sou · H8B34 · 2020-01-29 00:00:00 — This restriction means that only the effect of supple- mentary measures is counted towards the national target, not the entire accounting effect possible under the EU’s LULUCF regulation. This is in line with the intentions of (SOU 2016:47) to enable contribu- tions from increased carbon sinks calculated in line with interna- tionally approved rules, e.g. that only the effect of additional mea- sures in the area may be counted. However, it would be irrational for to report potential debits in the EU while contributions from supplementary measures are used to achieve the national objectives. Potential debits from the parts of the sector that are not affected by the supplementary measures must first be balanced. The contribution from supple- mentary measures in the LULUCF sector can thus be limited by the LULUCF Regulation’s requirement that the LULUCF sector must not have any net emissions. To attain the goal of the LULUCF Regulation, all accounted flows in the respective activity are included, both changes due to the supplementary measures proposed here and changes carried out for other reasons. The contribution from the proposed supplementary measures in the LULUCF sector is thus affected by the outcome for the whole LULUCF sector in relation to the goal of the LULUCF Regulation 2021–2030. The same approach should apply for 2040 and 2045 relative to the potential rules which will apply within the EU at that time. In some cases, it may be difficult to distinguish the effect of pro- posed measures from other factors that also affect changes in emis- sions and removals. This mainly concerns measures that are already being carried out to a certain extent. One solution in such cases might be to calculate the detected effect of relative emissions or removal compared to emissions or removal the year the measure being intro- duced. In some cases, changes in the carbon sink arising for reasons other than the inquiry’s proposals can then be included. Considering the often-low use of the proposed measures today, and the good opportunities for transparent monitoring, the view of the inquiry is Summary: Strategy for negative greenhouse gas emissions that this contribution to an increased carbon sink or emission mitiga- tion due to factors other than the inquiry’s proposed instruments is minor and does not reduce the importance of the measures for the carbon balance. The following measures should be taken: Create conditions for financing climate measures •Sweden should continue to work to ensure that climate measures that increase carbon sequestration and mitigate greenhouse gas emissions can also be supported in the future and afforded greater weight within the remit of the EU’s Common Agricultural Policy. Produce advice and support for proposed supplementary measures •The should intensify existing advice, including the support that can be applied for, in order to put in place additional measures that lead to enhanced carbon sequestration on existing agricultural land and agricultural land no longer being used for food and feed production. For this, will be allocated an equivalent of million per year in 2021–2030. •The should be given the task to review and investigate the potential design of existing and new measures to benefit carbon sequestration on agricultural land in the Rural Development Programme. This mandate should also include reviewing the levels of compensation. Measures that in- crease the opportunity to attain several environmental objectives and that strengthen additional values in the agricultural landscape should be prioritised. •The should, in consultation with the , be given the task to draw up criteria for the type of land suitable for agroforestry and the species of tree most suitable for the measures without impeding the achievement of other environmental objectives and the objectives of the Strategy. Summary: Strategy for negative greenhouse gas emissions •The , in consultation with , the county administrative boards and the , should be given the task to draw up criteria for which former agricultural land is suit- able for afforestation and which the species of tree are most suitable for the measures without impeding achievement of other environmental objectives and the objectives of the Strategy. •The and the county administrative boards, in consultation with , should be given the task to develop criteria to assess the suitability and prioritisation of different types of re-wetting projects. This is in line with the proposals for re-wetting drained peatland laid out in the in-depth evaluation of the environmental objectives in 2019. The focus should be on producing a basis for identifying appropriate land for re-wetting to steer the measures to the land that provides the most climate benefit and the most benefit for other goals, e.g. biodiversity, at the lowest cost, and for the landowners concerned to be offered free advice and financial compensation for imple- mentation, maintenance if required, and lost land value. The fund- ing that currently exists for creating or restoring wetlands in the Rural Development Programme and in the wetlands initiative must be increased by an average of million per year. The compensation should be placed within the remit of existing or planned measures and administrative systems. •The should be given the task to review potential forms of support, including the size of the compensa- tion, for afforestation, i.e. trees on agricultural land taken out of production, and for optimised management of natural re- generated on former agricultural land. Summary: Strategy for negative greenhouse gas emissions Invest in research and development to increase the cost-efficiency of measures •An investment in R&D on the effects of re-wetting on green- house gas emissions should be carried out, whereby the should be granted million in 2021–2023 to allocate through targeted calls for proposals. •Research