CCS Europe May Newsletter

May edition - web version

7 May, 2026

April was full of celebrations at CCS Europe. We celebrated Bergur’s first anniversary as Director and we also celebrated our third birthday!

That said, Brussels did not exactly join the party. The Industrial Accelerator Act (IAA) finally started moving in earnest, with Parliament kicking off its negotiating process and Member States already going head to head in the Council. If March was about reacting to the proposal, April was about the first real signs of where the political fights will land - from "trusted partners" and EU preference to the familiar concern that simplification could all too easily become more bureaucracy. For CCS, the broader concern remains the same: industrial competitiveness is moving quickly up the agenda, but industrial decarbonisation still risks being treated as an add-on rather than a central pillar.

Elsewhere, the Commission tried to keep several plates spinning at once. Its new AccelerateEU Communication is a classic Brussels balancing act: short-term relief for the latest energy price shock, without changing course on the longer-term transition away from fossil fuels. And the ETS, naturally, kept doing its thing too. Between delayed benchmarks, Market Stability Reserve changes and fresh pressure from some capitals for a softer approach, April offered another reminder that the carbon market may be holding for now, but the politics around it are only getting louder and messier.

And, as promised last month, we spent plenty of time meeting people. April was a busy month for outreach, with meetings ranging from the Commission and MEPs to Permanent Representations, all aimed at raising awareness of CCS and its role in decarbonising Europe’s hard-to-abate sectors. As you can see, we hit bingo by meeting all three institutions in the same month - a campaigner's dream!

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

HEADLINE NEWS

🏇 It’s off to the races for the IAA in the EP. With the Conference of Presidents deciding on joint competence between three committees (yes, you read that right - three!): ITRE, INTA, and IMCO, and a full negotiating team now confirmed from Parliament’s side - Christophe Grudler (Renew, FR) for ITRE, Anna Cavazzini (Greens, DE) for INTA, and Pierre Jouvet (S&D, FR) for IMCO - the European Parliament can finally start the negotiating process on the IAA.

On the Council side, Member States are beginning to draw the battle lines. Early discussions show broad unease with parts of the proposal, especially around the idea of "trusted partners" whose products could qualify for "Made in EU" status. France is pushing for a more exclusive, EU-centred approach, while Germany - backed by Austria and Sweden - wants a more open model that remains compatible with the EU’s trade obligations. Italy, Romania and Greece also see the current scope as too broad, and the Netherlands wants any EU preference to stay targeted, temporary and strategic. If there is one point of consensus, it is this: capitals do not want the IAA to create more bureaucracy, and many are already warning against excessive red tape, too many delegated acts, and unclear rules for implementation.

⏩ Commission hits the accelerate button. The new AccelerateEU Communication is the Commission's attempt to respond to the latest energy price shock without changing course on the energy transition. It combines short-term, targeted relief for households and industry with closer EU coordination on gas storage, oil stocks, and fuel supply. The aim is to ease immediate pressure while keeping the single market functioning and maintaining focus on the longer-term shift away from imported fossil fuels.

In practice, that means temporary state aid flexibility, support for national emergency measures, and new coordination tools such as a Fuel Observatory to track supply and stocks, including for transport fuels like diesel and jet fuel. In short: AccelerateEU is the Commission trying to manage a crisis in real time while keeping the energy transition on track.

🎢 The ETS roller-coaster continues. The ETS is doing what it does best in Brussels: generating just enough drama to keep everyone busy. The Commission has delayed the publication of the new ETS benchmarks for 2026-2030, leaving industry and Member States guessing a little longer about how generous free allocation will be. At the same time, it has proposed tweaking the Market Stability Reserve by keeping more surplus allowances in store, pitching the move as a way to smooth price volatility and show it is taking industry concerns seriously ahead of the bigger ETS review due in July.

This triggered a mixed reaction, with Italy sending a letter calling for benchmarks to be frozen and Germany pushing for a slower phase-out of free allowances. But for all the noise, the Commission is still trying to hold a middle line: limited adjustments around the edges, more support for industrial decarbonisation through the planned ETS investment booster, but no fundamental unravelling of the system. In short: the pressure on the ETS is building again, but the real fight will come with the summer review. Buckle up, this is going to be a wild ride.

