COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Sweden Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: Sweden, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 411 final  COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Sweden  Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  Third Report on the State of the Energy Union  {COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 392 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 399 final} - {SWD(2017) 401 final} - {SWD(2017) 402 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
                              Energy Union –Sweden 

  Sweden 
                          Energy Union factsheet1 

1.  Macro-economic implications of energy activities 

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important input and service to the other sectors of the economy. Together the activity in these two 
sectors2 accounted for 7.7% of Sweden's total value added in 2015. Their share in total employment3  
was 5.7% in 2015, of which 5.1% in the transport and 0.6% in the energy sector. 

(source: Eurostat) 

According  to  EurObserv'ER,  in  2015,  the  share  of  direct  and  indirect  renewable  energy  related 
employment  in  total  employment  of  the  economy  in  Sweden  was  at  about  1.15%,  above  the  EU 
average of 0.54%. The turnover of the renewable energy industry in the same year was estimated at 
around EUR 5.9 billion, the biggest part being attributed to the biomass (EUR 2.6 billion) followed by 
wind (EUR 1.1 billion), biofuels (EUR 1.0 billion) and heat pumps (EUR 700 million) industries. 

1   The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working  Document  "Monitoring  progress  towards  the  Energy  Union  objectives  –  key  indicators" 
(SWD(2017)  32 
final)  https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-
indicators_en.pdf  

2   Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply 

and H-Transportation and storage 

3   National accounts, Eurostat 

1 

02468101214162005201520052015SEEU28[%]Value added of the sector as % of total economy gross value added EnergyTransport8.607.676.646.88Energy&Transport as % of total GVA:0123456789102005201520052015SEEU28[%]Employment in the sector as % of total employmentEnergyTransport6.215.705.575.46Energy&Transport as % of total employment: 
 
 
 
                                                            
 
                              Energy Union –Sweden 

(source: EC based on Eurobserv'Er and Eurostat) 

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be 
partially quantified and are therefore not included in this analysis. 

An indication of the level of efforts and challenges  encountered  by Sweden in the energy sector is 
provided by the gross fixed capital formation (GFCF)4. Investments in the electricity and gas sectors 
(much higher in electricity than in gas due to the difference in relative importance), which are taken 
as reference sectors, have overall been relatively stable. However, there was a dip in 2010–2011, but 
investments  have  since  then  recovered  and  are  now  at  the  levels  recorded  before  the  pre-crisis 
period. They represented around 1.15% of the country's GDP in 2015. 

4 Gross fixed capital formation consists of resident producers´ acquisitions, less disposals, of fixed tangible or 
intangible assets. This covers, in particular, machinery and equipment, vehicles, dwellings and other buildings. It 
also includes foreign direct investment (FDI). Steam and air conditioning supply are also included in the figures 
mentioned above as Eurostat reports electricity, gas, steam and air conditioning supply together. 

2 

0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%2006200720082009201020112012201320142015[% GDP]GFCF in energy as share of GDP, Sweden**GFCF=Grossfix capital formation 
 
 
 
                                                            
                              Energy Union –Sweden 

(source: Eurostat) 

In terms of trade, Sweden is a net importer of fossil fuels (it has no domestic production), while the 
trade  position  in  electricity  depends  on  the  hydrological  conditions  that  year.  A  trade  deficit  was 
recorded in the electricity trade in 2006, while there was a surplus in 2015. Overall, there is a trade 
deficit  in  energy  products,  which  has  fallen  from  about  1.7%  of  GDP  in  2005  to  0.9%  in  2015, 
influenced  by  the  export  of  electricity,  lower  fossil  fuels  prices  and  decarbonisation  and  energy 
efficiency efforts. Gas experienced the largest relative decrease of more than 50%. The trade deficits 
for  both  coal  and  petroleum  products  have  also  been  significantly  reduced,  the  later  from  1.3%  of 
GDP in 2005 to 0.8% of GDP in 2015. 

(source: Eurostat) 

2.  Energy security, solidarity and trust 

2.1. Energy Mix 

Compared with the EU average, Sweden's energy mix of primary energy products has a much higher 
share of renewable energy in gross inland consumption (40.5% vs 13%) and nuclear energy (30.7% vs 
13.6%) in gross inland consumption. Conversely, natural gas has a much lower importance in Sweden 
(1.5% vs 22.0%). To a somewhat lesser extent, this applies as well for oil (21.6% vs 34.4%) and solid 
16.2%).   
fuels 

(4.5% 

vs 

 (source: Eurostat) 

3 

-10.0-8.0-6.0-4.0-2.00.02.04.02006201520062015SEEU28[% of GDP]Trade balance of energy product and current  account balanceGasOilCoalElectricity-1.71-0.85-2.24-1.69Trade balance of all energy products [%GDP]: 
 
 
 
                              Energy Union –Sweden 

2.2. Import dependency and security of supply 

30% of Sweden's energy consumption is covered by imports, significantly less than the EU average. 
This is due to the high degree of renewables and nuclear energy in the energy mix, which together 
accounts  for  about  three  quarters  of  the  country's  energy  needs  (measured  in  gross  inland 
consumption). 

The  overall  import  dependency  of  Sweden  demonstrated  a  decrease  of  about  7  percentage  points 
(p.p.) between 2005 and 2015, whilst at the EU level, import dependency increased by 1.9 p.p. over 
the same period.  

Sweden imported all natural gas, oil and hard coal needed to meet demand in 2015 due to the lack of 
domestic  fossil  fuel  resources.  All  imports  of  natural  gas  in  Sweden  came  through  Denmark.  The 
associated risk of concentrated supply is partly alleviated by the very low share of natural gas in the 
country's  energy  mix.  Russia  (43.5%)  followed  by  Norway  (25.9%)  were  the  dominant  suppliers  of 
crude oil. Sweden has significant refining capacity, contributing to net exports of oil products. 

 (source: Eurostat) 

Imports  of  uranium  and  nuclear  fuels  are  not  included  in  Eurostat's  energy  balances  and  import 
dependency  can  therefore  not  be  illustrated  in  the  same  way  as  for  the  main  fossil  fuels.  Some 
nuclear fuel is fabricated in Sweden, but there are also imports from e.g. France and Russia.  

