The European Commission has given the green light to a €3 billion ($3.21 billion) scheme aimed at promoting carbon capture and storage (CCS) technology in Sweden, as part of efforts to achieve net-zero emissions by 2045 and combat climate change.
The initiative aims to help Sweden achieve net-zero emissions by 2045 and will focus on projects that capture and store CO2 emissions from biomass plants, which use recycled wood and waste materials.
The scheme is designed to promote CCS as a method to combat climate change and is intended to boost investor confidence, reduce future costs, and foster the development of a CCS industry within the European Union.
Companies will be selected through a competitive bidding process, with the first auction anticipated later this year.
Eligible companies must operate in Sweden, emit biogenic CO2, and have projects capable of capturing and storing at least 50,000 tonnes of biogenic CO2 annually.
Selected firms will receive grants per tonne of CO2 stored under 15-year contracts. The grants will be adjusted based on potential project revenue, like income from carbon removal certificates, and other public supports. This scheme is set to operate until December 31, 2028. The initiative is expected to significantly contribute to Sweden’s target of reducing greenhouse gas emissions by 85% by 2045 and support the EU’s climate neutrality goal by 2050.
The plan has been approved under EU State aid rules, specifically Article 107(3)(c) of the Treaty on the Functioning of the EU, which permits state support for certain economic activities. The Commission also referenced the Guidelines on State Aid for Climate, Environmental Protection, and Energy (CEEAG), which allow subsidies for measures that reduce or eliminate CO2 emissions.
