On Jan. 12, SWE GVT issued proposals on emissions trading system.
SWE GVT published an Environmental protection agency referral KN2024/00062 on proposed amendments to introduce an emissions trading system for emissions from road transport and buildings and other emissions (EU ETS 2).
Also issued memorandum analysis of opt-in of additional sectors – supplementary docs to the Environmental protection agency's report on SWE GVT assignment on EU ETS 2.
Follows SWE GVT Apr. 2023 referred proposal re emissions trading, see #168778.
Referral Purpose
In the SWE GVT climate action plan (skr. 2023/24:59, section 7.2.2) the SWE GVT has clarified its view on early and broad implementation of EU ETS 2.
Referral relates to implementation of EU ETS 2; SWE GVT intends to return with proposals so consumers/businesses are fully compensated for effects of fuel prices.
Memorandum Analysis
The government offices asked the Environmental protection agency for supplementary documentation regarding the inclusion of additional sectors in ETS 2.
In response, in the memorandum the Environmental protection agency has made an analysis as a complement to the final report submitted on Nov. 13, 2023.
Questions relate to legislative amendments needed for the inclusion of additional sectors in ETS 2 under article 30j of the revised emissions trading directive.
In addition to consequences of an expansion on an overall level; based on inclusion of railway, agriculture/forestry sectors, fishing vessels, harbors, airports and boats.
Effectiveness
Referral responses must by received no later than Mar. 11, 2024.
Apr. 2024 Legislative Council Referral
On Apr. 26, 2024, SWE GVT decided on a legislative council referral for an ambitious implementation of the EU's new emissions trading system (ETS 2) in Swedish law.
Proposals are submitted for changes to the provisions of the Act on Certain Emissions of Greenhouse Gases due to the latest revision of the EU Emissions Trading Directive.
A new emissions trading system will cover emissions from buildings, road transport and other sectors; more activities will be subject to CO2 emissions EU common pricing.
Proposals stipulate that CO2 emissions via the combustion of fuels used in buildings, for road transport and in other sectors must be covered by the new trading system.
The penal provisions in the law are also adapted to the new emissions trading system.
Proposal to authorize SWE GVT or the authority determined by it, to issue regulations on fees for decisions on the rejection, detention of ships or ban from calling at a port.
Which are made in the framework of the existing system for trading emissions rights.
The bill will be now further presented to SWE PRL in May and already next year the businesses covered by the system will have to monitor and report their emissions.
The changes to the law are currently proposed to enter into force on Nov. 1, 2024.
May 16, 2024 Bill Development Announced
On May 16, 2024, SWE GVT announced that has decided on a bill for an ambitious implementation of the EU's new emissions trading system (ETS 2) in Swedish law.
SWE GVT decided on a legislative council referral for the implementation of ETS 2 on Apr. 25, 2024, and the Legislative Council has announced that it has no objections.
SWE GVT is, thus, now proceeding with a bill to implement the ETS 2 in Swedish law.
SWE GVT announced in its climate action plan that Sweden must include more sectors in the system than are mandatorily included in the directive, under EU requirements.
This applies to work machines in agriculture and forestry and rail traffic and Sweden will apply the system in the most ambitious way possible according to the directive.
At same time, SWE GVT has made it clear in the climate action plan it intends to come back with proposals to compensate consumers and businesses for effect on fuel prices.
From 2027, trading of emission rights is supposed to begin, but businesses covered by the system will have to monitor and report their emissions already in the next year.
Number of new emission allowances in system will decrease annually at a rate that will result in affected sectors in EU reducing emissions by 42% by 2030 compared to 2005.
Proposal for a new emissions trading system is part of EU's climate legislation, the so-called Fit for 55 package, which the EC originally presented in the summer of 2021.
May 21, 2024 Bill Issued
On May 21, 2024, SWE GVT issued bill 2023/24:142 on EU's new fossil fuels emissions trading system, including emissions from buildings, road transport and other sectors.
SWE GVT could regulate fees for decisions re rejection/detention of ships and decisions on banning ships from calling at a Swedish port, under the existing trading system.
The changes to the law are proposed to enter into force on Nov. 1, 2024.
Sep. 2024 SWE PRL Approval
On Sep. 25, 2024, SWE PRL adopted bill 2023/24:142 and rejected relevant motions.
In Oct. 2024, SWE GVT issued commencement re emissions trading act, see #228944.
Regulators
SWE GVT
Entity Types
B/D; CNSM; Corp
Reference
PR, 9/25/2024; PR, 5/21/2024; Bill 2023/24:142, 5/16/2024; PR, 5/16/2024; Bill, PR, 4/26/2024; Dnr KN2024/00947, 4/26/2024; CP KN2024/00062, PR, 1/12/2024; Skr. 2023/24:59; EU Reg 2023/959; Rp NV-09-099-23, Rp NV-02726-23; ESG
