Strong Member State enforcement needed as oil and gas falls short on CO₂ storage target
BRUSSELS – On the 28 of May, the European Commission published its first report on the progress made towards reaching the Union-wide target of 50 million tonnes of annual CO2 injection capacity by 2030. The report finds that, based on currently submitted plans, obligated entities would deliver less than two thirds of the target, with 29 MtCO2 injection capacity per annum by 2030.
“The Commission’s assessment confirms that oil and gas obligated entities are currently not on track to deliver the CO₂ injection capacity needed by 2030. As long as delaying delivery remains cheaper than complying with the obligation, deployment will continue to lag behind Europe’s climate and industrial needs. Strong and dissuasive enforcement by Member States is going to be essential to match investments to Article 23’s ambition,” said Ingrid Sundvor, Co-founder & Executive Director, Carbon Balance Initiative.
The report’s analysis of Member State plans finds that around 33 Mt of annual injection capacity could be delivered across announced storage projects. Both estimates contrast with project tracker analysis from Article 23 Watch, based on public announcements by project developers. The discrepancy highlights that some oil and gas producers have announced larger target capacities and faster timelines than they are prepared to deliver.
“The Commission’s projections are more conservative than Article 23 Watch estimates. While the Commission projects up to 29 MtCO₂/year from currently submitted plans, our analysis shows that over 41 MtCO₂/year is achievable if announced projects are developed at the necessary pace and meet their expected potential. Reaching 50 Mt of operational capacity would require new projects or accelerated expansion of existing sites; however, obligated entities should at least be able to deliver additional permitted capacity in this timeframe,” said Toby Lockwood, Director, Carbon Management Practice, Clean Air Task Force.
At the same time, the report makes clear that the problem is not insufficient demand for CO₂ storage, despite frequent claims to the contrary from oil and gas producers.
“The Commission’s progress report confirms: demand for CO₂ storage is there with more than 100 capture projects representing over 80 million tonnes of captured CO₂ per year seeking Innovation Fund support. Injection capacity is the key bottleneck and strong Member State enforcement will now be crucial to ensure storage deployment keeps pace with industrial demand and Europe’s climate goals,” said Hanna Biro, Policy Manager, Just Industrial Decarbonisation and CCS, Bellona Europa.
To match ambition with delivery, we need strong penalties from Member State governments by 30 June as laid down in the NZIA, stable carbon pricing, and derisking measures at the EU and Member State levels. This way we can ensure that CO₂ storage gap is closed and the EU can move onto a trajectory aligned with the 50 Mt target by 2030.
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About Clean Air Task Force
Clean Air Task Force (CATF) is a global nonprofit organisation working to safeguard against the worst impacts of climate change by catalysing the rapid development and deployment of low-carbon energy and other climate-protecting technologies. With 30 years of internationally recognised 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.
