An Integrated Climate and Energy Policy

Passed by the Riksdag in 2009, these laws originating in two government bills form the basis of Sweden's flagship climate policy, known as 'an Integrated Climate and Energy Policy.

The Integrated Climate and Energy Policy specifies targets for reducing GHG emissions and provides a joint action plan to achieve emission reductions. The climate tax package changes to different taxes and subsidies (2MtCO2e by 2020) to balance future increases in energy and environmental taxes for enterprises and households against equivalent tax concessions, allows for a tax exemption for green cars (emissions of less than 120g of CO2/km) from vehicle tax. Furthermore the bill contains a carbon tax, which increases for heating in industry outside the scope of EU ETS such as agriculture, forestry and aquaculture (30% in 2011, 60% in 2015) and reduces the carbon tax rebate for diesel. It also facilitates green investments in developing countries, climate policy and development co-operation and an increased focus on climate change adaptation (responsibility to co-ordinate climate adaptation is given to country administrative boards; adapt spatial planning to increased risks of landslides; research on how climate change affects the loss of biodiversity and ecosystem services and how negative effects can be limited).

The Integrated Climate and Energy Policy also contains action plans to promote renewable energy, improve energy efficiency and implement measures leading to a fossil-independent transport sector.

Targets outlined in this legislation include:
- 40% GHGs from non-ETS sectors by 2020 (compared to 1990 levels)
- 50% of energy consumption from renewable energy by 2020
- 20% more efficient energy use (compared to 2008)
- 10% renewable energy in the transport sector
- by 2020: a phase out of fossil fuels in heating
- by 2030: a vehicle fleet that is independent of fossil fuels
- by 2050: zero net emissions of GHGs in Sweden.