Policy Overview
The Net-Zero Industry Act (NZIA), which entered into force in June 2024, is the legislative backbone of the EU’s strategy to scale up the manufacturing of clean technologies. For the CCS sector, it introduces a groundbreaking mandate: a Union-wide objective to reach an annual injection capacity of at least 50 million tonnes of CO2 by 2030.
Central to achieving this goal is the individual contribution obligation for oil and gas producers. Companies producing crude oil and natural gas in the EU are legally required to contribute to this 50 Mtpa storage target pro rata to their share of production between 2020 and 2023. By holding emitters responsible for building the necessary infrastructure, the EU aims to eliminate the ‘chicken-and-egg’ dilemma that has long stalled sequestration projects. Furthermore, CCS Hubs designated as ‘Net-Zero Strategic Projects’ benefit from accelerated permitting, synchronized cross-border regulatory frameworks, and prioritized access to EU and national funding, solidifying CCS as a pillar of European industrial autonomy.