Proposals for a scrap premium are welcomed – and criticized

In an attempt to reduce carbon dioxide emissions, the government is proposing a scrap car premium of SEK 10,000 for those who scrap their old car that is at least 15 years old. The proposal, which can be introduced in August this year, is well received by the national motorists’ association M Sweden, but is problematic, they say.

The government is now ready with its proposal for how the temporary scrapping premium should work. The idea is that old, emission-resistant cars should be phased out and replaced by electric cars. Because despite the increase in electric cars, 90 percent of the vehicle fleet still consists of petrol and diesel cars.

– It is good that there is one. We welcome that. We have thought since 2007 that a scrapping premium should be introduced again. Then it is temporary and combined with slightly strange conditions, says Carl-Erik Stjernvall, sustainability manager at M Sweden.

The conditions are that the private person who scraps their old car and at the same time buys or leases an electric car – new or used – receives SEK 10,000 in scrap premium.

– Now this SEK 10,000 is only to be paid out at the same time that the person who has scrapped the car buys an essentially new car. There are not many consumers who are in the position to both scrap a cheap, old car and buy a brand new, very expensive car. So there are probably not that many people who will benefit from this scrap premium, says Carl-Erik Stjernvall.

Enough for 50,000

The government has earmarked SEK 250 million for the scrapping premium in 2024 and 2025. This means that the money is enough for 25,000 scrapping premiums per year.

Climate and Environment Minister Romina Pourmokhtari (L) often highlights the premium as an example of what the government is doing to reduce emissions. But according to the calculations in the government’s memorandum, the effect will not be huge. The proposal is estimated to reduce carbon dioxide emissions by up to 200,000 tonnes, assuming that the cars would have continued to be driven for two more years without the premium.

– You need to have both a scrapping bonus of SEK 10,000 without conditions and a new form of climate car bonus. Because what we see is that private individuals are no longer choosing electric cars.

But you are positive that a scrapping premium can be introduced?

– The problem is the strange condition. Anyone who has a car like this today needs to buy a brand new one. It is not the same consumer groups that drive a car for SEK 10,000 today that buy a new one for SEK 400-500,000 the next day. It is a strange condition that means that not many people feel that this is something for me, concludes Carl-Erik Stjernvall, sustainability manager at M Sweden.

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