 

OUR ACTIVITIES

🤝 We met the Commission... We met representatives from DG CLIMA, DG ENER, DG GROW and DG COMP to talk through the upcoming CO2 infrastructure regulation and what is needed to get more CCS projects moving. The discussion focused on de-risking projects, supporting industrial decarbonisation, and making sure the wider EU policy framework gives investors the clarity they need as FIDs become more and more important.

👨‍💼  ...some MEPs... With MEP Peter-Hansen and MEP Ehler’s team, we presented CCS Europe’s campaign priorities and discussed the main challenges facing CCS deployment across Europe. The exchange with MEP Peter-Hansen was a first conversation we had an MEP from the Greens, while MEP Ehler’s team showed particular interest in the upcoming CO₂ transport infrastructure file.

🌍...and some Member States. Lastly, we met with the Danish and Hungarian Perm Reps to present our positions on NZIA implementation, CO₂ transport infrastructure and the need for de-risking measures. Both exchanges were a good opportunity to compare where Member States are on CCS readiness - and to underline that getting implementation right will matter just as much as setting the rules in the first place. 

🥳 CCS Europe turns three! As you might have noticed, we marked our third anniversary last month - and the occasion was a good reminder of just how much CCS has achieved in a relatively short time. In the past three years, CCS has gone from a niche discussion to a much more established part of the EU policy landscape. From the NZIA, which for the first time created an EU-level obligation to develop CO₂ storage capacity, to the Industrial Carbon Management Strategy, TEN-E recognition for CO₂ infrastructure, and EU funding for first-mover projects, CCS is now firmly on the EU policy map. To mark the occasion, our director Bergur wrote a blog reflecting on the progress made, while emphasising on the work ahead, such as meeting the NZIA storage obligations. Read Bergur's blog here.

CCS DEVELOPMENTS FROM AROUND THE BLOC

🇭🇷 Croatia lays the groundwork for CCS. Last week, the Croatian Ministry of Economy signed a €2.67 million grant agreement with the Croatian Hydrocarbon Agency and the Environmental Protection and Energy Efficiency Fund for the “Carbon Capture and Storage” project under Croatia’s National Recovery and Resilience Plan 2021–2026. The project will assess Croatia’s geological CO₂ storage potential both onshore and offshore through the development of a national storage atlas, a Pre-FEED study for the Bockovac site, and CCS system design tools, helping lay the foundations for future CCS deployment in Croatia. Read more here.

🇬🇧 UK advances CO₂ transport and CCS research. The UK Department for Energy Security and Net Zero has launched the Non-Pipeline Transport Pathfinder, a pilot programme exploring alternative CO₂ transport methods including road, rail and shipping. At the same time, UKCCSRC has allocated funding to seven research projects focused on enabling CCS deployment across the UK, covering emissions monitoring, subsurface risk assessment, CO₂ plume behaviour, wastewater treatment, and offshore monitoring. Together, these initiatives aim to strengthen key parts of the UK CCS value chain beyond capture alone. Read more here and here.

🇩🇰 Denmark launches new CCUS innovation projects. Denmark has announced four new CCUS initiatives under its INNO-CCUS public-private partnership programme. The projects focus on carbon-negative concrete production, integrating DAC with energy storage systems, enhanced rock weathering monitoring, and assessing local carbon mineralisation storage potential. With further announcements expected throughout April, the initiative reinforces Denmark’s continued commitment to advancing carbon capture and carbon removal technologies. Learn more here.
 

LOOKING AHEAD: MAY👀

🗣️ ETS review roundtable coming up. DG CLIMA is organising a high-level stakeholder roundtable on 12 May on the review of the EU ETS and the Market Stability Reserve for the 2031–2040 period. The discussion will feed into the Commission’s broader thinking on the future of the carbon market at a politically sensitive moment – so naturally, we’ll be keeping a close eye on it.

🤝 The meetings must go on. In the words of the late great Kobe Bryant: "Job’s not finished" - and neither is our meeting programme. In May, we are back on the proverbial road, with meetings lined up with the Commission, MEPs and others to discuss all things CCS. Stay tuned to see what comes out of it.

🎤 CCS crowd gathers in Copenhagen. The CO₂ Capture, Storage & Reuse 2026 conference will take place in Copenhagen on 20–21 May, bringing together industry players from across the value chain to discuss the latest policy, market and project developments in CCS and CCU. With topics ranging from ETS and CBAM to CO₂ infrastructure and industrial decarbonisation, it is another sign that the conversation is steadily shifting from ambition to delivery.

That's all that happened in April - see you all in June!