Greenhouse gas reduction mandate

To encourage use of biofuels in Sweden, the Swedish government has implemented a greenhouse gas reduction mandate for gasoline and diesel. This means that fuel suppliers must reduce greenhouse gas emissions from gasoline and diesel by a certain percentage every year. The greenhouse gas reduction mandate is intended to contribute to the national goal of 70 percent greenhouse gas reduction from domestic transport by 2030.

Economic operators that are taxable for gasoline and/or diesel are by law (2017:1201) bound to reduce the climate impact of their gasoline and/or diesel by a certain percentage every calendar year. This percentage increases every calendar year and is separate for gasoline and diesel. During 2020, the reduction levels are required to be at least 4.2 percent for gasoline and at least 21 percent for diesel fuel. To reach the required target percentages, fuel suppliers will need to increase the biofuel blend in their gasoline and diesel.  

To calculate the reduction, the climate impact of the fuel at hand is compared with the climate impact of a fully fossil counterpart (fossil gasoline or fossil diesel fuel respectively). The climate impact of the biofuel component in a fuel is calculated according to a life cycle perspective, from cultivation and production to usage. The purpose of this is to promote use of biofuel with favorable climate properties.

What are the yearly reduction levels?

Rather than having a flat reduction level that is identical each year, a progressive approach will instead aim to gradually increase the reduction levels with new reduction targets every year. As of 2020, upcoming reduction levels have not yet been decided. Below are the reduction levels starting from the date that the law entered into force.

2018-07-01 – 2019-12-31

  • At least 2.6 percent for gasoline,
  • At least 20 percent for diesel fuel.

2020-01-01 –

  • At least 4.2 percent for gasoline,         
  • At least 21 percent for diesel fuel.

Which fuels are affected by the greenhouse gas reduction mandate?

The greenhouse gas reduction mandate affects gasoline and diesel fuel used as motor fuel that include no more than 98 percent biofuel.

Gasoline refers to all gasoline, excluding alkylate gasoline, under the commodity codes (CN codes) 2710 11 41, 2710 11 45, 2710 11 49, 2710 11 51 or 2710 11 59.

Diesel fuel refers to all diesel fuel, excluding dyed diesel/red diesel, under the commodity codes 2710 19 41 or 2710 19 45.

Fuels containing more than 98 percent biofuel are not affected by the greenhouse gas reduction mandate. Gaseous fuels and liquefied gaseous fuels are not affected by the greenhouse gas reduction mandate.

How is the emission reduction of a fuel calculated?

The emission reduction of a fuel is calculated by comparing the emissions of the gasoline or diesel fuel at hand with the emissions of a fully fossil gasoline or diesel fuel equivalent.

The calculation can be summarized in the steps below:

ekvation1.PNG

Eb and Ef is the energy content of the biofuel component and the fossil component in a fuel, respectively.

equation2.PNG

Ub is the calculated emission factor of the biofuel component, expressed in gCO2eq/MJ. Uf is the standardized emission factor of the fossil component. Ud denote the total emissions of the fuel at hand, expressed in gCO2eq/MJ.

The emission reduction of a fuel is then given as:

equation3.PNG

The standardized emission factor of the fossil fuel component, Uf, is as follows:

  • 93.3 gCO2eq/MJ for gasoline
  • 95.1 gCO2eq/MJ for diesel fuel.

The emission factor of the biofuel, Ub, accounts for the life cycle of the fuel and is calculated according to the sustainability criteria method.