About the target
The EU aims to achieve a CO2 injection capacity of at least 50 million tonnes per year by 2030, as outlined in the Net-Zero Industry Act (NZIA). This regulation seeks to create an EU market for CO2 storage services, and establishes several obligations for hydrocarbon producers, EU Member States, and the European Commission.
The obligations set out in the NZIA Regulation are crucial for reaching the EU’s 2030 carbon storage target and providing sufficient decarbonisation options for EU industries. Additionally, the regulation ensures that storage projects contributing to the above target are recognised and supported as net-zero strategic projects in Member States.
Member States reports under Article 21 of the NZIA Regulation
Since December 2024, Member States are required to submit an annual report to the Commission. This report must detail ongoing CO2 capture, storage and transport projects within their territories, alongside the corresponding needs for injection and storage capacities. In addition, they must communicate any national support measures, strategies, and targets that have been or will be adopted regarding the capturing of CO2. The Commission will make these reports publicly available.
Please find below a list of links to the reports submitted by each Member State.
Oil and gas producers’ contributions to the EU’s 2030 carbon storage target
The NZIA Regulation requires several EU-based oil and gas producers to help achieve the EU’s 2030 carbon storage target. This objective is crucial for decarbonising EU industries and, therefore, tackling climate change.
Through a Delegated Regulation, the Commission will define which entities must contribute to the above target. The Delegated Regulation will also specify how the contributions of those entities will be calculated, and how they will report on their progress.
The draft Delegated Regulation is open for public consultation from 19 March to 16 April 2025
Obligated oil and gas producers
Obligated producers must provide the European Industrial Carbon Management (ICM) market with annual CO2 injection and storage capacity at a geological storage site by 2030. These sites must be permitted in accordance with Directive 2009/31/EC. Companies producing oil and gas below the determined threshold are exempted from the above obligation.
By 30 June 2025, obligated producers must submit a detailed plan to the Commission explaining how they plan to contribute to the EU’s 2030 carbon storage target. The plan should confirm the volume of new CO2 storage and injection capacity they aim to have ready by 2030, and specify the methods and intermediate targets they will use to achieve this.
Obligated producers must report annually to the Commission from 30 June 2026, detailing their progress towards the above carbon storage target. The Commission will make these reports publicly available.
Transparency of CO₂ storage capacity data
Many industrial plants in Europe rely on Carbon Capture and Storage (CCS) for their decarbonisation, but the number of CO2 storage sites remains underdeveloped. Starting in 2040, the European Commission estimates that the EU will need to capture and permanently store approximately 250 million tonnes of CO2 each year to achieve climate neutrality by 2050.
To expand the EU’s CO2 storage capacity to this level, the NZIA Regulation requires Member States to publish information about potential areas for developing storage sites within their territories. Additionally, they must ensure that any geological data gathered during hydrocarbon exploration and production is made public as soon as the relevant production site is notified for decommissioning.
The purpose of these reports is to accurately track the progress of different Industrial Carbon Management (ICM) projects in each Member State. This helps ensure adequate coordination across the whole value chain and allows to monitor the progress made every year towards the EU’s 2030 carbon storage target.
The reports must map ongoing CO2 capture, transport, and storage projects within the Member State. They should also detail the permitting status of storage sites, as well as provide the expected dates for the Final Investment Decision and entry into operation. Additionally, the reports must describe national support measures for CCS projects and measures related to the cross-border transport of CO2.
In 2024, the European Commission recommended a reduction of 90% in the EU’s net greenhouse gas emissions by 2040, compared to 1990 levels. This recommendation is based on an impact assessment that models future CO2 storage needs, estimating that around 250 million tonnes of CO2 captured annually in the EU will require permanent storage by 2040. Developing at least 50 million tonnes of CO2 injection capacity by 2030 in the EU is seen as a first step to ensure sufficient access to injection capacity for hard-to-abate industries and permanent carbon removals.
According to the NZIA Regulation, certain hydrocarbon producers must contribute to the EU’s 2030 carbon storage target based on their past production of oil and natural gas in the EU. These companies possess the necessary expertise and resources to develop these sites. For instance, they can convert depleted oil and gas fields in the EU into CO2 storage sites.