The CDR Policy Scoop Public Subsidies + Carbon Credits: The winning combo? - with Erik Rylander
May 25, 2025
Join Erik Rylander, the Head of CDR at Stockholm Exergi, as he shares his expertise in blending public funding with voluntary carbon markets for effective carbon removal. He discusses successful strategies in their BECCS project, the intricacies of navigating funding sources, and the evolving role of state subsidies. Erik highlights the challenges of large-scale carbon capture, the importance of additionality, and how to ensure climate initiatives successfully align with market demands. Tune in for valuable insights and lessons learned from the front lines of carbon management!
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Stockholm Exergi Financing Journey
- Stockholm Exergi combined innovation grants, voluntary carbon market (VCM) credits, and anticipated government subsidies for financing their BECCS project.
- The project developed its own carbon removal methodology to build trust and sign key offtake contracts early on.
Engage Governments Persistently
- To succeed with public subsidies and VCM credit blending, engage early and persistently with government to shape supportive programs.
- Use successful models from other countries (e.g., Denmark) to persuade authorities and align subsidy schemes.
Focus on Early Project Launch
- Early-phase engineered carbon removal should prioritize launching few big projects over competition.
- Government subsidies combined with private funds can be crucial to jump-start projects under EU competition laws.