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Sweden - Policies and Legislation

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Over the past decade, Sweden has put several demand-side policies into place to promote the use of hybrids (HEVs), plug-in hybrids (PHEVs), and battery electric vehicles (BEVs). In 2016, Sweden had the third largest market share of PEVs.

The Green car definition

In 2006, a Green car definition was introduced in Sweden. The aim is to specify certain criteria, which vehicles in compliance with these get benefits from, like tax reliefs and priority in public procurements. Over the years, the criteria have been altered, but the basic principal has focused on renewable fuels and/or energy-efficiency. Between 2006 and 2009, green cars were granted a purchase rebate.

Vehicle tax
Light-duty vehicles in compliance with the Green car definition are exempted the annual vehicle tax for the first five years they operate. The subsidy aim to generally encourage the acquisition of energy efficient or powered by renewable fuels. The annual vehicle tax varies between 6-40 US$/year tax and subsequently the exemption implies 30-200 US$ in tax relief for the first 5 years.

Super Green Car rebate “Supermiljöbilspremie”
The Super Green Car rebate is a purchase rebate granted to new-sales passenger vehicles with lower tail-pipe emissions than 50 g CO2/km, i.e. plug-in electric vehicles. The subsidy was introduced in 2012 and became differentiated between BEVs and PHEVs in 2016. Both private cars and company cars are granted the super green car rebate. For BEVs, the rebate corresponds to 5.000 US$, and from 2016 PHEVs have been granted 2.500 US$. For a company car, the rebate covers approximately 35 percent of the price difference between a super green car and the nearest comparable car. The budget for 2016 was initially 36 million US$, but the big interest motivated an additional 21 million US$. For 2017, 83 million US$ is allocated the scheme. The Super Green Car Rebate will be replaced by a cost neutral bonus-malus support scheme in 2018.Simultaneously, the vehicle tax exemption will only come to include “super green cars” and will be adjusted to 3 years.

Reduced value of fringe benefits
In addition to the Super Green Car rebate, company cars may reduce the value of fringe benefits for PEVs compared to the equivalent, conventional fossil-fueled car. After adjustment, the value of fringe benefits is reduced by 40 %, maximum 1.900 US$ in 2012-2016 and 1.070 US$ in 2017.

E-bus rebate
In 2016, the Government implemented the subsidy, which specifically is targeting electric buses. Both battery electric and plug-in hybrid buses can be granted a variable rebate. The Swedish Energy Agency has been appointed by the Government to manage the rebate scheme. In 2016, 6,3 million US$ were allocated for this purpose, and proposed for 2017-2019 as an annual budget of 12,6 million US$. The regulation specifies the size of the rebate and varies with the maximum transport capacity. Buses classified in emission category electric and trolley buses is granted maximum rebate – between 37.000 and 88.000 US$  per bus depending on transport capacity. Buses classified in emission category plug-in hybrid get half the rebate, given that the bus can operate in electric mode at least 70% of the mileage and for the rest, the bus operates on renewable fuel.