Sweden Introduces “Green Car” Cash Bonus

Congratulations Swedish car buyers. Thanks to a "new “green car” bonus program that went into effect yesterday April 1st, 2007, those who buy a new eco-friendly car can expect SEK 10,000 ($US1,400) in cash from the government. Scheduled to run until the end of 2009, it is estimated that sales of green cars will increase at a rate of 10 to 15 percent per year.

In order to qualify for the bonus the car must consume less than half a liter per ten kilometers (47 mpg US). By no means limited to hybrid or bio diesel vehicles a conventional gas-driven car can also qualify for a cash bonus. Based on fuel consumption standards, a broad range of cars qualify for the bonus. In fact, more or less all car makers have at least one model that meets the Swedish criteria for classification as a green car.

In 2006 39,000 green cars were registered in Sweden, 9,000 by private citizens. Sweden’s Minister of the Environment Anders Carlgren says of the incentive program, “we wanted to use more carrot than stick.” The Swedish government has set aside SEK 250 million (US$36 million) for the program. If needed, that budget will be increased Carlgren assures. :: Green Car Congress