In a major move to scale up industrial carbon management, the European Commission has assigned binding CO₂ storage obligations to 44 oil and gas producers, requiring them to develop a combined 50 million tonnes of annual CO₂ injection capacity by 2030. The decision follows the adoption of a Delegated Regulation that outlines how companies are selected and how their shares are calculated, based on production data from 2020-2023.

The new requirements support the EU’s Industrial Carbon Management Strategy and Clean Industrial Deal, and will help decarbonise energy-intensive sectors where emissions are hardest to abate. Each storage site must be permitted under the Carbon Capture and Storage (CCS) Directive and will qualify as a Net-Zero Strategic Project, potentially including capture and transport infrastructure.

Exemptions apply to smaller producers with limited output, while obligated firms must submit detailed implementation plans by 30 June 2025. These plans must outline how companies will meet their targets – whether independently or through partnerships with third parties or investors.

By turning extractive industries into enablers of CO₂ storage, the EU aims to accelerate climate neutrality, supported by tools like the Innovation Fund and faster permitting frameworks.