Over 15% of new cars sold in Sweden are classed as ‘environmentally friendly vehicles’ (EFVs)’ a far higher proportion than in most other countries. How has this been achieved and what can other nations learn from the Swedish example? Rebecca Wright reports
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Last year, Swedish Prime Minster at the time Goran Persson outlined an impressively ambitious aim – that by 2020 his country would no longer be reliant on fossil fuels. By this, he didn’t mean that the use of petrol and diesel should be eliminated altogether, which would require replacing the entire car parc as well as some other fairly unrealistic measures – but he did mean that fossil fuels should be replaced by a variety of alternatives on an unprecedented scale.
Although the Swedish Prime Minister has since been replaced, his vision has remained, as have the joined-up set of policy measures designed to encourage sustainable transport. These range from mandating all large petrol stations to stock at least one alternative fuel, to the Stockholm Public Transport system running its entire rail network on electricity generated from renewable sources, such as wind and water.
Indeed, those Swedes are a pretty clean-living bunch already, making it less of a surprise that they are embracing alternative fuel cars and new technology with such gusto. For example, even back in 2005, fossil fuels accounted for no more than 35% of total energy supply in Sweden, compared with over 90% in many other European countries. Another clear indicator of their environmental consciousness is Swedish recycling rates – less than 20% of household waste in Sweden nowadays goes to landfill sites, compared to as much as 90% in some other developed nations.
Topping the tables
In 2006, 13% of new cars sold in Sweden – equivalent to 36,000 units – were classed as environmentally friendly. By the first half of 2007, their share of the market had risen further to 15.2%, or 23,000 units.
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By GlobalDataIronically, definitions vary about what exactly constitutes an EFV in Sweden, but the country’s automotive trade association bilsweden says the following: Cars must emit less than 120 g/km CO2 at the tailpipe (and be fitted with a diesel particulate filter if a diesel), with exceptions for cars that run on an alternative fuel or have some form of alternative propulsion (e.g. electricity or hybrid).
The top five environmental cars sold in Sweden in the first six months of this year were:
| Model | Fuel-type | Units sold(H1 07) | Share of market |
| Saab 9-5 | BioPower Bioethanol E85 | 4,993 | 21.7% |
| Ford Focus | Flexifuel Bioethanol E85 | 4,024 | 17.5% |
| Volvo V50 | Flexifuel Bioethanol E85 | 2,369 | 10.3% |
| Saab 9-3 | BioPower Bioethanol E85 | 1,829 | 7.9% |
| Toyota Aygo | (sub 120 g/km) | 1,439 | 6.2% |
Source: bilsweden
Interestingly, the Toyota Prius hybrid is currently the sixth best-selling EFV. According to bilsweden, other strong-selling environmental cars include Volvo’s other flex-fuel offerings, the Peugeot 107 and Citroen C4 with a sub 120 g/Km CO2 petrol and diesel engine respectively, and a Volkswagen Polo, also with a sub 120 g/Km CO2 diesel unit. On the whole, sales of cars capable of running on Compressed Natural Gas (CNG) are in decline (Volvo sold 1,400 V70 Bi-Fuel cars in the first half of 2006, compared with just 600 in the same period this year) and in fact, Volvo recently announced that it would no longer produce its Bi-Fuel range of cars, preferring it seems, to concentrate wholly on bioethanol.
Ethanol is King
Bioethanol’s position as the Swedish driver’s alternative fuel of choice is clear, with the four best-selling EFVs in the first half of 2007 being flex-fuel, capable of running on bioethanol E85 and/or standard unleaded petrol.
Interestingly, it was neither of the domestic brands of Volvo or Saab that kick-started this trend, it was actually Ford which launched Sweden’s first flex-fuel car (the Focus FFV) back in 2003. Then, in 2005 when Saab launched the first of its BioPower range of cars, which not only offered lower well-to-wheel CO2 emissions but increased horsepower and torque at the same time, did Sweden’s appetite for this alcohol become apparently insatiable.
Sceptics could say that Swedish drivers are being coaxed
into flex-fuel cars by a government desperate to support its domestic manufacturers in any way it can find without flouting EU laws. Incentives such as free parking in most city centres, exemption from the capital city Stockholm’s congestion charges and lower company car tax bills all contribute to significantly lower bills. Oh, and a cash rebate to the tune of 1,000 euros upon purchase probably helps as well. But virtually all of these incentives actually apply to all EFVs, yet the conscientious Swedish driver is actively choosing ethanol.
