Stockholm has entered into a long-term carbon removal agreement with Stockholm Exergi, becoming the world’s fifth largest buyer of permanent carbon removals.
Under the agreement, Stockholm will purchase 750,000 tonnes of permanent carbon removals over 15 years from Stockholm Exergi’s bioenergy with carbon capture and storage (BECCS) facility currently under construction in the Swedish capital.
Officials say the deal is designed to support Stockholm’s goal of becoming climate positive by 2030 and fully fossil fuel-free by 2040 while helping address hard-to-abate emissions linked to construction materials and wastewater treatment.
Key Overview
- Stockholm signed a 750,000-tonne carbon removal agreement
- Stockholm Exergi will supply 50,000 tonnes annually for 15 years
- Stockholm becomes the world’s fifth largest buyer of permanent carbon removals
- The removals will come from a BECCS facility in Stockholm
- The facility is expected to capture 800,000 tonnes of CO2 annually
- Operations are expected to begin around 2028
- Captured CO2 will be stored beneath the North Sea floor
- Stockholm aims to become climate positive by 2030
Stockholm Commits to Long-Term Carbon Removal Purchase
Stockholm has announced a major long-term agreement to purchase permanent carbon removals from Stockholm Exergi.
The agreement covers the purchase of 50,000 tonnes of carbon removal annually over a 15-year period, totaling 750,000 tonnes.
The removals will come from Stockholm Exergi’s bioenergy with carbon capture and storage (BECCS) project located at the company’s bio-cogeneration plant at Värtan in Stockholm.
Officials said the transaction makes Stockholm the fifth largest buyer of permanent carbon removals globally.
Analysts say the agreement represents a major shift in how municipal governments are approaching climate policy by converting climate targets into long-term commercial commitments.
BECCS Facility Targets Large-Scale Carbon Removal
Stockholm Exergi has already begun construction on the BECCS facility, which is expected to capture and permanently store approximately 800,000 tonnes of carbon dioxide annually.
The facility is expected to begin operations around 2028.
The project combines a bioenergy-based combined heat and power plant with carbon capture and storage technology.
The plant uses biomass residues from forestry, sawmill operations, and pulp and paper production as fuel sources.
Carbon dioxide emissions from the plant’s flue gases will be captured, cooled, compressed into liquid form, and transported for permanent storage beneath sedimentary bedrock below the North Sea floor.
Officials said the CO2 will mineralize over time once stored underground.
Analysts say BECCS technology is increasingly viewed as one of the leading methods for achieving permanent carbon removals at industrial scale.
Stockholm Pursues Climate-Positive Goals
Stockholm has established ambitious climate targets through its Environmental Programme and Climate Action Plan.
The city aims to become territorially climate positive by 2030 and completely fossil fuel-free by 2040.
That requires emissions within city boundaries to decline sharply while greenhouse gas removals exceed remaining emissions.
Officials said the carbon removal purchases are intended to complement broader emissions reduction efforts rather than replace them.
The city specifically highlighted hard-to-abate emissions from construction materials and wastewater treatment as areas where permanent carbon removals may be necessary.
Analysts say sectors such as cement, steel, concrete production, and wastewater treatment remain among the most difficult urban emissions sources to decarbonize quickly.
Stockholm Positions Itself as Climate Leader
Karin Wanngård said the agreement places Stockholm among the world’s leading climate-focused cities.
“The City of Stockholm aims to become territorially climate positive by 2030 and completely fossil fuel-free by 2040,” Wanngård said.
“Through this purchase, Stockholm is taking a global leadership position among climate-ambitious cities and becomes the world’s fifth largest buyer of permanent carbon removals,” she added.
Officials described the transaction as an important signal at a time when governments and cities are under growing pressure to accelerate climate action.
Analysts say municipal governments are increasingly playing a meaningful role within climate finance and carbon markets.
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Carbon Removals Become Public Procurement Strategy
The agreement highlights how carbon removals are increasingly evolving into a formal procurement category for governments and public institutions.
Analysts say Stockholm’s decision demonstrates how cities may begin integrating permanent carbon removals into long-term climate governance strategies.
The deal also reflects broader growth within the voluntary carbon removal market, which has historically been dominated by large technology companies.
Municipal governments entering the market as long-term buyers may help provide stronger demand certainty for carbon removal developers.
Industry observers say long-term agreements are particularly important because they help support financing for capital-intensive carbon capture infrastructure.
The 15-year duration of Stockholm’s agreement provides predictable future revenue streams for the project.
Stockholm Exergi Expands Carbon Removal Market Presence
Stockholm Exergi has already secured several major long-term carbon removal agreements in recent years.
In 2025, the company signed a landmark agreement with Microsoft covering more than five million tonnes of permanent carbon removals.
The companies described that agreement as the world’s largest permanent carbon removal deal at the time.
Anders Egelrud said Stockholm’s latest agreement demonstrates how municipalities can help build demand for permanent carbon removals.
“The City of Stockholm has long been at the forefront of the climate transition,” Egelrud said.
“At the same time, they are becoming part of building a new industry and creating a market for negative emissions,” he added.
Public Sector Demand May Accelerate Market Growth
Analysts say Stockholm’s agreement could influence other cities considering climate-positive or net-zero targets.
The transaction demonstrates how local governments can move beyond policy targets by directly supporting carbon removal infrastructure through commercial contracts.
Industry observers believe public-sector participation may become increasingly important for scaling permanent carbon removal markets globally.
The deal also highlights growing demand for durable, high-integrity carbon removals tied to long-term climate strategies.
Analysts say investors and corporations are increasingly focusing on permanence, transparency, and credible storage mechanisms within carbon removal markets.
Outlook
Stockholm’s 750,000-tonne carbon removal agreement with Stockholm Exergi marks one of the largest municipal climate procurement commitments globally.
The deal supports Stockholm’s ambition to become climate positive by 2030 while helping expand large-scale carbon removal infrastructure in Europe.
For the carbon removal industry, the agreement signals growing public-sector participation in long-term demand creation for permanent carbon removals.
At the same time, the transaction reflects a broader shift in climate governance as cities increasingly combine emissions reductions with permanent carbon removal strategies to address hard-to-abate emissions.
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