CCS Europe April Newsletter

April edition - web version

3 April, 2026

March arrived with consequences. The publication of the Industrial Accelerator Act (IAA) may have put an end to months of delays, but it certainly did not put an end to the debate. If anything, it kicked off a new phase of scrutiny. Across the CCS value chain, the reaction has been one of disappointment: while the Commission talks about competitiveness, the proposal itself falls short of treating industrial decarbonisation as a core pillar of that competitiveness. For CCS in particular, the problem is clear – rhetorical recognition in the background, but no meaningful strategic recognition where it matters most: in the operative text.

And if the IAA sparked one argument, the EU ETS reignited another. Throughout March, the EU's carbon market became a major point of political contention ahead of the 19–20 March European Council, with some Member States calling for a faster review and more protection for industry, while others rushed to defend the ETS as one of the EU’s most important climate tools. The result? No dramatic overhaul just yet, but plenty of signs that the battle over the future of carbon pricing is only just heating up.

This month’s edition is approximately 1,000 words long (around a 7-minute read). Read on!👇

HEADLINE NEWS

🗣️ ETS takes centre stage. If February saw murmurs of discontent around the ETS, March turned them into a full political debate. Ahead of the 19–20 March European Council, several Member States called for changes, arguing carbon pricing is adding pressure to already high electricity prices. At a pre-summit organised by Germany, Italy and Belgium, German Chancellor Friedrich Merz pushed to accelerate the ETS review. Shortly after, ten Member States – including Italy, Poland and Hungary – urged the Commission to bring the review forward and extend free allowances beyond 2034, with Poland even suggesting slowing the reduction of allowances.

But not everyone supported this line of thinking. Spain, Denmark, Finland, Portugal and Sweden defended the ETS as a cornerstone of EU climate policy. Commission President, Ursula von der Leyen, struck a middle ground, backing the ETS as a key tool for industrial transformation while signalling possible adjustments, including updated benchmarks and a stronger Market Stability Reserve. In the end, EU leaders stopped short of major changes, instead asking for a review by July 2026 focused on reducing price volatility while preserving the ETS’s role in driving investment and innovation. In short: the ETS held its ground in March, but the political debate is far from over.

📝 The IAA enters its feedback phase. The ink on the Industrial Accelerator Act was barely dry before the Commission opened an eight-week feedback period on the proposal. That means stakeholders now have a formal opportunity to weigh in on a file that will shape how Europe approaches industrial competitiveness, decarbonisation and clean manufacturing in the years ahead.

For us, the message remains straightforward: if the IAA is to live up to its name, it must do more to support industrial decarbonisation in practice. That means recognising CCS and CO₂ transport and storage infrastructure as strategic enablers, strengthening demand-side measures beyond public procurement, and creating a robust framework for low-carbon products based on harmonised greenhouse gas accounting. The consultation may be procedural, but the stakes are very real.

💶 Clean energy strategy - not so strategic on CCS. The Commission unveiled its Clean Energy Investment Strategy which sets out how to mobilise the massive private capital needed for Europe’s energy transition, with a strong focus on de-risking projects, scaling up grids, and crowding in institutional investors. The headline is clear: public funding alone won’t cut it, and the EU is doubling down on financial tools, guarantees and market mechanisms to unlock up to hundreds of billions in annual investment.

For CCS, the signal is more muted. While carbon capture and storage is mentioned among the technologies eligible for support, it remains one option in a broad innovation basket rather than a central pillar of the strategy. There is little detail on how CO₂ transport and storage infrastructure will be financed or prioritised, despite its critical role in industrial decarbonisation. In short: the investment framework is taking shape, but CCS risks being underemphasised at a moment when clarity and scale are needed most.

OUR ACTIVITIES

✍️ Bergur shares his thoughts on the IAA. In his latest blog, our Director Bergur Løkke Rasmussen argues why the IAA falls short of making industrial decarbonisation a true pillar of European competitiveness. While the proposal somewhat acknowledges CCS, it fails to give it meaningful strategic recognition in the legal text itself. Bergur’s message is clear: Europe needs stronger demand measures, proper recognition of CO₂ infrastructure, and harmonised rules for low-carbon products if the IAA is to become a real accelerator. Read Bergur’s blog here.

👨‍💼  We were busy meeting with MEPs...We met with MEP Morten Løkkegaard to present CCS Europe’s campaign priorities and the key policy files relevant for the CCS value chain. The discussion covered how EU rules can help reduce risk for early projects, support industrial decarbonisation, and create a more enabling framework for CCS deployment across Europe.

🤝 ...and their teams. We also met with the team of MEP Pascal Canfin to also present CCS Europe and to discuss upcoming regulatory milestones that will shape the framework for CCS development in Europe. The exchange focused on de-risking CCS projects, the wider industrial decarbonisation agenda.

CCS DEVELOPMENTS FROM AROUND THE BLOC

⚓ Port of Antwerp gets its local CO₂ network operator. The Flemish government has appointed Fluxys c-grid Antwerp as the Local CO₂ Network Operator for the Port of Antwerp. The joint venture between our members Fluxys and Air Liquide, together with Pipelink, is developing an open-access CO₂ pipeline network that will connect industrial emitters in and beyond the port to permanent storage sites in the North Sea. Read more here.

🔗 Fluxys and OGE unveil the Ruhbens plan. Our members Fluxys and OGE have announced Ruhbens, a plan to connect Germany’s Ruhr industrial region with multiple CO₂ storage sites in the North Sea via Belgium. With a planned 500 km open-access network and transport capacity of up to 20 million tonnes of CO₂ per year, Ruhbens could become a key cross-border artery for decarbonising steel, cement, lime and other hard-to-abate sectors in North-Western Europe. Explore the Ruhbens plan in full here.

💰 Commission approves Belgian support for Kairos@C. The European Commission has approved a €260 million Belgian state aid measure for the Kairos@C CCS project in Antwerp, jointly developed by our member Air Liquide and BASF. The project will capture CO₂ from hydrogen, ammonia and ethylene oxide production and transport it for permanent storage beneath the North Sea, helping advance industrial-scale CCS in one of Europe’s major industrial clusters. Read the official Commission statement here.
 

LOOKING AHEAD: APRIL👀

🤝 We will be meeting people... like, a lot of them. April is shaping up to be a busy but productive month for us, with meetings lined up with several MEPs as well as Permanent Representations. The goal is simple: raise awareness of CCS and its importance for decarbonising Europe’s hard-to-abate sectors. Keep a close eye on our socials, as well as our next newsletter, to see how these conversations went.

⚡ CO₂ market and infrastructure workshop coming up. And you can count on us being there. DG ENER is organising a stakeholder workshop as part of its study on CO₂ market and infrastructure development. The discussion will feed into the Commission’s broader thinking on how to scale a functioning European CO₂ market and the infrastructure needed to support it – so naturally, we will be giving our take on it. 

🎂 Happy birthday to us! On 25 April, we will celebrate three years since CCS Europe was officially launched. Keep a close eye on our socials for a behind-the-scenes glimpse into CCS Europe and the work that goes into it.

That's all for this month - see you all next month!