Busch warns weaker EU climate rules could hurt Swedish firms

Outgoing industry minister Ebba Busch says retreating from agreed EU climate measures could hurt Swedish companies that have invested billions to meet them. Her warning follows Volvo Cars’ announcement of cuts equivalent to 2,500 jobs, including 2,000 in Sweden.

Busch told SVT on Friday that changing the conditions would damage firms that had responded to the EU’s requirements. She criticised attempts to weaken both car-emissions measures and planned emissions trading for road transport.

The dispute includes the rules that would effectively end sales of new petrol and diesel cars from 2035. Volvo Cars has argued that those rules should remain for competitiveness reasons, SVT reported.

Busch described the company’s job-cut announcement as painful for employees facing uncertainty. Volvo Cars cited competition from China and the United States in explaining its savings programme.

Her argument puts investment certainty at the centre of Sweden’s position: companies that spent to meet agreed climate goals should not find the rules reversed after making those commitments.

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