Sweden

Bioenergy with Carbon Capture and Storage (BECCS), known as Bio-CCS in Sweden, is a notable component of Sweden’s carbon removal strategy. A 2020 public inquiry proposed that BECCS should contribute up to 1.8 MtCO2/year by 2030 and, indicatively, 3-10 MtCO2/year by 2045. 10 Mt accounts for approximately 20% of Sweden’s current total greenhouse gas emissions in the sectors covered by the EU Emissions Trading Scheme and the Effort Sharing Regulation, and around 25% of total CO2 emissions. Biochar was also mentioned as a potentially interesting solution for CDR in Sweden by the public inquiry, but it was not deemed appropriate for additional state support beyond funding made available through the Climate Leap scheme (Klimatklivet), due to the need for more applied research on how biochar could be used to meet Swedish mitigation targets.

The Swedish government has attributed SEK 36 billion (EUR 3,3 billion) for bio-CCS from 2026 to 2046, to be distributed across those who can capture and store carbon dioxide of biogenic origin at the lowest cost, determined through reverse auctions. The Swedish Energy Agency will hold the auctions and provide economic support to actors who have submitted the winning bids to the reverse auction.       

Sweden has uniquely favourable conditions for BECCS in existing facilities burning biomass, including combined heat and power plants, paper and pulp mills, and waste incineration plants. The total potential for removals through BECCS is estimated to be close to 50 MtCO2 per year, with 19.3 MtCO2/year at a cost ranging from EUR 45-125/tCO2. The cost includes transport to intermediate storage hubs but not final transport and storage which would add another EUR 25 to 40/tCO2.

The Swedish Energy Agency proposes that entities receiving state support for BECCS should be able to sell carbon removal credits on a voluntary market. State support could be reduced by the sales price, in line with current state aid rules. The agency seeks to create a market and gradually phase out state support. Tonnes removed on Swedish territory will be included in national mitigation targets, with private buyers informed that their purchase helps reach Sweden’s targets. However, the industry criticises this approach, advocating for a model like Denmark, where companies purchasing negative emissions that have received state aid can offset them against their own emissions.

The Ministry of Finance has proposed a tax reduction to the minimum level on electricity for negative emissions projects. These companies would be covered by the lower energy tax level of 0.6 öre (EUR 0,055 cents) per kilowatt hour for the electricity consumed in the installation.

Internationally, Sweden has ratified the amendment to the Article 6 of the London Protocol, thus enabling the country to forge bilateral agreements regarding CO2 storage under the seabed. Sweden also plans to make use of Article 6 of the Paris Agreement to potentially offset part of its residual emissions as part of its supplementary measures package. The Energy Agency’s Article 6 programme is currently financed by SEK 1.5 billion (EUR 126 million) until 2032, which could also target carbon removal projects.