The European security of gas supply regulation requires that, if the single largest gas infrastructure 
fails  in  one  Member  State,  the  capacity  of  the  remaining  infrastructure  is  able  to  satisfy  total  gas 
demand during a day of exceptionally high gas demand. This condition is met if the value of the N-1 
indicator is equal to or above 100 %. 

Sweden is exempted from this requirement primarily due to the relatively modest role of natural gas 
in  the  energy  mix.  Yet,  gas  is  important  for  heat  generation  and  for  industrial  processes  along  the 
south  west  coast,  which  makes  the  system  vulnerable  in  case  of  a  disruption  of  imports  from 
Denmark.  Sweden  has  only  15%  of  N-1  capacity,  coming  from  storage  resources  mostly  within  the 
transmission and distribution system itself. Several new LNG terminals are planned, including one in 
Gothenburg  (labelled as  a  Project  of  Common  Interest) which would contribute  to  flexibility  of  the 
Swedish gas market. 

4 

 
 
 
                              Energy Union –Sweden 

(source: gas coordination group) 

3.  Internal market 

3.1. Interconnections and wholesale market functioning 

3.1.1.  Electricity 

(source: EC services based on ENTSOE)         (source: EC services based on Eurostat)       (source: EC services based on Platts 

and European power exchanges) 

Sweden is a central part of the Nordic and Baltic wholesale electricity market. The Swedish electricity 
system  is  directly  connected  to  the  Norwegian,  Danish,  Finnish,  German,  Lithuanian  and  Polish 
systems  and  indirectly  through  these  to  the  wider  continental  Europe  and  other  Baltic  States.  In 
2017, the electricity interconnection level5 of Sweden was 25.6%, well above the 2020 target of 10%. 
The  recent  commissioning  of  a  DC  cable  with  Lithuania  (NordBalt)  has  added  to  Sweden's 
interconnectivity,  while  rapid  expansion  of  new  renewable  electricity  capacity  in  Sweden  has 
resulted in a slightly lower share compared to 2014. 

5 The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities 
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW] 
and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E 
Winter Outlook 2016/2017) 

5 

15.0%N-1 rule for gas2016threshold 100%SE 
 
 
 
                                                            
                              Energy Union –Sweden 

There  is  a  recognised  need  for  additional  transmission  capacity  across  the  border  with  Finland. 
Swedish and Finnish Transmission System Operators (Svenska kraftnät and Fingrid) are carrying out a 
joint study on a possible third AC-line and on the future replacement of the older HVDC-link, Fenno-
Skan  I  between  Sweden  and  Finland.  The  third  AC-line  is  included  in  the  2016  ten  year  national 
development  plan  as  a  long-term  project  (estimated  commissioning  in  2025)  and  has  also  been 
discussed in the context of BEMIP. 

Concentration  of  power  generation  is  much  below  EU  average  and  falling  in  the  2005  to  2015 
perspective.  The  good  electricity  connectivity  to  the  Nordic  electricity  market  and  other  European 
States  together  with  full  liberalisation  has  led  to  a  very  dynamic  electricity  wholesale  market  with 
good competition and comparably low and decreasing wholesale prices. Wholesale electricity prices 
are among the lowest in the EU, and between 2013 and 2015 recorded a higher decrease than the 
EU average (almost 44% in Sweden, vs 10.8% in EU). Wholesale electricity prices are impacted by the 
hydrologic situation due to the importance of hydro power.  

3.1.2.  Gas 

Gas  prices  are,  on  the  contrary,  higher  than  the  EU  average  despite  a  relatively  low  market 
concentration index. In 2015, Sweden was one of only five Member States that had a concentration 
index below ACER's gas target model threshold indicating a well-functioning market (the other ones 
are Belgium, Ireland, Luxembourg and the UK). However, the facts that there is only one supply route 
and  that  the  market  is  relatively  small  impacts  gas  prices  in  Sweden.  The  planned  LNG  terminal  in 
Gothenburg 
is  expected  to  contribute,  once  operational  (currently  foreseen  for  2020),  to 
diversification  and  add  security  and  dynamism  to  the  Swedish  gas  market.  The  terminal  has  the 
status of a Project of Common Interest and is part of the Baltic Energy Market Interconnection Plan 
in gas but has not been granted funding for works by the Connecting Europe Facility. 

(source: ACER for the left graph and EC services based on Platts, gas hubs, Eurostat for the right graph) 

6 

 
 
 
 
 
                              Energy Union –Sweden 

3.2. Retail electricity and gas markets 

3.2.1.  Electricity 

In 2015, households' electricity prices in Sweden were slightly lower than the EU average. Between 
2013 and 2016, average retail electricity prices for households decreased, but to a lesser extent than 
the wholesale prices. This decrease is partially explained by the role of taxes and levies, representing 
more  than  a  third  of  average  household  prices.  Sweden  has  a  very  high  number  of  nation-wide 
electricity retail companies and the market is generally speaking competitive. 

There  is  also  a  widespread  deployment  of  smart  meters,  and  high  annual  switching  rates  by 
consumers  from  one  electricity  supplier  to  another.  Swedish  consumers  are  also  opting  for  more 
innovative offers. 49% of Swedish households had an electricity contract linked to spot market prices 
in 2016, up from 37% in 2013. This included variable monthly tariffs and dynamic price contracts for 
consumers with hourly metering. 29% opted for a fixed price contract, while only 13% remained on 
the default contract. 

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

3.2.2.  Gas 

Gas  represents  a  negligible  share  of  households'  energy  consumption.  Therefore,  household  gas 
retail  markets  are  not  yet  fully  developed.  Household  prices  are  significantly  above  EU  average, 
significantly impacted by taxes which amount to no less than 45% of the final price. 

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

7 

 
 
 
 
 
 
 
 
 
 
                              Energy Union –Sweden 

3.2.3.  Market performance indicators 

According  to  the  periodical  survey  of  DG  JUST,  the  satisfaction  of  Swedish  electricity  consumers  is 
increasing and is slightly above the EU average. 

