The reduction obligation

The Act on Reduction Obligation

Since 2018, there has been a law on reduction obligations for all fuels in Sweden. The aim is to reduce greenhouse gas emissions by gradually increasing the renewable raw material content in fuels.

In this way, the government wants to create rules for fuel producers, so that fossil fuels can gradually be phase out – to get closer to the goal of a fossil-free vehicle fleet in Sweden by 2030.

Calculating the reduction for different fuels does not just involve measuring the tail pipe emissions. The entire production chain is considered to calculate how much a product contributes to reducing emissions.

The Swedish reduction obligation involves a gradual increase in the blending of biofuels with fossil fuels, between the years 2019 and 2030.

The reduction obligation means higher prices at the pump and can be compared to a hidden tax on fuel.

The reduction obligation
2020 21%
2025 45%
2030 66%