"It can give Swedish hauliers, bus companies and motorists that use E85, biodiesel and HVO100 a one-year respite. But a more long-term message is needed to provide market security for investments in new vehicles. The message from the government is nevertheless an opening and an affirmation that biofuels are a long-term solution," said Gustav Melin, CEO of the Swedish Bioenergy Association (Svebio) in response to the government's pre-notification to the European Commission.
In a statement on April 3, 2020, the Swedish government said that it had submitted a so-called pre-notification to the European Commission for the application for an extension in 2021 of the current state aid approval for liquid biofuels.
The Swedish tax exemption for pure and high blend biofuels is threatened by the EU extending the current state aid rules for two years but retaining a rule that no support for so-called crop-based biofuels should be granted after the end of 2020. The Swedish tax exemption is considered by the EU as state aid.
The Swedish government has our full support for the continued work on influencing the European Commission so that Sweden’s extensive use of pure and high biofuel blends is not affected by a tax shock. What is also needed now is to rally opinion across the board to change the perception of crop-based biofuels. Europe’s farmers can make a significant contribution to the European Green Deal and future climate neutrality if given the opportunity to grow energy crops in their fields. It is unreasonable to place such restrictions when we at the same time have a surplus of agricultural land in Europe. Here, all Swedish politicians can make an effort, remarked Gustav Melin.
