• 44 oil and gas firms must deliver 50Mt/year CO₂ storage by 2030, proportional to past production levels.
• Storage sites will be designated Net-Zero Strategic Projects, enabling access to faster permitting and funding.
• Entities can meet obligations through partnerships, solo investments, or third-party collaborations.

The European Commission has formally designated 44 oil and gas companies to develop CO₂ storage capacity across Europe, aligning with the EU’s Net-Zero Industry Act and Industrial Carbon Management Strategy.

By 2030, these companies must provide 50 million tonnes of annual CO₂ injection capacity into geological storage sites — a cornerstone initiative aimed at decarbonizing Europe’s most emissions-intensive sectors. The requirements are proportionate to each firm’s share of EU crude oil and natural gas production from 2020 to 2023.

“On our way to climate neutrality, we need a portfolio of effective decarbonisation solutions,” said Kurt Vandenberghe, Director General for Climate Action. “Carbon capture is part of our strategy to deliver emission reductions and permanent removals for energy-intensive industries.”

The Commission’s newly adopted Delegated Regulation sets out the framework for calculating company obligations, and will be enforced from July 2025, pending a two-month review period by the European Parliament and Council. Once in force, the obligations will be officially published in the Official Journal of the European Union.

Each required CO₂ storage project will be designated a Net-Zero Strategic Project, facilitating smoother permitting processes and eligibility for financial support through mechanisms such as the ETS-funded Innovation Fund.

“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,” Vandenberghe added.

While Annex 1 lists the obligated entities, Annex 2 exempts companies with marginal production. Qualified companies must submit plans confirming their contributions, methods, and milestones to meet storage targets.

Crucially, under Article 23(5) of Regulation 2024/1735, companies retain flexibility: they can act individually, form consortia, or collaborate with third-party developers or investors to fulfill obligations.

This marks a pivotal step in Europe’s carbon management transition, placing direct accountability on fossil fuel producers to support decarbonization.

Follow ESG News on LinkedIn