(source: DG JUST survey) 

3.3. Energy affordability  

In Sweden, the climate conditions imply significant heating needs in comparison to the EU average, 
but  the  share  of  energy  in  total  household  expenditures  of  the  quintile  of  the  population  with  the 
lowest income is very low. Only a small part (2.5%) of citizens below the at-risk-of poverty threshold 
considers that they are unable to keep their home adequately warm. This is explained by comparably 
competitive prices together with higher-than-EU-average disposable income, comparably low spread 
of disposable income around the national mean, and well-developed social policies. 

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

8 

 
 
  
 
 
 
                              Energy Union –Sweden 

4.  Energy efficiency and moderation of demand 

Since 2005, Sweden decreased its primary energy consumption by 10.3% to 44 Mtoe in 2015. Over 
the same period, final energy consumption decreased by 5.6% to 32 Mtoe in 2015. Sweden has set a 
2020 target of 20 % less primary energy intensity (TPES/GDP) 2008–2020. 

While  the  latest  available  data  demonstrated  that  primary  energy  consumption,  in  particular,  is 
decreasing,  Sweden  has  to  continue  the  efforts  to  reach  its  targets.  Primary  energy  intensity 
decreased at an annual rate of 2.8% over the 2005–2015 period, and is below EU average. 

(source: Eurostat) 

In 2015, industry was the largest energy consuming sector representing 36.3% of total final energy 
consumption.  On  contrary,  the  relative  importance  of  energy  consumption  in  the  transport  and 
residential sectors is well below EU average at 27 and 23% respectively. 

(source: Eurostat) 

The final energy intensity of Sweden's industry is well above EU average, notably due to the strong 
presence  of  e.g.  steel,  pulp  and  paper  industries.  Sweden  has  proposed  an  energy  efficiency 
programme for the industry sector in the budget bill for 2018. 125 million SEK have been proposed to 
be allocated over three years. The government has also proposed a separate programme to reduce 
emissions  from  the  industry  sector.  It  is  a  long  term  programme  that  is  planned  to  allocate,  to 
research, project studies and investments, SEK 300 million per year to 2040. 

9 

 
 
 
 
                              Energy Union –Sweden 

The residential sector demonstrates energy consumption per square meter well above EU average, 
even after a correction for climate conditions.6 At the same time, Sweden has decreased the use of 
fossil fuels for heating purposes drastically over the last decades, resulting in very low CO2 emissions 
from the building sector. Projections show that CO2 emissions will be phased out by 2020.  

(source: Eurostat)  

(source: Eurostat)  

  (source: Odyssee database) 

Between 2005 and 2015 in Sweden, the final energy consumption in transport recorded an average 
annual  increase  of  0.1%,  lower  than  the  1.9%  average  annual  increase  of  GDP.  Passenger  activity 
over  the same period  has  been steadily  increasing,  while freight  transport activity registered some 
fluctuations due to economic trends. 

(source: Eurostat)  

        (source: Eurostat and DG MOVE pocketbook) 

The  share  of  collective  passengers  land  transport  in  total  passengers'  transport7  increased  by  2.4 
percentage points between 2005 and 2015 and is, overall, slightly lower than the EU average. 

6 This may partially be due to the fact that Sweden has a methodology for calculating the of residential housing 
surface leading to lower surface values than in some other Member States. This can have an impact on the 
figure for energy consumption per m2. 

7 The share is measured using the ratio between the passenger-kilometers of rail and buses, over the amount of 

passenger-kilometers (which includes cars as well). 

10 

 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Sweden 

(source: Eurostat)  

Despite  overall  good  macroeconomic  performance,  the  infrastructure  investment  situation  is  quite 
low  by  international  standards,  where  railroad  infrastructure  presents  the  biggest  challenge.  The 
railway system requires continued attention and investment, in particular for network maintenance 
and  for  removing  bottlenecks  to  cross-border  traffic.  Given  Sweden's  geographical  location,  all 
transport  modes  are  important  to  support  future  exports  performance,  and  potential  capacity 
bottlenecks need careful consideration. The government has recognised these infrastructure-related 
challenges  in  recent  budget  proposals  and  in  specific  assessments  and  negotiations  for  high-speed 
railways. 

The importance of the transport system is reflected in the national Transport Plan in which the whole 
transport system investment for 2018-2029 is planned to increase by 20% compared to the previous 
planning  period  2014-2025  (from  SEK  515bn  to  SEK  622.5bn).  Furthermore,  in  2016,  after  years  of 
discussions and investigations, Sweden announced plans for a first high-speed railway. The goal is to 
complete high-speed railways between major metropolitan regions. The expansion is to take place at 
a pace allowed by the economy.  

An aviation strategy was presented in January 2017 which treats the role of aviation in the total 
transport system. The Government has the intention to introduce a tax on air travel taking effect on 
1 April 2018. The government has also in close dialogue with stakeholders developed a national 
cycling strategy which was presented in May 2017. 

11 

 
 
 
 
       
 
 
 
 
                              Energy Union –Sweden 

5.  Decarbonisation of economy 

5.1. GHG emissions 

Sweden  has  recently  adopted  a  climate  policy  framework.  This  framework  legislation  includes  the 
following long term climate targets: Sweden shall have, at the latest by 2045, net-zero emissions; to 
achieve  negative  emissions  thereafter.  Emissions  from  activities  on  the  Swedish  territory  shall  be 
85% lower than emissions than in 1990. Interim targets are set for 2030 and 2040. Furthermore, a 
sector specific target for transport is set, according to which emissions shall be reduced by 70 % untill 
2030, compared to 2010. 

In 2016, GHG emissions in Sweden were 23.5% below the 1990 levels (based  on 2016 proxy data), 
slightly below the EU average of -22.6%. According to national projections, the reduction in Sweden's 
non-ETS  greenhouse  gas  emissions  by  2020  is  projected  to  exceed  its  2020  target  with  some  14.8 
p.p., implying that the target with all likelihood will continue to be met by 2020. Sweden has so far 
canceled - as a measure of environmental integrity  - any excess annual emission allocations (AEAs) 
under the Effort sharing Decision, and does thus not use the banking or trading of AEAs.  

