SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

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: 07 September 2024, 01:53

» Published: 02 June 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 TTThis article has been altered and translated by Sweden Herald

More news

Serious Crash Between Trucks in Gävle
1 MIN READ

Serious Crash Between Trucks in Gävle

Demirok received district support at "non-crisis" meeting
2 MIN READ

Demirok received district support at "non-crisis" meeting

Suspected sabotaged cable to be repaired
1 MIN READ

Suspected sabotaged cable to be repaired

Tent protest ended – chained protesters cut loose
2 MIN READ

Tent protest ended – chained protesters cut loose

Swedish police are no longer allowed to enter Norway
1 MIN READ

Swedish police are no longer allowed to enter Norway

A prick in the finger can reveal Alzheimer's
2 MIN READ

A prick in the finger can reveal Alzheimer's

The Snow Chaos Continues – Many Without Power Tonight
2 MIN READ

The Snow Chaos Continues – Many Without Power Tonight

No Longer Rich and Famous Targets for Kidnappers
3 MIN READ

No Longer Rich and Famous Targets for Kidnappers

The King on the Climate Meeting: It's Moving Too Slowly
2 MIN READ

The King on the Climate Meeting: It's Moving Too Slowly

Resignation Demand on Demirok: "Weak Leadership"
3 MIN READ

Resignation Demand on Demirok: "Weak Leadership"

Town Hall Evacuated Due to Threatening Note
1 MIN READ

Town Hall Evacuated Due to Threatening Note

The Government appoints new Chancellor of Justice
1 MIN READ

The Government appoints new Chancellor of Justice

The Liberals' office attacked: "Abhorrent"
2 MIN READ

The Liberals' office attacked: "Abhorrent"

Three charged with thermos bomb in Malmö
1 MIN READ

Three charged with thermos bomb in Malmö

Kristersson: "Close dialogue with other countries"
1 MIN READ

Kristersson: "Close dialogue with other countries"

The Social Democrats want answers about stopped wind farms
1 MIN READ

The Social Democrats want answers about stopped wind farms

Two charged with fatal shooting at restaurant
1 MIN READ

Two charged with fatal shooting at restaurant

Power Outage in Court: "Sitting in Darkness"
1 MIN READ

Power Outage in Court: "Sitting in Darkness"

The Navy investigates sabotage on another cable
1 MIN READ

The Navy investigates sabotage on another cable

The parties behind the Tidö agreement want a cap on the size of children's groups.
3 MIN READ

The parties behind the Tidö agreement want a cap on the size of children's groups.