In Sweden, I’m guessing it’s government backed greenwashing. This article (state sponsored site) strongly suggests biofuels have significantly reduced their carbon output:
"It is important to note that biofuel production and consumption, in and of itself, will not reduce GHG or conventional pollutant emissions, lessen petroleum imports, or alleviate pressure on exhaustible resources."
Its only ridiculous if you view it as a subsidy for ethanol fuel rather than a subsidy for the corn industry. All the government is doing there is creating a market where one wouldn't otherwise exist.