Stockholm - Higher taxes on vehicles and fuel are in store for Swedish motorists, transport companies and industry as part of efforts to reduce greenhouse gas emissions, the government said Tuesday.

Finance Minister Anders Borg, Environment Minister Andreas Carlgren and Enterprise Minister Maud Olofsson said in a joint statement that the measures would take the current financial slump into account.

As of 2011 taxes on diesel fuel were to be raised in two stages by 0.40 kronor (0.04 dollars), as would taxes on carbon-dioxide emissions while the forestry and agriculture sectors would be included in emissions trading schemes.

The measures that included taxes on heating were part of a pending bill on energy and enviroment, and the goal was to cut greenhouse gas emissions by a further 2 million tons by 2020.

"A price tag on climate changing emissions underlines that emissions carry a cost that have to be paid," Carlgren said.

Borg said the "changes have to be made gradually so that households and businesses have time to adjust."

Eco-friendly cars would as of 2010 be exempt from vehicle taxes for five years, and the exemptions also include vehicles bought by companies.

The Swedish Society for Nature Conservation welcomed the moves, but said they should be speeded up.

The Federation of Swedish Farmers was critical and said the policies "would have serious and far-reaching effects for farmers and consumers."

Sverker Martin-Lof, board chairman of paper group SCA and steel maker SSAB, said the measures could add extra costs to Swedish industry and reduce their ability to compete, he told Swedish radio news. (dpa)