(source: EC and EEA)   

According  to  European  Environment  Agency  (EEA)  estimates,  the  greenhouse  gas  intensity  of 
Sweden's  economy  was  the  lowest  in  the  EU  and  less  than  half  of  what  it  was  in  1990.  Also 
greenhouse gas emissions per capita in Sweden were 36% lower than the EU average. Both factors 
are impacted by the higher than average share of renewable and nuclear energy in the energy mix. 

In 2015, the largest sectors in terms of GHG emissions were transport (1/3 of the total greenhouse 
gas emissions) followed by industry (26%) and the energy / power sector (18%). In relative terms, the 
greenhouse  gas  emissions  from  the  residential  sector  in  Sweden  were  well  below  the  EU  average, 
primarily due to the very limited direct use of fossil fuels. 

12 

 
 
 
 
                              Energy Union –Sweden 

(source: EC and EEA)   

Preliminary accounts under the Kyoto Protocol for Sweden show overall removals of 0.9 Mt CO2eq. 
as an annual average in the period 2013-2015. For comparison, the annual average of the EU-28 
accounted for removals of 119.0 Mt CO2eq. It should be noted that in this preliminary simulated 
accounting exercise, removals from Forest Management were capped to 2.5 Mt CO2eq per year, due 
to significantly exceeding the limit of the difference between the reported sink and the accounting 
forest management reference level.  

Emissions by Deforestation are notably higher than removals by Afforestation. Removals by Forest 
Management are higher than by Afforestation and gained relative importance over time. Overall, 
there is an increasing trend in removals mainly due to a decline in emissions by Deforestation. 
Removals by Afforestation show a slight increase over the course of the three-year period. 

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 

(source: EC and EEA) 

CO2 emissions in transport and alternative fuelled vehicles 

Sweden has set a new and ambitious national target to reduce emissions in the transport sector by 
70  %  until  2030,  compared  to  2010.  In   line  with  this,  Sweden  will  be  implementing  two  major 
reforms which aim at reducing greenhouse gas emissions from the transport sector.  

13 

 
 
 
 
  
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From  2018  and  onwards,  Sweden’s  main  instrument  to  decrease  emissions  from  fuels,  will  be  a 
greenhouse  gas  reduction  obligation  imposed  on  fuel  suppliers.  Fuel  suppliers  will  have  to  reduce 
emissions from the fuels they sell, typically by increasing the share of sustainable biofuels, by a set 
amount, increasing over time. For vehicles, Sweden will implement a bonus/malus system as of 2018. 
More environmentally friendly vehicles will be taxed advantageously, while more polluting vehicles 
will have a heavier tax burden. The average CO2 emissions of new cars in Sweden were, in 2016, still 
above  the  EU  average,  but  decreased  between  2005  and  2016  more  than  the  EU  average.  CO2 
emissions from transport are positively impacted by a high share of renewable energy (see below). 

(source: European Environment Agency) 

The number of electric charging points in Sweden has more than doubled in the period from 2013 to 
2016, from 1 020 to 2 738 units.  

(European Environment Agency)  

       (European Alternative Fuels Observatory) 

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to 
establish targets, objective and measures for the development of the market of alternative fuels in 

14 

 
 
  
 
  
 
                              Energy Union –Sweden 

the  transport  sector  and  the  deployment  of  the  relevant  infrastructure.  Sweden  has  submitted  its 
National Policy Framework as requested under article 3 of the Directive 2014/94/EU.  

A detailed assessment of the Swedish National Policy Framework in terms of its compliance with the 
requirements  of  Directive  2014/94/EU  on  alternative  fuels  infrastructure,  its  contribution  to 
achievement  of  long-term  energy and  climate objectives  of  the  Union  and  coherence of  its  targets 
and objectives in terms of cross-border continuity has been published as part of the Communication 
on  Alternative  Fuels  Action  Plans  (COM(2017)652)  and   the  related  staff  working  document 
SWD(2017)365. 

5.2. Adaptation to climate change 

The Swedish policy for adapting to climate change is laid out in the 2008 bill 'An Integrated Climate 
and  Energy  Policy'.  Adaptation  policy  efforts  are  supported  by  a  range  of  strategic  documents  and 
action  plans  that  are  implemented  at  national,  regional  and  local  levels.  Several  government 
agencies/national authorities have developed action plans of their own. The sectors that are pointed 
out  in  the  Swedish  strategies  are  related  to  critical  societal  functions:  biodiversity  and  ecosystem 
services,  fresh  water  supply,  health,  infrastructure,  rural  businesses,  technical  supply  systems,  and 
urban  areas.  An  assessment  report  on  the  Swedish  climate  change  adaptation  strategy  and  the 
actions being taken since 2007 was completed in 2015. Work is currently ongoing to further develop 
strategic planning at the national level, including possible systems for  evaluation and monitoring of 
adaptation work and progress in Sweden. 

5.3. Taxes on energy and transport and fossil fuel subsidies 

Sweden  uses  taxation  as  part  of  the  climate  policy,  and  has  a  carbon  tax  in  place.  It  currently,  in 
2017, amounts to EUR 118/tCO2 (SEK 1130/tCO2). It is applied on all fossil fuels, including heating oil 
fuels  (light  and  heavy),  natural  gas  and  coal.  A  reduced  rate  is  applicable  for  industry  (outside  the 
ETS), agriculture, forestry and fishery. In addition, the circulation tax on vehicles is partly based on 
CO2 emissions. 

The overall tax burden on energy and transport (including carbon taxation) in Sweden amounts to 2.2 
%  in  2014,  0.2  percentage  points  lower  than  in  2007.  This  is  also  below  the  EU  average,  while  the 
opposite  was  true  in  2007.  The  tax  burden  on  heat  and  electricity  is  considerably  above  the  EU-
average,  but  has  fallen  slightly  since  2007.  The  tax  burden  on  transport  fuels  has  also  fallen  since 
2007 (0.2 p.p.). The tax burden on transport vehicles is lower than the EU-average, but has increased 
slightly during the period. 

