Union level objective of CO 2 injection capacity
1. An annual injection capacity of at least 50 million tonnes of CO 2 shall be achieved by 2030 in storage sites, meaning geological storage sites permitted under Directive 2009/31/EC including depleted oil and gas fields and saline aquifers, located in the territory of the Union, its exclusive economic zones or on its continental shelf within the meaning of the United Nations Convention on the Law of the Sea and which are not combined with Enhanced Hydrocarbon Recovery.
2. All storage sites shall be designed to operate for a minimum of five years and shall respect the principles of fair and open access provided in a transparent and non-discriminatory manner, as defined in Directive 2009/31/EC.
3. By 30 June 2027 and every two years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the progress achieved towards meeting the Union annual injection capacity target, including the state of the market related to the injection capacity. The reports shall include an overview of the geographical spread of storage sites across the Union. The first report shall assess whether it is considered to be necessary to introduce a Union-wide objective for 2040 or earlier if needed.
4. The reports referred to in paragraph 3 shall include a CO 2 storage and injection capacity assessment, using, in particular, the information collected pursuant to Article 21(2) and Article 23(6). The reports shall:
(a)
provide a detailed analysis of the geographical and temporal planning of CO 2 storage sites and of the CO 2 capture projects for CO 2 emissions from industrial installations within the Union taking into account the specific potential for CO 2 usage to contribute to the permanent storage of CO 2 ;
(b)
identify the main infrastructure needed for the transport and storage of CO 2 emissions from industrial installations throughout the Union;
(c)
provide a detailed analysis on the possible barriers obstructing the development of the CCS market.
5. By 31 December 2028, the Commission may submit, on the basis of the assessment referred to in paragraph 3, a legislative proposal to introduce a new Union-level objective for CO 2 injection capacity by 2040 or earlier if needed. If the Commission decides not to propose a legislative proposal to introduce that objective, it shall provide the European Parliament and the Council with reasons for its decision.
6. Within three months of the signature by the Union of an international agreement relating to this Chapter, the Commission shall submit a report assessing the implications of the international agreement, in particular with regard to promoting and safeguarding the Union’s environmental standards, climate objectives and the potential need for additional Union policies and measures in view of the provisions of that international agreement. On the basis of that report, the Commission shall, as appropriate, submit a legislative proposal to the European Parliament and to the Council amending this Regulation pursuant to paragraph 1.
7. The Commission shall publish guidelines indicating the appropriate levels of CO 2 purity and of trace elements within the CO 2 stream for CO 2 storage projects contributing to the Union's injection capacity objective.
Transparency of CO 2 storage capacity data
1. By 30 December 2024, Member States shall:
(a)
make data on all areas where CO 2 storage sites could be permitted on their territory, including saline aquifers, publicly available, without prejudice to requirements regarding the protection of confidential information;
(b)
oblige entities which are or have been holders of an authorisation as defined in Article 1, point 3, of Directive 94/22/EC of the European Parliament and of the Council ( 55 ) on their territory to make publicly available on a non-reliance basis geological data relating to production sites that have been decommissioned or whose decommissioning has been notified to the competent authority and, if available, economic assessments of the respective costs of enabling CO 2 injection, unless the entity has applied for an exploration permit in accordance with Directive 2009/31/EC, including data on:
(i)
whether the site is suitable for sustainably, safely and permanently injecting and storing CO 2 ;
(ii)
the availability or need for transport infrastructure and modes suitable for safely transporting CO 2 to reach the site.
For the purposes of point (a) of the first subparagraph of this paragraph, the data shall include at least the information requested in the Commission Notices on the Guidance to Member States for integrated national energy and climate plans notified pursuant to Article 3(1) of Regulation (EU) 2018/1999 and the updates thereof submitted pursuant to Article 14 thereof (national energy and climate plans).
