BAKU, Azerbaijan, April 10. In Europe, the issue of cross-border transport and storage of CO2 is gaining prominence within CCS (Carbon Capture and Storage) developments, particularly under the EU ETS (emission trading systems), Trend reports via the Oxford Institute of Energy Studies (OIES).
OIES notes that many EU Member States facing high emissions lack the geological capacity for CO2 storage, necessitating the export of CO2 to regions with ample storage capabilities. Recent bilateral agreements, such as Germany's and the Netherlands' deal with Norway, to transport and store CO2 in the Norwegian continental shelf of the North Sea highlight this trend.
However, a more comprehensive framework of cross-border regulations is essential to streamline the development of European CCS projects. Outside Europe, certain ETSs do not encompass the entire CCS value chain; for instance, the California ETS covers CO2 suppliers but excludes transport and geological storage components, while provisions for CCS in the New Zealand ETS are currently inactive.
In tandem, the European Commission has taken regulatory steps through its Net-Zero Industrial Act (NZIA), setting a target for CO2 storage capacity of 50 Mt by 2030 at a continental level. This initiative was further reinforced in the EU Industrial Carbon Management Strategy, which outlines 2040 and 2050 targets of 280 MtCO2 and up to 450 MtCO2 captured per year, respectively. These measures aim to bolster investor confidence by ensuring a reliable outlet for captured CO2.
Despite these efforts, it's crucial to note that the storage target is capacity-based, lacking specific economic incentives for CO2 storage. Additionally, the projected capture volume of around 70 MtCO2 per year by 2030 in Europe represents only a fraction of the total capturable CO2 volume estimated at 1,260 Mt per year.
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