is needed on how different climate-induced damages to can be limited. An investment in research and development (R&D) on how damage can be limited should be carried out, whereby the should be granted a total of million for the years 2021–2023 to allocate through targeted calls for proposals. •The , in consultation with , the and the county administrative boards, should be given the task to review how the effect on the greenhouse gas balance from exploi- tation of land is to be calculated and develop proposals for how this can be mitigated. Other measures to strengthen and preserve the carbon sink •Under its terms of reference, the 2019 (M 2019:02) is to propose the measures needed to be able to comply with international commitments on biodiversity and climate. The pro- posals must take into account existing knowledge and needs analyses on protecting and increased demand for raw material. Once the need for measures for preserving biodiversity has been established, the measures that also contribute towards an increased carbon sink should be realised as soon as possible. •The should be given higher appropria- tions for advisory activities on sustainable growth-increasing mea- sures, measures for enhanced nature conservation on productive land, and damage prevention together with climate-friendly measures aimed at safeguarding the carbon sink and pro- duction. A specially earmarked budget of million per year for 2021–2030 is proposed for this. Summary: Strategy for negative greenhouse gas emissions •In the budget for 2020, the Government allocates the funding for 2020–2022 for managing dam- age and to support work to combat spruce bark beetle infesta- tions. After 2022, the should also be granted higher funding to monitor and combat existing and new pests. Capture and storage of biogenic carbon dioxide (bio-CCS) Underlying conditions and assessment is well-placed for bio-CCS. Today there are about seventy facilities in whose emissions of biogenic carbon dioxide alone exceed 100,000 . The combined emissions of biogenic carbon dioxide from these exceed 30 million . The greatest biogenic point emission sources and the greatest combined biogenic carbon dioxide emissions are found in the pulp and paper industry. Electricity and district heating production, including waste incineration, also accounts for significant point emissions of biogenic carbon dioxide. Emissions from both these industries primarily derive from incinera- tion of waste products from forestry and pulp manufacture and bio- genic waste. There are also a few industrial facilities outside the pulp and paper industry with major emissions of biogenic carbon dioxide. The realisable potential for bio-CCS in amounts to at least 10 million of biogenic carbon dioxide per year from a 2045 perspective. Bio-CCS is well suited to be a cost-effective mea- sure to attain the long-term climate goal of net zero emissions by 2045. Biogenic carbon dioxide ought to be able to be captured at a cost of to 600 per tonne in facilities with favourable conditions for bio-CCS, mainly in the pulp and paper industry and combined heat and power (CHP) production. The cost of transporting carbon dioxide from Swedish plants to a storage site is estimated at between and per tonne. Storage and monitoring the storage site should be feasible at a cost of to per tonne of carbon dioxide. From a geological perspective, there is storage space for carbon dioxide from Swedish CCS (including bio-CCS) for the foreseeable future, in or nearby. Carbon dioxide storage in or Summary: Strategy for negative greenhouse gas emissions another North Sea country is a fully realistic alternative for Swedish CCS projects in a technical and financial sense. It is likely that there is significant potential for carbon dioxide storage in , but knowledge of potential domestic storage sites is poor. Developing a storage site for carbon dioxide in would take a very long time, partly for that reason. For storing carbon dioxide in to be an option in the future, we need to have better knowledge about how storage sites can be identified. How- ever, at the moment should not prioritise establishing a storage site on Swedish territory. For bio-CCS to be able to take place at Swedish emission sources in the immediate future, it needs to be possible to store carbon diox- ide outside ’s borders. We therefore need to facilitate carbon dioxide storage abroad. The legal obstacles that currently exist to cross-border transport and storage of carbon dioxide should be lifted. Swedish agencies should also investigate with agencies in potential storage countries the need for bilateral agreements and what these might involve, to ease transport to and storage in another country. Transport by sea is the only realistic alternative for transporting carbon dioxide to a storage site when conducting CCS including bio-CCS in for the foreseeable future. The distance to a po- tential storage site affects the cost scenario but not in a decisive way; as long as a plant is located on the Swedish coast, or on or , it could be a candidate for CCS, including bio-CCS. In the current situation, the State should refrain from by itself carry- ing out an investment in transport infrastructure for carbon dioxide. Swedish bio-CCS is judged to have very limited consequences for biodiversity at the quantities relevant to reach the goal of net zero emissions, even if the removal of biomass increases somewhat com- pared with today’s situation. When producing instruments for bio- CCS at European level, it must be ensured that no incentives are given for bio-CCS that risk leading to unsustainable land use. At the same time, it is important not to create obstacles to sustainable bio- mass use. Although experience of CCS including bio-CCS is limited in practice, the knowledge situation is relatively good, which means that CCS, including bio-CCS, can be carried out in with no need to await the results of ongoing or planned