CCS Europe June Newsletter 2026

CCS Europe July Newsletter

July edition - web version

8 July, 2026

Another month, another roundup of the latest developments in CCS.

However, you may notice things look a little different this month. We've decided to give our monthly newsletter a change of scenery. From now on, you won't need to rummage through your inbox to read our thoughts. Instead, you'll find them here on LinkedIn.

But wait, there's more! We decided to introduce a new section to our newsletter - 'Director's View' - a short thought piece from our Director, Bergur, on the key developments which shaped the previous.

Now, onto the meat and potatoes, or capturing, storing and transporting, as we like to say it.

May was a bit quiet on the CCS front, but not without its highlights. The European Commission published its report on progress towards reaching the Union-wide target for CO₂ injection capacity, while also approving a €5 billion German state aid scheme to support the decarbonisation of German industry. On the report, our initial reading is that, while we are on track, more work will be needed to meet the NZIA storage obligations.

Meanwhile, we kept busy by welcoming a new member, Decahydron, and meeting with the Cabinets of Séjourné and Jørgensen.

As usual, this month's edition is approximately 1,000 words long, or around a seven-minute read. Read on! 👇

HEADLINE NEWS

📊 Commission confirms CCS storage target is within reach, but gaps remain. The Commission’s latest report on CO₂ injection capacity confirms that the 50 Mt target under the NZIA remains realistic and that CCS is essential for hard-to-abate sectors. It also underlines that storage capacity needs to be developed ahead of demand if Europe is to avoid future bottlenecks in industrial decarbonisation. While industrial demand for CO₂ storage is clearly emerging, the report highlights that the current project pipeline is still not sufficient to fully match it at the pace required.

According to the report, only 16 of 44 obligated entities have confirmed their contribution to assigned injection capacity, with several still relying on non-EU storage options that cannot be counted towards EU compliance. The findings also point to uneven implementation of Member State transparency obligations, leaving parts of the framework incomplete. In short: the direction of travel is clear, but faster implementation, stronger Member State oversight, and coordinated cross-border CO₂ infrastructure will be needed to properly connect rising demand with available storage capacity.

💶 Commission clears €5bn German push for industrial decarbonisation. The European Commission has approved a €5 billion German State aid scheme to support industrial decarbonisation across key heavy industry sectors. CCS is among the eligible technologies, alongside electrification, hydrogen, CCU, biomethane, and heat recovery and storage.

The scheme targets ETS-covered industries including cement, steel, chemicals, glass, ceramics and other energy-intensive materials, with support allocated through competitive bidding procedures. Projects are expected to deliver significant and sustained emissions reductions over time, rather than short-term efficiency gains alone. The measure reinforces the role of state aid as a central tool in scaling industrial decarbonisation across Europe, particularly in hard-to-abate sectors where abatement costs remain high.

🗣️The Commission discussed ETS with industry. The European Commission held a high-level stakeholder roundtable on the upcoming ETS revision bringing together industry, NGOs and think tanks to gather input ahead of the formal proposal publication. The discussion focused on the ETS timeline and broader policy alignment, including the role of the ETS as an investment and innovation tool for energy-intensive industries.

The Commission outlined key elements of the revision, including international credits to be used from 2036, the possible integration of carbon removals, recognition of temporary storage, adjustments to CCU accounting rules, and the future role of free allocation conditionalities and ETS revenues through the Industrial Decarbonisation Bank and Investment Booster. CCS was mentioned in the context of industrial decarbonisation discussions for energy-intensive sectors such as cement, steel and chemicals. Stakeholders also discussed how ETS design should support broader decarbonisation while balancing flexibility, competitiveness and climate integrity.

DIRECTOR'S VIEW

In this month’s “Director’s View”, our Director, Bergur Løkke Rasmussen, reflects on the Implementation Dialogue on CCS, organised by Commissioner Wopke Hoekstra, in which he participated on 29 June:

The Implementation Dialogue confirmed to me that CCS is now firmly recognised as essential for meeting Europe’s climate targets, boosting industrial competitiveness and safeguarding jobs. I stressed that projects are moving forward, but too many are still held back by weak business cases, high cross-chain risks and uncertainty around future access to transport and storage infrastructure.

