Bioenergy can be used as a means to reduce C02 emissions, thus helping to hamper the increase of C02 concentrations in the atmosphere. This can be accomplished through the substitution of fossil fuels, or substitution of materials whose production processes generate large C02 emissions, e. g. concrete, steel. Moreover, carbon can be sequestered in biomass in the form of carbon sinks. Also soils have a‘role to play in carbon sequestration. How bioenergy can help address the global climate problem is further discussed in other chapters of this volume (see also Chapters 2 and 12). In this section, we only briefly address how the climate problem is affecting the development of bioenergy in Sweden.

In Sweden, the climate problem has been acknowledged not only as a great international challenge but also as a national driver in the development of bioenergy strategies. Though Sweden has negotiated an increase of national greenhouse gas emissions of 4 per cent within the European Union, the short-term goal is to reduce emissions by 4 per cent in the first commitment period of the Kyoto Protocol. The goal shall be met without using sinks or the flexible mechanisms.

The strategic issues connected to climate change include trade-ofis between long — and short-term objectives. Short-term cost-effective measures may lead to severe impacts and, consequently, require expensive measures in the long run. Thus, should we change the energy system today or tomorrow, or more precisely, which part of the energy system can be changed on a cost-efficient basis today and tomorrow, respectively?

When it comes to measures to reduce CO2 emissions in the next ten years, we can single out two major issues that Sweden is addressing that affect bioenergy more directly.

• International trade with climate-related products

International trade with climate-related products is being established in the form of emissions trading, joint implementation and clean development mechanism. The challenge is to find ways to exploit the so-called climate boms in order to promote bioenergy know-how, generation and use.

• Complex systems, institutions and structures

Integrated bioenergy systems are complex and are affected by a number of drivers simultaneously. The institutions and structures of the international climate regime are under construction. The challenge lies in the development of an incentive structure that promotes climate-related products, while also contributing to dismantle barriers to bioenergy — both nationally and internationally.