The European Commission has recently approved Sweden’s application for tax exemption of biogas as a fuel until the end of 2020. Tax exemption or tax credit of sustainable biofuels other than biogas has been approved until the end of 2018.
The Swedish Gas Association (Energigas Sverige) reported in August 2015 that the proportion of renewable natural gas (biomethane) in national vehicle gas had risen to an all-time high of 73%, clear evidence of rising demand.
“It is a very welcome news and I am delighted that the intensive dialogue which the government has brought before the European Commission has produced results. Now biofuels companies know where they stand in the coming years and the government can put all our energy to developing sustainable policies by 2018,” says Finance Minister Magdalena Andersson.
The Commission considers that tax falls entirely under its mandate, hence the need for governments to apply for tax exemptions.
(Source: Government of Sweden)