2. By 30 December 2024 and each year thereafter, each Member State shall submit to the Commission a report, which shall be made publicly available, and shall be without prejudice to requirements regarding the protection of confidential information, describing:
(a)
a mapping of CO 2 capture projects in progress on its territory or in cooperation with other Member States, and an estimation of the corresponding needs for injection and storage capacities, and CO 2 transport;
(b)
a mapping of CO 2 storage and CO 2 transport projects in progress on its territory, including the status of permitting under Directive 2009/31/EC, expected dates for Final Investment Decision (FID) and entry into operation;
(c)
the national support measures that have been or will be adopted to prompt projects referred to in points (a) and (b) of this paragraph, as well as measures relating to the cross-border transport of CO 2;
(d)
the national strategy and targets that will be and have been set for the capture of CO 2 by 2030, where applicable;
(e)
bilateral and regional cooperation that facilitates the cross-border transport of CO 2 , including their implications for the access of entities capturing CO 2 to a safe and non- discriminatory means of transporting CO 2 ;
(f)
CO 2 transport projects in progress and an estimation of the necessary future CO 2 transport projects’ capacity to match the corresponding capture and storage capacity.
3. Should the report referred to in paragraph 2 show that no CO 2 storage projects are in progress on their territory, Member States shall report on plans to facilitate the decarbonisation of industrial sectors. This shall, if applicable, include the cross-border transport of CO 2 to storage sites located in other Member States as well as CO 2 utilisation projects.
CO 2 transport infrastructure
1. In order to facilitate the achievement of the objective set out in Article 20, the Union and its Member States, where appropriate in collaboration with relevant companies, shall make all reasonable efforts to develop the necessary CO 2 transport infrastructure, including cross-border infrastructure, while taking into account the economic and environmental benefits of proximity of capture and storage sites.
2. Member States shall take the necessary measures to enable access to CO 2 transport networks and to storage sites for the purposes of geological storage of the produced and captured CO 2 as far as it is economically feasible to do so or when a potential customer is willing to pay, in accordance with Article 21 of Directive 2009/31/EC.
3. Where CO 2 is captured and transported in one Member State and transported and stored in other Member States, Member States shall coordinate the measures taken by them pursuant to paragraph 2. The Commission may facilitate such coordination through the establishment of CCS Regional Groupings when there is a joint request from the Member States involved.
Contribution of authorised oil and gas producers
1. Each entity holding an authorisation as defined in Article 1, point 3, of Directive 94/22/EC shall be subject to an individual contribution to the Union-wide target for available CO 2 injection capacity set in Article 20 of this Regulation. Those individual contributions shall be calculated pro-rata on the basis of each entity’s share in the Union’s crude oil and natural gas production from 1 January 2020 to 31 December 2023 and shall consist of CO 2 injection capacity in a storage site permitted in accordance with Directive 2009/31/EC and available to the market by 2030. Entities with crude oil and natural gas production below the threshold set in accordance with a delegated act pursuant to paragraph 12 of this Article, shall be excluded from this calculation and shall not be subject to a contribution.
2. By 30 September 2024, Member States shall identify and report to the Commission the entities referred to in paragraph 1 and their volumes in crude oil and natural gas production from 1 January 2020 to 31 December 2023.
3. Following the receipt of the reports submitted pursuant to Article 21(2), the Commission, after consulting Member States and interested parties, shall specify the contributions to the Union CO 2 injection capacity objective by 2030 from entities referred to in paragraph 1 of this Article.
4. By 30 June 2025, the entities referred to in paragraph 1 shall submit to the Commission a plan specifying in detail how they intend to meet their contribution to Union CO 2 injection capacity objective by 2030. Those plans shall:
(a)
confirm the entity's contribution, expressed in terms of targeted volume of new CO 2 storage and injection capacity commissioned by 2030;
(b)
specify the means and the milestones for reaching the targeted volume.
5. In order to meet their targeted volumes of available injection capacity, the entities referred to in paragraph 1 may:
(a)
invest in, or develop, CO 2 storage projects alone or in cooperation;
(b)
enter into agreements with other entities referred to in paragraph 1;
(c)
enter into agreements with third-party storage project developers or investors to fulfil their contribution.
6. By 30 June 2026 and every year thereafter, the entities referred to in paragraph 1 shall submit a report to the Commission detailing their progress towards meeting their contribution. The Commission shall make those reports public.
