8 November 2022

Sweden’s Government cancels ‘climate bonus’ for low emission cars 

The bonus paid out to those purchasing a new low emissions car has been abolished effective as of today, the Swedish Government announced in a press release. The Government says that the cost of owning and driving a low impact-car with the given bonus is starting to be comparable to the cost of owning and driving a petrol or diesel car. According to Sveriges Television, interest in purchasing with the bonus has been considerable since its introduction in 2018, and this year’s allotted money was fully allocated by August already, with the previous government then at the time adding a further SEK 1.9 billion to cover the payments. 

The news that the Government will scrap the bonus came as a shock to the automotive industry, according to Mobility Sweden's communications manager Emmi Antonsson, who said the governing parties were going against what they promised prior the election. 

Press release, Sveriges Television, Dagens industri 

EU Commission approves €16.8 billion Danish guarantee program to support energy companies in Russia's war with Ukraine

The European Commission has approved a €16.8 billion (DKK 125 billion) Danish guarantee program to support companies in Russia's war against Ukraine. The measure, administered by the Danish Export Credit Agency (EKF), will be open to electricity producers and gas shippers active in the Danish electricity and gas markets. Under the program, the guarantees relate to new loans and guarantees to meet the liquidity needs of energy companies providing collateral to the Central Clearing House (CCP) for a maximum period of five years. The maximum guarantee amount for each company will cover its liquidity needs arising from its activities in the energy markets within 12 months of receiving assistance. Liquidity needs will be estimated through self-certification by the energy companies.

The Commission considers that the Danish guarantee scheme meets the conditions set out in the Interim Crisis Framework. In particular, (i) public guarantees are provided for new loans and guarantees; (ii) the premiums are in line with the minimum levels set out in the Interim Crisis Framework; (iii) the maximum loan amount per beneficiary is in line with the conditions set out in the Interim Crisis Framework; (iv) the maximum guarantee term is not more than 5 years and the guarantee amount does not exceed 80% of the principal amount of the loan; (v) the guaranteed loans will be disbursed no later than December 31, 2023 (v) the guaranteed loan will be disbursed by December 31, 2023 at the latest.

Press Release 

Vattenfall commits to sourcing near-zero emission cement

Vattenfall is a founding member of the First Mover Coalition (FMC), a global partnership between the public and private sectors to scale up new climate-smart technologies to reduce CO2 emissions in the transportation and materials sectors. Approximately 80% of Vattenfall's CO2 emissions from the purchase of goods and services come from materials such as steel, concrete, aluminium and copper, making the FMC commitment an important way to achieve the company's climate goals. This is also in line with Vattenfall's existing goal of halving emissions from purchased goods and services by 2030. Vattenfall must ensure that at least 10% of the cement/concrete purchased for Group projects consists of almost completely zero-emissions cement/concrete by 2030 at the latest. The new commitment is linked to COP27, in which the FMC launched a new sector - cement and concrete. Solutions to reduce emissions from cement and concrete may include (but are not limited to): 

• Carbon dioxide capture, use and storage
• Non-fossil-based filler materials in cement
• Transition to other fuels
• Use of renewable electricity
• Efficiency gains
• CO2-free feedstock
• Alternative chemical composition of cement
• Mineralization of CO2 during curing

Press Release 

Swedish Government to invest SEK 4 billion in charging infrastructure

The Swedish Government will reportedly invest SEK 1.4 billion in the framework of Klimatklivet to expand the country's charging infrastructure. At a press conference on 8 October, the Government announced plans for more investments. In addition to the SEK 1.4 billion already presented, the Government must invest an additional SEK 2.6 billion. The additional investment money will be used to expand public charging stations for light and heavy vehicles, as well as the infrastructure for hydrogen tanks for heavy transport.

Elfordon

Inzile in bankruptcy

Swedish technology company Inzile, which produces electric cars, has decided to file for bankruptcy, which is scheduled to be filed today. In a press release, Inzile said it filed for bankruptcy because a bridge financing loan of about SEK 50 million has matured and the company has no money to pay the loan and accumulated supplier debts. The District Court has now approved Inzile's bankruptcy petition.

Motormagasinet

Einride invests in building its own charging station for electric trucks

Transport technology company Einride invests in building its own charging stations for its fleet of electric trucks. Recently, the company presented the next generation of its cargo vehicle, which will start rolling out next year. The vehicle has, among other things, updated sensors and better night vision. The first Einride stations for trucks will be located in southern and central Sweden and the port of Los Angeles. The US stations will be used mainly for the logistics company Maersk's Einride truck fleet. In Los Angeles, Einride's charging stations will be able to charge up to 200 vehicles. For Sweden, it is about smaller stations, but a large number.

Di

Solar holds strong position as most popular Finnish renewable energy investment

According to a recent Korkia survey, half of investors have changed their view of renewable energy as a positive investment in the past year. The most common reasons for a more positive view are tightening geopolitical conditions and reduced energy dependence. 37% of respondents believe that tightening geopolitical conditions will increase demand for renewable energy. More than 70% of respondents consider the investment potential for renewable energy to be very or somewhat important. A quarter of respondents have already invested in renewable energy. Those with more than EUR 200,000 in investment assets (33%) invest most frequently in renewable energy. More than half of the respondents who have invested in renewable energy have invested in solar energy. 60% of the respondents also consider solar energy to be one of the most interesting renewable energy investments for the future.

Press Release 

Fingrid does not support the division of Finland into two electricity market areas

Finland's electricity consumption is concentrated in the south, while production is concentrated in the north. About 70% of wind power is produced north of the Vaasa altitude. It has been reported that the construction of about 150 wind turbines in Finland in the fall will have to be delayed because it will not be possible to transfer all the electricity to the south. The problem could be solved by building more power lines or dividing the country into multiple market areas, as Sweden and Norway have done. However, Fingrid CEO Jukka Ruusunen thinks this is a bad model and is not worried about Finland's problems. He says this is a temporary problem for western Finland, with the reason being that wind power can be built faster than the grid. This problem will be solved in the next few years. Peter Lund, a professor at Aalto University, suggested another option for consideration, namely to divide Finland into a southern and a northern market area. He says that if Finland had two price zones, the north and the south, this would mean that electricity would be cheaper in the north. This is very important for industrial investments.

Yle

COP27

More than 25 countries at the COP27 climate talks launched a group they said would ensure they hold each other accountable for a pledge to end deforestation by 2030 and announced billions of dollars to finance their efforts. (Reuters)

"There's no credible path to avoiding an ice-free summer. We're starting to see something that can’t be saved." (Reuters)

Pressure remains on Xi Jinping to kick China’s coal habit (Financial Times).

What we're reading

• Developing countries ‘will need $2tn a year in climate funding by 2030’ (The Guardian)
• EU gas price cap ‘agreement’ starts unravelling (Financial Times)
• Europe rapidly losing its forest carbon sink, study shows (Euractiv)
• France electricity prices surge past €1,000/MWh as more nuclear reactors close for winter (RenewEconomy)
• Major economies not paying “fair share” of climate finance goal (RenewEconomy)

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