Towards CCUS Strategy: what regulatory framework to choose

The FSR Policy debate will focus on the future regulatory framework applicable to CCS infrastructure – what should be in the Strategy, and the legislation expected at the start of the next Commission.

The 2023 CCUS Forum in Aalborg has demonstrated strong political support for the use of carbon capture and storage for achieving EU climate goals.

The Forum reiterated the need for speedy deployment of CCS, CCU and carbon removal technologies to reach EU climate goals, and especially climate neutrality by 2050 – “no CCUS no net zero”. The EU has made important steps towards implementing the policy tools to deploy CCS technologies in the EU and set the path to industry decarbonization. The forthcoming Net Zero Industry Act, and the proposed 50 MT storage target for the EU by 2030 with obligations on companies to achieve this, looks likely to be a game-changer.  Five EU Member States – Denmark, France, Germany, the Netherlands and Sweden – signed the Aalborg Declaration on accelerating and enabling cross-border CCUS in Europe. Regarding negative emissions, where CCS is vital, the EU Industrial Carbon Management Strategy is expected to be published early in 2024.

The next landmark with be the Commission’s CCUS Strategy, scheduled for early 2024. There are many issues to be dealt, ranging from CO₂ specifications, storage capacity, infrastructure, industrial carbon strategies, de-risking projects, and gaining social acceptance on projects – especially onshore storage.

Most importantly, a ‘fit for purpose’ EU regulatory framework to scale up CCUS across the EU is needed. It should provide for transparent and non discriminatory access conditions to infrastructure where needed, and at the same time be flexible enough for the fast scaling up of necessary investments. The EU has a wide experience in regulating gas networks. The legislative agreement on hydrogen and decarbonised gas market package has established a new benchmark on forward-looking regulation. Could this experience be used also for regulating CCS or is another approach needed?

The FSR Policy debate will focus on the future regulatory framework applicable to CCS infrastructure – what should be in the Strategy, and the legislation expected at the start of the next Commission.

Programme

Introduction, Ilaria Conti, FSR

Presentation of the Policy Brief, Christopher Jones, FSR

Panel discussion moderated by Andris Piebalgs, FSR

 Chris Davies, CEO of CCS Europe

 Caroline Braun, Landwärme

Leigh Hancher, FSR

Christian Egenhofer, CEPS

Axel Scheuer, IOGP

Conclusions Edith Hofer, European Commission