Barriers and drivers for biogenic CO₂ utilization: implications for the future market

Utilization of biogenic CO₂ (bio-CO₂) presents a promising strategy to combat climate change while making use of renewable resources. However, it is an early stage market. This study therefore aims to explore the barriers and drivers for bio-CO₂ utilization and their implications for shaping the bio-CO₂ market, using Sweden as an example due to its diverse bio-CO₂ sources and existing initiatives. Twenty-four actors were interviewed, representing different types of market actors, which enabled differences between actors to be identified. For example, producers emphasized economic and market-related barriers, while users addressed uncertainties related to the supply chain and quality requirements. Among the key barriers identified are an uncertain policy landscape, as well as economic and market-related barriers that hinder bio-CO₂ utilization. Improving environmental performance is identified as a key driver for bio-CO₂ utilization but requires overcoming barriers such as high costs and payback requirements to become enacted. Other identified key drivers are the potential for new market opportunities for CO₂, such as e-fuel production, and an increased interest in bio-CO₂ over its fossil-based counterpart. There is a need for a diverse set of actions to support the development of the bio-CO₂ market, such as long-term, stable policies and regulations that support investment and market creation, along with better coordination among governmental organizations. This study thus contributes a holistic perspective on the prerequisites for bio-CO₂ utilization by exploring barriers and drivers for bio-CO₂ from different market actor perspectives and identifying policy implications, using Sweden as a case study. Future research can explore other regions and strategies.