research initiatives. In order to further improve the knowledge situation, research can be Summary: Strategy for negative greenhouse gas emissions directed towards systemic questions linked to CCS including bio- CCS, e.g. instruments, acceptance, value chain integration and con- sequences for biomass use and the energy system in the event of extensive application of CCS including bio-CCS in . Basic research and applied research in partnership with Swedish industry to lower the cost and reduce the energy-intensiveness of CCS in- cluding bio-CCS are also highly important. Today there is a lack of national or EU-wide incentives for full- scale bio-CCS. An incentive structure needs to be introduced capa- ble of promoting technological development and demonstration activities, at the same time as creating long-term economic condi- tions for full-scale bio-CCS projects. Governance to develop com- plicated and capital-intensive value chains such as bio-CCS needs to be sustainable, predictable and long-term. Bio-CCS results in net removal of carbon dioxide from the atmo- sphere, which is a benefit that can be attributed an economic value for society in general but does not result in any benefit specifically for operators that apply bio-CCS. Emissions of fossil carbon, on the other hand, cause damage to society but are an unwanted side-effect of production that is a benefit to the operator. When designing in- struments for bio-CCS, attention needs to be paid to the major dif- between these two cases in principle. While it is reasonable that an emitter pays for the damage the emissions cause, it is reason- able that a business that creates negative emissions through bio-CCS receives payment for the benefit generated. In parallel with developing national instruments for the introduction of bio-CCS, needs to work to ensure that EU- wide instruments come into being. should be sensitive to other Member States and Commission and act pragmatically and strategically based on Swedish interests when instruments are being designed at EU level. No agency has currently been appointed to take overarching responsibility for CCS issues in . has any agency been designated responsibility for coordinating the work of agencies on CCS including bio-CCS. This is a deficiency that should be tackled. Because CCS including bio-CCS is a technology chain that has not yet been established or become well-known in , it is also im- portant to improve opportunities for effective information sharing between agencies, private actors, academia and society. Summary: Strategy for negative greenhouse gas emissions The following measures should be taken: Create underlying conditions for transport and storage of carbon dioxide •Sweden should drive the question of whether all transport of carbon dioxide for storage is to be included in the EU’s Emissions At the same time, should apply to opt in all transport of carbon dioxide for storage in the for its own part. The system should furthermore include an approved method of monitoring the carbon during transport, and an opportunity to separate biogenic and fossil carbon in transport and storage using the mass balance method, without everything being considered to be fossil carbon. •Sweden should ratify the amendment in the Protocol that means that under certain circumstances, transport of carbon dioxide for geological storage with another party to the protocol is exempt from the export ban prescribed by the protocol. At the same time, should work to hasten other parties’ ratifica- tion of the amendment so that it can enter into force. When has entered into a bilateral agreement on transport and storage in another country, should take the action re- quired such that the amendment to the Protocol can be applied provisionally until it enters into force. •Sweden should take the initiative to urge the parties to the Convention to amend the convention or adopt a reso- lution on the interpretation of the convention which permits geological storage into the seabed, such that the CCS Directive becomes compatible with the convention. •Sweden should work to ensure that the decision on the mora- torium on geoengineering made at the Tenth meeting of the Conference of the Parties to the Convention on Biological Diversity in is amended such that bio-CCS and other non-fossil CCS are not covered by the moratorium. •Sweden should propose that an addition be made to the definition of transport of carbon dioxide in Commission Regulation (EU) No. 651/2014 of 17 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (Block Exemption Regulation) and in the Summary: Strategy for negative greenhouse gas emissions guidelines for state aid to environmental protection and energy such that state aid may also be granted for transport of carbon dioxide for storage other than through pipelines. Furthermore, should propose that the opportunities to provide state aid in line with the General and the guidelines for state aid for capture and storage of carbon dioxide be extended. •The Geological Survey of (SGU) should be given the task to identify what decision-making data for a Swedish storage site for carbon dioxide needs to contain and how such data could be produced. This includes setting out what surveys, amounts of data and modelling are needed and estimating what interventions involve in the form of resources and time. •The should be given the task to work with Norwegian agencies to specify what a bilateral inter-govern- mental agreement on transport to and storage of carbon dioxide in should contain, including what is needed to fulfil the requirements under the Protocol for exports of carbon dioxide. should complete this task in consultation with the and in dialogue with industry. The mandate should also include establishing whether there is interest in the and the UK in carrying out equivalent analyses together with the aforementioned Swedish agencies. Continued support for technological development