This article examines to what extent and how the EU ETS has influenced the climate strategies of two Nordic pulp and paper companies: Swedish SCA and Norwegian Norske Skog. Rising electricity prices are perceived to be the greatest effect of the scheme. The EU ETS has served to reinforce commitments to improve energy efficiency and reduce CO2 emissions in both companies studied. Procedures like monitoring of CO2 emissions and accounting for CO2 prices have become more significant since the introduction of the EU ETS, but the scheme has not triggered a search for innovative, low-carbon solutions. Due to differences in market factors and production factors, SCA has been more active than Norske Skog in investing in and implementing CO2-lean actions. Future studies of climate-mitigation activities, strategies and innovations in the pulp and paper industry should involve more in-depth investigation of the interactions between such factors and the EU ETS.