Dubai Telegraph - Sweden rejects proposals for fossil fuel phase-out

Prime Minister Ulf Kristersson's right-wing coalition, backed by the far-right Sweden Democrats, commissioned the expert report in 2024 to find solutions to reduce the use of fossil fuels, in particular in the road transport sector.

Sweden has set a goal of reducing CO2 emissions from transport by 70 percent by 2030 from 2010 levels, and to achieve net zero emissions by 2045.

The commission on Wednesday proposed an increase in the required share of biofuels or low-carbon alternatives that petrol suppliers must blend into their products.

The current levels "are too low for Sweden to be able to meet its 2030 commitment without the ESR trading system" of purchasing quotas abroad, the report said.

It also proposed an increase in petrol and diesel taxes to encourage consumers to shift to electric vehicles.

The proposals run counter to the policies the government has pushed since coming to power in 2022, namely cutting petrol taxes and reducing the biofuels obligation.

The report comes as Sweden is just months away from a general election on September 13.

"This commission was set up two years ago, before (US President Donald) Trump (began his second term) and before the war in Iran," Finance Minister Elisabeth Svantesson told public broadcaster SVT.

"In this situation, petrol prices are so high that it makes people's lives more difficult. It would be a bad idea" to raise them further, she said.

The government recently lowered petrol taxes temporarily in response to the energy crisis.

The commission also proposed raising subsidies for electric cars and cutting household electricity taxes.

Several expert reports have concluded in recent years that Sweden is unlikely to be able to meet its climate targets for 2030 and 2040 because of the government's policies.

"The gradual phase-out of fossil fuels must be carried out in a safe and acceptable way, so as to maintain and strengthen the competitiveness of Sweden and its companies," the climate ministry said in a statement on Wednesday.

I.Menon--DT