The European Commission has initiated an in-depth investigation to assess the compliance of two Swedish tax exemption schemes for non-food-based biogas and bio-propane with European Union (EU) State aid rules.
The schemes, designed to boost the use of biogas and bio-propane for heating and motor fuel to reduce reliance on fossil fuels, were previously approved by the Commission in 2020.
However, the General Court annulled the decisions, stating that a formal investigation was required to evaluate the potential overcompensation of biogas producers.
The in-depth probe will re-examine the compatibility of the tax exemption schemes under EU State aid rules, considering guidelines on environmental protection and energy.
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