15 

 
 
                              Energy Union –Sweden 

(source: Eurostat) 

Sweden  has  put  substantial  effort  into  phasing  out  fossil-fuel  support  throughout  the  last  decade. 
Today,  the  CO2  tax  rate  reduction  for  diesel  used  as  fuel  for  machinery  in  agriculture  and  forestry 
represents  the  most  significant  tax  expenditure.  This  is  despite  the  fact  the  reduction  has  been 
decreasing over time — from 77% when the scheme was first implemented, through 79% in 2010, to 
70% in 2011. In 2016, the reduction corresponds to 53% of the general CO2 tax rate. Other recently 
reduced  tax  reductions  include  CO2  tax  exemption  for  fossil  fuels  used  for  heating  in  the 
manufacturing  process  in  industry  outside  the  EU  Emission  Trading  Scheme  and  the  agricultural 
sector.  Given  the  lack  of  oil  and  natural  gas  production  in  Sweden,  the  beneficiaries  of  all  support 
measures recorded are intermediate and final consumers. 

(source: OECD Inventory of Support Measures for Fossil Fuels 2015)  

5.4. Renewable energy  

Sweden  has  the  highest  share  of  renewable  energy  in  the  EU.  At  some  54%  of  gross  final  energy 
consumption in 2015, Sweden has already exceeded its national 2020 target of 49% according to the 
RES-directive. Sweden has also exceeded its national target of 50% to 2020. In addition to electricity 
(66%), Sweden has achieved a comparably very high share of renewables also in heating (69%) and 
transport (24%). The increase of renewable energy in transport has been particularly steep in recent 

16 

0123452007201420072014SEEU28[% GDP]Energy & Transport related taxes as % GDPHeat & ElectricityTransport VehiclesTransport Fuel2.452.192.282.37Total transport and electricity taxes [%GDP]: 
 
 
 
                              Energy Union –Sweden 

years,  more  than doubling from an  already  high share  since 2010.  The  use  of  renewable  energy in 
heating is facilitated by extensive district heating based on biomass. 

 (source: Eurostat-SHARES) 

(source: Eurostat-SHARES) 

The development of new capacity to generate electricity from renewable energy sources in Sweden 
is predominantly promoted through a green certificate system shared with Norway. The green 
certificate system is prolonged and the ambition is raised with 18 TWh until 2030. 

In  transport,  the  use  of  renewable  energy  is  primarily  incentivised  through  tax  breaks,  while  the 
Government has announced plans to introduce a quota scheme to get the share up to no less than 
50% by 2030. 

Due to a consistent deployment of renewables, it is estimated that Sweden avoided about 21% of the 
fossil fuel in gross inland consumption and about 19% of GHG emissions in 2014.8 

8 Avoided GHG emissions mentioned here have a theoretical character as these contributions do not necessarily 
represent 'net GHG savings per se' nor are they based on life-cycle assessment or full carbon accounting. 

17 

 
 
 
 
                                                            
                              Energy Union –Sweden 

 (source: EEA) 

5.5. Contribution of the Energy Union to better air quality 

Air quality in Sweden continues to give cause for concern. For the year 2013, the EEA estimated that 
about  3,020  premature  deaths  were  attributable  to  fine  particulate  matter  (PM2.5)  concentrations 
and less than five to nitrogen dioxide (NO2) concentrations9. 

For both pollutants Sweden reported exceedances of the binding EU air quality standards10. For the 
year 2015, Sweden reported exceedances of the limit value for PM10 and the limit value for NO2  in 1 
out of the 6 air quality zones in Sweden11.  

(source: EEA) 

9  European  Environment  Agency,  2016,  Air  Quality  in  Europe  –  2016  Report,  table  10.2.  The  report  also 
includes details as regards the underpinning methodology for calculating premature deaths.    
10 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality 
and cleaner air for Europe, OJ L 152, 11.6.2008, p.1-44 
11  Compliance  data  as  reported  by  the  Member  States  as  part  of  their  official  annual  air  quality  report  for  the 
calender year 2015 (available on the European Environment Agency's (EEA) Eionet/Central Data Repository), 
http://cdr.eionet.europa.eu/se/eu/aqd  

18 

01234567NO2 Annual limit valuePM2.5 Annual limit valuePM10 Daily limit value[number of zones]Air quality zones in exceedance of EU air quality standards number of zones exceedingnumber of zones not exceedingSE 
 
 
 
                                                            
                              Energy Union –Sweden 

The health-related external costs from air pollution in Sweden have been estimated to be more than 
EUR 3 billion/year (income adjusted, 2010), which includes the intrinsic value of living a healthy life 
without premature death as well as the direct costs to the economy such as healthcare costs and lost 
working days due to sickness caused by air pollution12. 

The  Energy  Union  can  substantially  contribute  to  addressing  these  air  quality  problems  through 
measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NOx) 
from major contributing sectors such as (road) transport, energy production, industry and residential 
heating (e.g. stoves and boilers)13. 

(Source: EEA. This table reflects only sources of primary PM2,5 emissions.)  

6.  Research, innovation and competitiveness  

6.1. 

Research and innovation policy 

The  current  Swedish  Energy  research  and  innovation  (R&I)  programme  is  part  of  Swedish  research 
policy,  but  also  an  integral  part  of  Swedish  energy  policy.  The  programme  is  based  on  having  a 
balanced  portfolio  of  thematic  sub-programmes,  activities  and  funding  instruments  to  support  the 
development and deployment of clean energy solutions and technologies. To maximise its flexibility, 
the  Swedish  Energy  R&I  programme  includes  not  only  sub-programmes  initiated  as  an  answer  to 
detailed and technically specific calls of proposals, but also sub-programmes that are open for new 
and  unexpected  ideas.  The  responsibility  for  strategic  planning  and  implementation  of  the 
programme rests with the Swedish Energy Agency. 