One important factor in bioethanol E85’s success over other alternative fuels in Sweden is the ease in which it fits with current infrastructure. So although large fuel retailers have a choice about which alternative to stock, the vast majority are choosing bioethanol E85 due to the fact that it can be installed on forecourts alongside petrol and diesel with the minimum of disruption and cost to forecourt owners. In Sweden, fuel is not transported by pipeline, so there are no issues there, and forecourt owners need make relatively minor adjustments, such as cleaning and relining their tanks, and adding new nozzles. In 2005, there were less than 100 Swedish fuel stations selling bioethanol E85. Today, that figure is approaching 1,000.
Nor were petrol/ethanol blends a brand new concept to the Swedish driver, who has long been filling up with a 5% ethanol blend in the place of standard unleaded petrol. This seems to have greatly encouraged national acceptance of E85. Finally, the fact that Sweden plans to eventually produce huge quantities of so-called 2nd-generation bioethanol from its large and well-regulated forest industry, has been another key driver behind the fuel’s widespread growth.
Diesel is fast catching up
An interesting trend that has recently emerged is the nation’s sudden interest in diesel engines. Interesting because Sweden, which is generally considered a nation of forward-thinkers, is years behind the vast majority of the rest of western Europe whose love affair with diesel began long ago.
Bilsweden statistics show diesel popularity soaring in 2007 compared to previous years. Diesel-engined cars accounted for 29.5% of new Swedish car registrations in the first half of this year, compared to 17% in the same period in 2006. A number of factors explain this:
- The afore-mentioned Swedish definition of an EFV, which includes all diesels fitted with particulate filters that emit less than 120g/km CO2. Given the incentives currently on offer to EFV purchases, this is an obvious driver of growth at the smaller end of the market.
- Road tax rules were changed around one year ago, with the result that a driver now has to drive half the distance annually with a diesel car to make it more profitable than driving a petrol car.
- When compared to cars that run on bioethanol E85, it is not unusual to get 50% more miles to the gallon with diesels, further enhancing their image. This is because cars running on E85 report a 25 – 30% drop in fuel economy compared to petrol, whilst diesel cars can be as much as 30% more fuel efficient than petrol vehicles.
There’s no such thing as a perfect Swede
Of course nobody’s perfect and amazingly, the Swedish car parc remains amongst the dirtiest in Europe! With a vast terrain and harsh climate, Swedes have long had a penchant for the largest varieties of their beloved Volvos and Saabs, which have correspondingly large – and high-emitting engines. Ironically, because your average Volvo and Saab generally has a longer life expectancy than many other brands, many of those old cars are still running around today belching out fumes that newer models wouldn’t be seen dead emitting.
Also telling is a look at local fuel sales. According to OKQ8, the fuel retailer which is responsible for around 40% of the E85 sold annually in Sweden, in 2006 less than 8% of total fuel sold was E85. Although Swedish drivers are more than happy to fill their cars with E85 when there’s a substantial price differential with unleaded, whenever that gap narrows (when, for example, petrol prices have dipped due to natural fluctuations in the market, but E85 prices have stayed stable), E85 sales have been shown falling, with people instead filling their flex-fuel cars with unleaded.
Spreading the Swedish success story
For the time being, sales of EFVs are continuing to surge in Sweden and it’s no surprise that manufacturers can’t get their low-emission and eco-friendly models on sale quick enough. Despite the increasing popularity of diesel engines, flex-fuel vehicles are maintaining their popularity (some 30,000 FFVs will be sold in the country this year), and Volkswagen, Skoda, Renault, Peugeot and Citroen are just some of the brands expected to bring new flex-fuel cars to the market in the near future.
Although it would be no great surprise if the new Government were to modify its predecessor’s 2020 aim, it’s unlikely to stray that far from it. Likewise, it would seem sensible to expect Sweden to use its tenure of the European Union presidency in the second-half of 2009 to influence European environmental transport policy. Quite rightly, Sweden is proud of its approach of employing a mix of government intervention and lightly-regulated market forces to become more energy-efficient. It advises other countries who want to clean up their act to follow some basic principles such as acting decisively, and not waiting, have business on board and use technology as an ally. Educate the general public and industry about how and why, be pragmatic – do not let the best be the enemy of the good. Finally, aim for realistic solutions instead of striving for utopia (which in this instance might be fuel cells and hydrogen). Simple rules perhaps, but in this case they’ve been extremely effective.
Rebecca Wright
