Political “flip-flop”: Swedish government’s plastic bag tax abolishment sparks backlash

15 Sep 2023 --- The Swedish government has announced plans to abolish its plastic bag tax, sparking a debate on environmental repercussions. Introduced in 2020 to meet the EU’s consumption target for plastic bags, the tax will cease to exist from November 1, 2024.

The government’s rationale for ending the levy is based on an evaluation that suggests its objectives have been met. “The government proposes in the budget that the tax on plastic carrier bags be abolished because it is not deemed necessary for its purpose,” it says.

Over the past two years, Sweden has witnessed a substantial reduction in thin plastic carrier bag consumption. Citizens now utilize fewer than 20 plastic carrier bags per person annually, compared to 74 bags in 2019, the year before the tax was implemented.

But, Åsa Stenmarck, material flow expert responsible for national plastics coordination at the Swedish Environmental Protection Agency, tells Packaging Insights, “we believe the tax could have been retained since it has demonstrably impacted consumption, and we still have our consumption targets to achieve.”

Sweden introduced a tax of 3 Swedish kronor (US$0.27) on plastic bags in 2020.“While it’s probable that this change may result in increased consumption, we remain hopeful that consumers have adopted more sustainable behaviors, such as bringing their own bags, to prevent a significant upsurge.”

The Swedish government, in a statement, reiterated its commitment to closely monitor plastic bag consumption’s evolution post-tax abolition and underscored the government’s continued efforts to address environmental concerns while maintaining cost-effective public policies.

Cost over environment?
Despite these hopes, the Swedish government maintains that the tax carries certain drawbacks, including administrative costs and the potential promotion of alternative packaging consumption.

Fredric Bauer, an associate senior lecturer in Environmental and Energy Systems Studies at Lund University, Sweden, expresses his concerns, saying: “The tax has been successful in achieving its intended purpose, with a nearly 75% reduction in plastic bag consumption.”

“It’s surprising to see the government removing an effective tax without proposing alternative measures to ensure we comply with EU targets for reducing plastic bag consumption,” he tells us.

Sweden’s current right-wing government, supported by the far-right Sweden Democrats party since 2022, has been exploring options to reduce the plastic bag tax throughout the year. The current coalition government comprises the Moderate Party, the Christian Democrats and the Liberal Party.

Bauer notes the intriguing political landscape surrounding the decision, stating, “The plastic bag tax abolishment is part of the government’s budget proposal for next year, negotiated between the three parties in the coalition government and the Sweden Democrats, whose support is crucial for passing the budget.” 

“This move is somewhat peculiar considering that the same Liberal Party, which currently has the Minister for the Environment introducing the tax abolishment, was the party that negotiated its introduction two years ago with the center-left social democrats-led government. They’ve flipped-flopped.”

By Radhika Sikaria