Pollution Should Come at a Cost; We Must Be Ready by 2039. If we want to reduce carbon dioxide emissions, emitting CO₂ must come at a cost. That is the idea behind the EU Emissions Trading System (EU ETS), one of the most important tools for accelerating the climate transition in Europe. But how does it work, which companies are affected, and why does it matter for district heating in Helsingborg?
Why Do Emission Allowances Exist?
The EU aims to reduce its emissions by at least 55% by 2030 compared to 1990 levels. To achieve this, emissions from industry and energy production must decrease significantly, and emissions trading is one way to guide that development.
This is how the system works:
• Companies that emit carbon dioxide must purchase emission allowances; each allowance gives the right to emit one tonne of CO₂
• The number of allowances decreases each year, making them both more expensive and more complicated to obtain; this increases the cost of emitting CO₂ over time
• The more expensive it becomes to emit, the greater the economic pressure on companies to reduce their emissions quickly
Which Companies Are Covered by the System?
EU ETS applies to sectors with the highest carbon dioxide emissions, including:
- Industries such as steel, cement, and chemical production
- Energy companies producing electricity and district heating
- Airlines and maritime transport (recently added to the system)
Companies in these sectors must hold emission allowances to release CO₂. If they cannot reduce their emissions quickly enough, they are forced to pay more and more.
How Does This Affect the Filborna District Heating Plant?
To continue producing district heating and electricity, the Filborna Plant must find a solution that makes its operation fossil-free. In theory, there are two options, but in practice, only one.
The option to convert the Filborna Plant to run entirely on biofuels is not realistic. It would be an expensive process that would negatively impact the district heating model and increase costs for customers. Furthermore, we still have residual waste that needs to be managed; stopping incineration doesn’t solve the problem; it just creates a new one.
That’s why CCS (Carbon Capture and Storage) is the only sustainable solution. By capturing and storing carbon dioxide, we can continue to produce affordable, sustainable, and competitive district heating while reducing CO₂ emissions.
Conclusion – CCS Is the Key to the Future of District Heating
EU emission allowances exist to accelerate the transition to a greener economy. Companies and industries that continue to emit carbon dioxide must either reduce their emissions or pay an increasingly high price; after 2039, emissions will no longer be permitted.
For the Filborna Plant, this means we must become fossil-free. CCS is the most effective solution, allowing us to continue recovering energy from residual waste and deliver sustainable, affordable district heating in Helsingborg, even in a future where emissions are no longer an option.
