1. Ministry of Agriculture, Food and Consumer Affairs Swedish policy for production of bio- energy in agriculture October 7-8, 2005 Tallinn, Estonia

2. Ministry of Agriculture, Food and Consumer Affairs Biofuels in Sweden - incentives Tax strategy for alternative fuels. –CO 2 -neutral fuels are exempted from both CO 2 tax and energy tax. National target of 3% of biofuels for 2005. High consumer demand for ethanol.

3. Ministry of Agriculture, Food and Consumer Affairs Bio-energy and agriculture Reform of the CAP - alternative activities become more viable. The farmers interest in producing energy for fuel and heating purposes have increased. The demand has increased. The development is gaining ground. However, there are still many options to explore. It is important to focus on the most cost efficient alternative for the future. A long-term perspective is essential.

4. Ministry of Agriculture, Food and Consumer Affairs The Swedish Committee A Committee has been appointed to examine the prerequisites for the Swedish agriculture to produce bio-energy. Aspects in consideration: –Competitive production. –Environmental effects and in particular environmental conflicts between different environmental goals. –Cost effectiveness. –The reform developments of the CAP and other international developments. –Long-term perspective.

5. Ministry of Agriculture, Food and Consumer Affairs The Swedish Committee (cont.) Evaluate different production alternatives to produce bio-energy. Compare the competitiveness of the bio- energy alternatives in agriculture to other energy sources. Evaluate the current and future need of R & D. The Committee shall present their results in September 2006.