At the same time, the exchange highlighted a clear delivery gap. Storage bottlenecks, slow permitting, fragmented cross-border rules and the “double penalty” facing first movers continue to create barriers. Several stakeholders also underlined that Europe cannot simply wait for demand to emerge: public funding, demand-side measures and a strong ETS will all be needed to make CCS investable at scale.

A real single market for CO₂ transport and storage is therefore key. This means transparent rules, harmonised contracts, faster permitting and equal access to storage, while recognising that both pipelines and shipping will be needed to connect industrial emitters across Europe.

In short: CCS is no longer a question of technology, but of implementation. Europe now needs the regulation, infrastructure and investment framework to turn ambition into projects.

  -- Bergur Løkke Rasmussen
Director, CCS Europe

OUR ACTIVITIES

🙌 We have a new member - CMA! The CCS Europe family continues to grow this month as well, as we welcome Carbon Management Allianz (CMA), as the newest member of CCS Europe and our very first national association member!  CMA plays a key role in advancing industrial carbon management in Germany by bringing together industry stakeholders and contributing to the policy discussion on CCUS.

👀 MEP interview teaser. This month, Bergur sat down with an MEP to discuss all things CCS: its role in Europe’s climate and industrial strategy, the barriers slowing deployment, and what is needed to unlock FIDs across the value chain. They also discussed the upcoming CO₂ transport and storage framework, the message to hesitant investors, and what Europe can learn from the Dutch CCS experience. Keep an eye on our socials, the reveal is coming soon.

🗣️CCS Implementation Dialogue. As you might have noticed, we participated in the Implementation Dialogue on CCS. Bergur represented CCS Europe in the discussion, highlighting that CCS is essential for Europe’s climate goals and industrial competitiveness, but that projects are still being slowed down by weak business cases, cross-chain risks and infrastructure gaps. He called for full delivery of the NZIA storage targets, a real CO₂ transport and storage single market, and action to address ETS double-penalty risks. The message was clear: CCS is ready, now Europe needs to make implementation happen.

CCS DEVELOPMENTS FROM AROUND THE BLOC

🇮🇹 Study shows Sicily has strong potential for CO₂ storage. A new CNR-IGG study, conducted with Carbfix and the University of Pisa, finds that southeastern Sicily has great CO₂ storage potential. The study identifies Palagonia, Portopalo di Capo Passero and the Plain of Catania as promising areas thanks to suitable basaltic rocks, favourable geology, water availability and proximity to major industrial emitters. Read the full study here.

🤝 Companies advance cross-border CO₂ transport in the Delta Rhine Corridor. Multiple companies from across the CCS value chain - EBN, Eni Netherlands CCUS, Gasunie, Open Grid Europe, Shell and TotalEnergies EP Nederland -  have agreed to work together on a CO₂ pipeline system connecting industrial regions in North Rhine-Westphalia to storage sites in the Dutch North Sea, including through the Aramis project. The planned network would help move CO₂ from emitters in western Germany and the Netherlands to offshore depleted gas fields. Read more here.

📃 Linde and Valmet team up on electrified CCS for pulp and paper. The two companies will work on a CCS solution for pulp and paper mills that uses renewable electricity instead of steam or heat-based energy inputs. By combining Linde’s capture technology with Valmet’s sector expertise, the partnership aims to address emissions in an industry where full decarbonisation remains challenging.  Learn more here.
 

LOOKING AHEAD: JULY👀

👀All eyes on 17 July. That is when the Commission is expected to present its ETS review, though after several delays, we will believe it when we see it. For CCS Europe, the key issue is the “double-penalty” risk: early CCS movers may still face ETS costs if transport or storage disruptions force CO₂ venting, while also carrying CCS investment costs. A targeted EU guarantee mechanism could help unlock FIDs and we hope the Commission will address this issue in its upcoming proposal.

🏃‍➡️ We are still very much active. This month, we will be in the European Parliament to meet an MEP and discuss the CCS space, including the upcoming CO₂ infrastructure and markets regulation and the double-penalty issue. As for who we are meeting? Well, you will have to wait a little longer and follow our socials to find out.

 

That's all for June and for the time being. See you after the summer break!