be issued by theGovernment if necessary for the lasting protection of human health or the environment or for
repairing damage or inconvenience to humanhealth or the environment.
The wider possibilities, compared with previous legislation, of laying down conditions for the
sanctioning of a polluting activity, coupled withthe rules on environmental quality standards,
can be expected to result in the Code being
very extensively used for tackling forms of pollution relevant to the climate problem. Even
though national environmental quality standards
in themselves are not suitable for addressing
such global problems as climate, they may
become an important instrument for theachievement of national environmental quality
objectives. In addition, the environmental quality standard may become relevant to climate
work as an adjunct to the rules on emissions
trading which can be expected to result frominternational work with reference to climate
problems. It is impossible at present to tellexactly how these rules will be constructed.
The compatibility of the Constitution Act andthe Environmental Code with commitments
and the distribution of assigned quantities ofemissions, based on the UN Framework

Convention on climate change and its Kyoto
Protocol, will be highly important.

The Municipal Energy Planning Act
The Climate Committee calls for a review ofthe Municipal Energy Planning Act. The
Government shares this view and intends
returning in a special Bill on energy policy inthe spring of 2002. The current Bill on
Sweden’s climate strategy and theEnvironmental Quality Objectives Bill constitute a point of departure for this work.

Environmental accounting
and indicators
In 1998 Sweden, through an addition to theAnnual Accounts Act, stipulated the inclusionof environmental impact in the statutory administration reports of limited companies.
Guidelines have been worked out by the
Swedish Accounting Standards Board.
Environmental performance indicators aredefined, for example, within EMAS, thus augmenting the possibilities of comparing environmental information.
The Government is to carry out a follow-up
and will then consider the need for amending
the legislation.

Follow-up and evaluation
The reporting requirements under the UN
Framework Convention on Climate Change andwithin the EU are destined to increase, both for
Sweden’s part and as an international commitment.
Remote sensing data analysis is an especially
important data source.
The National Environmental Protection
Agency is responsible for international reporting. The third national report was presented to
the UN Framework Convention in November.
The Government wants to see co-ordinated,coherent annual accounting of the environmental objectives, climate objectives included.

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7 Ratification of the Kyoto Protocol

The Government’s proposal: That the Riksdag
approve the Kyoto Protocol.
The Government proposes that the Riksdag
approve Sweden’s accession to the Kyoto
Protocol when a decision has been taken within
the EU on a legally binding mutual distributionof emissions within the Commission, corresponding for Sweden’s part to 104 per cent of the1990 level, and subject to ratification taking
place together with and simultaneously with theEC and other Member States. This approval will
also include decisions by the Conference ofParties on a system for compliance with the
Kyoto Protocol.

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differences between the text of the summary and that of the Bill
itself, the text of the Bill is the authentic text.
The summary is available on the Ministry of the Environment website(www.miljo.regeringen.se). It can also be ordered from the Ministry of theEnvironment, phone 08-405 10 00.
Stockholm, Sweden, March 2003.
Article no. M 2003.01

Summary Gov. Bill 2001/02:55

This is a summary of the Bill, and where there are any

The Swedish
ClimateStrategy
Summary Gov. Bill
2001/02:55