Mobility Basic Figures

Between 2000 and 2007 there was a growth of 4% in the overall Swedish vehicle stock and a growth of 14% of car vehicle kilometres per capita (10% increases per car). The price for gasoline has increased of 12% and of diesel of 15%. By the end of 2008 the share of clean vehicles in the Swedish vehicle stock was approximately 5 percent. Since 2005 there was a significant increase in sales of alternatively fuelled vehicles in Sweden. This can be partly explained by the introduction of significant financial incentives such as exemption from congestion charges in Stockholm. In 2008 sales of clean cars grew at a record pace, in comparison to other European countries. In 2008 total sales of passenger cars were about 254,000.

Clean cars represented one third or about 85,000. Flexifuel vehicles were the most popular, with sales of about 60,000, which is close to 70 percent. Low-CO2 vehicles account for about 25 percent of all clean cars in Sweden in 2008. The alternatively fuelled vehicles available on the Swedish market have a purchase price premium of about 30 percent for hybrid cars, ten percent for biogas cars, and five percent for an ethanol FFV. All government organizations in Sweden are forced to only procure clean vehicles.

There are about 3,500 refuelling stations in Sweden and about 1,400 of them supply alternative fuels. Most of them, about 1,300, supply E85 (85 percent ethanol and 15 percent petrol). Only 90 refuelling stations supply methane gas: 41 sell natural gas and 49 sell biogas. The refuelling infrastructure supplying E85 has grown rapidly since the introduction of the renewable fuel obligation: from 305 in 2006 to 1,293 in November 2008. This obligation (“the pump law”) requires refuelling stations of a certain size to supply at least one alternative fuel. The number of biogas and natural gas pumps has grown from 62 to 90 during the same time period (2006-2008). Currently, there are three hydrogen stations in planning but no in operation. The first station in Sweden Stockholm nowadays is closed.

Fiscal Incentives

Lower fuel taxes (1995-2012): All alternative vehicle fuels (except electricity) are eligible for tax rebates of vehicle fuel taxes including a CO2 tax and a tax on the energy content of the fuel. VAT is added to all types of fuel. Compared to the energy value of petrol, FAME, biogas and ethanol receive a 100 percent tax rebate; natural gas and LPG propane receive a rebate of about 80 percent. Initially, EU rules prevented the Swedish Government from reducing taxes on biofuels except those used for trial purposes on an annual basis. Between 1995 and 1998, the Government freed biogas and ethanol from taxes on an annual basis. The announcement of the EU Biofuel Directive in 1999 enabled exemption of taxes during longer periods. The first long-term decision concerns the period 2003-2008 and the exemption has been extended until 2012.

Tax exemption for electric/electric hybrid cars (1995-2006): A five-year grace period from annual vehicle registration tax was introduced in 1995. The tax exemption applied to new passenger cars, light-commercial vehicles, and buses classified as electric vehicles and electric hybrids. This policy was replaced by the CO2-based vehicle taxes introduced in October 2006. Vehicles already in the tax exemption scheme were not affected.

Rebate on company car assessment value (1999-2011): Employees who use a company car for private travel (including commuting) are taxed for this benefit according to the purchase price of the vehicle. Drivers of clean vehicles, which typically have a higher purchase price compared to conventional vehicles, paid higher taxes on their company cars. To correct this disincentive to clean car use, the national government lowered assessment values for clean cars to the same level as comparable petrol-fuelled vehicles in 1999. Additional reductions were allowed from 1 January 2002 until 2007 and the incentive has been extended until 31 December 2011. The fuels and techniques affected, as well as the reductions of tax assessment values in relation to a comparable petrol-fuelled vehicle are summarised below:

• E85: 20 percent, maximum SEK 8,000 per year

• Natural gas and biogas: 40 percent, maximum SEK 16,000 per year.

• Hybrid-electric or electric: 40 percent, maximum SEK 16,000 per year.

• Propane LPG: same level as a comparable petrol-fuelled vehicle

Exemption from congestion charges (Jan-July 2006 and Aug 2007-July 2012): A congestion charge trial was produced between January and July 2006 and made permanent in August 2007. The charge affects Swedish-registered vehicles entering and leaving Stockholm’s inner city Monday-Friday between 06:30 – 18:29. The maximum charge is 60 SEK per day and there is no congestion charge on weekends or national holidays. Vehicles driven with biogas, ethanol, electricity, synthetic gas, methane, methanol, natural gas or hydrogen are exempt until 2012. There will be no exemption from congestion charges for cars sold and registered after 1 January 2009. Alternatively fuelled vehicles registered before 1 January 2009 will exempt until 30 June 2012.

Carbon differentiated vehicle taxes (October 2006- ): Carbon differentiated vehicle taxes for light-duty vehicles (1/10 2006 –): Basic tax at 360 SEK per year for all light duty vehicles. An additional tax is paid per gram CO2 exceeding 100 g/km. This per gram tax is 15 SEK for petrol driven vehicles. For diesel vehicles gram tax is 52.5 SEK/g CO2 and for vehicles using alternative fuels (in this case ethanol, E85, natural gas or biogas) the tax is 10 SEK/g CO2. Carbon differentiated vehicle taxes for heavy-duty vehicles vary between SEK 100 - 20,000. A new level of classification was introduced on 1 October 2009.

