Sweden's low fuel prices boost emissions as neighbors refuel

Sweden's efforts to lower fuel prices are backfiring on its climate targets, as drivers and haulers from neighboring Denmark, Finland, and Norway flock to the country to refuel. The government's reductions in fuel and carbon taxes, combined with biofuel mandates, have made Swedish prices among the cheapest in Europe.

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If the fuel is sold here, the emissions must be accounted for on our account, regardless of where the emissions later occur.

This "neighboring country refueling" phenomenon, first observed in 2024, is now accelerating. Roger Sedin, head of the climate goals unit at the Swedish Environmental Protection Agency, stated that if fuel is sold within Sweden, the emissions are recorded as Swedish territorial emissions, regardless of where the vehicle ultimately drives. "It's not so strange. If people can change their behavior to save money, they will," Sedin said, adding that this trend makes achieving climate goals even more difficult.

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It's not so strange. If people can change their behavior to save money, they will. And all fuel sold within Sweden's borders must be accounted for as our territorial emissions. Ultimately, this contributes to making it even harder to reach climate goals.

The price difference is particularly impactful for commercial haulers. Erik Østergaard, CEO of the Danish transport organization Danske Vognmænd, explained that for a typical truck with a 600-liter diesel tank, the savings can amount to thousands of kronor per fill-up. While Danish haulers don't solely drive to Sweden just to refuel due to the cost of crossing the Öresund Bridge, they factor it into their routes and planning.

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It is large amounts. For an average truck with a 600-liter diesel tank, it amounts to several thousand kronor difference.