The European Commission has adopted a Delegated Regulation assigning carbon dioxide storage obligations to 44 EU oil and gas producers to meet the EU’s collective target of storing 50 million tonnes per year by 2030, the Commission announced on Thursday.
The regulation stems from the Net-Zero Industry Act and forms part of the EU’s Industrial Carbon Management Strategy to stimulate the deployment of storage infrastructure. The contribution required from each company is based on their share of EU oil and gas output between 2020 and 2023. The companies must develop operational geological storage sites by the end of 2030 in accordance with the Carbon Capture and Storage Directive.
The resulting storage sites will be recognised as Net-Zero Strategic Projects and may include both carbon capture and associated carbon transport infrastructure.
“The Net-Zero Industry Act mandates an annual CO2 safe and permanent storage capacity in the EU of at least 50 million tonnes by 2030 and makes the European oil and gas industry part of the solution, ” said European Commission director general for climate action Kurt Vandenberghe. “Having extracted hydrocarbons and contributed to GHG emissions, it will now contribute to storing carbon dioxide and help mitigate climate change. By combining their industrial know-how with faster permitting processes and robust financial support – including from the ETS-resourced Innovation Fund – we can make substantial progress in advancing industrial decarbonisation.”
Obligated companies must submit their plans to the Commission by 30 June 2025, outlining how they will achieve their storage targets. They may meet obligations individually, through joint ventures or via third-party agreements.
The Delegated Regulation is subject to a two-month review by the European Parliament and Council and, if no objections arise, is expected to come into force by July 2025.