1 Introduction

Climate policy has been organised around the timelines and pathways for reaching net-zero greenhouse gas (GHG) emissions, often referred to as climate neutrality (Fankhauser et al., 2022). Finland aims to reach climate neutrality by 2035, Iceland by 2040, Sweden by 2045 and Denmark by 2050. Norway aims to become a low-emission society by 2050, reducing emissions by 90–95% compared to the year 1990. Climate laws emphasise the need for all economic sectors to contribute to climate goals. Indications of the needed transition pathways are provided through various national strategies, plans, and Nationally Determined Contributions (NDCs). Mitigation options that rely on Carbon Capture, Utilisation and/or Storage (CCUS) are increasingly recognized, and there is an ongoing process to coherently cover all of them in national and EU policies. Currently (up to 2030) the climate policy implementation frameworks of Nordic countries in the European Economic Area (EEA) (Iceland, Norway) and European Union (EU) (Denmark, Finland, Sweden) are largely aligned, and consist of three pillars: The Emissions Trading System (ETS), which sets a cap and price on carbon dioxide (CO₂) emissions from installations; Land Use, Land Use Change and Forestry (LULUCF), which covers carbon stock changes and non-CO₂ GHG flows on managed land as a result of direct human-induced land use; and the Effort Sharing Regulation (ESR), which covers greenhouse gas emissions from sectors not included under ETS or LULUCF, such as transport, buildings, agriculture, small industry, and waste (Figure 1) (EU, 2023a, 2023b, 2024a).

Figure 1: total GHG emissions and removals for Nordic countries in year 2023 based on national inventory submissions (UNFCCC, 2025) and projections provided under Regulation (EU) 2018/1999 (EEA, 2025).

Carbon capture (CC) and permanent storage of fossil CO₂ (CCS) can support the production of low-emission energy and materials by preventing emissions from entering the atmosphere. The utilisation of captured CO₂ in products, whether from fossil (CCU) or biogenic origin (bio-CCU), or directly from the atmosphere (DACCU) can substitute fossil-based materials, thereby preventing emissions. CO₂ can be removed from the atmosphere if captured CO₂ of biogenic or atmospheric origin is stored permanently (bio-CCS, DACCS) or in durable products (bio-CCU, DACCU), and such activities are often referred to as carbon dioxide removal (CDR) or negative emission technologies (NETs). It should be noted that CCUS requires energy and other resources such as biomass or land which results in GHG emissions and may cause other sustainability challenges. Because the concept of CCUS refers to capturing CO₂ from ambient air or point sources, it does not include CDR based on biochar, wood products or other technological sinks such as enhanced weathering or ocean alkalinity enhancement.

CCUS comprises a portfolio of technologies that vary in terms of maturity, capture potential, and cost, often exceeding the current price of ETS allowances. The development of GHG inventory reporting and policy frameworks are underway, and Nordic countries actively work to introduce new CCUS-related policy instruments. As a result, Nordic solutions, networks, and competences contribute to establishing CCUS as a part of climate policy, developing CO₂ value chains, and increasing CO₂ storage capacity. Denmark, Finland, Iceland, Norway and Sweden have different focus areas. For example, Finland and Sweden have potential primarily for bio-CCS and bio-CCU, Iceland has experience with DACCS using Carbfix mineralization method and Norway and Denmark are developing geological CO₂ storage as part of the CCS value chain.

The aim of this report is to provide an overview of key themes and critical issues related to CCUS in the Nordic countries through an extensive review of existing scientific literature, technical reports by government research institutes and grey literature, complemented by a stakeholder workshop. The report is divided into five chapters. Chapter 2 provides a definition of CCUS, an overview of guidelines for reporting of emissions and removals, the latest CO₂-emission data, and information about CO₂ transport and storage. In Chapter 3 we provide an overview of the policy framework and current instruments used to scale CCUS in the Nordic countries. Chapter 4 contains information about environmental aspects and Chapter 5 presents conclusions.