Biofuel quota (obligatory biofuel shares in fuel)

Updated: 18.01.2019

Author: Oskar Vågerö

Funding is granted within the framework of an innovation cluster for development and use of liquid biofuels together with obligations to increase the share of biofuels in fuel-mixtures. This will decrease the greenhouse gas emissions from diesel and petrol and aid Sweden in reaching its targets of 70% less greenhouse gas emissions in 2030 compared to 2010. 

Eligible technologies

Mixing biofuels together into petrol- and diesel fuels help reduce the greenhouse gas emissions for combustion of fuels.

Biofuels

Biofuels are considered as liquid fuels created from biomass for fuelling an engine (§ 2 Act No. 2017:1201).

Amount

Amount of quota and period of application

Anyone eligible for taxation according to Chapter 4 §§ 1, 2 Act No. 1994:1776 are obliged to reduce the greenhouse gas emissions from the corresponding amount of energy from diesel and petrol by

  • at least 2.6% for petrol and
  • at least 20% for diesel

(§ 5 Act No. 2017:1201).

The biofuels must be certified with sustainability certification according to Chapter 3 § 1b Act No. 2010:598.

Adjustment of quotas

Until 1 Jan 2019 the quota is:

  • at least 2.6% for petrol and
  • at least 19.3% for diesel.

From 1 Jan 2019 until 31 Dec 2019 the quota is:

  • at least 2.6% for petrol and
  • at least 20% for diesel.

From 1 Jan 2020 and onwards the quota is:

  • at least 4.2% for petrol and
  • at least 21% for diesel. 

Fees and penalty charges

A delayed payment penalty is carried out if any delay occurs in the reporting of the greenhouse gas reduction, up to SEK 5000 (€485) 

Procedure

Process flow

Anyone eligible for taxation in accordance with Chapter 4.1 § 1 and 2 (Act No. 1994:1776) shall report to the Swedish Energy Agency no more than 2 weeks after the obligatory reduction begun.  

Competent authority

The Swedish Energy Agency (Energimyndigheten)

Distribution of costs

State

The costs arising from the grant scheme are borne by the state (§ 11 Regulation No. 2018:1545).

Sweden

Further information

Basic information on legal sources