Action Plan for a fossil-fuel independent vehicle fleet
The key principle is to put a price on the GHG emissions emitted by the transportation sector and thus encouraging a move towards fossil fuel independent fuels as non-fossil fuel based vehicles are becoming cheaper than fossil fuel based vehicles. This is to be achieved through various policy instruments, measures, initiatives and incentives.
These include carbon pricing (emission trading, energy and especially carbon taxes) in the transportation sector, increasing the dialogue between the government and the automotive cluster to strengthen its long-term competitiveness and promote greener fuel development and vehicle technology, extension of subsidies to establish filling stations for renewable fuels, increasing the share of biofuels in road transportation fuels via implementing the EU fuel quality directive (up to 10% share of biodiesel in the mixture), the requirement that thesustainability criteria must be fulfilled if the biofuels are to count towards the 10% target of fuels from renewable energy sources by 2020; mandating of binding emission standards for automotive manufacturers at 120gCO2/km for new passenger cars, which will be gradually reduced to 95gCO2/km in 2020; exploring the potential for the use of biogas (e.g. from waste) as transportation fuel, i.e. the development of 2nd generation biofuel via financial support (SEK875m USD118.4m) for biofuel demo-plants and the commercialisation of new energy technology; research and development initiatives to assess the incentives for the emerging electric vehicles and plug-in hybrids market, including appropriate stimulus and raising public awareness via consumer information on vehicle fuel consumption.