The Swedish Act on sustainability criteria for biofuels and bioliquids (SFS 2010:598) came into force on 1 August 2010 in order to implement the provisions concerning sustainability criteria according to the EU Renewables Directive. The criteria include requirements on decreased greenhouse gas emissions and certain restrictions on land use. There are also requirements on the physical traceability of the fuel, which implies that all actors in the production chain are accountable to the fulfilment of the sustainability criteria.
On 1 November 2011, a change in the Act came into force implicating that the reporting obligation of the sustainability criteria is linked to the tax liability for biofuels and bioliquids. The change in the Act also gives companies that have a reporting obligation the opportunity to apply for a so called sustainability notification from the Swedish Energy Agency.
From 1 February 2012, the tax exemption for biofuels and bioliquids are conditional upon presentation of a valid sustainability notification. During 2011, decisions issued by the Swedish Government concerning tax exemptions for biofuels were conditional upon the fuel meeting the sustainability criteria in the Renewables Directive.
The Directive's provisions concerning sustainability criteria also entailed certain changes in the Electricity Certificates Act (SFS 2003:113).