Prolongation of Swedish scheme to promote the use of sustainable biofuels in transport greenlighted
The Commission has approved the prolongation of a Swedish scheme supporting the use of sustainable biofuels in transport until 31 December 2032. Initially introduced in 2003 and extended several times since, the scheme provides tax reductions for pure and high-blended sustainable biofuels. Sweden notified the extension with an estimated budget of EUR 1.3 billion (SEK 14.2 billion), aiming to further reduce reliance on fossil fuels and support the decarbonisation of the transport sector.
The Commission approved the prolonged scheme under the 2022 Guidelines on State aid for climate, environmental protection and energy, considering it remains necessary and appropriate to incentivise the production and uptake of sustainable biofuels, in line with EU climate objectives.
For more information, see the Commission’s PR.