“It is a strange proposition to levy a carbon tax on renewable bio oils in an already challenging market. Sweden has set ambitious targets to become fossil fuel free, and this would push us in the wrong direction. However, Wibax is well prepared and can provide alternative bio oils, which remain unaffected by the proposal”, explains David Wiklund, CEO, Wibax Biofuels.
Very few of Wibax’ customers use the products in question. The customers who use RME for heating use it mainly in facilities consuming small amounts of oil. Wibax encourages customers to convert facilities or otherwise enable combustion of tall oil or MFA in their facilities, however, smaller facilities may face unsustainably large investments relative to their consumption and therefore decide to go with a different combustion method.
Levying a carbon tax on renewable fuel is wrong and damaging for the climate. Renewable fuels do release carbon dioxide when they are used, but no more than they absorbed from the atmosphere, months earlier. Taxing CO2 from renewable sources would undermine the credibility of Swedish climate policy. Sweden must not bow to the demand from the European Commission to tax renewable bio oils.
Read Svebio’s article and opinion on the proposal here>>
