Sweden to raise fossil fuel reduction targets to level with EU climate goals

Sweden will increase the proportion of biofuels blended with fossil fuels to meet the EU's 2030 climate targets, the government announced on Tuesday (27 August), reversing its previous policy.

Sweden's centre-right governing parties and their far-right ally, the Sweden Democrats (SD, ECR), confirmed at a press conference on Tuesday that the so-called reduction obligation for fossil fuels will be increased.

It is a "golden solution", said Climate and Environment Minister Romina Pourmokhtari (Liberals, Renew), adding that "the blending of biofuels can increase without raising the price at the pump."

The reduction obligation requires companies that sell petrol and diesel to reduce greenhouse gas emissions, mainly by blending more renewable fuels - a mechanism that leads to higher prices at the pump, comparable to a hidden fuel tax and therefore unpopular.

“The reason why the price does not need to be affected is mainly that the availability of biofuels is greater today”, Pourmokhtari said. 

Last year, the Swedish government lowered the reduction obligation for fossil fuels from 30.5% for diesel and 7.8% for petrol to a low 6%, effectively reducing the reduction obligation from the EU's highest level to the EU's minimum.

At the time, the government's reduction in biofuel blending was heavily criticised because, according to the Swedish Climate Policy Council's annual assessment, Sweden was regressing to reduce greenhouse gas emissions while the EU was progressing.

For Sweden, the reduction also meant that the country was on track to miss both the EU's and Sweden's own 2030 climate targets.

The reduction obligation has now been raised to 10%. 

Still not enough 

However, the government's decision did not convince the Greens, currently in opposition.

Daniel Helldén, spokesperson for the Swedish Green Party, said in written comments to Swedish media that "Energy Minister Ebba Busch and Climate and Environment Minister Pourmokhtari continue to mislead Swedish voters to hide the fact that they have no plan to manage the country's green transition. 

“First, the government pushes through policies that increase CO2 emissions by a shocking 50 million tonnes by 2030. Now they talk about a reduction of two million tonnes. This is not serious”, he wrote. 

However, according to Pourmokhtari, the increase in the reduction obligation will significantly reduce emissions and ensure Sweden meets its EU climate targets.

“It is expected to reduce emissions significantly in the short term, with an emission reduction of just over 2.5 million tonnes by 2030”, she added.  

[Edited by Daniel Eck]