May 17, 2023 – Stockholm: According to a recent report from Statistics Sweden (SCB), environmental subsidies showed a significant increase in 2022 compared to the previous year. The total amount of environmental subsidies reached over SEK 24.3 billion in 2022, marking a 27 percent rise from 2021.
Environmental subsidies encompass transactions that contribute to reducing climate and environmental impact while improving the management of natural resources. In 2022, these subsidies amounted to SEK 24.3 billion, an increase of SEK 5.1 billion compared to 2021. The subsidies cover four areas: emission-reducing subsidies, energy-related subsidies, environmental aid and international cooperation, and natural resource-related subsidies.
The surge in 2022 can mainly be attributed to higher payouts in emission-reducing subsidies, which increased from SEK 8.2 billion to SEK 12.5 billion. Climate initiatives and climate bonuses, along with congestion charges, accounted for the largest increases. Climate initiatives include the Swedish Environmental Protection Agency’s investment support program, “Klimatklivet,” aimed at reducing society’s climate impact. Climate bonuses are provided for the purchase of new vehicles with low climate impact and are administered by the Swedish Transport Agency.
The largest subsidy within the emission-reducing category is the climate bonus, amounting to SEK 6.9 billion in 2022, representing an increase of SEK 5.6 billion since its introduction in 2018. In 2022, support for charging infrastructure was also introduced, amounting to approximately SEK 550 million.
The category of natural resource-related subsidies reached SEK 6.8 billion, with the largest subsidy being environmental improvements in agriculture. Examples of allocations include environmental compensation to agriculture, which is part of Sweden’s environmental and rural development program, aimed at preserving the biological diversity of cultivated landscapes and promoting environmentally friendly farming practices.
Environmental subsidies primarily benefit businesses, with approximately 91 percent of the subsidies in 2022 allocated to companies, non-profit organizations, households, and other domestic authorities in Sweden. The remaining portion goes to international organizations and aid. Subsidies allocated for domestic use increased by 31 percent to approximately SEK 22 billion in 2022, while subsidies to international organizations and aid remained largely unchanged. Subsidies to businesses experienced a significant 41 percent increase between 2021 and 2022.
Revisions have been made to previous years’ data, with an upward revision of approximately SEK 2 billion for the years 2015-2017. However, overall, there were minor changes compared to previously published figures. For more information, refer to the quality documentation available on the environmental accounts section.
The increase in environmental subsidies reflects Sweden’s ongoing commitment to addressing climate change and promoting sustainable practices across various sectors of the economy.