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NZIA & CRCF: European Parliament Votes to Boost CCS and CDR Development
23rd November 2023
The European Parliament’s (EP) plenary has voted to endorse the positions of the Industry, Research and Energy (ITRE) and Environment, Public Health and Food Safety (ENVI) Committees on the Net-Zero Industry Act (NZIA) and the Carbon Removal Certification Framework (CRCF), green lighting a move that will enhance climate policy in Europe. These proposals will support the development of carbon capture and storage (CCS) and carbon direct removals (CDRs) on the path to net-zero.
The EP’s plenary has agreed to broaden the scope of the European Commission’s Net Zero Industry Act proposal1. The scope now includes a wider list of net-zero technologies that covers the full CCS value chain, including CO2 transport. It also confirmed the target of 50 Mtpa CO2 injection capacity in the EU by 2030 while placing the obligation on ‘entities selling crude oil, petroleum products, or natural gas in the Union', a digression from the initial approach by the European Commission focusing on oil and gas producers. The scope of this mandatory contribution will be addressed and resolved in the future trialogues that will be launched once the Council reaches its general approach.
MEPs have also voted to strengthen the draft Carbon Removal Certification Framework (CRCF) regulation put forward by the European Commission in November 20222, which calls for more detailed definitions and enhanced criteria for each type of carbon removal. It also introduces an obligation for the European Commission to report on the need for potential EU targets for permanent carbon removals, such as bioenergy with CCS (BECCS) and direct air capture (DAC), along with land-based sequestration, as part of its post-2030 climate agenda. With the plenary vote now in, the EP can begin talks with the European Council, which adopted its negotiating mandate on 17 November.
The European Parliament and the Council will seek to further their positions and reach alignment during trialogue negotiations, as the next legislative mandate approaches (2024-2029).
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[1] Proposal for a Regulation of the European Parliament and of the Council on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act), COM/2023/161 final
[2] Proposal for a Regulation of the European Parliament and of the Council establishing a Union certification framework for carbon removals, COM/2022/672 final