Greenhouse gas reduction mandate

To encourage use of biofuels in Sweden, the Swedish government has implemented a greenhouse gas reduction mandate for gasoline, diesel and aviation fuel. This means that fuel suppliers must reduce greenhouse gas emissions from these fuels 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 and/or aviation fuels 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, diesel and aviation 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, diesel or aviation 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.

2018 – 2019

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

2020

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

2021

  • At least 6 percent for gasoline
  • At least 26 percent for diesel fuel
  • At least 0.8 percent for aviation fuel

2022

  • At least 6 percent for gasoline
  • At least 26 percent for diesel fuel
  • At least 1.7 percent for aviation fuel

2023

  • At least 10.1 percent for gasoline
  • At least 35 percent for diesel fuel
  • At least 2.6 percent for aviation fuel

2024

  • At least 12.5 percent for gasoline
  • At least 40 percent for diesel fuel
  • At least 3.5 percent for aviation fuel

2025

  • At least 15.5 percent for gasoline
  • At least 45 percent for diesel fuel
  • At least 4.5 percent for aviation fuel

2026

  • At least 19 percent for gasoline
  • At least 50 percent for diesel fuel
  • At least 7.2 percent for aviation fuel

2027

  • At least 22 percent for gasoline
  • At least 54 percent for diesel fuel
  • At least 10.8 percent for aviation fuel

2028

  • At least 24 percent for gasoline
  • At least 58 percent for diesel fuel
  • At least 15.3 percent for aviation fuel

2029

  • At least 26 percent for gasoline
  • At least 62 percent for diesel fuel
  • At least 20.7 percent for aviation fuel

2030

  • At least 28 percent for gasoline
  • At least 66 percent for diesel fuel
  • At least 27 percent for aviation 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 and aviation 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.

Aviation fuel refers to aviation fuel, excluding fuel used by the Swedish Armed Forces, under the commodity code 2710 19 21.

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 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:

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 and
  • 89 gCO2eq/MJ for aviation 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.