In  addition  to  funding  research,  development,  demonstration  and  innovation,  there  are  also  a 
number of Swedish programmes or policies to promote the uptake of new, clean and efficient energy 
technology.  Among  these  measures  are  the  Climate  Step,  an  investment  programme  for  industry, 
local  governments,  regions  and  organisations  to  reduce  climate  change impacts.  The budget  is  SEK 
3.5 billion for the period 2015–2020. A special fund for public venture capital for energy and climate 

12 See also the EU Environmental Implementation Review Country Report for Sweden, SWD(2017)56 final of 
3.2.2017 
13 National emission data as reported by the Member States to the EEA (available on the EEA's Eionet/Central 
Data Repository), http://cdr.eionet.europa.eu/se/eu/nec_revised 

19 

4.3%33.7%5.2%7.3%16.1%2.4%6.9%20.1%3.9%AgricultureCommercial, institutional and householdsEnergy production and distributionEnergy use in industryIndustrial processes and product useNon-road transportOtherRoad transportWastePM2.5 emissions by sectors -2015*SE10.2%10.0%8.3%12.2%11.2%7.4%6.9%33.8%0.1%NOx emisisons by sectors -2015* *NECD data submitted by MS to EEA at 28th May 2015 
 
 
                                                            
 
                              Energy Union –Sweden 

technologies  is  also  being  established.  The  total  budget  for  this  fund  is  expected  to  be  SEK  650 
million. 

The  government’s  guidelines  and  goals  for  the  Energy  R&I  programme  for  the  period  up  to  and 
including 2020 were decided upon in 2016, when it was also decided to increase funding for energy 
research and innovation with SEK 620 million during 2017-202014. 

Sweden is also an active contributor to the ongoing work of the SET Plan. It participates in nine (out 
of fifteen) temporary working groups for the implementation of the integrated SET Plan. 

Regarding  the  Horizon  2020  programme,  Sweden  has  received  so  far  3.9%  of  the  EU  contribution 
devoted  to  the  'secure,  clean  and  efficient  energy'  part  of  the  programme.  As  of  September  2017, 
140 participations from Swedish organisations have been awarded about EUR 71 million in Horizon 
2020  energy  projects.  This  includes  a  grant  of  over  EUR  7.5  million  to  Swerea  Mefos  for  its 
participation in project STEPWISE (CO2 capture).Sweden is also very active in the field of Smart Cities. 
Two of the 27 current European H2020 Lighthouse cities are Stockholm (GROWSMARTER 2014) and 
Umeå (RUGGEDISED 2016).  

Sweden is a founding member of Mission Innovation15. As a result, it has committed to doubling its 
public  funding  of  major  clean  energy  R&I  programmes  from  SEK  134  million16  on  average  in  the 
period 2013-15 to SEK 270 million in 2020. Sweden has chosen to double the parts of its energy R&I 
programmes that focus on funding for researchers and industry to work bottom-up with solutions to 
energy challenges and which at the same time support long-term and transformative research and 
development. 

6.2. 

Investments and patents in the Energy Union R&I priorities  

In  2016,  public  (national)  investments  in  the  Energy  Union  R&I  priorities  reached  EUR  139  million, 
having increased by 12% compared to 2015. The largest share of investments (42%) was attracted by 
the  Sustainable  Transport  priority  of  the  Energy  Union,  followed  by  the  Smart  System  and  the 
Efficient  Systems  priorities  (33%  and  13%,  respectively).  In  the  period  2007–2016,  the  maximum 
annual public investment was EUR 163 million, reported in 2014. For the same year, the most recent 
for which data from most Member States are available, public investment per GDP in Sweden was 
higher than the EU average. 

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 774 million (5% 
of the private R&I investment in Energy Union R&I priorities in the EU). The focus was on Sustainable 
Transport,  which  received  46%  of  these  investments,  followed  by  the  Smart  System  and  Efficient 
Systems priorities, which received 29% and 13% respectively. 

14 Govt. Bills 2016/17:66 and 2016/17:1. 
15 http://mission-innovation.net/ 
16 The baseline number of 134 million SEK relates to the activities of Basic Energy Research, Innovative and 
energy  relevant  research  and  development,  and  energy  relevant  Strategic  Innovation  Areas.  These  three 
programmes are characterized by not having a specific technology focus beyond being original and excellent and 
addressing  the  energy  challenge  within  the  overall  focus  of  renewables,  efficiency,  electricity  and  energy 
transmission and distribution, and energy systems. 

20 

 
 
                                                            
                              Energy Union –Sweden 

In 2013, the most recent year for which complete patent17 statistics are available, 85 companies and 
research organisations based in Sweden filed 226 patents in low-carbon energy technologies (3% of 
the EU total). The focus was on the Smart System priority (37%), followed by Sustainable Transport 
(31%) and Renewables (17%). 

In 2013, private R&I investments and patents in Energy Union R&I priorities were higher than the EU 
average  when  normalised  by  GDP  and  by  population  respectively.  In  the  period  2007–2013  both 
private  R&I  investments  and  the  number  of  patents  in  Energy  Union  R&I  priorities  increased  on 
average by 21% and 25% per year, which is higher than the respective rates of increase for the same 
indicators at EU level (6% and 15% respectively). 

Note: The international comparison (right) is shown for 2014 (Sweden had reported EUR 164 million). Reporting 
at EU level for 2015 is not as complete, and very few countries have reported for 2016. 

(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database18 for 
codes  relevant  to  Energy  Union  RIC  priorities.  Patent  data  based  on  the  European  Patent  Office  PATSTAT 
database19. Private investment as estimated by JRC SETIS. Detailed methodology available from the JRC20.) 

17   In  the  context  of  this  document,  the  term  'patent'  refers  to  patent  families,  rather  than  applications,  as  a 
measure  of  innovative  activity.  Patent  families  include  all documents  relevant to  a  distinct  invention (e.g. 
applications to multiple authorities), thus preventing multiple counting. A fraction of the family is allocated 
to each applicant and relevant technology. 

18   http://www.iea.org/statistics/RDDonlinedataservice/  

21 

 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Sweden 

6.3. 

Competitiveness 

In 2014,  the  real  unit energy  costs  (RUEC)21  in Sweden (12.3) were below  those  of  the EU  average 
(15.3),  well  above  those  in  the  US  but  significantly  below  those  in  e.g.  Japan  and  China.  The 
electricity prices paid by industrial consumers in Sweden are below the EU and OECD averages and 
by  some  measures  the  lowest  in  the  EU.  Conversely,  gas  prices  for  industrial  consumers  are  well 
above the EU average, the impact of which is mitigated by the relatively low share of natural gas in 
final energy consumption of industry. 

