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Tax benefits for HVO in Sweden
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:
    •Until July 1, 2018, all biofuels have been exempted from carbon dioxide (CO2) tax and a reduced excise duty rate has been applied to biofuels
    •Since July 1, 2018, the CO2 tax became applicable to low biofuel blends
    •Energy tax reduction has been taken away for low biofuel blends (ethanol, ethyl-tert-butyl-ether (ETBE), biodiesel and hydrogenated vegetable oil (HVO))
    •100% biodiesel, neat HVO and E85 (conventional gasoline containing up to 85% v/v of eth
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Tax benefits for HVO in Sweden