· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Euractiv or enjoy below:
🗞️ Driving the news: Brexit-related policy barriers are preventing the development of an integrated EU-UK carbon capture and storage (CCS) market, despite studies showing it could significantly reduce costs
• The UK has large, cost-effective CO2 storage potential in the North Sea, but EU policies do not recognize CO2 stored outside its jurisdiction under the Emissions Trading System (ETS)
• As a result, EU emitters must pay twice for carbon allowances, making cross-border storage economically unfeasible
🔭 The context: Europe leads in CCS development, supported by policies like the European Green Deal and the Fit for 55 package
• Norway, still part of the EU’s single market, has successfully implemented cross-border CO2 storage, but Brexit has left the UK excluded from similar frameworks
• The Carbon Capture and Storage Association (CCSA) has warned that failure to integrate UK storage could lead to unnecessarily high costs for EU industries
🌍 Why it matters for the planet: CCS is a crucial tool for reducing industrial emissions and meeting climate targets, but high costs and infrastructure challenges have slowed its adoption
• Enabling EU-UK cooperation would reduce costs by 20% (€11 per tonne) for offshore storage and save EU emitters up to €2.7 billion annually by 2040
• Without integration, industries may delay decarbonization efforts due to financial and logistical hurdles
⏭️ What's next: Advocates argue that cross-border CCS cooperation could be an easy UK-EU agreement without violating Brexit red lines, but political hesitation remains
• The UK government faces domestic pressure to fund major CCS projects, particularly in North-East Scotland and the Humber, ahead of a Comprehensive Spending Review
• If delays continue, industries may be forced into higher-cost storage options for decades
💬 One quote: “The UK is well placed to create a world-leading CCUS sector—we have the geology, technology, and people to make it a success” – David Whitehouse, CEO of Offshore Energies UK
📈 One stat: 28% (€16/t) cost reduction on average for offshore transport and storage of CO2 in the EU27 with an integrated EU-UK CCS market
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