02-06 Sweden and Bioenergy

It was a surprise touring Stockholm in the 1990s to see our guide take a cup and scoop up some water from the harbour and drink it. She boasted that protecting the environment is part of the Swedish culture. And something taught to children beginning in pre-school.
My interest in Sweden was that this area of Scandinavia had so much in common with Ontario. A heavy reliance on hydro and nuclear power. And a huge forest and mining section.
What is special about Sweden is that it has used its forests as a source of bioenergy. Wood chips that can be fuel for heating homes and factories. And used, as well, in making ethanol for fueling cars and trucks.
Who would believe that in terms of energy, Sweden’s bioenergy sector is a bigger energy supplier than both nuclear and hydro. The secret is putting a tax on fossil fuels.
This is good politics for the Swedes who not only want to reduce carbon dioxide emissions but their dependency on imported oil. Oil in Sweden is essentially a transportation fuel only.
People in North America would find the 25% Swedish VAT tax severe. And certainly, few Swedes go out to restaurants with such a tax penalty. Instead they hire women to pick up food and prepare meals in their homes. And for cash under the table.
Underground economies and high taxes go hand and hand.
When I asked my counterpart in Sweden about the impact of its high tax environment, he said that in his case, free education for his three girls going to university was a money-maker.
He also told me that his company has a private restaurant and a chef that prepares meals on the weekend for the senior staff. Free meals are part of their compensation package, and a way of beating the VAT tax.
But, the big Swedish story is the leadership on climate change being provided by a young Swedish girl called Greta Thunberg. The photo shows how she was featured on the cover of Time Magazine as the Person of the Year. This is great show business, and an example of how non-politicians can be more political than politicians.