Using the two criteria of potential CO2 reduction and Cost Of CO2 reduction, technical energy measures in Swedish pulp. and paper mills are investigated. Principal CO2-reducing measures analysed are: decreased specific energy utilisation, fuel switch, and CO2 capture and sequestration. Among the investigated measures, conventional technologies for electricity conservation and improved electrical conversion efficiency in existing systems for cogeneration of heat and power are identified as the most cost-effective alternatives that also have large CO2 reduction potentials. For commercially available technologies, the results indicate an accumulated reduction potential of up to 8 MtCO(2)/y (14% of the Swedish net emissions). If emerging technologies for black liquor gasification (BLG) with pre-combustion CO2 capture and sequestration are considered, the CO2 reduction potential increases by up to 6 MtCO(2)/y (10% of the Swedish net emissions). Commercialised BLG, CO2 capture and reliable CO2 sequestration technologies are identified as important potential contributors to Swedish compliance with Kyoto Protocol targets, especially in a scenario of nuclear power closure. (C) 2003 Elsevier Science Ltd. All rights reserved.