Carbon capture, utilisation and storage is increasingly recognized as an element in pathways leading to climate neutrality. CCS can support the production of low-emission energy and materials by preventing emissions from entering the atmosphere. CCU, bio-CCU and DACCU can substitute fossil-based materials, thereby preventing emissions. CO2 can be removed from the atmosphere and stored permanently using Bio-CCS and DACCS, and stored in durable products using bio-CCU or DACCU.
For complete and consistent reporting of CCUS emissions and removals, and to enable the trade of Internationally Transferred Mitigation Outcomes, it is necessary to develop and approve good practice guidelines for GHG inventory reporting. CCUS activities reflected in national GHG inventories may contribute to overall national and EU economy wide climate targets, but not necessarily to any sectoral target. Currently several elements of CCUS are not completely and coherently reported in GHG inventories and excluded from the climate policy implementation framework. Only in the ETS (EU Directive 2003/87/EC) are CCS and certain CCU products considered as operators do not need to surrender allowances for the amount of CO2 permanently stored. Bio-CCS and DACCS are not considered under the EU ETS, ESR or LULUCF at least until 2030.
The majority of emissions in Finland and Sweden are of biogenic origin, while in Norway, Denmark, Iceland they are more mixed. In 2023, total emissions included in ETS in Nordics were 115 Mt CO2, where confirmed emissions by large point sources were 41 Mt fossil and 59 Mt biogenic CO2. The available data is fragmented and does not necessarily specify if emissions are fossil, biogenic or mixed. The current geological storage projects are located in Norway, Denmark, and Iceland. While Finland does not have any planned storage projects, investigations for storage potential are underway in Sweden, yet any storage project is unlikely to realize before 2030. CCU may be seen currently as economically more attractive option than CCS in countries without storage capacity. National characteristics and priorities affect what types of projects are considered and planned.
Many policy instruments are used to accelerate CCUS development in the near-term, and Nordic countries mainly use direct subsidies, reverse auctions and tenders. National schemes have different selection criteria with unique requirements for CO2 sources, storages and uses. For the long-term, the EU commission suggests allowing permanent storage of atmospheric and biogenic CO2 to offset residual emissions. There are several options for incentivizing permanent removals, such as rule-based mechanisms or purchasing programs. One possible option is to propose integration of permanent removals into the ETS, as this would enable trading of permanent removal units, such as bio-CCS, DACCS, in the wider European Economic Area, however, a design of such a system should not undermine mitigation efforts and the implementation of transformative policies.
GHG emissions and other environmental impacts are associated with CCUS technologies, directly or indirectly through market-mediated mechanisms due to the requirement of energy and land resources. It is important to develop frameworks to avoid potential negative consequences of CCUS, and the links and interactions between policies need to be better addressed. To avoid mitigation deterrence in line with principles of fairness and equity, countries could set separate targets for specific activities or sectors, treating them as different supplementary measures.