2. GENERAL ENERGY POLICY

suggests other measures to eliminate obstacles to effective competition. It also builds up and disseminates knowledge on competition issues.

The National Board of Housing, Building and Planning is the national agency for planning, management of land and water resources, urban development, building and housing. It is responsible for promoting the efficient use of energy in buildings, notably the reduction of electricity use for residential heating and the implementation of the building regulations.

The Swedish Environmental Protection Agency has responsibility for Sweden’s regular climate reporting to the United Nations Framework Convention on Climate Change and the European Union. It regularly prepares projections and prepares reports related to climate change, GHG emissions and climate policies and measures. It does this work in collaboration with the responsible sectoral authorities.

The Swedish Radiation Safety Authority works proactively and preventively on nuclear safety, radiation protection and nuclear non-proliferation to protect the people and the environment from the harmful effects of radiation.

The Swedish Research Council for Environment, Agricultural Sciences and Spatial Planning (FORMAS) promotes and supports basic research and need-driven research in the areas of the environment, agricultural sciences and spatial planning.

Vinnova, the Swedish Governmental Agency for Innovation Systems, integrates research and development in technology, transport and working life. Its task is to promote sustainable growth and competitiveness.

More information about the key institutions in individual sectors of energy policy is given in the subsequent chapters of this report.

Policy

Sweden’s energy policy has for long aimed for a sustainable energy system with a high share of renewable energy sources (RES). In line with that vision, Sweden is concentrating its efforts to improve its energy efficiency and increase the renewable energy use from an already high level. In its energy market policy, the government aims to promote efficient markets with a well-functioning competition that ensures a reliable energy supply at internationally competitive prices.

Sweden has historically used both an energy and a carbon dioxide (CO2) tax to stimulate efficient energy consumption and a low-carbon energy supply. The Swedish CO2 tax was introduced in 1991 as one of the first in Europe. The tax is broadly accepted among the general public and is gradually increased to stimulate a sustainable energy transition.

2016 Energy Agreement

In March 2015, the government appointed a Parliamentary Committee (Energy Policy Commission) to review energy policy and to propose a broad agreement on energy policy with a focus on the conditions for electricity supply after 2025-30.

In June 2016, the Framework Agreement on Energy Policy (Energy Agreement) was reached between five parties that represent a majority in the parliament: the Swedish

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2. GENERAL ENERGY POLICY

Social Democratic Party, the Moderate Party, the Swedish Green Party, the Centre Party and the Christian Democrats. In June 2018, the parliament adopted the government’s bill of April 2018 based on the Energy Agreement.

The 2016 Energy Agreement states that Sweden’s energy policy should combine ecological sustainability, competitiveness and security of supply. These are also the fundamental objectives of energy policy of the IEA and the European Union.

Regarding electricity, the Agreement states that Sweden must have a robust electricity network with a high security of supply and low environmental impact and offer electricity at competitive prices. This starting point should provide a long-term perspective and clarity for actors in the market and help generate jobs and investment in Sweden. The energy policy is based on the fact that Sweden is closely linked to its neighbours in northern Europe and aims to find joint solutions to challenges in the common electricity market.

The 2016 Energy Agreement also sets out new targets:

By 2045, Sweden is to have no net emissions of GHGs into the atmosphere and should thereafter achieve negative emissions.

By 2040, electricity generation is to be 100% renewable. This is a target, not a deadline for banning nuclear power, and nor does it mean closing nuclear power plants (NPPs) through political decisions.

By 2030, Sweden’s primary energy use per GDP is to be 50% more efficient than in 2005.

As part of the 2016 Energy Agreement, the electricity certificate system was prolonged from 2020 to 2030 and expanded to deliver an additional 18 terawatt hours (TWh) of renewable electricity in that period. The system, in operation since 2003, has delivered as expected and helped Sweden increase the share of renewable sources in electricity supply in a predictable way. The current target is a deployment of 28.4 TWh of new RES for electricity in the common Swedish–Norwegian electricity certificate system by 2020 compared to 2011.

A progress report on the implementation of the 2016 Energy Agreement will be prepared every four years. The report will serve to suggest areas of further work to reach the targets.

In addition to the targets from the 2016 Energy Agreement, the following 2020 targets, dating from 2009 and based on the European Union’s 20/20/20 targets, apply:

at least 50% of renewable energy in the gross final consumption of energy

at least 10% of renewable energy in the transport sector

20% more efficient use of energy compared to 2008.

2017 Climate Policy Framework

Regarding climate targets, in June 2017 the parliament adopted a national Climate Policy Framework. This includes the Energy Agreement target on no net emissions of GHG by 2045. Furthermore, the climate framework sets targets to reduce GHG emissions in nonEuropean Union Emissions Trading System (EU-ETS) sectors by at least 63% in 2030

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