Brexit gives Exxon loophole to attack EU carbon capture

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Sustainable Views or enjoy below:

🗞️ Driving the news: ExxonMobil has launched an investor-state dispute settlement (ISDS) challenge against the EU over obligations under the Net-Zero Industry Act (NZIA) requiring major oil and gas producers to contribute to developing CO₂ storage capacity
• Exxon argues the EU's 2030 target is not achievable within the required timeframe

🔭 The context: The NZIA targets 50 million tonnes of annual CO₂ injection capacity by 2030, with 44 oil and gas companies expected to contribute
• Exxon has promoted carbon capture and storage as an important decarbonisation technology, making its legal challenge notable
• The dispute relies on the Energy Charter Treaty, with Exxon's UK-based corporate structure providing a route to international arbitration following Brexit

🌍 Why it matters for the planet: Carbon capture and storage could provide infrastructure for reducing emissions from hard-to-abate industrial sectors
• A legal challenge that delays or weakens the EU's storage requirements could slow development of that infrastructure, although the environmental impact of the dispute itself will depend on how the arbitration and EU policy ultimately develop

⏭️ What’s next: The European Commission is assessing the dispute. If it is not resolved within the applicable period, the case can proceed to arbitration
• Meanwhile, the EU says at least seven additional storage sites are expected to become operational in coming years, potentially bringing available annual injection capacity to around 19 million tonnes

💬 One quote: “The CO₂ storage industry is growing rapidly in the EU.” - Wopke Hoekstra, European Commissioner for Climate, Net Zero and Clean Growth

📈 One stat: 50 million tonnes of CO₂ per year is the EU's 2030 target for geological CO₂ injection capacity

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