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Council of the EU Adopts Position on the Net-Zero Industry Act, Confirming the Role of CCS in Europe’s Decarbonization Efforts

12th December 2023

On 7 December 2023, the Council of the European Union (EU) agreed on its general approach on the Net-Zero Industry Act (NZIA), bringing the adoption of this crucial component of the Green Deal Industrial Plan one step closer. 

The NZIA aims to scale up the manufacturing capacities of technologies needed to support the EU’s transition towards a climate neutral economy, and represents a key driver for further deployment of carbon capture and storage (CCS) across the region. 

The adoption of the Council’s position follows the NZIA’s vote of the European Parliament’s plenary, which on 21 November 2023 agreed to broaden the scope of the legislative draft proposed by the European Commission earlier this year in March 2023. 

In its position, the Council of the EU maintains the distinction between ‘net-zero technologies’ and ‘net-zero strategic technologies’ put forward in the Commission’s proposal, and streamlines permitting procedures for strategic net-zero technologies like CCS. 

The Council's position also supports the EU target of 50 Mtpa CO2 injection capacity by 2030 and expands the scope of the NZIA to encompass CO2 transport infrastructure. 

While the Council agreed to keep the obligation on producers of crude oil and gas to achieve the EU-wide injection capacity target, the Council also introduced different ways to obtain a derogation from this mandatory contribution.  

As a result of the formalisation of the Council's negotiating position, the Council presidency, currently held by Spain, has now a mandate to engage in interinstitutional negotiations with the European Parliament and the European Commission. Alignment must be found ahead of the upcoming European elections in June 2024. 

More information here. 

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