Funding

Clean vehicle premium (SEK 10,000 cash rebate) (1/4 2007-30/6 2009): To encourage individuals to purchase low-CO2 cars and alternatively fuelled cars, the Government introduced a clean vehicle rebate of 10,000 SEK in 2007. The rebate is available to private individuals who purchase a new clean vehicle and keep it for at least six months. Rebate payments were halted on 19 May 2008, because the original budget of 100 million SEK had been paid out. In July 2008, the Swedish government decided to provide additional 240 million SEK for clean vehicle rebates in 2008. Rebates will be available until summer 2009.

Subsidies for refuelling stations supplying renewable fuel (31/12 2008-31/12 2009): Since 2006, all large refuelling stations have been obliged to provide at least one renewable fuel. The majority of fuel stations have chosen to supply ethanol E85 since this is by far the least expensive alternative. This measure aims to stimulate the establishment of biogas fuel stations. Planning and construction cannot begin until a decision on support has been made. According to the original plan, construction must begin no later than 31 December 2007 and be completed no later than 31 December 2009 to receive support. However, there were delays in initiating activities in 2007 and the Government decided to increase the permitting start time for installations until 31 December 2008.

Regulation

Ordinance regarding official purchase and leasing of clean vehicles (2005-): The Ordinance (SFS 2004:1364) entered into force on 1 January 2005 defines that at least half of the passenger vehicles purchased or leased by government authorities during a calendar year be clean vehicles. On 1 January 2006 the minimum requirement was increased to 75 percent and on 1 January 2007, increased again to 85 percent (SFS 2006:1572). According to a Government decision in January 2009 the share of clean vehicles has to be 100 percent starting from February 1st 2009.

Obligation to supply renewable fuel (April 2006): Since December 2005, fuel stations that sell more than a certain volume of fuel are required by law to offer pumps with renewable fuels. This law is applied in five stages and came into force on 1 April 2006. It is estimated that by 2010, 70 percent of all refuelling stations in Sweden, and one hundred percent in Stockholm, will be required to offer alternative fuel.

The new Public Procurement Act came into force on 1 January 2008 ((2007:1091). According to this The Swedish Competition Authority is responsible for the supervision of public procurement. The Act regulates almost all public procurement which means that contracting entities, such as local government agencies, county councils, and government agencies as well as certain publicly owned companies etc. must comply with the act when they purchase, lease, rent or hire-purchase supplies, services and public works. No specific references are made to green procurement and the procurement of green vehicles respectively.

However, strong obligations are defined in the Environmental Protection Policy and a specific Government Green Procurement Law, i.e. Governmental Agencies are required (from July 2006) that at a minimum 25% of purchased cars must fulfil the National definition (maximum fuel consumption etc.) on an environmentally adapted car. Since 2002 it is mandatory that public authorities should take environmental considerations in their procurement. Rules and standard for green public procurements including the purchase of vehicles are defined and monitored by the Swedish Environmental Protection Agency and the Swedish Environmental Management Council. Since 1 February 2009 all automobiles purchased or leased by Swedish government agencies must be green cars. Green cars must also be used by those ordering taxis or hire cars. This requirement has been laid down in an ordinance. Petrol or diesel driven automobiles may emit no more than 120 grams of carbon dioxide per kilometre; light commercial vehicles may emit a maximum of 230 grams of carbon dioxide per kilometre. In addition, agencies must ensure that the cars use renewable fuels to the greatest possible extent. Purchases of vehicles and fuels are reported to the Government once a year.

In 1992, the National Board for technology and innovation in Sweden initiated a technology procurement of electric vehicles with the aim to make the manufacturers to develop an electric or electric-hybrid car and a transporter with a range of 10 km. In 1994 a consortium was founded, the specification was ready and a call for tender was launched. Main delivery was made in 1996 with 150 vehicles to 35 users at costs that were about three times higher than the petrol version. About 100 of the totally 200 vehicles that were delivered are still in operation. The experiences of bad performance, high costs and regular need for battery change has made most of the participants reluctant to electric vehicles.

The Swedish Association of Green Motorists (Gröna Bilister) a small non-governmental organisation (1 000 members), published an annual report on the environmental performance of new car models and label the best as "a good environmental choice". They also produce guidelines for towns and municipalities on how to integrate transport issues in the local Agenda 21 which also includes joint procurement initiatives for clean vehicles .

THE SWEDISH ENVIRONMENTAL MANAGEMENT COUNCIL'S PROCUREMENT CRITERIA FOR LIGHT-DUTY VEHICLES

THE SWEDISH ENVIRONMENTAL MANAGEMENT COUNCIL'S PROCUREMENT CRITERIA FOR HEAVY-DUTY VEHICLES

Green Public Procurement in Sweden

Swedish Public Procurement Act

Procuring Institutions

Transport - Green Public procurement (GPP) Product Sheet (Transport Miljöanpassad offentlig upphandling – Produktblad)