Tax regulation mechanism II (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 generation of fossil fuels for heating purposes. Renewable energy sources are exempt from these taxes.
Eligible technologies
All renewable energy generation technologies are eligible for tax exemption. Renewable energy sources other than biomass and biogas are not physical sources (fuels) used for generation of heating, so they are not covered under the energy tax. Biomass and biogas are explicitly excluded from the tax (Chapter 6a § 2b Act No. 1994:1776).
| Aerothermal energy | Eligible. |
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| Biogas | Eligible. The exempt biogas must be certified with sustainability certification according to Chapter 3 § 1b Act No. 2010:598. |
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| Hydrothermal energy | Eligible. |
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| Biomass | Eligible. The exempt biomass must be certified with sustainability certification according to Chapter 3 § 1b Act No. 2010:598. |
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| Geothermal energy | Eligible. |
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| Solar thermal energy | Eligible. |
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Amount
The amount of subsidy is equal to the amount of taxes entitled persons are exempt from.
Addressees
Heating from renewable sources is exempt from these taxes. Suppliers, importers and producers of heating generated from these products are exempt from paying the 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
