Swedes pessimistic on biofuel targets

A Swedish environmental protection agency report on tax exemptions for the use of liquid biofuels in transport concludes that Sweden is unlikely to meet the non-binding target of 2% by 2005 set in the EU's 2003 biofuels directive. The report follows recommendations by a government committee last year - when all biofuels became tax-exempt - that Sweden reduce its national target (EED 02/02/04). The agency predicts that the tax exemption will not lead to increased Swedish production of biofuels but instead boost imports of tropical ethanol, mainly from Brazil. See the report.

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