7. By way of derogation from paragraph 1, a Member State may request the Commission to exempt the entities referred to in that paragraph from individual contributions in relation to the production activities that they have carried out on the territory of that Member State from 1 January 2020 to 31 December 2023, provided that:
(a)
the overall annual injection capacity of all storage sites operated by any entity that has received a storage permit within the meaning of Directive 2009/31/EC and that has reached a final investment decision located on the territory of that Member State exceeds the sum of the individual contributions of the entities referred to in paragraph 1 of this Article in relation to the relevant production activities, and that the annual injection capacities associated with those storage sites corresponds to those mentioned in the storage permits and in the final investment decisions and contributes to the Union-wide target for available CO 2 injection capacity set in Article 20 of this Regulation;
(b)
the application is submitted before the end of 2027.
8. Provided that the conditions laid down in paragraph 7 are fulfilled, the Commission shall adopt a decision exempting the entities concerned from their individual contribution in relation to the production activities they have carried out on the territory of the Member State submitting the request.
9. Entities exempted pursuant to paragraph 8 may enter into agreements in accordance with paragraph 5, points (b) and (c), only in respect of any injection capacity exceeding the individual contribution from which they are exempted and the sum of the individual contributions that have been exempted.
10. One year after the exempting decision and every year thereafter, the Member State shall submit a report to the Commission specifying in detail the progress of the entities exempted pursuant to paragraph 8 towards meeting their contribution to the Union-wide target for available CO 2 injection capacity set in Article 20. The Commission shall make those reports public.
11. By 31 December 2028, the Commission shall, on the basis of the reports referred to in Article 42(1), point (c), and Article 42(8), assess the relationship between the demand for injection capacity from CO 2 capture projects and the main infrastructure needed for the transport of CO 2 in progress or planned to be operational by 2030 and the sum of the individual contributions of the entities referred to in paragraph 1 of this Article in relation to the production activities on the territory of a given Member State. In the case of a substantial imbalance, the Member State concerned may exceptionally ask the Commission for a derogation regarding the date by which the individual contributions are to be fulfilled.
12. The Commission is empowered to adopt delegated acts in accordance with Article 44 to supplement this Regulation with regard to:
(a)
the rules concerning the identification of entities subject to a contribution pursuant to paragraph 1, including the threshold below which entities are exempt from contribution;
(b)
the arrangements whereby agreements between entities referred to in paragraph 1 and investments in storage capacity held by third parties are taken into account to meet their individual contribution under paragraph 5, points (b) and (c);
(c)
the content of the reports referred to in paragraph 6;
(d)
the detailed conditions under which the Commission may grant an exemption or a derogation to entities under paragraph 7, 8 or 11.
13. No later than 30 June 2026, Member States shall lay down penalties by means of administrative procedures, legal proceedings, or both, applicable to infringements by entities referred to in paragraph 1 with regard to their obligations under paragraph 3. Those penalties shall be effective, proportionate and dissuasive.
Regulatory framework for the market for captured CO 2
1. By 30 June 2027, the Commission shall carry out an assessment of the functioning of the market for captured CO 2 . That assessment shall be based on a clear methodology, take into account the annual reports referred to in Article 21(2) and, in particular, consider whether:
(a)
the obligations set out in Article 23(1) effectively promote the development of the CO 2 storage market in the Union;
(b)
the market provides for open, fair and non-discriminatory access and safety of the CO 2 storage and transport network;
(c)
the market provides for open, fair and non-discriminatory access to capture CO 2 for usage or storage purposes;
(d)
the adequacy of the CO 2 transport network and other infrastructure across the Union to sufficiently support the injection capacity objectives as well as the need for CO 2 capture;
(e)
the functioning of the CO 2 market ensures sufficient access to injection capacity for hard-to-abate CO 2 emissions.
2. On the basis of the assessment referred to in paragraph 1, the Commission may propose a legislative act to regulate the market in order to address any shortcomings identified, in particular with regard to hard-to-abate emissions.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
