In a landmark step towards climate neutrality, the European Commission has officially mandated 44 major oil and gas companies operating in the EU to collectively develop at least 50 million tonnes of annual CO₂ injection capacity by 2030. This binding requirement, set under the Net-Zero Industry Act (NZIA) and the Industrial Carbon Management Strategy, aims to fast-track Carbon Capture and Storage (CCS) deployment across Europe—particularly for hard-to-abate industrial sectors.
A Turning Point for European CCS Deployment
The move was formalized through a Delegated Regulation adopted by the Commission, which outlines how obligations are calculated and which companies are subject to them. This regulation is followed by a Commission Decision, which allocates company-specific targets based on their share of EU crude oil and natural gas production between 2020 and 2023.
Together, the 44 companies listed in Annex 1 of the Decision represent 95% of EU fossil fuel production in that period. These firms are now legally obligated to provide operational CO₂ storage capacity by 31 December 2030. The infrastructure must be permitted in line with the CCS Directive (2009/31/EC) and accessible to entities capturing CO₂ for emission reduction.
Companies with only marginal production volumes, listed in Annex 2, have been exempted from this obligation.
Highest CO₂ Storage Targets Assigned
Some of the companies with the largest storage obligations include:
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- Nederlandse Aardolie Maatschappij B.V. – 6.4 Mt
- OMV Petrom – 5.9 Mt
- S.N.G.N. Romgaz S.A. – 4.1 Mt
- ORLEN S.A. – 4.1 Mt
- Eni – 4.6 Mt
- TotalEnergies – 4.0 Mt
- Wintershall Dea – 1.9 Mt
Net-Zero Strategic Projects & Flexibility
The Commission has stated that each CO₂ storage project will be recognized by Member States as a Net-Zero Strategic Project, which ensures prioritization in permitting processes and eligibility for financial support from instruments like the Innovation Fund (funded via EU ETS revenues).
To comply, obligated entities must submit by 30 June 2025 a detailed plan describing how they intend to achieve their specific targets. This plan must outline:
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Confirmation of their storage obligation,
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Technical and financial means,
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Key project milestones.
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Companies are granted flexibility to fulfill obligations individually, through partnerships, or by outsourcing storage development to third-party operators.
A Critical Step Forward or a Risk of Carbon Leakage?
The European Commission frames this as a pivotal measure to accelerate industrial decarbonization. Kurt Vandenberghe, Director General for Climate Action, commented:
“On our way to climate neutrality, we need a portfolio of effective decarbonisation solutions. Carbon capture is part of our strategy… Having extracted hydrocarbons and contributing to greenhouse gas emissions, [the oil and gas industry] will now contribute to storing CO₂ and help mitigate climate change.”
However, the move also raises questions about industrial competitiveness, carbon leakage, and energy supply security. Critics warn that imposing stringent CCS obligations could accelerate the shift of remaining oil & gas production away from the EU, possibly to regions like Norway and the UK.
Next Steps: Scrutiny and Enforcement
The Delegated Regulation will undergo a two-month scrutiny period by the European Parliament and Council. If no objections arise, both the Regulation and the Decision are expected to enter into force at the end of July 2025.
With this measure, the EU signals a clear and enforceable demand for carbon storage—pushing fossil fuel producers to become active agents in industrial decarbonization rather than just subjects of emissions regulation.