Energy

The prime ministers of Sweden, Denmark and Finland have jointly written a letter to President of the European Commission Ursula von der Leyen on the importance of urgent action to tackle soaring energy prices.

The Government has today (3 September) announced measures to safeguard financial stability in the face of Russia’s energy war with Europe.

The Financial Stability Council has had an extraordinary meeting, on 4 September, due to the liquidity problems in the market for electricity derivatives. These problems have prompted the government to propose state credit guarantees to mainly electricity producers trading in this market.

A ban on extracting coal, oil and natural gas in Sweden will enter into force in Sweden on 1 July this year. It will be an important step in the process of transitioning to a fossil-free society. This was announced by Minister for climate and the environment Annika Strandhäll on World Environment Day, on June 5th.

The European Council is holding a special meeting in Brussels on 30–31 May. A number of issues related to Russia’s invasion of Ukraine are expected to be discussed. These include continued EU support to Ukraine, energy and food security. Prime Minister Magdalena Andersson is representing Sweden.

To support Ukraine and help secure its energy supply, the Government has decided that Svenska kraftnät may provide equipment that can be used to repair the country’s electrical grids.

The European Council meeting of 24–25 March, one month after Russia began its aggression against Ukraine, focused on the conflict and consequences for the EU. The US President attended the meeting for talks on Thursday evening. On Friday the focus was on Europe’s strategic dependence on Russian fossil fuels, the high energy prices in the EU and the green transition.

Russia’s illegal, unprovoked and unjustifiable invasion of Ukraine has led to a deterioration in the security situation in Sweden’s neighbourhood and contributed to exceptionally high electricity prices. The Government’s response is based on three important principles: support to Ukraine, sanctions against Russia and strengthening Sweden. Therefore, the Government today adopted a fifth additional amending budget to strengthen Sweden by providing more funding to Sweden’s military defence and temporary financial compensatory payments to households for high electricity prices. These measures have been presented previously.

The European Commission is working actively to secure a stable energy supply in Ukraine, and the EU must remain unified against Russia’s invasion. Those were the key messages from the press briefing held by Minister for Energy and Digital Development Khashayar Farmanbar and European Commissioner for Energy Kadri Simson.

Russia’s invasion of Ukraine has led to rising fuel and electricity prices. To strengthen Sweden in this extraordinary situation, the Government is presenting a package of measures with both short- and long-term investments. The package includes reduced fuel taxes, a new compensatory payment for fuel costs for private individuals who own cars, increased housing allowance for families with children and a new travel deduction system. Minister for Finance Mikael Damberg presented this package at a press conference today

The Government considers that concrete changes need to be made to the European energy supply. EU Member States need to reduce their dependence on Russian energy. This was conveyed by Minister for EU Affairs Hans Dahlgren and Minister for Energy and Digital Development Khashayar Farmanbar at a press briefing.

On Friday, 25 February, the Government received an updated picture of the situation from the Swedish Energy Agency. At present, the assessment is that there is no acute risk of shortages or supply disruptions in the supply of electricity, gas or fuel in Sweden. Sweden’s energy supply is to a low degree directly dependent on Russian energy supplies, and reports show that energy supplies from Russia are functioning normally, which means that there are currently no indications of a rapidly approaching shortage. At the same time, it is already possible to see that the situation is affecting prices in the European energy market, and thus also Swedish consumers.

On 1 March, Minister for Energy and Digital Development Khashayar Farmanbar took part in a digital extraordinary ministerial meeting with International Energy Agency (IEA). The aim of the meeting was to discuss the impact of Russia’s invasion of Ukraine on global oil markets.

Heads of state and government from the EU and the African Union (AU) will meet in Brussels on 17–18 February. It is the seventh time the EU and AU leaders will meet. The aim is to establish foundations for a renewed and deepened partnership between the two unions. The leaders are expected to adopt a joint declaration on closer cooperation in a range of areas. Prime Minister Magdalena Andersson will represent Sweden.

As the EU heads of state and government meet in the European Council in Brussels, the agenda includes the COVID-19 vaccine situation and how the EU can advance digital transformation. The high energy prices in many Member States will also be discussed. At Sweden’s initiative, the leaders will hold a strategic discussion on trade issues.

Together with nine other EU Member States, Sweden – through Minister for Energy and Digital Development Anders Ygeman – has signalled that it does not support the proposal to introduce additional requirements on bioenergy in the EU taxonomy. The countries presented their position in a joint letter to the European Commission.

Global warming continues regardless of the COVID-19 pandemic. Climate change will remain the defining issue of our generation. The Government is therefore proposing investments of SEK 9.7 billion in green recovery initiatives in the Budget Bill for 2021. The Government’s proposals are based on an agreement between the government parties, the Centre Party and the Liberal Party.

Climate change, the long-term EU budget and the EU’s strategic agenda for the coming institutional cycle were on the agenda when Stefan Löfven and other heads of state or government from EU Member States met in Brussels on 20–21 June. The EU leaders also discussed the EU’s external relations and appointments to several top positions in the EU.

What is needed for the EU to achieve net zero greenhouse gas emissions by 2050? This question was the focus of a seminar at the Permanent Representation of Sweden to the European Union on 4 June, attended by Swedish experts and industry representatives.

When Prime Minister Stefan Löfven met French President Emmanuel Macron today in Paris, the countries’ strategic partnership for innovation, digital transformation and green solutions was updated and deepened. When Mr Löfven and Mr Macron entered into the partnership in November 2017, it was agreed that Sweden and France needed to work together in a number of strategic areas to better address digital transformation and climate adaptation.