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Reduced Climate Budget - Cheaper Gasoline and Flights

The climate and environmental budget is shrinking by 3 billion kronor next year. At the same time, the government is allocating more than 4 billion kronor to reduced tax on petrol and diesel, abolished flight tax, and reduced tax for motorhomes.

» Updated: September 20 2024

» Published: September 19 2024

Reduced Climate Budget - Cheaper Gasoline and Flights
Photo: Henrik Montgomery/TT

This year, the climate and environmental budget amounts to a total of 19.6 billion kronor. Next year, it will decrease to 16.4 billion kronor, according to the government's budget proposal presented on Thursday.

The larger investments that the government itself highlights under the heading "An effective climate and environmental policy" amount to 1.3 billion.

For example, half a billion will go to the Climate Leap, which can be used to build charging stations for electric vehicles. However, in reality, the "investment" is a cut of 1.5 billion kronor. The Climate Leap will receive a total of 3.5 billion kronor in 2025, compared to almost 5 billion this year.

Cheaper Flights

The entire Climate Leap, whose purpose is to contribute to reducing carbon dioxide emissions, costs approximately the same as the government chooses to invest in reducing taxes on gasoline and diesel next year: 3.2 billion kronor. Part of the tax cuts will take effect on July 1, which means the cost will increase to 5.5 billion for the full year 2026.

The tax cut is being made to compensate car owners for the increase in the reduction obligation next year. This will result in more biofuels being mixed into gasoline and diesel, which will increase the price but reduce emissions.

Another prioritized investment is to abolish the flight tax. This will be done on July 1 and will cost 900 million in lost tax revenue next year, and twice that from 2026.

Motorhomes will also receive a tax reduction next year, but it will be less costly for the state treasury.

More Wind Power

But back to the climate and environmental budget.

New is that the government is allocating 340 million to encourage more municipalities to approve wind farm construction.

The government also highlights that 100 million will be invested in hiking trails next year. This means that part of the cuts made at the beginning of the term of office regarding measures for valuable nature are now being reinstated.

A new investment support for strengthening the reliability of the power grid is also being introduced. The same amount – 100 million – will be saved by reducing the tax deduction for households that install solar panels.

Another post that is being cut is the protection of valuable nature, which is being reduced by half a billion to just over 1.2 billion next year. Protection of valuable nature – not to be confused with measures for valuable nature – can include, for example, the establishment of wetlands.

TTT
By TTThis article has been altered and translated by Sweden Herald

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