and demonstrations in the field of bio-CCS •The already existing investment aid instrument for negative emissions should continue to encourage the development of technology and demonstrations in bio-CCS. It is likely that tar- geted support for technology development and demonstrations in bio-CCS will have to remain in place in some form up to at least 2030, even if the interventions that need support may change in nature by then. The future size of the appropriation should be determined taking into account experiences from calls for pro- posals and initiatives carried out. Summary: Strategy for negative greenhouse gas emissions Apply reverse auctioning to support full-scale bio-CCS •The should be given the task to run what are termed reverse auctions of negative carbon dioxide emissions through bio-CCS to support full-scale bio-CCS. •The reverse auctions are to result in differentiated guarantee prices for stored biogenic carbon dioxide for the actors that win auctions (normally the lowest bidder). The compensation paid out should be the difference between the agreed guarantee price and the value of any EU funding and national funding to promote bio-CCS that an actor receives. To have funds paid out, it should be required that the project owner has applied for relevant sup- port from the EU. •Payments could partly be made in advance, which can be seen as a form of investment aid. Procurement should be limited in terms of maximum total cost and maximum cost per tonne of geolog- ically stored carbon dioxide. The binding period should be 10 to 20 years to enable the parties involved to conduct long-term planning. •The total amount of stored biogenic carbon dioxide procured through reverse auctions should at an initial stage be limited to a maximum of 2 million per year (an estimated 3–5 plants). Once bio-CCS has reached this quantity and level of maturity in , experiences of reverse auctions should be evaluated as part of a review of the forms of continued governance of bio-CCS. Other governance of bio-CCS •In the long term, the economic instruments proposed above could also be opened up to other technologies for negative greenhouse gas emissions that entail permanent storage with the aim of making governance more cost-effective. No other such technology, how- ever, is currently judged to be sufficiently mature and have poten- tial in . Summary: Strategy for negative greenhouse gas emissions •Current taxation rules mean that it is often beneficial to use steam instead of electricity for carbon dioxide capture. This can lead to plants with their own electricity production that apply CCS/bio-CCS switching to steam turbines with lower maximum output than today, which can lead to a deterioration in the power balance on cold days. The Government should review whether there are grounds or opportunity to make self-generated electricity used to capture carbon dioxide tax exempt, or to take other steps to reduce the risk of a poorer power balance as a result of switching turbines. •It should not be possible for carbon dioxide storage that contri- butes towards greater extraction of oil or natural gas though what is termed enhanced hydrocarbon recovery () to be counted as a supplementary measure for attaining the Swedish climate goals, irrespective of the origin of the carbon dioxide. Only pro- jects within CCS including bio-CCS where carbon dioxide stor- age takes place permanently and without contributing to , should be eligible for state aid. Work for instruments to promote bio-CCS at EU level •Sweden should work to ensure that the EU develops a common long-term instrument to promote bio-CCS. A separate technol- ogy-neutral instrument with EU joint financing to achieve per- manent negative greenhouse gas emissions may be the most accessible route in the immediate future, because the alternative does not demand renegotiation of the EU’s main legal provisions in the climate field. Another option is to change the EU’s Emis- sions () such that bio-CCS gives rise to emission credits that may be used within the ETS. However, it is not desirable for this to lead to reduced pressure away from fossil fuel use in the ETS. The change therefore needs to be carried out in combination with a measure that adjusts the number of emis- sion allowances in the ETS. Summary: Strategy for negative greenhouse gas emissions Clarify and develop the distribution of responsibilities within the State •The should be made responsible for co- ordinating issues concerning CCS including bio-CCS by an addi- tion to the agency’s instructions that means that the agency co- ordinates work on CCS issues at the agencies concerned and is made responsible for CCS issues that do not fall within the remit of any other agency. This responsibility for coordination does not mean that the takes over any area of responsibility from another agency or is superior to another agency. •The ’s instructions should be changed such that the agency is given the task to work to facilitate the well-planned, resource-efficient and environmentally sustainable expansion of CCS including bio-CCS in . The agency should also be given the task to assist actors in CCS or bio-CCS with information and guidance on e.g. legal questions and aid that can be sought nationally or from the EU. •The Government should commission the to set up a national centre for CCS including bio-CCS as part of the agency. The national centre should be tasked with promoting the appropriate application of CCS including bio-CCS in , networks for increased knowledge exchange, providing a platform for dialogue and collaboration between agencies, actors and stakeholders, enabling coordinated action from the actors’ side and contributing to increasing understanding of CCS includ- ing bio-CCS in society. •The national centre for CCS including bio-CCS should be tasked with encouraging interested operators to carry out site-specific studies of the prerequisites for bio-CCS.