Preface

This is the ninth overview report published by the Nordic Council of Ministers on the use of economic instruments in Nordic environmental policy. The report has been commissioned by the Nordic Working Group for Environment and Economics (NME). The previous editions of the report have been published in 1994, 1997, 1999, 2002, 2006, 2009, 2014 and 2019. In addition to the overview of the use of economic instruments in 2018-2021, a second part of the report contains a compilation and assessment of policies and instruments the Nordic countries have used to promote clean technologies. The report has been prepared by IVL Swedish Environmental Research Institute and one external consultant from Iceland. The core team consisted of  Flintull Annica Eriksson (Project leader), Annacarin Karlsson, Lars Zetterberg, Jenny Von Bahr, Johan Rootzén, Kenneth Möllersten, Henrik Kloo (IVL Swedish Environmental Research Institute) and Hrafnhildur Bragadóttir (Independent expert).

The Nordic countries have been among the frontrunners in the use of economic instruments in environmental policy. This report reveals that during the period 2018-2021 a continuous development in this field has taken place, but without any dramatic shifts. The change in instrument application reflects the general development of environmental policy in the Nordic countries with more emphasis put on climate policy issues. Among the sectors especially transport and energy production have been in the focus for the use of economic instruments.

In the field of promoting clean technologies the Nordic countries usually have used a mix of taxes and subsidies. Additionally the EU ETS is an important driver of investments in clean technologies nowadays. Differences between the Nordic countries exist when it comes to the mix of instruments used for promoting clean technologies. Also, on a more general level national preferences and policy approaches are reflected in a somewhat different set of instruments in the individual countries.

Comments and inputs to the report have been provided by Members of the Nordic Working Group for Environment and Economy (NME) during the preparation of the report. The authors of the report are responsible for the content as well as the assessments and recommendations, which do not necessarily reflect the views and the positions of the governments in the Nordic countries.