3. ENERGY, CLIMATE CHANGE AND TRANSPORT

Sweden should keep a broad approach to transport policy

New trends in the transport sector include vehicle sharing, automation and electrification. It is important to understand what these trends mean for the transport sector as a whole and utilise the new possibilities that emerge. To reduce emissions significantly from the transport sector, policies must be broad and influence the vehicles, the fuels and the consumer behaviour. The government should aim to both reduce energy demand in transport and support cleaner transport solutions and innovations.

Public transportation and modal shifts help reduce energy demand in transport. The government should continue to support public transportation and the cycling infrastructure, and more attention should be given to solutions that improve the connection between public transportation and other transport modes. Environmental zones and congestion charges also provide incentives for modal shifts in cities. In addition, congestion charging can be expanded to facilitate a transition from the taxation of fuel to the taxation of distances driven, as the revenue from fuel taxation declines with the increase in electric mobility.

Heavy trucks used for freight account for one-fifth of total GHG emissions in transport. The bonus-malus system only affects light-duty vehicles; an expansion to include heavyduty vehicles also should be considered. Furthermore, a shift from road to rail or sea can significantly reduce energy consumption and emissions from freight. The government should continue to support such a shift and prioritise efficient transport modes in future transport infrastructure plans.

Energy efficiency should be promoted to complement emissions reductions. Heavier cars use more fuel and produce more noise and particle emissions, which is a particular issue in cities. The current tax regime for vehicles and fuels incentivises buying cars that are more fuel-efficient. Nevertheless, the Swedish car fleet is getting heavier, and the government could consider further measures to stop this trend.

Innovation is a central component in effectively addressing the long-term climate change challenge. Sweden is already active in many RD&D projects for sustainable transport, which include electrified roads. The allocated budget in the National Infrastructure Plan is a good step, but further resources may be required. The government should continue to incentivise RD&D and collaborate with academia and industry to capture new ideas and benefit from technology development.

Recommendations

The government of Sweden should:

Develop a shared vision and pathways to 2045 with academia, industry and civil society to guide the preparation of the Climate Policy Action Plan.

Continue to use CO2 taxes as a proven, accepted way to limit CO2 emissions, and consider removing the remaining tax exemptions.

To decarbonise the transport sector:

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>Monitor progress on all new transport-related policies, and adjust these where needed to ensure a cost-effective transformation in line with the 2030 target.

>Together with regions and municipalities, develop a strategy to charge-infrastructure deployment that supports a continued rapid growth in the EV market without compromising the stability of the electricity system.

>Maintain a broad perspective on the transport sector and continue to support public transportation and other alternatives to private cars, e.g. bicycle routes and a modal shift, as well as innovative RD&D projects.

>Consider promoting energy-efficient passenger cars further through taxation, in co-ordination with the increased CO2 tax under the bonus-malus system.

>Continue to support a shift in freight transport from trucks to alternatives with lower emissions, e.g. trains and shipping.

References

Bil Sweden (2018), Nyregistreringar [New Car Registrations], Bil Sweden, Stockholm, www.bilsweden.se/statistik/nyregistreringar.

EC (European Commission) (2018a), EU Emissions Trading System (EU-ETS), EC, Brussels, https://ec.europa.eu/clima/policies/ets_en.

EC (2018b), Effort Sharing 2021-2030: Targets and Flexibilities, EC, Brussels, https://ec.europa.eu/clima/policies/effort/proposal_en.

FORES (2018), Svensk Koldioxidskatt 1991-2017 [Swedish CO2 Taxation 1991-2017], FORES, Stockholm, http://fores.se/wp-content/uploads/2018/03/Fores_Policy- Brief_2018_3.pdf.

IEA (International Energy Agency) (2019a forthcoming), CO Emissions from Fuel Combustion 2019 preliminary edition (database), OECD/IEA, Paris, www.iea.org/statistics/.

IEA (2019b forthcoming), World Energy Balances 2019 preliminary edition (database), OECD/IEA, Paris, www.iea.org/statistics/.

IEA (2018), Nordic EV Outlook 2018, OECD/IEA, Paris, www.iea.org/publications/freepublications/publication/NordicEVOutlook2018.pdf.

Ministry for Enterprise and Innovation (2018), Faktablad – Nationell Infrastruktur för Framtiden [Factsheet – National Infrastructure for the Future], Ministry for Enterprise and Innovation, Stockholm, www.regeringen.se/49c0f8/contentassets/95f65f3c57ee4defa8fd9cb6e3c0b568/faktablad- nationell-infrastruktur-for-framtiden---bygger-sverige-starkt-och-hallbart.pdf.

OECD (Organisation for Economic Co-operation and Development) (2014), Environmental Performance Reviews: Sweden 2014, OECD, Paris, www.oecd.org/env/country- reviews/oecd-environmental-performance-reviews-sweden-2014-9789264213715-en.htm.

Power Circle (2019), Elbilsstatistik [Electric Vehicle Statistics], www.elbilsstatistik.se/elbilsstatistik.

SCB (Statistics Sweden) (2018a), Emissions of Greenhouse Gases from Domestic Transport by Greenhouse Gas and Mode of Transport. Year 1990-2016, SCB, Stockholm, www.statistikdatabasen.scb.se/pxweb/en/ssd/START__MI__MI0107/MI0107InTransp/?rxid =41602454-af45-48f1-9e6d-e31227ac940d.

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