OECD criticizes Sweden's climate policy

The OECD directs harsh criticism towards the government's climate policy and concludes that Sweden risks missing the emission targets.

» Published: March 12 2025

OECD criticizes Sweden's climate policy
Photo: Jessica Gow/TT

Sweden's climate policy has gone from being leading to now being questioned in a report by the economic cooperation organization OECD.

Sharp criticism is directed at political decisions on the reduction of fuel tax and the decreased blending of biofuels. These reduce the transport sector's driving force to reduce emissions, according to OECD.

It is important to look at synergies between climate change and biodiversity, look at the entire economy and entire society, and to pursue a uniform policy that does not signal different things, says Jo Tyndall, director of OECD's Environment Directorate to TT.

Sweden should return to a green tax shift, she says.

Ten years since last

It has been ten years since the last review and the call to Sweden now is to change track and increase the tax on fossil fuels to discourage the use of fossil-fuel-driven vehicles.

Climate and Environment Minister Romina Pourmokhtari (L) believes that Sweden has proven that it can reduce emissions by a third while the economy grows.

But the efforts to reduce emissions must not threaten growth or force industries to leave Sweden, so that we have to import products that emit greenhouse gases, she says in connection with receiving the report.

As for the climate-related parts of the report, they are based on figures from 2022 and some from 2023. But most of the measures for this government will come in 2025, she continues.

Urgent need for biodiversity

On the question of whether it is time to increase the reduction obligation, she responds:

-We need to look at the effect now that we are increasing the reduction obligation this year, since the price picture for HVO (biodiesel) has changed radically. What politicians went to the election on in 2022 was not reduced reduction obligation but reduced fuel prices.

Sweden is also, according to the report, doing too little to stop the loss of biodiversity. The action plan with measures needs to be updated to respond to Sweden's international commitments.

Sweden is also not close to reaching the goal of protecting 30 percent of land and sea by 2030, which is part of the global agreement for biodiversity and the EU's goal for biodiversity.

There is no time to lose, comments Pourmokhtari on the measures to protect biodiversity.

We must find the right forest areas and protect them, she says, adding that they are dependent on private forest owners in that process.

OECD further urges Sweden to listen more to the Sami people in decisions that affect them. In total, OECD has taken out 28 recommendations that should lead Sweden to a better climate policy.

The Organization for Economic Co-operation and Development, OECD, conducts ongoing "Environmental Performance Reviews", where they review member countries' climate and environmental policies.

Sweden has previously been reviewed in 1996, 2004, and 2014.

OECD has a number of recommendations to Sweden. This is a selection:

Update the action plan to stop and reverse the loss of biodiversity by 2030.

Secure predictable and stable financing to ensure biodiversity and develop ecosystem services.

Evaluate taxes on fuel and other incentives for the transport sector.

Increase the energy tax on diesel.

Accelerate the electrification of the transport sector by, for example, building out charging infrastructure in sparsely populated areas.

Ensure that the Sami people are involved in decisions that affect them and activities such as reindeer herding.

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

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