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Sweden

15-05-2018 updated
Capital: Stockholm
Population: 9,816,000
Total land area (km2): 449,964 km2
Passenger cars: 4,495,000
Highway (km): 1,740 km
Category Description
Purchase Subsidies

Sweden - Purchase Subsidies

In 2006, Sweden introduced purchase rebates for “green cars”, i.e. energy efficient vehicles and those fuelled by renewables. In 2012, “super green cars”, i.e. vehicles with tailpipe emissions lower than 50 g CO₂/km qualified for a purchase subsidy (supermiljöbilspremie). In 2016, the subsidy was differentiated for BEVs (SEK 40 000 [EUR 3.850]) and PHEVs (SEK 20 000 [EUR 1.925]) (BilSweden, 2017). Both private and company cars are eligible for this rebate.
Ownership Tax Benefits

Sweden - Ownership Tax Benefits

In Sweden, vehicles are subject to an annual circulation tax based on weight and CO₂ emissions per km. “Super green” cars are exempt for the first five-years after registration. This corresponds, on average, to an annual tax relief of about SEK 1 760 (EUR 170).
Company Tax Benefits

Sweden - Company Tax Benefits

In Sweden, where cars are not subject to registration taxes, the application of this approach would favour ICE over electric cars, given their comparatively lower purchase price. The Swedish legislation allows reducing the value of the benefit represented by the private use of company cars if they are electric*, and therefore reduces the amount of income taxes that needs to be paid on it. Thanks to this, the monthly cost of leasing an electric car is lower than that of an equivalent ICE for the employee, even if the car is still more expensive for the company (Wikström, 2018). In Sweden, this measure, combined with complementary activities to stimulate response from corporate social responsibility programmes, proved to be effective in stimulating the adoption ofelectric cars. In November 2017, company cars accounted for approximately 70% of the new electric car sales (Wikström, 2018).
Other Financial Benefits

Sweden - Other Financial Benefits

In addition to the purchase rebate for 'green cars', the taxation on the benefits from the private use of company cars is lower for electric cars than for traditional ICE cars (Box 2.1).

Procurement

Sweden - Public Procurement

The Swedish government mandates the adoption of environment-friendly and electric cars in government fleets, with the exception of some classes of cars (e.g. emergency vehicles, cars with more than five seats, vehicles used by security and protection institutions) (Sveriges Riksdag, 2009). The Swedish public fleet comprises approximately 32 000 vehicles (passenger cars and vans) (Wikström, 2018). The public EV fleets represent a significant purchasing group and contribute to national climate change goals.

Infrastructure Incentives

Sweden - Infrastructure Incentives

Projects from Klimatklivet assigned to EVSE for 2018-20 (Wikström, 2018). For 2018-20, additional SEK 700 million (EUR 67 million) have been assigned and the budget proposal for 2018 includes provisions to increase this amount. Implementation of support scheme for private charging (Government of Sweden, 2017c). Between 2018 and 2020, SEK 90 million (EUR 8,7 million) will be annually allocated to support home chargers with up to 50 % or SEK 10 000 (EUR 960) for hardware and installation costs.

Category Description
Purchase Subsidies

Sweden - Purchase Subsidies

In 2006, Sweden introduced purchase rebates for “green cars”, i.e. energy efficient vehicles and those fuelled by renewables. In 2012, “super green cars”, i.e. vehicles with tailpipe emissions lower than 50 g CO₂/km qualified for a purchase subsidy (supermiljöbilspremie). In 2016, the subsidy was differentiated for BEVs (SEK 40 000 [EUR 3.850]) and PHEVs (SEK 20 000 [EUR 1.925]) (BilSweden, 2017). Both private and company cars are eligible for this rebate.
Ownership Tax Benefits

Sweden - Ownership Tax Benefits

In Sweden, vehicles are subject to an annual circulation tax based on weight and CO₂ emissions per km. “Super green” cars are exempt for the first five-years after registration. This corresponds, on average, to an annual tax relief of about SEK 1 760 (EUR 170).
Company Tax Benefits

Sweden - Company Tax Benefits

In Sweden, where cars are not subject to registration taxes, the application of this approach would favour ICE over electric cars, given their comparatively lower purchase price. The Swedish legislation allows reducing the value of the benefit represented by the private use of company cars if they are electric*, and therefore reduces the amount of income taxes that needs to be paid on it. Thanks to this, the monthly cost of leasing an electric car is lower than that of an equivalent ICE for the employee, even if the car is still more expensive for the company (Wikström, 2018). In Sweden, this measure, combined with complementary activities to stimulate response from corporate social responsibility programmes, proved to be effective in stimulating the adoption ofelectric cars. In November 2017, company cars accounted for approximately 70% of the new electric car sales (Wikström, 2018).
Other Financial Benefits

Sweden - Other Financial Benefits

In addition to the purchase rebate for 'green cars', the taxation on the benefits from the private use of company cars is lower for electric cars than for traditional ICE cars (Box 2.1).

Procurement

Sweden - Public Procurement

The Swedish government mandates the adoption of environment-friendly and electric cars in government fleets, with the exception of some classes of cars (e.g. emergency vehicles, cars with more than five seats, vehicles used by security and protection institutions) (Sveriges Riksdag, 2009). The Swedish public fleet comprises approximately 32 000 vehicles (passenger cars and vans) (Wikström, 2018). The public EV fleets represent a significant purchasing group and contribute to national climate change goals.

Infrastructure Incentives

Sweden - Infrastructure Incentives

Projects from Klimatklivet assigned to EVSE for 2018-20 (Wikström, 2018). For 2018-20, additional SEK 700 million (EUR 67 million) have been assigned and the budget proposal for 2018 includes provisions to increase this amount. Implementation of support scheme for private charging (Government of Sweden, 2017c). Between 2018 and 2020, SEK 90 million (EUR 8,7 million) will be annually allocated to support home chargers with up to 50 % or SEK 10 000 (EUR 960) for hardware and installation costs.