EC to re-examine ruling on Swedish biogas tax exemption schemes

The European Commission (EC) announced today the launch of an in-depth investigation into whether two ongoing Swedish tax exemption schemes for biogas and bio-propane align with EU State aid rules.

The move comes after the EU General Court annulled the Commission’s previous decision to approve the prolongation until December 31, 2030, of the tax exemptions for non-food-based biogas and bio-propane used for heating or as motor fuel.

While in June 2020, the EC found both schemes to be compatible with EU State aid rules, the General Court concluded in late 2022 that the Commission should have opened a formal investigation into whether the tax exemptions lead to the overcompensation of biogas producers when combined with support from other Member States, notably Denmark.

As a result, the Commission now has to re-examine the compatibility of the two schemes under the 2014 and 2022 Guidelines on State aid for climate, environmental protection and energy.

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