EU approves €3 billion Swedish CCS Scheme to combat biogenic CO2 emissions
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The European Commission has sanctioned a €3 billion Swedish initiative under EU State aid regulations to support carbon capture and storage (CCS). This scheme is designed to mitigate the release of carbon dioxide during biomass combustion or processing (biogenic CO2).
This initiative will aid Sweden in meeting its climate goals and support the EU’s strategic aims under the European Green Deal, precisely the target of climate neutrality by 2050.
Under the scheme, aid will be distributed through a competitive bidding process, with the first auction anticipated in 2024.
These auctions will be open to companies that (i) operate in Sweden and emit biogenic CO2 and (ii) implement projects capable of capturing and storing at least 50,000 tones of biogenic CO2 annually.
Beneficiaries will enter 15-year contracts and receive a grant per ton of biogenic CO2 that is permanently stored.
Read more: EU sets a new standard with 75% CO2-free electricity in 2024, data shows
The Commission determined that the Swedish scheme is essential and appropriate for promoting investments in biogenic CO2 capture and storage projects, which would contribute to national and EU climate goals.
The scheme has an “incentive effect,” as these investments would not occur without public support. The aid is proportionate and designed to minimize any negative effects on competition and trade within the EU, so it has a minimal impact on these.
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“This €3 billion scheme will enable Sweden to capture and to permanently store a significant amount of carbon dioxide generated by biomass combustion or processing. It will help Sweden and the EU to achieve their ambitious target of climate neutrality by 2050, while ensuring that competition distortions are kept to the minimumstion or processing.”
Margrethe Vestager, Executive Vice-President in charge of competition policy
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