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Environmentally motivated subsidies 2021

Environmentally motivated subsidies increased in 2021

Statistical news from Statistics Sweden 2022-06-14 8.00

Environmentally-motivated subsidies increased in 2021 compared to 2020. For 2021 these subsidies amounted to 19.2 billion Swedish krona; a 40 percent increase from 2020.

Environmentally-motivated subsidies, covering transactions contributing to reduced climate and other environmental impacts as well as more efficient natural resource use, totalled 19.2 billion Swedish krona in 2021. This is an increase by 5.5 billion Swedish krona compared to 2020. Subsidies cover four areas: emission-reducing subsidies, energy-related subsidies, environmentally related aid and international cooperation, and resource-related subsidies.

The increase in 2021 arose principally due to increased payments for emissions reduction, from 3.5 to 8.2 billion Swedish krona. This increase is due mainly to different supports in the climate area and bonus for low emission vehicles subsidies. The different supports in the climate area includes investments for reduction of environmental impact of society, through the investment subsidy Klimatklivet administered by the Swedish Environmental Protection Agency. The subsidy Klimatbonus is for new cars with low impact on the environment, administered by the Swedish Transport Agency.

Total environmentally-motivated subsidies by area 2000 – 2021

diagram

The largest environmental subsidies are in emission-reducing subsidies at 8.2 billion Swedish krona in 2021. The largest subsidy was the bonus for low-emission vehicles; this payment has increased since it was introduced in 2018.

The resource-related subsidies is the second largest category, 6.5 billion Swedish krona. Environmental improvement measures in agriculture constitute the largest part of natural resources subsidies. These include environmental benefits to farmers through the Swedish rural development program, e.g. biodiversity measures in the farmed landscape and environmentally friendly agriculture.

Environmental subsidies go primarily to companies

The subsidies, that is payments for investment and consumption, can go to different stakeholders nationally and internationally. Swedish companies, non-profits, households, and other public authorities in Sweden are recipients of about 88 percent of the total in 2021. The remainder go to international organisations and aid. Subsidies to domestic stakeholders were 16.8 billion Swedish krona in 2021, a 48 percent increase compared to 2020.  Subsidies to international organisations and aid remain on the same level as in 2020. Subsidies to households and non-profit institutions increased by 71 percent in 2021, as compared to 2020.

Environmentally-motivated subsidies by recipient, 2000 – 2021

diagram

Revisions

Minor revisions in the time series were introduced in June 2022. For more information, see the quality report on Statistics Swedens website (only in swedish).

Miljöräkenskaper (scb.se)

Definitions and explanations

Environmentally motivated subsidies are defined in accordance with the SEEA Central Framework statistical standards for environmental accounts. The definition that applies in Statistics Sweden’s environmental accounts is informed by the subsidy objective. Therefore, the definition used in the environmental accounts is broader than the one used in the national accounts, as the environmental accounts also include capital and current transfers and social benefits in kind.

For the environmental accounts, the source for the subsidy objective has been the Government’s Budget Bills for various years. The statistics are derived from the National Financial Management Authority’s calculations of the central government budget’s outcome, in which transactions are traced back to the government appropriations from which they came.

Statistics Sweden has published statistics on environmentally motivated subsidies since 2000.

Next publishing will be

June 2023

Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.

Statistical agency

Statistics Sweden

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Ariun Byambakhorloo

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