FSR Policy Dialogues
17/01/2024 10.00 - 11.30
Towards CCUS Strategy - what regulatory framework to
choose
The 2023 CCUS Forum in Aalborg has demonstrated strong political sup-
port 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 tar-
get 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 Car-
bon 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 strate-
gies, de-risking projects, and gaining social acceptance on projects - es-
pecially 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 in-
vestments. 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 regula-
tion. 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 ap-
plicable to CCS infrastructure - what should be in the Strategy, and the
legislation expected at the start of the next Commission.
Introduction
, FSR
Presentation of the Policy Brief
FSR
