The flop ends – the scrap car premium goes to hell

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The flop ends – the scrap car premium goes to hell
Photo: Marcus Ericsson/TT

The government's climate initiative on a scrap car premium ends on the last of October and everything indicates that the premium, despite a sugar coating this spring, will be a flop. As of the first of October, only just over 55 million of the total allocated 500 million kronor has been approved for payment.

In August 2024, the government introduced a scrap car premium of SEK 10,000 for anyone who scrapped their car that was at least 15 years old and instead switched to an electric car.

Climate and Environment Minister Romina Pourmokhtari (L) highlighted the premium as one of the government's climate initiatives that was expected to lead to 10,000 more scrapped cars.

But when it became clear in the spring of 2025 that only 412 people had been granted the premium by April 1, the government decided to sweeten the offer to generate interest.

Dotted errors

The premium was increased on May 27 to SEK 25,000 and was extended to apply to the scrapping of cars with emission class Euro5. The increased support could also be applied for retroactively by those who had already received the original support of SEK 10,000.

We hope that this increase can simply make more people use this support, said Romina Pourmokhtari at the time.

The government's calculation that the premium would lead to 10,000 more cars being scrapped was seriously wrong. As of October 1, 2025, with just one month left of the initiative, 2,244 premium applications have been approved and a total of SEK 55,140,000 has been granted for payment, according to the latest statistics from the Swedish National Board of Housing, Building and Planning, which handled the premium. This means that the lion's share of the SEK 500 million allocated to the initiative is unused.

Has been criticized

The scrap car premium has been criticized from several quarters. Among others, the 2030 Secretariat, an industry organization that works to achieve the climate goal of reduced emissions from transport, has continuously urged the government to improve and extend the premium so that the climate benefits are not lost.

TT has unsuccessfully contacted the responsible minister, Romina Pourmokhtari, for information about what is now happening with the funds that have not been used in the scrap car premium.

Number of applications received: 2,908

Applications approved: 2,244

Granted amount: SEK 55,140,000

Total allocation: 500,000,000

Utilization rate: 11 percent

Source: Swedish Board of Housing, Building and Planning

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By TTEnglish edition by Sweden Herald, adapted for our readers

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