Tax exemption for pure and highblend biofuels

The Swedish scheme to promote the use of sustainable biofuels in transport has been prolongated until 31 December 2032 with an estimated budget of 1.3 USD billion (SEK 14.2 billion). 
 
The scheme was originally approved by the Commission in November 2003 and prolonged several times, the last time in December 2022, with an expiry date of 31 December 2026. It aims at increasing the use of sustainable biofuels and reducing the use of fossil fuels in the transport sector. Under the scheme, the aid takes the form of a tax reduction for pure and high-blended sustainable biofuels, which can amount to a full exemption from CO2 and energy taxes. 

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