Economic instruments
The Swedish Environmental Protection Agency (EPA) obtains funding primarily through fees and taxes. We allocate these funds to support such things as research and investments aimed at minimising the release of greenhouse gases. We are also in charge of allocating emission fees on nitrogen oxides (NOX).
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To promote the transition to an ecologically sustainable society in Swedish municipalities, the Government in 1996 decided to start funding Local Investment Programmes (LIP). In 2002, LIP were replaced by Climate Investment Programmes.
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The Swedish charge on emissions of nitrogen oxides from combustion plants has been a crucial factor in the considerable reduction in emissions of nitrogen oxides from these plants during the 1990’s.
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The European Commission views trading in carbon dioxide emission allowances as an important way of achieving the EU's Kyoto commitment to reduce emissions.