Swedish government pledges increased spending on biofuels

In Sweden, the newly elected conservative Reinfeldt government has pledged to spend nearly $100 million on the development of biofuels. The government has signed technology partnerships with the US and Brazil in recent months regarding biofuel development. Already in Sweden, there is a $1500 rebate on the purchase of a flex-fuel vehicle and 40,000 cars on the road (1% market share) are flex-fuel.

Recently in Sweden, ethanol taxes were abolished, and Scania has commenced increased exports of its biofuel-powered city buses. The head of Saab recently criticized the British government for dragging its feet on support of biofuels.

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