Policy stagnation or reevaluation? Exploring the regulatory dimensions of carbon capture, utilisation and storage in Finland and the Baltic countries

Abstract

Carbon capture, utilisation and storage (CCUS) technologies are increasingly viewed as essential tools in the global effort to mitigate climate change by rapidly reducing carbon emissions. Within the European Union (EU) regulatory framework, these technologies are positioned as critical components in the transition to an industrial climate-neutral future, as they hold significant potential to reduce carbon emissions and help meet long-term climate goals. Yet, despite this potential, the large-scale deployment of CCUS technologies continues to face challenges. This study explores the specific regulatory and policy challenges hindering the implementation of CCUS in Finland, Estonia, Latvia and Lithuania. The policy cycle approach used in the analysis highlights the importance of continuous evaluation and adaptation to ensure policies remain effective and responsive to both technological advancements and societal needs. Through interviews with high-level decision-makers and industry representatives and a comparative analysis of national policies and their alignment with EU-level regulations, the research identifies a significant disconnect between EU ambitions and national execution. Scepticism from decision-makers towards CCUS technologies, coupled with a lack of trust in regulatory bodies from the industry, has further intensified these challenges and made it difficult for CCUS technologies to gain momentum. To address these issues, we recommend clearer, more harmonised regulations and increased collaboration between decision-makers, industries and researchers. The successful implementation of CCUS technologies could significantly contribute to achieving shared climate goals.