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Sweden Plans to Cut CO2 Vehicle Emissions by 600,000 Tons a Year

Sweden plans to cut carbon dioxide emissions from vehicles by 600,000 tons per year by raising the amount of biofuel in gasoline and diesel, the government said.

Under the proposal, fuel producers would from 2014 have to double the amount of ethanol in gasoline to 10 percent and raise the share of fatty acid methyl esters, FAME, in diesel to 7 percent from 4 percent, Hannes Carl Borg, political adviser to Anna-Karin Hatt, minister for information technology and energy, said in a telephone interview from Stockholm today.

The government is considering prolonging a tax exemption on fuels with little or no fossil ingredients which expires at the end of next year, Borg said. It will also levy a “small” tax on FAME and ethanol in 2013 to avoid breaching European Union law by making them too competitive, he said.

The initiatives will be part of the government’s spring budget to be published on April 16.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman in Stockholm at jbergman@bloomberg.net

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