Carbon Footprint
Nasdaq Invests in First EU-Certified Carbon Removal Credits from Stockholm Exergi
Nasdaq has backed one of the first carbon removal credit deals licensed under European Union rules. The project is based in Stockholm and is designed to generate high-quality carbon removal credits under a formal EU framework.
This marks a key shift. For years, carbon markets have relied on voluntary standards with mixed credibility. Now, the European Union has developed a regulated system to define what counts as a valid carbon removal. This move aims to build trust and attract large investors into a market that is still in its early stages.
The deal shows growing interest from major companies. It also reflects rising demand for reliable ways to remove carbon from the atmosphere.
Inside the Stockholm Carbon Removal Project
The removal project is run by Stockholm Exergi. It uses a process called BECCS, or bioenergy with carbon capture and storage. This method burns biomass, such as wood waste and agricultural residues, to produce heat and electricity. At the same time, it captures the carbon dioxide released and stores it underground.
The captured CO₂ will be transported and stored deep beneath the North Sea in rock formations. Over time, it will turn into solid minerals. This makes the carbon removal long-lasting and more secure than many nature-based solutions.
The facility is expected to start operating in 2028. Once active, it will generate carbon removal credits that companies can buy to balance their remaining emissions.
Beccs Stockholm is one of the world’s largest carbon removal projects. In its first ten years, the project could remove about 7.83 million tonnes of CO₂ equivalent. This makes it a key tool for helping the European Union reach climate neutrality by 2050.
The project also aims to scale carbon removal by building a full CCS value chain in Northern Europe and supporting a growing market for negative emissions credits.
This project is important because it is one of the first to follow the EU’s new carbon removal certification rules. These rules define how carbon removal should be measured, verified, and reported. They also aim to reduce risks like double-counting and weak accounting.
EU Certification: Building Trust in a Fragile Market
The European Commission has introduced a framework, also called Carbon Removals and Carbon Farming (CRCF) Regulation, to certify carbon removal activities. This includes technologies like BECCS, direct air capture with carbon storage, and biochar.
The goal is to create a trusted system that investors and companies can rely on. It also established the first EU-wide certification framework for carbon farming and carbon storage in products, not just removals.
Until now, the voluntary carbon market (VCM) has faced criticism. Concerns about transparency and “greenwashing” have made some companies cautious. Many buyers want stronger proof that credits represent real and permanent carbon removal.
The EU framework tries to solve this problem. It sets clear rules for:
- Measuring how much carbon is removed.
- Verifying results through independent checks.
- Ensuring long-term storage of CO₂.
This structure may help standardize the market. It could also make carbon removal credits easier to compare and trade across borders. The Commission states that the goal of having the framework is:
“to build trust in carbon removals and carbon farming while creating a competitive, sustainable, and circular economy.”
Corporate Demand Is Growing—but Still Limited
Large companies are starting to invest in carbon removal. However, the market remains small compared to what is needed.
One major buyer is Microsoft. It currently holds about 35% of all global carbon removal credits, making it a dominant player in the market. In fact, it is responsible for 92% of purchased removal credits in the first half of 2025.
Other companies, including Adyen, a Dutch payments provider, have also joined the Stockholm project. These early buyers aim to secure a future supply of high-quality carbon credits as demand grows.
Ella Douglas, Adyen’s global sustainability lead, said in an interview with the Wall Street Journal:
“This project does exactly that [“catalytic impact” to the VMC] while also building key market infrastructure in collaboration with the European Commission.”
Still, many firms remain cautious. Carbon removal technologies are often expensive and not yet proven at a large scale. Some companies also worry about reputational risks if projects fail to deliver real climate benefits.
This creates a gap. Demand is rising, but the supply of trusted credits is still limited.
- SEE event: Carbon Removal Investment Summit 2026
A Market Set for Rapid Growth
Despite these challenges, the long-term outlook for carbon removal is strong. Estimates suggest the market could reach $250 billion by mid-century, according to MSCI Carbon Markets.
Several factors drive this growth:
- First, global climate targets require large-scale carbon removal. The Intergovernmental Panel on Climate Change estimates that the world may need to remove around 10 billion metric tons of CO₂ per year by 2050 to limit warming.
- Second, many companies have set net-zero goals. These targets often include removing emissions that cannot be avoided, especially in sectors like aviation, shipping, and heavy industry.
- Third, new regulations are pushing companies to disclose and manage emissions more clearly. This increases demand for credible carbon solutions.
However, the current supply falls far short of what is needed. Only a small share of the required carbon removal credits has been developed or sold so far.
Balancing Removal and Emissions Cuts
While carbon removal is gaining attention, experts stress that it cannot replace emissions reductions. Removing carbon from the atmosphere is often more expensive and complex than avoiding emissions in the first place.
Groups like the European Environmental Bureau warn that over-reliance on credits could delay real climate action. They argue that companies should set separate targets for reducing emissions and for removing carbon.
The EU framework reflects this concern. It treats carbon removal as a tool for addressing residual emissions, not as a substitute for cutting pollution at the source. This distinction is important. It helps ensure that carbon markets support, rather than weaken, overall climate goals.
From Concept to Market Infrastructure
The Stockholm project marks a turning point for carbon removal. It shows how rules, strong verification, and corporate backing can bring structure to a fragmented market.
With support from players like Nasdaq, carbon removal is moving closer to becoming a mainstream financial asset. At the same time, the European Union’s certification system is setting the foundation for a more credible and scalable market.
The path ahead remains complex. Technologies must scale. Costs must fall. Trust must grow. But the direction is clear.
Carbon removal is no longer a niche idea. It is becoming a key part of the global climate economy, with the potential to shape investment flows for decades to come.
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