Press release 04 February 2008
Ministry for Foreign Affairs

EU support for Swedish line on ethanol

Today the EU approved Sweden's application for permission to continue to import ethanol for processing into biofuel. This means the feared tariff increase of over 30 per cent that would have followed from a negative decision, and would have affected the 89 000 car owners who drive ethanol cars, will not materialise.

"I welcome this decision, which makes it possible for E85 and E95 prices to remain competitive. The decision shows an understanding of the situation in Sweden, where the market for environmentally friendly vehicles is growing rapidly, and bears witness to a realisation of the measures required to reach the climate goals we have jointly set," says Minister for Trade Ewa Björling.

"The decision indicates that we have gained a hearing for the overall Swedish line on the development and climate advantages of low tariffs on biofuels. We will now continue to work in the EU and the WTO to bring about more general tariff reductions on climate-friendly goods and services."

It was the EU Customs Code Committee that voted this afternoon to approve Sweden's application for permission to import ethanol for processing into the biofuels E85 and E95.