· 4 min read
Abstract
The European Union has taken a bold and necessary step to secure the future of carbon capture and storage (CCS). A newly introduced policy mandates that oil and gas companies must develop and reserve a minimum volume of CO₂ storage capacity by 2030. This game-changing regulation finally provides the clarity and market certainty needed to unlock large-scale CCS deployment across Europe. By forcing industry to take responsibility for its emissions and laying the groundwork for a CO₂ management ecosystem, this policy marks a critical turning point in Europe’s climate and industrial strategies.
Introduction
For years, carbon capture and storage (CCS) has been described as essential for achieving Europe’s climate targets — but the industry has struggled to scale. A lack of long-term policy certainty, limited investment, and a “chicken-and-egg” problem between emitters and storage providers have kept CCS in the shadows.
That is now changing. With the European Union’s new requirement that oil and gas companies develop and reserve CO₂ storage capacity by 2030, we have a foundational policy in place that can finally kick-start the market. This is the catalyst the CCS sector has been waiting for.
Why this policy matters
The mandate compels major fossil fuel producers — those responsible for the lion’s share of Europe’s historical emissions — to actively build the infrastructure for safe and permanent CO₂ storage. It transforms CCS from a voluntary, project-by-project solution into a system-wide obligation.
For investors, this policy provides the certainty they need to back projects with long payback periods and significant upfront capital costs. For emitters across sectors — whether steel, cement, or chemicals — it signals that CO₂ storage will be available at scale, reducing risk and enabling decarbonization plans.
It also helps resolve a critical bottleneck: without guaranteed storage, emitters hesitate to invest in capture facilities, and storage developers hesitate to build capacity without guaranteed demand. The EU’s mandate effectively bridges this gap, ensuring that CO₂ storage becomes a shared resource, much like energy grids or water networks.
Oil and gas companies as part of the solution
In a previous Illuminem article, I explored the potential for oil and gas companies to play an active role in the energy transition — not just as suppliers of fossil fuels, but as builders of critical infrastructure for a net-zero future. This new policy is a clear example of how they can contribute. By developing CO₂ storage capacity, these companies can use their expertise in subsurface operations to provide a public good, helping industries across Europe decarbonize safely and at scale.
You can read that earlier article here: How Europe can secure its energy future without fossil fuels.
Unlocking Europe’s CCS potential
Europe has significant CO₂ storage potential, particularly in depleted gas fields in the North Sea and other offshore basins. Studies estimate that the North Sea alone could store over 50 billion tonnes of CO₂ — enough to meet Europe’s storage needs for decades.
Yet despite this potential, progress has been slow. Previous CCS efforts have often been limited to pilot projects or dependent on uncertain funding streams. This policy changes the game by making CO₂ storage a regulated service — removing market risk and driving investment into critical infrastructure.
The long-term impact
By 2030, the landscape of European industry could look very different. With dedicated CO₂ storage sites in place, sectors like steel, cement, and chemicals can decarbonize more aggressively. Hydrogen production via natural gas reforming could proceed with carbon capture, helping bridge the transition to green hydrogen. Even negative emissions technologies, such as bioenergy with CCS (BECCS) or direct air capture, will benefit from the availability of permanent storage.
Moreover, Europe is taking a global leadership position by mandating a shared CO₂ storage system. This approach not only enhances energy sovereignty but also creates an exportable model for other regions — particularly those struggling to decarbonize heavy industries.
Conclusion
Europe’s new CO₂ storage mandate is more than just a regulatory requirement; it is a signal to markets, industries, and governments that the age of CCS has truly arrived. By creating a reliable, scalable, and investor-friendly framework, the EU is laying the foundation for a net-zero industrial system.
This is a turning point — one that transforms CCS from an uncertain bet into a pillar of Europe’s decarbonization strategy. Now, it’s up to industry, investors, and governments to seize this opportunity and turn ambition into action.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
