Commission greenlights EUR 3.8 billion Danish State aid scheme to promote investment in carbon capture and storage
The Commission has approved a EUR 3.8 billion Danish State aid scheme to support the capture and storage of biogenic, fossil and atmospheric CO₂, advancing Denmark’s climate objectives under the Clean Industrial Deal.
The scheme is expected to deliver an annual capture and storage of 2.3 million tonnes of CO₂ between 2029 and 2044 (amounting to 34.5 million tonnes in total) compared with Denmark’s 38 million tonnes of CO₂-equivalent emissions in 2024. Aid will be awarded through competitive tenders using a pay-as-bid system, with beneficiaries receiving a fixed subsidy per tonne based on their bid, and payments made only after verified CO₂ capture and storage.
The Commission approved the measure under the 2022 Guidelines on State aid for climate, environmental protection and energy, concluding that the scheme is necessary, appropriate and proportionate to promote CO₂ reduction.
For more information, see the Commission’s PR.