(source: ECFIN) 

                   (source: Eurostat and IEA) 

Regarding  the  competitiveness  in  wind  and  solar  energy,  Sweden  performs  moderately  well  in  the 
wind  energy  sector,  while  it  does  not  perform  well  in  the  solar  PV  industries,  as  indicated  by  the 
revealed comparative advantage indicator22 below. The Swedish economy is not specialised in either 
of  these  industries.  The  relative  trade  balance23  confirms  that  Sweden  is  overall  a  net  importer  of 
both wind and solar components, which contrasts to EU as whole which has a positive trade balance 
in the wind industry. Sweden recorded nonetheless a trade surplus in wind turbine power electronics 
in 2015. 

19   https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
20   https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-

technologies  

21   This indicator measures the amount of money spent on energy sources needed to obtain one unit of value 

added. 

22 The RCA index for product "i" is defined as follows: RCAi =

Xj,i
∑ Xj,i
i
Xw,i
∑ Xw,i
i

 where X is the value of exports, and j is 

the country and w is the reference group, the World economy. 2005 refers in the text to the indicator average 
over the 2000-2009 period, while 2015 represents the average over the 2010-2016 period. The same applies for 
the RTB indicator - see below. 
23 The RTB indicator for product "i" is defined as follows: RTBi =

 where Xi is the value of product's "i" 

Xi−Mi
Xi+Mi

exports and Mi imports. 

22 

 
 
  
 
 
 
 
                                                                                                                                                                                          
                              Energy Union –Sweden 

(source: UN comtrade) 

7.  Regional and local cooperation 

Sweden is part of the Baltic Energy Market Interconnection Plan (BEMIP), the first High-Level Group 
launched  in  2009  by  the  Commission  and  Denmark,  Sweden,  Poland,  Finland,  Estonia,  Latvia, 
Lithuania,  Germany  and  Norway  (observer  status).  BEMIP’s  main  objectives  are  to  develop  an 
internal  and  regional  energy  market  between  the  EU  Member  States  in  the  Baltic  Sea  region  and 
integrating it fully into the EU's energy markets, thus increasing security of supplies. BEMIP projects 
have  been  part  of  the  European  Economic  Recovery  Plan  (EERP)  and  the  Trans-European  Energy 
Networks  Programme.  BEMIP  projects  have  also  been  funded  through  the  EU's  structural  funds, 
including  the  European  Regional  Development  Fund  (ERDF)  and  the  Cohesion  Fund  (CF).  Many 
infrastructure  projects  are  supported  through  co-funding  from  the  Connecting  Europe  Facility 
amounting to 534.3 million euro in the region. In the framework of the societal challenge for secure, 
clean  and  efficient  energy  of  the  Horizon  2020  programme,  16.9  million  euro  is  allocated  to 
participants from the Baltics to stimulate research and innovation in this field. The most important 
project  including  Sweden  in  this  regard  is  the  undersea  DC  electricity  interconnector  –  NordBalt  – 
between  southern  Sweden  and  Lithuania.  The  project  was  supported  by  the  EEPR  and  the 
interconnector is in operation since beginning of 2016. 

Sweden is also part of Nordic Cooperation under the auspices of the Nordic Council and the Nordic 
Council of Ministers together with Finland, Denmark, Iceland, Norway, the Faroe Islands, Greenland, 
and Åland. As part of the modernisation and reform process towards a 'New Nordic Region', it was 
decided  to  commission  strategic  reviews  of  all  sectors.  On  27  October  2015,  the  energy  ministers 
agreed  to  commission  a  strategic review  of  co-operation  in their  sector.  The  objective  is  to  ensure 
effective co-operation now and for the coming 5 to 10 years. The report on this review was issued in 
June 2017. 

The  electricity  markets  of  Norway,  Sweden,  Finland  and  Denmark  together  form  the  Nordic 
electricity  market.  The  common  electricity  market  combines  the  wholesale  markets  in  the  Nordic 
countries,  creating  the  price  signals  to  produce  electricity  where  the  price  is  lowest.  The  Nordic 
Council tasked the Nordic National Regulatory Authorities (NordREG) to develop a more harmonised 
Nordic electricity retail market. The focus is to reduce obstacles for electricity suppliers to be active 

23 

0123456solarwindsolarwindSEEU28[-]Revealed Comparative Advantage -RCA20052015-0.340.10-0.070.22absolute change 2005 -2015:-1.0-0.50.00.51.0solarwindsolarwindSEEU28[-]Relative Trade Balance -RTB200520150.00-0.14-0.080.06absolute change 2005 -2015: 
 
 
 
                              Energy Union –Sweden 

in all Nordic countries.  Recent measures include the development and progressing implementation 
of the supplier centric market processes and of data-hubs.24 

Sweden  is  a  member  of  the  High-Level  Group  on  North  Seas  Energy  Cooperation.  In  June  2016 
Sweden  signed  the  Political  Declaration  on  energy  cooperation  between  the  North  seas  countries. 
This  Declaration  has  established  a  High-Level  Group  to  give  the  necessary  political  impetus  to  a 
project  which  is  fundamental  to  facilitate  the  cost-effective  deployment  of  offshore  renewable 
energy  and  to  promote  further  interconnection  and  further  integration  of  wholesale  electricity 
markets around the North Seas. Through a coordinated approach will be achieved market integration 
and the integration of substantial amounts of indigenous low carbon generation, at lower cost and 
with  an  optimal  use  of  maritime  space  (avoidance  of  conflicts  with  other  North  Seas  users).  It  will 
boost economic growth and create a significant amount of highly skilled jobs in the region. Sweden is 
also a member of the North Seas Off-shore Grid Regional Group. 

The Nordic Energy Technology Perspectives 2016 presents technology pathways towards a near-zero 
emission Nordic energy system by 2050. The analysis is presented around the Nordic Carbon-Neutral 
Scenario which results in 85% reduction of emissions by 2050 (compared to 1990 levels). The analysis 
was  performed  by  Nordic  researchers  and  Nordic  Energy  Research  in  cooperation  with  the 
International Energy Agency. 

The EU macro-regional strategy for the Baltic Sea Region in which Sweden takes part can be used as a 
basis  for  regional  cooperation  on  energy.  European  Territorial  Cooperation  –  'Interreg'  –  under  EU 
cohesion policy also provides further opportunities for cross-border, transnational and interregional 
cooperation, including in the Energy Union areas. 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 
Adaptation and Housing. Sweden is participating in the partnerships on Energy Transition, with the 
city of Gothenburg as member, and Urban Mobility, with the region of Skåne and the city of Malmö 
as members. 

