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.