Introduces State aid for carbon capture and storage of carbon dioxide of biogenic origin
02 Jul 2024
On 2 July 2024, the European Commission approved a €3 billion Swedish State aid scheme to promote the capture and storage of biogenic carbon dioxide (CO2) from industries such as pulp and paper and bioenergy. With a budget of 36 billion Swedish kronor (€3.14 billion) for the period 2026–2046, the scheme operates through a reverse auction system, in which companies bid for subsidies per ton of CO2 stored, with the lowest-cost projects awarded 15-year contracts.
The initiative is open to projects in Sweden that can capture and store at least 50,000 tonnes of biogenic CO2 annually and will run until 2028. It aims to reduce Sweden’s greenhouse gas emissions by 85 per cent by 2045 and contribute to the European Union’s goal of achieving climate neutrality by 2050. The scheme is intended to stimulate investment in carbon capture technologies, fostering technological advancements, carbon storage infrastructure and cost-efficient negative emissions to support Sweden’s and the European Union’s climate objectives.
Nature of measure:
Type:
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Promotion and facilitation (Investment incentives)
Industry:
Inward FDI:
No
Outward FDI:
No
Sources:
