Sweden introduces scrapping incentive for electric vehicles amid criticism

Starting August 20, individuals who scrap their cars that are at least 15 years old and classified as Euro 4 or older will be eligible for a subsidy of 10,000 kronor to purchase an electric vehicle. The government aims for this incentive to accelerate the electrification of the transport sector, according to Climate and Environment Minister Romina Pourmokhtari. She emphasizes that Swedish climate policy needs more incentives rather than penalties, stating the initiative will encourage those considering an electric vehicle.

However, the new initiative, which has a budget of half a billion kronor, has faced sharp criticism from various authorities and organizations. Critics, like Mattias Goldmann from the 2030 Secretariat, argue that it represents a careless use of taxpayer money with minimal climate benefits. Only 800 out of 134,000 recycled vehicles in Sweden in 2023 met the criteria for the new scheme, and Goldmann deems the government’s projection that at least 10,000 cars will be scrapped and replaced as overly optimistic, reflecting experiences from similar programs in Finland.

Goldmann further questions the government’s estimates of potential reductions in carbon emissions, noting that the older vehicles covered by the subsidy generally have lower mileage than average. He highlights that even if every krona of the subsidy were used, it would yield negligible impacts compared to other governmental transport policies that have led to increased emissions.

Heléne Lilja, from the Swedish motorists’ association, echoes these sentiments, calling the scrapping incentive mere symbolic politics, as the financial commitment required for an electric vehicle remains substantial. Pourmokhtari has expanded the subsidy to cover leasing and used electric cars for those unable to afford a new one, stating that the program will be evaluated for its effectiveness.

The scrapping incentive can only be applied by private individuals and will be available from August 20, 2024, to August 19, 2025. The older vehicle must be in use and classified as Euro 4 or older. Only new or leased electric vehicles qualify for the subsidy, while hybrids are excluded.