Sweden, a nation renowned for its environmental consciousness, is set to make a controversial move by abolishing its aviation tax in July 2025. This decision, aimed at stimulating economic growth, marks a significant shift in policy for the country that introduced the concept of "flygskam" or "flight shame".
Ebba Busch, Sweden's Energy and Business Minister, emphasized the economic rationale behind this decision. She stated, "It is very important for large parts of Swedish enterprise to keep domestic airports, and a minority of European Union countries have aviation taxes, which makes it a competitive disadvantage."
The abolition of the aviation tax is part of Stockholm's 2025 budget bill, which also includes provisions for infrastructure upgrades and tax relief for exports. This move comes as Sweden grapples with economic challenges, having experienced a 0.3% contraction in its economy between April and July 2024, following a similar decline in 2023.
The aviation tax, introduced in 2018 by the then center-Left government, currently charges 76 krona (£5.60) per passenger for flights to and from Sweden. Its implementation coincided with the rise of the "flight shame" movement, which gained global attention partly due to the efforts of Swedish climate activist Greta Thunberg.
Sweden's first right-wing government in eight years, which came to power in 2022, has been pushing back against the anti-flying sentiment. In February 2024, Infrastructure Minister Andreas Carlson announced plans to invest over a billion krona (£76m) to support airlines, stating there were "few reasons to feel flight shame".
This policy shift has drawn criticism from environmental activists. Daniel Kihlberg, climate director at the Swedish Society for Nature Conservation, accused the government of "consciously increasing emissions" and "giving up completely on climate policy".
"This will lead to lower prices for travellers and rising demand, boosting the competitiveness of airlines."
The decision to scrap the aviation tax represents a significant departure from Sweden's previous environmental policies. The country has been a pioneer in environmental initiatives, introducing a carbon tax in 1991 and setting an ambitious goal to become carbon neutral by 2045. Sweden has also been at the forefront of renewable energy adoption, with over 50% of its energy coming from renewable sources.
However, the current government appears to be prioritizing economic recovery over immediate environmental concerns. This shift in focus has implications not only for Sweden's domestic policies but also for its international reputation as a leader in climate action.
The market has responded positively to this announcement, with shares in Norwegian Air jumping by 6.4% in Oslo. This reaction suggests that the aviation industry and investors see potential benefits in Sweden's new approach.
As Sweden navigates this complex balance between economic growth and environmental responsibility, the global community will be watching closely to see how this policy shift impacts both the country's economy and its long-term sustainability goals.