Tax regulation mechanism (Energy and CO2-Tax)
Updated: 17.01.2019
Author: Oskar Vågerö
In Sweden, energy and carbon dioxide taxes are levied on the supply, import and production of fossil fuels. There are special tax deduction rules for biofuels.
Eligible technologies
Biofuels are eligible for tax exemption (Chapter 7 §§ 3a-3c Act No. 1994:1776).
| Biofuels | Eligible. The exempt biofuels must be certified with sustainability certification according to Chapter 3 § 1b Act No. 2010:598. |
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Amount
For ethanol produced from biomass used in low-percentage blend in petrol the maximum deduction amounts to 100% from energy tax and 100% of CO2-tax on the share of fuel produced from biomass (Chapter 7 § 3c Act No. 1994:1776).
For ethanol blend in E85 and produced from biomass the maximum deduction amounts to 100% from energy tax and 100% of CO2-tax on the share of fuel produced from biomass (Chapter 7 § 3a Act No. 1994:1776).
For biodiesel fatty acid methyl esters (FAME) produced from biomass used in blend in motor fuel or sold or used as pure fuel the maximum deduction amounts to 100% from energy tax and 100% of CO2-tax on the share of fuel produced from biomass (Chapter 7 § 3a Act No. 1994:1776).
For biogas sold or used as a motor fuel the maximum deduction amounts to 100% from energy tax and 100% of CO2-tax (Chapter 7 § 4 Act No. 1994:1776).
The amount of subsidy is equal to the amount of taxes eligible persons are exempt from. The energy and CO2-tax for petroleum amounts to range between SEK 4.53 (€ 0.44) and 7.31 (€ 0.71) per litre. The energy and CO2-tax for diesel amounts to range between SEK 4,161 (€ 407) and 4,985 (€ 487) per m3 (Chapter 2 § 1 par. 1 No. 1, 2 and 3 Act No. 1994:1776).
Addressees
Fuels from renewable sources are exempt from these taxes. Suppliers, importers and producers of renewable energy products are exempt from paying these taxes (Chapter 4 § 1 Act No. 1994:1776).
Procedure
Competent authority | The Swedish Tax Authority (Skatteverket) |
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Distribution of costs
| State | The costs of tax relief are borne by the state (Chapter 1 § 1 Act No. 1994:1776). |
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Sweden
