Criticism: Scrappage premium has minimal effect

Climate and Environment Minister Romina Pourmokhtari (L) often highlights the scrapping premium as one of the government's climate initiatives. However, the government exaggerates the climate benefits, according to several remit institutions.

» Updated: September 07 2024

» Published: June 02 2024

Criticism: Scrappage premium has minimal effect
Photo: Adam Ihse/TT

Klimat and Environment Minister Romina Pourmokhtari (L) highlights the scrappage premium as one of the government's climate measures.

However, the government overestimates the climate benefits, according to several remiss instancers.

In August, the government plans to introduce a scrappage premium of 10,000 kronor to those who scrap their oldest car and replace it with an electric car.

No major flaw with the premium as such, think the remiss instancers who have given their views on the government's proposal. However, it will not have a significant impact on carbon dioxide emissions. Not even the very modest effect that the government itself estimates will be achieved, they mean. The calculations are too optimistic.

The Transport Analysis Agency is critical of the government's assumption that the premium will be fully utilized – 50,000 scrapped cars – despite the Ministry of Climate and Enterprise's own impact analysis concluding that the scrappage premium will only lead to 10,000 more scrapped cars.

If we instead assume the smaller number, the reduction in emissions will be only 40,000 tons of carbon dioxide.

For comparison, the emissions increase this year due to the government's reduction obligation exemption at the turn of the year amounts to four million tons. And this year's reduction of fuel tax increases emissions by around 350,000 tons.

However, 40,000 tons is also overestimated, according to the Transport Analysis Agency, as well as the 2030 Secretariat, which works to achieve the climate goal of reduced emissions from transportation.

According to statistics from the Transport Agency, 800 people scrapped a car and bought or leased an electric car in 2023. It would be optimistic to assume that it would be as many as 10,000 who would do so if they got a scrappage premium, they think. This is also shown by experiences from Finland, which has introduced a similar premium.

The 2030 Secretariat estimates that the risk is high that the allocation of 500 million kronor will not be used, and notes in its remiss response that an optimally designed premium can only compensate for almost two percent of the emissions increases from the transportation sector that the government's previous policy has given rise to.

The scrappage premium is 10,000 kronor. Only private individuals can apply.

The requirement to apply for the premium is that the older car is replaced with a purchased or leased electric car, which can be used or new.

The scrapped car must be classified as Euro 4 or earlier emissions class.

The car being scrapped must not be deregistered, but must be in use.

The ordinance will come into force on August 15, 2024, and will expire at the end of 2025.

Source: Government memorandum

Tags

TTT
By TT - Translated and adapted by Sweden Herald under license from TT

More news

Two Detained in Gothenburg Double
1 MIN READ

Two Detained in Gothenburg Double Murder Investigation

Suspect Detained After Explosions Rock
1 MIN READ

Suspect Detained After Explosions Rock Trollhättan

Sweden's Cardinal Arborelius: A Humble
5 MIN READ

Sweden's Cardinal Arborelius: A Humble Voice in Catholic Leadership

Human Remains Discovered in Freezer,
1 MIN READ

Human Remains Discovered in Freezer, Suspect Detained in Sweden

Climate Activists Allegedly Fly Drones
1 MIN READ

Climate Activists Allegedly Fly Drones at Landvetter Airport

Fredrick Federley Enters Church Election
1 MIN READ

Fredrick Federley Enters Church Election in Västerås Diocese

Chocolate's Shelf Life: Why It
3 MIN READ

Chocolate's Shelf Life: Why It Lasts Longer Than You Think

Man Arrested in Connection with
1 MIN READ

Man Arrested in Connection with Suspected Rape at Stockholm Nightclub

Stem Cell Trials Offer New
2 MIN READ

Stem Cell Trials Offer New Hope for Advanced Parkinson's Treatment

Fire Destroys Barn, 30 Animals
1 MIN READ

Fire Destroys Barn, 30 Animals Lost; 170 Rescued Nearby

Police Nationwide to Tackle Sugar
1 MIN READ

Police Nationwide to Tackle Sugar Dating with New Proactive Measures

Explosion Damages Malmö Apartment Door,
1 MIN READ

Explosion Damages Malmö Apartment Door, No Injuries Reported

Teen Receives Medical Attention After
1 MIN READ

Teen Receives Medical Attention After Dog Bite in Linköping

Man Fined for Explosion Caused
1 MIN READ

Man Fined for Explosion Caused by Attempt to Deep-Fry Chili Cheese

Climate Activists Arrested on Malmö
1 MIN READ

Climate Activists Arrested on Malmö Airport Runway

Passengers Evacuated from Arlanda Express
1 MIN READ

Passengers Evacuated from Arlanda Express After Three-Hour Delay

Extreme Weather and Viruses Threaten
2 MIN READ

Extreme Weather and Viruses Threaten Global Blood Donation Supply

Riders and Horses Rescued from
1 MIN READ

Riders and Horses Rescued from Bog Near Karlstad Airport

Five Rescued from Burning Fishing
1 MIN READ

Five Rescued from Burning Fishing Boat Near Strömstad

Avalanche Risk High in Swedish
1 MIN READ

Avalanche Risk High in Swedish Mountains: Stay Clear of Steep Slopes

Understanding April's Unpredictable Weather: Insights
2 MIN READ

Understanding April's Unpredictable Weather: Insights from a Meteorologist

Sweden Boosts Egg Exports as
3 MIN READ

Sweden Boosts Egg Exports as Bird Flu Hits Global Supply

Man Jailed for Missing Military
1 MIN READ

Man Jailed for Missing Military Exercise to Care for Children

Three Nighttime Explosions Rock Western
1 MIN READ

Three Nighttime Explosions Rock Western Sweden, No Arrests Made

Second Explosion Hits Stockholm Apartment
1 MIN READ

Second Explosion Hits Stockholm Apartment This Year

Genre image
1 MIN READ

Kalmarposten Closes After 35 Years Due to Advertising Revenue Shortfall

Police Probe Possible Link Between
2 MIN READ

Police Probe Possible Link Between Gislaved Shooting and Värnamo Stabbing

Fire at Umeå's Abandoned Industrial
1 MIN READ

Fire at Umeå's Abandoned Industrial Site Extinguished

Police Investigate Gunshot Sounds Near
1 MIN READ

Police Investigate Gunshot Sounds Near Swedish Airbase

Two Arrested in Connection with
1 MIN READ

Two Arrested in Connection with Biskopsgården Double Murder

Man Convicted of Gross Sexual
2 MIN READ

Man Convicted of Gross Sexual Assault for Allowing Child to Touch Genitals

Iran Takes Legal Action Against
1 MIN READ

Iran Takes Legal Action Against Sweden and Others Over 2020 Plane Incident

Two Detained in Södermanland Over
1 MIN READ

Two Detained in Södermanland Over Suspected Fatal Incident

Police Recover Escaped Boys from
1 MIN READ

Police Recover Escaped Boys from Sollefteå Sis Home; Investigation Launched

Care Company Profits Millions from
1 MIN READ

Care Company Profits Millions from Unused Elderly Home Spaces

Convicted Man Escapes Custody During
1 MIN READ

Convicted Man Escapes Custody During Hospital Visit in Sweden