In line with the EU’s Industrial Carbon Management Strategy and the Clean Industrial Deal, the European Commission adopted a Delegated Regulation yesterday, specifying the identification and calculation rules that apply to European oil and gas producers required to provide new CO2 storage solutions by 2030. Based on this Delegated Regulation, the Commission has today adopted a Decision setting out the individual shares of oil and gas producing companies in fulfilling the EU’s collective target of 50 million tonnes of annual CO2 injection capacity into geological CO2 storage sites by 2030 as established by the Net-Zero Industry Act. These projects will accelerate the development of Industrial Carbon Management solutions and play a key role in the decarbonisation of hard-to-abate industries across Europe.
The 44 oil and gas companies listed in Annex 1 of the Commission Decision are required to contribute to achieving the EU target in proportion to their share of the Union’s crude oil and natural gas production from 2020 and 2023. These entities are required to provide operational CO2 injection capacity by 31 December 2030 in geological storage sites, permitted in accordance with the Carbon Capture and Storage (CCS) Directive (2009/31/EC), for companies that capture CO2 to reduce their emissions. Entities listed in Annex 2 with oil and gas production in the reference period are exempt from this obligation due to their relatively small share in overall production.
Each required storage site will be recognised by Member States as a Net-Zero Strategic Project within the CO2 value chain, which can include the CO2 capture and associated transport infrastructures.
After the adoption by the Commission, Kurt Vandenberghe, Director General for Climate Action, said:
“On our way to climate neutrality, we need a portfolio of effective decarbonisation solutions. Carbon capture is part of our strategy to deliver emission reductions and permanent removals for energy-intensive industries. 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. Having extracted hydrocarbons and contributing to greenhouse gas emissions, it will now contribute to storing CO2 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 and modernisation in Europe.”
The adopted Delegated Regulation is subject to a two-month scrutiny period by the Parliament and Council. Following this period, and assuming no objection is made, the Delegated Regulation is expected to enter into force at the end of July 2025 at the same time as the Commission Decision setting the companies’ shares by publication in the Official Journal of the European Union.
The Commission published the adopted Commission Decision today as a draft to enable the obligated entities to comply with Article 23(4) of Regulation 2024/1735 and submit a plan to the Commission specifying in detail how they intend to achieve their contribution to the Union CO2 injection capacity objective by 30 June 2025.
These plans must confirm the entity’s contribution and specify the means and the milestones for reaching the targeted volume. The obligated entities have flexibility in line with Article 23(5) of Regulation 2024/1735 to meet their obligations by investing alone or in cooperation, or entering into agreements with other entities, third-party storage project developers or investors.
More information
The EU’s 2030 carbon storage target
