After a lengthy process, the EU Commission has now approved Sweden’s tax exemption for biogas, which enables continued investment in biogas as a sustainable fuel for the transport sector. At Tempcon Group, we hope the government will swiftly reinstate the tax exemption to provide transport companies and the entire industry with the necessary conditions to continue the transition to sustainable transport.
The tax exemption, which the Commission initially approved in June 2020 for the period 2021–2030, is of great importance in stimulating the production and consumption of biogas and biopropane. Biogas is not only locally produced and circular but also a fuel with a low climate impact and high operational reliability. The tax exemption for biogas contributes to both Sweden’s and the EU’s efforts to achieve the 2030 climate targets. However, when the decision was invalidated in December 2022, this financial incentive disappeared, leading to a significant price increase. For transport companies like Tempcon, fuel costs rose by approximately 20 percent.
Moreover, the biogas tax has made many companies hesitant to invest in biogas-powered trucks, which has in turn hindered the transition to fossil-free transport. The uncertain market conditions have also impacted the resale value of biogas trucks.
Tempcon has made a substantial commitment to biogas, with approximately 10 percent of our fleet now running on it. We are convinced that biogas provides the best climate performance on the market, and that a swift reinstatement of the tax exemption is crucial for the transport sector to meet its climate goals. We urge the government to act promptly to reinstate the tax exemption and provide the transport sector with the stability it needs to continue on the journey towards a sustainable transport system.
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