20 Nov. – Will the EU renew Sweden’s exemption?

bus biofuel threatened by subvention ending
pic: mostphotos.com

Traveling by bus could be become more expensive if EU has their way with Sweden. Sweden has been enjoying an EU Commission-approved exemption from taxes on biofuels for several years, which has not only spurred use of the environmentally-friendly propellent, but has made it cheaper than regular gas or diesel (pwc.se). According to SVT.se, this subsidy is likely to end by 2021.

All of Stockholm’s busses are fossil-fuel free. 15% run entirely on biogas, and 51% of Stockholm buses run on biodiesel, according to biofuel express.

Just over 10 years ago, ethanol-driven cars were all the rage, and were considered the future. In 2006, the government passed a law requiring all gas stations to install ethanol pumps – those that couldn’t afford it had to close. Then, it turned out that motors didn’t actually handle ethanol that well, and questions were raised about how fabulous it really was if food stuffs were being turned into driving fuel. As SVT reports in this older article, the government also decided, at about the same time, to cut its subsidies for ethanol – as it was all going so well. It was soon curtains for ethanol, and everyone turned to wonder-fuel diesel instead. Fast forward a few years and we find that diesel is bad and electricity is transportation’s future.

Stockholm’s buses, however, have been using biogas very successfully, cheaply and cleanly. If Sweden is to enjoy the current lower cost, a new subsidy application to the EU will be needed. Right now, though, the EU is trying to get Sweden to pay more to the EU budget (negotiations on the next five-year EU budget are already very heated), and the EU isn’t likely to look too favourably on bailing Sweden out on this issue.