Market Research
Fuel mixture of biofuels
Content
The budget proposal for 2017 made by the Swedish government shows that an important part of the efforts to reach a fossil-free fleet is to create long-term rules for sustainable biofuels. Renewable fuels must be given good conditions to compete with fossil fuels, so that the share of renewable fuels can gradually increase. The proposals in the legislative council ruling dated June 8, 2017 refer to a reduction obligation system which, in combination with amended tax rules, aims at reducing greenhouse gas emissions from gasoline and diesel fuels through the inclusion of biofuels. The proposal proposes a new law on the reduction of greenhouse gas emissions through the inclusion of biofuels in petrol and diesel fuels. The referral also proposes amendments to the Energy Tax Act (1994: 1776), and the Act (2010: 598) on Sustainability Criteria for Biofuels and Liquid Biofuels. The provisions are proposed to come into force on 1 July 2018. In September 2017, the government developed a proposal for a bonus-malus system for new light vehicles, being legislated as of 1 July 2018. The main motive is to increase the proportion of environmentally adapted vehicles with lower CO2 emissions. The bonus malus system can complement the more generally active fuel taxes and help to reduce the transport sector's oil dependency and climate impact. The bonus malus system only affects new passenger cars class I and II, light buses and light trucks. The existing fleet of vehicles is therefore not affected by the proposal. Examples of the proposal is presented here:
• For petrol and diesel vehicles, an increased vehicle tax (malus) will be charged in the first three years from the first tax liability of the vehicle. The carbon dioxide amount is then the sum of 82 kronor per gram of carbon dioxide as the vehicle emits per kilometer in addition to 95 grams and up to 140 grams, and 107 kronor per gram of carbon dioxide as the vehicle emits per kilometer more than 140 grams. From year 4 and beyond, the carbon dioxide amount is 22 kronor per gram of carbon dioxide in addition to 111 grams.
• Vehicles that can be powered by alternative fuels, such as E85 (ethanol) and vehicle gas (biogas and natural gas mixture) do not receive increased vehicle taxes.
• For more examples follow the links below...
The reduction obligation also implies a duty for fuel distributors to reduce greenhouse gas emissions from gasoline or diesel fuel through the inclusion of biofuels. The goal is to create the long-term and clear conditions for phasing out fossil fuels and increasing the share of low greenhouse gas emissions in a lifecycle perspective.
www.regeringen.se/artiklar/2017/09/bonus-malus-och-branslebytet/