-- The European Union has approved a multi-year extension of a Swedish tax relief program to boost the use of sustainable biofuels in transport, the European Commission said on Thursday.
The decision allows Sweden to extend its state aid scheme through Dec. 31, 2032, providing about 1.3 billion euros ($1.53 billion) to incentivize the shift away from fossil fuels.
Under the initiative, which launched in 2003, pure and high-blended sustainable biofuels qualify for tax reductions that, in some cases, amount to a total exemption from both carbon dioxide and energy taxes.
"The scheme continues to be necessary and appropriate to stimulate the production and consumption of pure and high-blended sustainable biofuels," the Commission said in a statement.
The Commission said it assessed the measure under EU state aid rules, particularly the bloc's 2022 guidelines on climate, environmental protection and energy. It also found that the measure would not unduly distort competition within the EU's single market.