Drivkraft Norge – State budget 2025 – Reduced tax on biodiesel, but uncertainty about biofuels.

Drivkraft Norge is satisfied that the government is now proposing to reduce the road use tax on biodiesel for 2025. Changes in the tax level in the budget for 2024 led to the road use tax being higher for biodiesel than for regular diesel. Biofuel contributes to reduced emissions, and should not be taxed more heavily than fossil fuels.

Meanwhile , Drivkraft Norge is calling for greater clarity around the effect and usefulness of biofuel as a climate measure. 

Kristin Bremer Nebben, CEO of Drivkraft Norge, said:

We are pleased that the government has listened to our input on biodiesel and road use tax. 

“But at the same time we are concerned about how biofuel is mentioned in the Green Book. The government emphasizes biofuel as an important climate measure and plans to increase the turnover requirement to 33% for road traffic by 2030 “Nevertheless, arguments are presented that contribute to undermining the credibility of biofuels . This ambiguity can create uncertainty in the market and potentially slow down the transition to low-emission solutions in the transport sector ,” 

Bremer Nebben adds: 

“We need a clear and predictable policy for biofuels. Biofuels are an absolutely necessary means of achieving the government’s climate goals in 2030. I encourage the government to clarify its position, and to strengthen the framework conditions and incentives for use more biofuel as a substitute for fossil fuel .  

READ the latest news shaping the biofuels market at Biofuels Central

Drivkraft Norge – State budget 2025 – Reduced tax on biodiesel, but uncertainty about biofuels. source