Press release 19 September 2007
Ministry of the Environment

Increased climate investments in the 2008 Budget

The Government is strengthening its investments to prevent climate change in the 2008 Budget Bill. A climate billion is to be invested in the period until 2010 on sustainable cities, energy efficiency measures, technological development, research and international efforts. A climate tax package, consisting of a total of more than SEK 3 billion in increased energy and climate tax has been presented. Nitrogen oxide charges are being raised to reduce Swedish emissions of this gas.

"The Government has substantially raised the level of ambition with regard to climate policy. In the Budget, we are developing a range of precise policy instruments that put a premium on things that are good for the environment and a price on emissions that harm the environment," says Minister for the Environment Andreas Carlgren.

The measures targeting the climate, energy and the environment are more extensive than previously. Climate initiatives are being taken in several different expenditure areas of the Budget.

"The Budget is a breakthrough for our work to ensure that the environment is integrated into broad areas of Government policy, such as industrial and energy policies, taxes, development assistance, forestry management and rural development. The Budget initiative for jobs and the environment are necessary to make Sweden a model of a climate-adapted society while, at the same time, experiencing strong growth," says Minister for the Environment Andreas Carlgren.

Environmental policy and part of the policy area Research Policy are included in expenditure area 20 of the Budget. This expenditure area accounts for SEK 4.7 billion in 2008.

Measures to reduce emissions of nitric oxide

The Government is developing measures to reduce emissions of nitric oxide. Total emissions of nitric oxide are too high for Sweden to be able to achieve its commitments under the EU ceiling directive and the environmental quality objectives decided upon by the Riksdag. Emissions are expected to be 154 000 tonnes in 2010. Further measures to reduce these emissions by some 6 000 tonnes per year are needed.

In the Budget Bill, the Government proposes an increase in nitric oxide charges from SEK 40 to SEK 50 per kilo nitric oxide. This charge has remained unchanged since the system was introduced in 1992 and its effect in controlling emissions has declined. An increase will mean that it will be profitable to make purification treatment more effective in a large number of plants. It is expected that the increase in charges will further reduce emissions by some 3000-5000 tonnes per year. This increase should be evaluated after two years.

Companies and municipalities to be more active against litter

Litter is a priority issue for all environmental work. To deal with litter, individual people, companies, municipalities and organisations need to become involved. It is reasonable for companies producing products whose packages are discarded as litter to contribute to the work to reduce it.

The Government is now allocating SEK 2 million in 2008 to the Swedish Environmental Protection Agency to develop cooperation with municipalities and companies, who can also invest financial resources, so as to reduce litter. Initiatives that can be carried out include information to citizens about where they can throw different types of rubbish, better rubbish collection on streets, in squares and in public transport, the development of products that do not produce litter (such as eliminating unnecessary packaging) or other product development.

Cooperation between the state and local authorities and companies will result in a greater commitment to stop litter at several levels of society.

Climate

The "climate billion" will strengthen efforts that the Government considers necessary and correct in the short term, and supplements other action for the climate. SEK 245 million has been allocated for 2008, SEK 415 million in 2009 and SEK 340 million in 2010. The climate billion will enable an increase in measures that include: energy efficiency initiatives, climate research, pilot and demonstration projects for second-generation biofuels, a network for windfarming and sustainable yield of bioenergy in agriculture and forestry.

Far-reaching climate measures in Sweden will be supplemented by international climate initiatives. These will contribute to sustainable development, transfer of environmental technology and stronger international climate cooperation. SEK 32 million will be invested each year, making a total of SEK 96 million.

A sustainable cities programme will be developed. This investment will promote integrated solutions for water, energy and wastewater, conversion and new construction of buildings with minimal heating needs. It will also be part of introducing new technology that makes it possible to reduce energy needs. These funds can be used to make it easier for companies and municipalities to substantially improve their environmental and climate performance by minimising resource and energy use. In all, SEK 340 million will be invested in 2009 and 2010.

Marine environment

Sweden is to be proactive in marine environment efforts, both at home and internationally. A new appropriation for forceful marine environment action has been established. SEK 0.5 billion has already been allocated. This appropriation is to be used for a package of measures aimed at improving the environment in both Skagerrak and Kattegat in the North Sea and the Baltic Sea. SEK 38 million has been allocated in 2007 for pilot projects until future measures are put into place. The Government proposes that SEK 100 million be allocated in 2008, SEK 150 million in 2009 and SEK 200 million in 2010.

Biological diversity

Biological diversity is a cornerstone of the Government´s environmental policy and represents the largest individual item in the environment budget. The level of allocation for biological diversity has grown from SEK 350 million in 1997 to SEK 1.9 billion in 2007. The Government intends to develop existing methods and instruments to achieve more cost-effective site protection.

The Committee on Environmental Objectives has shown that it is impossible to achieve the present acreage goal under Sustainable forests, despite the fact that a significant proportion of the allocation for biological diversity is being used. The Government has inherited a situation in which postponement of work in achieving this goal is inevitable. The Government will now review whether this goal can be achieved within the designated time frame and examine the conditions for developing new instruments and methods.

At present, the Government considers that site protection should already be adapted to a lower cost level. The Government proposes that the allocation for biological diversity be reduced by SEK 50 million in 2008, SEK 200 million in 2009 and SEK 200 million in 2010. By reducing the allocation level, the Government intends to encourage new means of achieving the environmental goal, by confirming and making use of the knowledge and commitment of land owners to a greater degree. The Government will continue to be active in ensuring that the state, as a land owner, contributes to the achievement of the sub-goal.

The more in-depth evaluation of the Committee on Environmental Objectives and the Swedish Agency for Public Management´s study will provide the basis for the Government´s future assessment. The Government intends to come back to the Riksdag as to how the Government plans to develop site protection.