The European Commission (EC) has approved, under EU State aid rules, the prolongation of a Swedish scheme to promote the use of pure and high-blended sustainable biofuels in the transport sector.
The scheme was originally approved by the Commission in November 2003 (SA.14126), prolonged several times, most recently in September 2021 (SA.63198), and is set to expire on December 31, 2022.
The objective of the scheme is to increase the use of sustainable biofuels and to reduce 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 carbon dioxide (CO2) and energy taxes.
Sweden notified the Commission of its intention to prolong the scheme until 31 December 31, 2026, with an estimated budget of EUR 662 million (SEK 7.2 billion).
The Commission assessed the prolongation of the scheme under EU State aid rules, in particular the 2022 Guidelines on State aid for climate, environmental protection, and energy.
The Commission found that the scheme continues to be necessary and appropriate to stimulate the production and consumption of pure and high-blended sustainable biofuels in line with the objectives of the European Green Deal, without unduly distorting competition in the Single Market.
On this basis, the Commission approved the prolongation of the Swedish scheme under EU State aid rules on December 14, 2022.
