Miljöpartiet Proposes Significant Carbon Tax Hike to Slash Emissions by 2030
Miljöpartiet proposes a major carbon tax increase to reduce emissions by 15 million tons by 2030, coupled with subsidies for rural communities and investments in climate initiatives.
- • Miljöpartiet aims to reduce emissions by over 15 million tons by 2030, tenfold the current government's plan.
- • The carbon tax increase is expected to raise over 4 billion kronor by 2026, increasing fuel prices by 2.2 kronor per liter.
- • A transport subsidy will support low-income rural households reliant on cars.
- • Significant investments include a 2.5 billion kronor increase to the Klimatklivet fund, alongside new taxes and borrowing.
Key details
The Green Party (Miljöpartiet) has unveiled a bold proposal to increase the carbon tax on petrol and diesel as part of a wider "climate offensive" budget aimed at drastically cutting Sweden's greenhouse gas emissions. According to Janine Alm Ericson, the party's economic policy spokesperson, the plan targets a reduction of over 15 million tons of emissions by 2030—ten times the current government's ambition.
The proposed tax hike is expected to raise more than 4 billion kronor by 2026, driving fuel prices up by approximately 2.2 kronor per liter. Recognizing the burden on rural areas reliant on cars due to limited public transportation, the budget introduces a transportation subsidy to assist low-income households in these communities. It also includes income-tested support for electric vehicle leasing and a restructured electric vehicle bonus to encourage cleaner alternatives.
Significant investments back the initiative, with a 2.5 billion kronor increase to the Klimatklivet environmental investment fund alongside boosted funding for healthcare, education, and municipal grants. Financing will come partly from new taxes such as a reintroduced flight tax and a bank tax, as well as borrowing, while income taxes will rise for higher earners but remain unaffected for those earning under 65,000 kronor monthly.
This comprehensive plan highlights Miljöpartiet's commitment to balancing ambitious climate goals with social equity, aiming to transform Sweden's environmental footprint while supporting vulnerable populations dependent on automobiles.