In a landmark move to advance the EU’s ESG and carbon neutral strategy, the European Commission has mandated 44 oil and gas companies to develop 50 million tonnes of annual CO₂ storage capacity by 2030. The initiative, under the Net-Zero Industry Act and Industrial Carbon Management Strategy, is critical for decarbonizing Europe’s high-emissions sectors. 

The CO₂ storage obligations are proportionally assigned based on each firm’s crude oil and gas production in the EU between 2020 and 2023. Companies may fulfill their targets individually, through consortia, or via third-party partnerships, adding flexibility to their compliance options. 

“This measure ensures those who contributed to emissions will now help mitigate climate change,” said Kurt Vandenberghe, Director General for Climate Action. 

The EU has classified each required storage facility as a Net-Zero Strategic Project, providing streamlined permitting and access to ETS Innovation Fund financing. The Commission’s Delegated Regulation, enforceable from July 2025 (pending approval), outlines calculation methods and enforcement mechanisms. 

This strategy places direct accountability on fossil fuel producers to support long-term CO₂ removal—seen as essential for achieving the EU’s 2030 climate neutrality goals. Companies exempt from quotas are listed in Annex 2, typically due to marginal production levels. 

The regulation also strengthens the EU’s carbon management infrastructure, allowing Europe to reduce reliance on foreign carbon solutions and build a robust domestic CO₂ storage network. 

By assigning tangible targets and enabling industry collaboration, the EU’s initiative represents a bold step toward meeting its climate obligations and scaling sustainable decarbonization. It reinforces the vital role of carbon capture and storage (CCS) within ESG policy frameworks, and the broader net-zero transition. 

Sources: 

https://esgnews.com/eu-assigns-co%e2%82%82-storage-quotas-to-oil-gas-producers-to-meet-2030-net-zero-targets/ 

https://www.reuters.com/sustainability/climate-energy/eu-asks-44-oil-gas-producers-provide-new-co2-storage-solutions-2025-05-22/