In a Nutshell

• The Slovenian Long-Term Climate Strategy states that removals will be used to offset residual emissions and reach climate neutrality by 2050. However, the 2025 Climate Act sets a more ambitious target of achieving climate neutrality by 2045 at the latest
• Slovenia is in the process of adopting the proposed Climate Act, and has published its final updated NECP, which introduces a more comprehensive climate approach including new financial incentives for green technologies. Despite these updates, geological CO₂ storage remains prohibited.
• Carbon contracts for difference might be used to incentivise CCU and potentially CCS.

Role for carbon removal in national climate policy

Through its new Climate Act, Slovenia has committed to reaching climate neutrality by 2045. According to its final updated National Energy and Climate Plan (NECP), greenhouse gas (GHG) emissions are set to be reduced by at least 35%-45% by 2030 and 55% by 2033. Emissions covered by the Effort Sharing Regulation by are to be reduced by at least 28%-31% by 2030 compared to 2005 levels.

The final updated NECP clarifies targets for the Land-Use, Land-Use Change and Forestry (LULUCF) sector: for the 2021-2025 period, emissions must not exceed removals. Thereafter removals must exceed emissions for the 2026-2030 period. Finally, in 2030 net removals from the sector must be at least 0.14MtCO₂.The NECP outlines that the LULUCF sector’s net balance depends on forest and agricultural management, deforestation, and the use of wood products.

The final updated NECP includes a chapter detailing the policies and measures to support decarbonisation in Slovenia . The measures include the expansion of the Emissions Trading System to new sectors like buildings and road transport and the establishment of new financial incentives in favour of green technologies highlighted in the Net Zero Industry Act, such as green hydrogen and CO₂ capture and storage. The financial incentives will draw on EU resources like the Climate Change Fund, Innovation Fund and Modernisation Fund.

The Slovenian Long-Term Climate Strategy until 2050 states that removals will be used to offset residual emissions and reach climate neutrality in 2050. The strategy defines removals as sinks in the LULUCF sector and the “direct capture of GHG emissions”. According to the strategy, the LULUCF sector’s net sinks could be increased by 2.5MtCO₂ by 2050. The strategy also mentions that CCU could be used in the cement and metal manufacturing industries after 2040. It highlights the need to ensure support for pilot projects, infrastructure, and a regulatory framework around CCU. The strategy identifies the costs of CCU as the main barrier to deployment.

As part of its Common Agricultural Policy Strategic Plan, Slovenia plans to use various measures to increase carbon storage in agricultural soils, including the promotion of organic farming and the greening of arable land.

Relevant legal frameworks

Slovenia is adopting its Climate Act, in which are outlined its climate goals and policy measures to achieve them. . The Act establishes a legal framework for a  national Climate Fund. The fund can be used to develop CO₂ sinks in forests and soils, and innovative technologies to remove CO₂ from the atmosphere. The Act establishes the legally binding target of climate neutrality by 2045, while the Slovenian Long-Term Climate Strategy provides the specific sectoral targets to achieve that goal. Slovenia’s Environmental Protection Act prohibits the injection and storage of CO₂ in geological formations in the country’s territory. The act also provides the legal framework for environmental protection measures, environmental monitoring, economic and financial instruments of environmental protection, and public services for environmental protection. While geological storage of CO₂ is prohibited, the transport of CO₂ is allowed under Slovenia’s Energy Act. The Energy Act also mentions that access to CO₂ infrastructure must be non-discriminatory.

Support for R&D and Innovation

The final updated NECP  proposes carbon contracts for difference (CCfDs) as a potential funding mechanism for CCU and transport. The final updated version of Slovenia’s NECP outlines that, to sucessfully implement targeted projects in industry, companies should apply for EU project funding to finance the CCfD scheme.  The NECP t states that the Net-Zero Industry Act will be used as the basis for support to CCS as the framework for strengthening Europe’s net-zero technology manufacturing ecosystem.

By 2030, Slovenia does not intend to capture CO₂ on a larger scale. Instead, the focus is on encouraging planning and feasibility studies to support the implementation of a pilot project, with the first major project expected in the cement industry.

In 2022, the National Institute of Chemistry established a demonstration and training centre for carbon-free technologies, including hydrogen, carbon capture and conversion and advanced battery technologies.

Given that CO₂ storage is currently prohibited in the country, Slovenia will have to export the CO₂ it captures or removes to neighbouring countries such as Croatia, Italy and Hungary. Another option would be to transport CO₂ to storage sites in the North Sea, which would require substantial investments in the development of the necessary infrastructure. The lack of domestic CO₂ storage is holding local actors back from deploying CCS. For example, the Salonit Anhavo cement plant has identified this lack of domestic storage as a key factor blocking their plans to deploy CCS at their facilities.

On the horizon

Upcoming developments include the potential implementation of a CCfD scheme to incentivise climate-friendly projects and the planned launch of a pilot carbon capture project in the cement industry. In the LULUCF sector, the country is actively working on achieving its net sink target for 2030 through the implementation of existing forestry and agricultural plans.