Project description

The project is carried out by Carbon Limits on behalf of KAN to address the challenge of implementing carbon capture and storage (CCS) at Norwegian waste incineration plants. In light of tightening climate regulations tighten and changing costs of CO₂ emissions, there is a growing need for effective support mechanisms to enable CCS adoption in this sector. Previous experiences from other countries had shown that generic support schemes, such as reverse auctions, often favored larger industrial actors and risked excluding smaller waste incineration facilities.

Carbon Limits conducts a comprehensive analysis to determine how a series of reverse auctions for CCS support could be designed to ensure fair access for waste incineration plants. The project involves reviewing auction models and their key design elements, analyzing case studies from several European countries, and assessing the implications of EU state aid guidelines. The team also interviews stakeholders in Norway and abroad to gather practical insights.

The final output is a detailed report that presented recommendations for the design of future support schemes. The report outlines considerations such as auction structure, evaluation criteria, sector-specific challenges, and the importance of state coordination for CO₂ transport and storage infrastructure. The findings are intended to guide policymakers and support the development of effective and equitable funding mechanisms for CCS in the Norwegian waste sector.

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The report is published on KAN's website and can be found here.