Sweden to phase out popular low carbon car subsidy scheme
Tue 09 September 2008
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The Swedish Government has decided to phase out a €90m subsidy scheme to encourage private motorists to buy low carbon cars. The scheme has proven so popular that the Government has had to more than treble spending (from an original €27m) and is closing it next June, six months earlier than originally planned.
Sweden's Environment Minister Anders Carlgren said in a statement that the subsidy had achieved its purpose, and that funds would be better allocated to other environmental projects.
The subsidies were introduced on April 1st, 2007 and were to continue to the end of December 2009. It allowed all individuals who purchased an automobile classified as environmentally friendly to receive a rebate of 10,000 kronor ($1,525).
Sales of cars which run on biofuels, as well as those with other equipment designed to make them more environmentally friendly, are reported to have shown strong sales growth.
Meanwhile, in a separate announcement the Swedish Government said it supports a dramatic tightening of emissions standards for new passenger cars, including measures to regulate maximum fuel consumption.
Average passenger car emissions in Sweden are higher than in most other European countries, averaging 184g/km CO2.
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