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To reduce carbon dioxide emissions more quickly, even more biofuels will be mixed with gasoline and diesel in the future. But in order not to drive away the price of gasoline, the government, the Center Party and the Liberals have agreed to temporarily pause the extra increase normally made with the gasoline tax.
In budget negotiations, the government and the coalition parties, the Center Party and the Liberals, have agreed to increase the mix of biofuels into gasoline and diesel. The so-called reduction obligation exists since 2018, but from next year the rate will be increased.
– We are now carrying out the most ambitious progressive introduction of renewable fuels in the world, says the Minister of Financial Markets and spokesman for the Green Party, Per Bolund, to TT.
Today, the reduction level for gasoline is 4.2 percent and 21 percent for diesel. The new agreement means that the level for gasoline will rise to 28 percent by 2030 and 66 percent for diesel.
A reduction obligation is also introduced for aviation. The Biojet Inquiry proposal is implemented, which means a reduction obligation of 0.8 percent in 2021, which will then increase to 27 percent in 2030.
The proposal will be presented in 2021, probably by the end of the year.
Emissions will be reduced by 70 percent by 2030
National transport today accounts for a third of emissions in Sweden. And by 2030, they will decline by 70 percent, which many observers consider a difficult goal to achieve.
– With this message we can reach the goal. This is one of the most important instruments we have to reduce emissions quickly, says Per Bolund.
– This means that we can reduce total emissions in Sweden by 14 percent in just ten years.
Pause the tax increase
For those who refuel, nothing special will be noticed at the pump. But biofuels are more expensive than gasoline and diesel, and to compensate consumers for this, the government, C, and L agreed to stop indexing GDP in 2021 and 2022. This is a controversial additional two percent increase that critics call it overindexing.
– Our assessment is that coupled with the fact that we are now taking a break from indexing, there will only be marginal price changes, says Per Bolund.
It is impossible to say exactly where the price of gasoline will end. The price is governed by many factors and depends not only on taxes, but also on the market price of oil and biofuels.
Stopping the indexation of GDP is estimated to cost the Treasury SEK 938 million in 2021.
Renewable in aviation fuel
Aviation will also be included in the system, albeit very modestly at first. But by 2030, the goal is for there to be 27% biofuel in aviation tanks.
The question is whether biofuel is sufficient for all that is demanded.
– Our assessment is that there will be the capacity to produce these fuels. This is an incredibly important signal that the business community has requested. They have said that if we only get long-term conditions, we will make large investments in biofuel factories, Bolund says.
Expect many new jobs and that large-scale production will also lower the price.
Facts: What is the duty to reduce?
Since 2018, there has been a so-called reduction obligation, which forces fuel suppliers to reduce greenhouse gas emissions from gasoline and diesel by blending more and more renewable biofuels.
Today, the reduction level for gasoline is 4.2 percent and 21 percent for diesel. The new agreement means that the level for gasoline will rise to 28 percent by 2030 and 66 percent for diesel.
A reduction obligation is also introduced for aviation. The Biojet Inquiry proposal is implemented, which means a reduction obligation of 0.8 percent in 2021, which will then increase to 27 percent in 2030.
The proposal will be presented in 2021, probably by the end of the year.
The new enhanced reduction obligation is estimated to reduce Sweden’s total emissions by almost 14 percent by 2030.
To compensate consumers that biofuels are more expensive than gasoline and diesel, S, MP, C and L have agreed to pause the indexation of GDP in 2021 and 2022. Therefore, the energy tax on gasoline and diesel will only be calculated with inflation (CPI) below these two years.
Pausing the indexation of GDP will cost the Treasury 938 million SEK in 2021.
Source: Government
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