Policy status:In Force
Date Effective:2004
Date Amended:

2013 (1 January)

Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief
Policy Target:Multiple RE Sources>CHP
Policy Sector:Multi-sectoral Policy
Agency:The Swedish National Tax Agency

The taxation regime for co-generation of heat and power (CHP) participating in the European emission trading scheme (ETS) allows since the beginning of 2014 for a reduction of 70 per cent of the energy tax and 100 per cent of the carbon dioxide-tax on fuels used for production of heat (previously 70 per cent and 93 per cent, respectively).

Other heat production is allowed a 20 per cent reduction of the general carbon dioxide-tax. This refers i.a. to fuels used for heat produced by an industrial installation participating in the ETS, but not used directly in the production process. The previous reduction was 6 per cent.

The general carbon dioxide tax is currently (2014) at SEK 1.1 per kg carbon dioxide.

Biofuels are exempted from these taxes.

The portion of the fuel which is used for the electricity production receives a full rebate of energy and carbon dioxide tax, although that part of the fuel which is regarded as producing electricity for internal use is subject to full taxation.

Taxation on fuels for simultaneous production of heat and electricity (CHP) is at the same rate as on these fuels when used for CHP in industry. However, that portion of the fuel which is used for the production of electricity for sale receives a full rebate of energy and carbon dioxide tax because the tax is levied on the consumers of electricity. All fuel use must be declared (for tax purposes) in proportion to the actual quantities of electricity and heat produced.

Last modified: Wed, 31 May 2017 14:34:47 CEST