Tax Benefits for HVO in Sweden

Lucky Nurafiatin

Sweden’s taxation system has been the major driver behind biofuel blending in the country. Considering the high share of biofuels in Sweden compared to their share in other EU countries, the taxation can be seen as a more effective driver of biofuel demand than the renewable energy target. The taxation rules are:

•, all biofuels have been exempted from CO2 tax and a reduced excise duty rate has been applied to biofuels (see figure below)

•Since July 1, 2018, the CO2 tax became applicable to low biofuel blends, and

•Energy tax reduction has been taken away for low biofuel blends (ethanol, ethyl tertiary butyl ether - ETBE, biodiesel and HVO)

•100% biodiesel, neat HVO and E85 are exempt from energy tax

•Neat HVO has been exempted from energy and CO

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