Every year, we witness the growing effects of climate change, from severe heatwaves to rising sea levels, widespread drought to increased food insecurity. If we do not change course, these challenges will only continue to grow and burden future generations.

The quest for net zero, which involves cutting carbon emissions while also improving carbon removal and storage solutions, presents an opportunity to change course and deliver a better future.

The removal of CO₂ is an integral part of net zero and a critical part of any credible climate pathway. Today, the world removes around 2 Gt of CO₂ each year, mainly through forests and soils. By 2050, we will need several times more, of the order of 7–9 Gt/y, to keep the goal of limiting climate change to 1.5°C above pre-industrial levels within reach.

The Nordic region is well-positioned to lead the way, with reliable renewable energy, strong research capabilities, established industrial infrastructure and an abundance of safe geological storage formations. Iceland is pioneering this approach by utilising geothermal energy for carbon-neutral carbon management and through government investments that establish the climate as a powerful sector of the economy. We are also engaging in further Nordic action, working with the newly launched Nordic Carbon Removal Association (NCRA) to make the Nordics the carbon sink of Europe.

The economic potential is significant. Nordic carbon removals could reach 85–160mn t/y by 2050, enough to meet 2% of global demand. The removal of CO₂ could generate up to €17bn annually across the region, equal to 1% of Nordic GDP, and support as many as 150,000 high-quality jobs, spanning engineering, construction, operations, digital services, transportation and research.

Tried and trusted technologies
These solutions have already been tested and proven, and are expanding commercially. Nordic innovators across biochar, direct air capture (DAC), bioenergy with carbon capture and storage (BECCS), enhanced rock weathering and carbon mineralisation form a diverse portfolio that reduces risk and accelerates learning.

In Iceland, Carbfix mineralises captured CO₂ into stone in about two years, one of the safest and most permanent forms of storage currently available. In Sweden, Stockholm Exergi is advancing one of Europe’s most ambitious BECCS projects, integrating heat and power generation with permanent carbon storage. Finland’s peatland restoration efforts are helping to slow and reverse large-scale emissions from previously drained peatlands. And Norway and Denmark are operating and expanding shared CO₂ transport and storage systems in the North Sea that can serve industry across Europe.

Science no longer limits the most scalable and durable solutions. The challenges we must now overcome are demand and policy. We need to move from tens of millions of tonnes of contracted removals of CO₂ to hundreds of millions of tonnes of long-term offtake this decade. That demand would unlock investment, reduce costs and accelerate deployment.

We have seen this pattern before. Early commitments in wind, solar and batteries drove rapid cost decline and global scale. Carbon removal can follow the same trajectory. Governments that support the development of this industry can build a competitive advantage for decades to come through exports, innovation and stable employment.

No single country or region can build this ecosystem on its own. Collaboration is essential. The potential for deeper Nordic-UK cooperation is particularly strong. Together we can set global benchmarks for certification and verification, establish cross-border CO₂ transport and storage networks, and design common market frameworks that give investors confidence. Shared standards and coordinated infrastructure specifications would further reduce costs and increase the speed of deployment.

We need to move from tens of millions of tonnes of contracted removals of CO₂ to hundreds of millions of tonnes of long-term offtake this decade – that demand would unlock investment, reduce costs, and accelerate deployment.

Policy, demand, ambition
In recent years, the Nordic region has continued to build quietly and steadily, even as we saw firsthand how quickly climate action can falter amid geopolitical and economic uncertainties. This resilience is one of our greatest strengths. The establishment of the NCRA reflects a shared commitment to high-integrity, science-based solutions, and to building an industry that creates value while safeguarding the environment that shaped us.

We already possess the technology, natural advantages and industrial capabilities. What we need is a clear policy, stronger demand and coordinated regional ambition. By embracing carbon removal not only as a climate necessity but as a platform for innovation and economic renewal, the Nordics can shape a new industrial era grounded in sustainability and competitiveness.

The foundations exist. The market is emerging. The question is whether we choose to step into this opportunity with the speed and clarity it demands. A thriving climate solution industry is within reach if we commit to building it now.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.

• Further reading: ‘Africa needs a period of ‘carbon on credit’'. A small, strictly time-limited emissions overdraft for Africa on its journey to end energy poverty is justified, argues Louis Strydom, Director of Growth and Development for Africa and Europe at Wärtsilä Energy.
• ‘A tale of two transitions: The Energy Institute’s Country Transition Tracker highlights the disparity of energy challenges faced across the world’. Iceland and Bangladesh appear to stand at opposite ends of the energy transition spectrum – find out more.