Thought Leadership – CO2 Storage Permitting Process in the European Union: A Guide

Investment Rating - The report does not explicitly provide an investment rating for the CO2 storage industry in the European Union. Core Insights - The legal and regulatory frameworks for carbon capture and storage (CCS) in Europe have been evolving since the EU CCS Directive was released in 2009, with CCS gaining momentum as an emissions reduction measure and technology for carbon removal [10][12] - The Net Zero Industry Act (NZIA), adopted in 2024, sets an injection capacity target of 50 million tonnes per annum (Mtpa) of CO2 within the EU by 2030, facilitating the development of permanent geological CO2 storage [12][33] - The CO2 storage permit application process is complex and requires several years for development, but regulatory clarity and streamlined procedures can improve efficiency [10][12] Summary by Sections 1.0 Purpose - The guide outlines the process and main features of applying for a CO2 storage permit in the EU, aiming to assist governments and industry in understanding the process better [7][14] 2.0 Key Takeaways - Legal frameworks for CCS are under development, with challenges in establishing a business case and timely development of CO2 transport and storage [10] - The EU CCS Directive provides a comprehensive framework for safe geological storage of CO2, requiring consideration of local interests and environmental impacts [10][12] - Collaboration among countries enhances the efficiency of the CO2 storage permit application process [10][12] 4.0 Applicable Legislation - The EU CCS Directive (2009/31/EC) is the main law governing geological storage of CO2, alongside other EU laws such as the Environmental Impact Assessment Directive and the Environmental Liability Directive [22][26] - National laws vary by country, with some integrating CCS provisions into mining or oil and gas laws [22] 6.0 CO2 Storage Permit Application Process - The application process involves several stages, including site selection, detailed design, and obtaining necessary permits [19][20] - An exploration permit is often required before applying for a CO2 storage permit to assess suitability and capacity [16][17] 9.0 Environmental Impact Assessment - CCS projects must undergo environmental impact assessments under specific conditions, particularly when CO2 capture capacity exceeds certain thresholds [35] 10.0 Conclusions - The report emphasizes the importance of a clear regulatory framework and efficient permit processes to support the development of CO2 storage in the EU [10][12]