Sweden: Extended state aid approved for biomethane

Biomethane is given full exemption from carbon tax. 

The European Commission has approved the Swedish tax exemption of biomethane as a fuel until the end of 2020. Tax exemption or tax credit of other sustainable biofuels than biomethane have been approved until the end of 2018.

“It is a very welcomed news and I am pleased that the intensive dialogue which the government has brought the European Commission has produced results. Now we know biofuels companies as regards the coming years and the government can put all our energy to develop sustainable rules for by 2018”, has commented Finance Minister Magdalena Andersson.

The European Commission considers that the tax exemption in its entirety is an operating aid under the European Union law regarding state aid. State aid must be approved by the Commission in order to apply.

The government’s goal is, during the mandate period, to have rules in place that provide long-term sustainable and stable conditions for biofuels as quickly as possible. The Swedish government had applied for an extension of state aid approval for exemption in February 2015.

Source: Government Offices of Sweden
Read more here (in Swedish).