Greenhouse gas reduction mandate

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 these fuels by a certain percentage every year, through the blending of biofuels or purchasing electricity credits. The aim of the scheme is to reduce greenhouse gas emissions from transports and mobile machinery in Sweden.

Economic operators that are taxable for gasoline and/or diesel are required to reduce the climate impact of their sales of gasoline and/or diesel and/or aviation fuel by a certain percentage every calendar year, per unit of energy sold. To reach the required target percentages, fuel suppliers will need to increase the biofuel blend in their gasoline and diesel.

The greenhouse gas reduction mandate law (riksdagen.se, in Swedish)

To calculate the reduction, the climate impact of the fuel at hand is compared with the climate impact of a fully fossil counterpart. 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.

The table below presents the reduction levels including changes made in the legislation in force from July 1st 2025. The currently decided levels can be found in the consolidated act on greenhouse gas reduction mandate (link above).

Diesel

Gasoline

Aviation kerosene

2020

21 %

4,2 %

2021

26 %

6 %

0,8 %

2022

30,5 %

7,8 %

1,7 %

2023

30,5 %

7,8 %

2,6 %

2024

6 %

3,5 %

2025

10 %

2026

10 %

2027

10 %

2028

10 %

2029

10 %

2030

10 %

The yearly results of the greenhouse gas reduction mandate can be found in the report Drivmedel (Fuels).

Fuels (in Swedish)

The greenhouse gas reduction mandate affects gasoline and diesel fuel used as motor fuel. This means natural gas when used as motor fuels are not included in the mandate. Certain liquid fuels are also exempted from the mandate, namely HVO that has more than 98 % bio components, E85, ED95 and FAME100.

Gasoline refers to all gasoline, excluding alkylate gasoline and gasoline used by the armed forces, 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 and diesel used by the armed forces, under the commodity codes 2710 19 41 or 2710 19 45.

(The commodity codes are those the 2001 combined nomenclature).

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

The calculation can be summarized in the steps below:

Eb and Ef is the energy content of the biofuel component and the fossil component in a fuel, respectively. Since July 1st 2025 electricity credits may also be used to fulfil the mandate. The credits are introduced in the calculation above, by subtracting emissions for electricity credits.

Ub is the calculated emission factor of the biofuel component, expressed in g CO2eq/MJ. Uf is the standardized emission factor of the fossil component. Ud denotes the total emissions of the fuel at hand, expressed in g CO2eq/MJ.

The emission reduction of a fuel is then given as:

The standardized emission factor of the fossil fuel component, Uf, is 94 g CO2eq/MJ.

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

Greenhouse gas reduction mandate

Which fuels are affected by the greenhouse gas reduction mandate?

How is the emission reduction of a fuel calculated?

Legislation