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Sweden's Integrated National Energy and Climate Plan Was Sent to Denmark, Finland and Norway for Comment

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Sweden's Integrated National Energy and Climate Plan Was Sent to Denmark, Finland and Norway for Comment Two annexes 16.1.2020 The Ministry of Infrastructure Sweden’s Integrated National Energy and Climate Plan Reporting under Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council. 1 (199) Table of contents 1. OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN .................................................................................................. 4 1.1 Executive summary .......................................................................................... 4 1.2 Overview of the current policy situation ....................................................... 6 1.3 Consultations and involvement of national and Union entities and their outcome ................................................................................................. 10 1.4 Regional cooperation in preparing the plan ................................................ 15 2. NATIONAL OBJECTIVES AND TARGETS .................................. 16 2.1 Dimension decarbonisation........................................................................... 16 2.2 Dimension energy efficiency ......................................................................... 26 2.3 Dimension energy security ............................................................................ 31 2.4 Dimension internal energy market ............................................................... 35 2.5 Dimension research, innovation and competitiveness .............................. 43 3. POLICIES AND MEASURES ........................................................ 45 3.1 Dimension decarbonisation........................................................................... 45 3.2 Dimension energy efficiency ......................................................................... 84 3.3 Dimension energy security .......................................................................... 113 3.4 Dimension internal energy market ............................................................. 118 3.5 Dimension research, innovation and competitiveness ............................ 125 4. Current situation and projections with existing policies and measures ........................................................................................ 134 4.1 Projected evolution of main exogenous factors influencing energy system and GHG emission developments .......................................... 134 4.2 Dimension decarbonisation......................................................................... 141 4.3 Dimension energy efficiency ....................................................................... 157 4.4 Dimension energy security .......................................................................... 161 4.5 Dimension internal energy market ............................................................. 166 4.6 Dimension research, innovation and competitiveness ............................ 176 5. IMPACT ASSESSMENT OF PLANNED POLICIES AND MEASURES .................................................................................... 187 5.1 Impacts of planned policies and measures described in Section 3 on energy system and GHG emissions and removals, including comparison to projections with existing policies and measures (as described in Section 4) ........................................................................................ 187 5.2 Macroeconomic and, to the extent feasible, the health, environmental, education, skills and social impacts, including just transition aspects (in terms of costs and benefits as well as cost- effectiveness) of the planned policies andmeasures described in Section 3 at least until the last year of the period covered by the plan, including comparison to projections with existing policies and measures. .............................................................................................................. 191 5.3 Overview of investment needs ................................................................... 194 5.4 Impacts of planned policies and measures described in Section 3 on other Member States and regional cooperation at least until the last year of the period covered by the plan, including comparison to 2 (199) projections with existing policies and measures ............................................. 199 Annex 1 - Summary of the national consultation document for Sweden’s Integrated National Energy and Climate Plan Annex 2 - Calculation of annual and cumulative energy savings in accordance with Article 7, 7(a) and 7(b) of the Energy Efficiency Directive 3 (199) 1. OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN 1.1 Executive summary 1.1.1 Political, economic, environmental, and social context of the plan In December 2015, the European Commission presented its communication on an Energy Union1 for Europe. In practice the Energy Union involves the revision of all European energy and climate legislation. In November, the Commission presented Clean Energy for all Europeans2, a package of measures to keep the EU competitive as the clean energy transition changes global energy markets. The package included legislative proposals for energy efficiency, renewable energy, electricity market design, security of electricity supply and rules for the governance of the Energy Union. The Governance Regulation3 came into force on 24 December 2018. The Regulation states that, by 31 December 2019, and subsequently by 1 January 2029 and every ten years thereafter, each Member State must notify to the Commission an integrated national energy and climate plan, containing the elements set out in the Regulation. This document contains Sweden’s Integrated National Energy and Climate Plan in accordance with the Governance Regulation and is structured according to the general framework set out in Annex I to the Regulation. The Integrated Energy and Climate Plan elaborates on Sweden’s existing energy and climate goals, policies and measures and on the associated scenarios. It is based primarily on the Climate Policy Framework, energy policy and the targets drawn from the Energy Policy Framework Agreement (see Section 1.3). The long-term energy and climate targets and objectives described in the plan establish long-term conditions for the business community and society as a whole. 1.1.2 Strategy for the five dimensions of the Energy Union Overall, Swedish energy and climate policy is compatible with the ambitions of the Energy Union’s five dimensions. It is based on the same three pillars as energy cooperation in the EU and aims to combine ecological sustainability, competitiveness and security of supply. The energy policy must therefore create the conditions for effective and sustainable energy use 1 COM/2015/080 final. 2 IP/16/4009. 3 Regulation 2018/1999 (EU) of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council. 4 (199) and a cost-effective energy supply in Sweden, while minimising the damage to health, the environment and climate and facilitating the transition to a sustainable society. Sweden must lead the way on environmental and climate issues and become the world’s first fossil fuel-free welfare state. Sweden aims to cut its net greenhouse gas emissions to zero by 2045, and reduce the emissions from activities on Swedish territory to 15% of their 1990 levels. 1.1.3 Table summarising important objectives, policies and measures in the plan Table 1 Summary of targets for energy and climate policy. Target Target year Base year Sweden must cut its net greenhouse gas 2045 1990 emissions to zero and then achieve negative emissions. A maximum of 15% of emission reductions should come from additional measures. 75% reduction in emissions from sectors 2040 1990 outside the European Union’s Emission Trading System (EU ETS). A maximum of 2% from additional measures. 63% reduction in emissions from sectors 2030 1990 outside the EU ETS. A maximum of 8% from additional measures. 70% reduction in emissions in the transport 2030 2010 sector 40% reduction in emissions from sectors 2020 1990 outside the EU ETS. A maximum of 13% 4 from additional measures 50% of final consumption of energy to be 2020 covered by renewable sources 100% renewable electricity generation (this is a 2040 target not a deadline for nuclear energy) 50% improvement in energy efficiency 2030 2005 See Section 3 for information about policies and measures. 1.2 Overview of the current policy situation 1.2.1 National and Union energy system and policy context of the national plan A coalition government of ministers from the Social Democratic Party and the Green Party took office on 21 January 2019. Although it is a minority government, there are broad-based agreements and frameworks in
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