Brussels – The EU institutions reached an agreement today on the Net Zero Industry Act, providing an important framework for an options-based strategy to support industrial decarbonisation in the European Union.
The NZIA was proposed at an important time for option-based climate policy in Europe. The EU is not on track to hit its emissions reduction targets, to build the clean energy system needed, and to decarbonise its industries.
“The European Union needs to ensure the appropriate regulatory framework, infrastructure, and funding are available to decarbonise its industries and deliver on its climate ambition,” Alessia Virone, Government Affairs Director, Europe. “The NZIA is taking a serious step in the right direction by supporting the deployment of technologies needed for industrial decarbonisation, such as carbon capture and storage and further clean electricity options.”
This agreement takes place in a broader context of increased focus on carbon capture and storage technology by the EU in recent years, culminating with the adoption of the industrial carbon management strategy today. The NZIA will be crucial to address the challenges facing the development of CO2 storage in particular, as outlined by CATF last year, which is important to ensure cost reductions for emitters.
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“Today is a landmark day for carbon capture deployment in Europe, with the adoption of the 2040 targets communication, the Industrial Carbon Management Strategy and the agreement on the NZIA,” said Eadbhard Pernot, Policy Manager, Carbon Capture. “With these initiatives, the EU is sending a clear signal that it is committed to ensure our climate goals can be met and European industries can transform their production processes here in Europe”.
The agreement adopted today included four key measures for carbon capture and storage:
- An EU CO2 storage target: The agreement kept the Commission’s proposal of a target of 50 Mt of CO2 in annual injection capacity by 2030, but added that the Commission should assess the need of a target for 2040 or earlier. This injection target is crucial to ensure sufficient storage within the EU.
- Obligation on oil and gas producers. The oil and gas producers will be tasked to deliver on this target, capitalising on their expertise and resources to put CO2 back in the ground permanently.
- The inclusion of CO2 transport. The institutions agreed to expand the scope of the NZIA scope to CO2 transport, with the Union and its Member States being tasked to make every reasonable effort to develop the necessary CO2 transport infrastructure, including for cross-border infrastructure.
- A fair and competitive CO2 market. The Council and the Parliament tasked the Commission to consider and assess the opportunity of a legislative framework to build a fair, transparent, and open-access market for captured CO2.
CATF also welcomes the addition of nuclear in the list of clean technology options that are supported by the NZIA to tackle industrial emissions.
Julia Kislitsyna, Communications Manager – Europe, +49 151 16 220 453, [email protected]
About Clean Air Task Force
Clean Air Task Force (CATF) is a global nonprofit organization working to safeguard against the worst impacts of climate change by catalyzing the rapid development and deployment of low-carbon energy and other climate-protecting technologies. With more than 25 years of internationally recognized expertise on climate policy and a fierce commitment to exploring all potential solutions, CATF is a pragmatic, non-ideological advocacy group with the bold ideas needed to address climate change. CATF has offices in Boston, Washington D.C., and Brussels, with staff working virtually around the world. Visit catf.us and follow @cleanaircatf.