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Greenlight to Swedish tax exemption for non-food biogas and bio-propane – Clayton & Segura

23 October 2024
Press Releases

Greenlight to Swedish tax exemption for non-food biogas and bio-propane

Today, the European Commission has reaffirmed that Sweden’s tax exemption schemes for non-food-based biogas and bio-propane used in heating and as motor fuel align with EU State aid law, and in particular with the 2014 EEAG and the 2022 CEEAG (Guidelines on state aid for climate, environmental protection and energy).

These schemes were initially approved in June 2020 but the General Court annulled the decisions in December 2022 on procedural grounds. The Court considered that the Commission should have opened the formal investigation procedure to determine whether support combined with aid from other Member States like Denmark caused overcompensation of gas producers.

Following an in-depth investigation launched in January 2024, the Commission concludes that the Swedish schemes are crucial for promoting renewable energy and reducing fossil fuel reliance, contributing to EU and national climate objectives. The investigation has confirmed that the aid is proportionate, necessary, and does not result in overcompensation of biogas producers, as both Sweden and Denmark have appropriate monitoring systems to prevent this. Therefore, the Commission has confirmed that the tax exemptions complied with EU State aid rules.

For more information see the PR of the Commission.

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