On 30 January 2024, the Commission launched an in-depth investigation to verify whether two Swedish tax exemption schemes are compatible with EU State aid rules.
The Swedish tax exemption schemes under investigation are aimed at increasing the use of non-food biogas and bio-propane to reduce the use of fossil fuels, thereby reducing greenhouse gas emissions. The exemption from energy and CO₂ taxation apply to both domestic and imported biogas and bio-propane used in heat generation and as motor fuel.
The Commission had in 2020, considered both schemes compatible with the Commission's 2014 Guidelines on State aid for Climate, Environmental Protection and Energy (CEEAG). However, in 2022, the General Court annulled the two 2020 Commission decisions on the ground that the Commission should have opened a formal investigation procedure to assess whether the tax exemptions combined with support from other Member States, notably Denmark, led to the overcompensation of biogas producers.
In line with the judgment of the Court, the Commission now opens a formal investigation procedure and invites market players to submit comments. The schemes are being once again assessed on the basis of the CEEAG, in the versions of 2014 and 2022.
For more information, see the Commission's press release: State aid investigation into Swedish tax exemption schemes (europa.eu)