With regard to the Covenant of Mayors, the sustainable energy action plans delivered by 52 Swedish 
municipalities  cover  about  3.7  million  inhabitants  representing  more  than  a  third  of  the  total 
population  of  Sweden.  All  together,  these  municipalities'  commitments  imply  a  GHG  reduction  of 
some 43% by 2020 compared to 1990 baseline). 

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions) 

24 NordREG Report – 2016, Published: 2016-07-29 

24 

 
 
 
                                                            
                              Energy Union –Sweden 

In  Sweden,  by  September  2016,  four  cities  (covering  0.94  million  inhabitants)  have  committed  to 
conduct  vulnerability  and  risk  assessment  and  develop  and  implement  adaptation  plans  in  the 
framework of the Covenant of Mayors for Climate and Energy. 

8.  Cohesion policy and EU-supported clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground, including investment possibilities to implement energy policy objectives in Sweden which are 
complemented  by  national  public  and  private  co-financing,  aiming  at  optimal  leverage.  It  also 
ensures integrated territorial solutions to energy and climate challenges, supports capacity building 
and provides technical assistance. 

Over 2014-2020, cohesion policy is investing some EUR 92 million in energy efficiency improvements 
in public and residential buildings and in SMEs, as well as in renewable energy in Sweden. Cohesion 
policy  is  also  investing  significantly  in  R&I  and  in  SME  competitiveness  in  Sweden,  based  on  the 
national  strategy  as  well  as  regional  strategies  for  smart  specialisation.  For  Sweden,  the  strategies 
include  a  focus  on  support  for  networks,  clusters  and  incubators  for  SMEs  working  with  energy 
efficiency and a key issue is the increased potential for commercialisation of innovation in the energy 
sector.  In addition,  development  of  strategies  and  plans  for  sustainable and  energy  efficient  urban 
planning,  favouring  energy  conservation  and  non-fossil  energy,  is  supported.  At  this  stage,  at  least 
EUR  91  million  is  foreseen  for  investments  in  R&I  and  adoption  of  low-carbon  technologies  in 
Sweden, but this might increase further in line with the evolving content of the smart specialisation 
strategy. A further estimated EUR 82 million is invested in supporting the move towards an energy-
efficient, decarbonised transport sector. 

(source: DG REGIO) 

These  investments  are  expected to  contribute  to  around  10,000  households  with improved energy 
consumption  classification,  a  decrease  of  around  40,000,000  kWh  per  year  of  primary  energy 
consumption of public buildings, as well as to around 100 km of reconstructed or upgraded railway 
lines.  Overall,  the  EU  cohesion  policy  investments  in  Sweden  over  2014-2020  are  expected  to 
contribute to an estimated annual decrease of GHG emissions of around 6,000 tonnes of CO2eq. 

25 

020406080100120140160180200Energy and Low-carbon R&ILow-carbon transport[Million EUR]SEERDF and Cohesion Funds allocation on energy, low-carbon transport and low-carbon R&I 18382Total alocation [mn EUR] 
 
 
 
                              Energy Union –Sweden 

For example, the "VIRUS" (Hosting, Innovation, Regional development and Synergies around Electric 
roads  for  fossil-heavy  logistics)  project  received  a  contribution  from  the  European  Regional 
Development Fund (ERDF) of EUR 530,000 (total investment EUR 1.2 million). It is located in North-
Mid  Sweden  and  is  running  from  January  2016  until  June  2018.  It  is  the  world's  first  electric  road 
construction  project  for  truck  traffic.  The  project's  goal  is  to  create  knowledge,  experience  and 
conditions for decision support and can serve as a platform for an electrification of Sweden’s major 
transport routes. 

As  another  example,  "ClimateSync"  is  a  project  targeting  all  Swedish  projects  co-financed  by  the 
European  Regional  Development  Fund  (ERDF)  in  the  area  of  supporting  the  shift  towards  a  low-
carbon  economy.  The  purpose  of  ClimateSync  is  to  achieve  synergies,  to  avoid  overlaps,  enhance 
learning, cooperation and coordination between regions and between the regional and national level 
on energy and climate related work. The project is running until the end of 2020 and is co-financed 
from the national ERDF program with EUR 1.39 million. The Swedish Energy Agency and the Swedish 
Agency for Regional and Economic Growth contribute each 25% (EUR 0.69 million). 

Through  its  support  to  sustainable  transport  systems,  The  Connecting  Europe  Facility  (CEF)  also 
contributes to the goals of the Energy Union. Following Swedish participation in the CEF – Transport 
2014-2015 Calls, the Swedish action portfolio comprised 39 signed grant agreements, allocating EUR 
144.5 million of actual CEF Transport Funding to Swedish beneficiaries25 (state: February 2017). The 
transport  mode  which  receives  the  highest  share  of  funding  is  air  (37.1%  of  actual  funding). 
Concerning  air  traffic  management  (ATM),  Sweden  is  involved  in  both  mono  and  multi-beneficiary 
actions,  both  studies  and  works,  including  the  Single  European  Sky  ATM  Research  (SESAR) 
Deployment  Manager.  These  actions  contribute  to  the  deployment  of  SESAR  as  well  as  to  the 
modernisation of the ATM system.  

Sweden  has  also  demonstrated  a  strong  commitment  to  the  greening  of  the  maritime  sector, 
developing new technologies and upgrading a number of maritime links through better performance 
of ships and increased handling efficiency of ports. Moreover, Sweden has made consistent efforts to 
promote the integration of maritime transportation in the supply chain. As regards the Swedish rail 
actions,  the  main  investments  are  allocated  to  works  on  the  freight  line  through  Bergslagen.  Also, 
studies are being performed on the Bothnian Corridor (North Bothnia Line) to design plans for a new 
railway line and on the Iron Ore Line to increase capacity in the TEN-T core network.26 

25 Note that European Economic Interest Groups and International Organisations are excluded from the analysis. 
26 Source: INEA 

26