The transport sector contributes to a significant share of greenhouse gas emissions, which needs to be tackled to reach the Sustainable Development Goals. Sweden plays a leading role in the production and testing of new biofuels and has one of the highest proportion of biofuels in the transport sector in the EU.

Biofuels refers to fuels that have been produced from renewable biomass. There are several different kinds of biofuels, but the most common are biodiesel, bioethanol, HVO and biogas. In 2005, the Swedish government implemented the Act on the Obligation to Supply Renewable Fuels, which states that all major filling stations are obliged to supply renewable fuels, such as ethanol or biogas. The intention of the act was to reduce the emissions of carbon dioxide and to increase the availability and use of biofuels.

Biofuels can, to a large extent, replace the current use of fossil fuels, and are needed to achieve emission reduction goals. Sweden is one of the countries in the EU with the highest proportion of biofuels in the transport sector. Already in 2010, Sweden reached the EU goal of having 10 % renewable fuels by 2020. In addition, Sweden has strict requirements of how biofuels are produced to consider them sustainable. For biofuels or liquid biofuels to be considered sustainable, the use of these fuels should lead to a reduction in greenhouse gas emissions, compared to the emissions that the use of fossil fuels would have given.

Swedish policies and experiences can be used to inspire similar processes in other cities and countries. By using an increased amount of biofuels, several climate benefits are achieved. Biofuels can play a key role in achieving emission reduction goals but require the development and implementation of new fuel technology and infrastructure. Biofuels must be implemented as a supplement to other developments, such as more fuel-efficient vehicles, electrification, and increased use of public transportation.

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