Europe's Climate Ambitions Depend on Robust CO2 Transport Infrastructure

Europe's ambitious climate agenda hinges on establishing a robust infrastructure for carbon dioxide transport, a critical yet often overlooked component in the transition to clean technologies. As the European Union strives to lead the global effort in reducing industrial emissions, the development of a comprehensive regulatory framework for CO2 transport is imperative.

Projects like Porthos in the Netherlands and Greensand in Denmark have moved from concept to reality, demonstrating the viability of carbon capture utilization and storage (CCUS). However, for these isolated initiatives to evolve into an integrated pan-European network, urgent regulatory clarity and investment incentives are required.

The European Commission recognizes that CO2 transport is a fundamental enabler across all industrial decarbonization pathways. Whether the captured carbon is destined for underground storage or reuse, it must first be transported, often across national borders.

The Joint Research Centre estimates that Europe will need a pipeline network of up to 19,000 kilometers by 2050, necessitating an investment of between €9.3 billion and €23.1 billion. Yet, the market alone cannot deliver this infrastructure at the necessary scale and speed. A coordinated European regulatory package is essential to streamline planning, harmonize technical standards, and unlock both public and private funding.

The absence of a predictable regulatory environment creates barriers to long-term investment. Building the infrastructure necessary for CO2 transport is capital-intensive and fraught with uncertainty about future demand.

Without the assurances needed to justify oversized infrastructure investments, Europe risks compromising its resilience and competitiveness. Therefore, the forthcoming EU regulations must establish clear rules for third-party access, define infrastructure components, and incorporate mechanisms for cost recovery, all while protecting the interests of early movers through grandfathering provisions.

While public funding through initiatives like the Connecting Europe Facility and the Innovation Fund represents significant steps forward, it is insufficient on its own to meet the EU's ambitious targets for CO2 injection capacity by 2030. Strategic support is necessary to foster network expansion, assist smaller emitters, and mitigate private capital risks. This includes substantially increasing budgets in the next Multiannual Financial Framework and launching Important Projects of Common European Interest (IPCEI) for CCUS.

Fragmentation posed by existing national regulations presents a formidable challenge. While progress has been made in regions like Denmark and Flanders, a patchwork of rules could hinder cross-border integration.

A cohesive EU regulatory framework must ensure consistency while respecting member states' autonomy, particularly regarding storage infrastructure. Addressing legal barriers to carbon storage access, especially in the UK and Norway, will be pivotal. A bilateral agreement recognizing each region's carbon markets could unlock cost-effective storage solutions, potentially saving EU emitters billions annually.

Moreover, while pipelines will serve as the backbone of the CO2 transport network, alternative methods such as shipping, barging, rail, and trucking will be vital for emitters located far from industrial clusters or storage sites. The regulatory framework must acknowledge these diverse transport modes and avoid biased subsidy schemes. Standardization of safety and quality requirements across all transport methods is essential to foster participation among all emitters, irrespective of geography.

Permitting delays already threaten crucial projects like Porthos in the Netherlands. To expedite climate action, CO2 transport infrastructure must be designated as a net-zero strategic project under the Net Zero Industry Act, streamlining permitting processes and enhancing efficiency in environmental assessments. Planning for CO2 transport should also be integrated with existing electricity, hydrogen, and gas networks, potentially lowering costs and accelerating deployment.

Ultimately, developing a robust CO2 transport network is not merely a climate imperative; it is a strategic industrial necessity. CCUS has the potential to protect jobs, attract investment, and facilitate the decarbonization of hard-to-abate sectors such as cement, steel, and chemicals.

To maintain its industrial sovereignty while leading in low-carbon initiatives, Europe must prioritize the establishment of a clear regulatory framework. Without it, the ambition of scaling CCUS will remain unfulfilled, jeopardizing both economic competitiveness and climate commitments.