The European Union is making strides toward achieving climate neutrality by 2050 by focusing on innovative industrial carbon management. Recognizing that carbon capture and storage (CCS), carbon capture and utilization (CCU), and CO2 removal from the atmosphere are essential in their journey, the EU Commission strongly supports these measures. They believe that addressing these technological solutions is crucial for making industrial processes climate-neutral and managing residual emissions effectively. The Center for European Policy (cep) echoes these sentiments, emphasizing these steps as vital for reaching the EU’s ambitious climate goals.
Despite the clear environmental benefits, these technologies face significant economic obstacles and infrastructure challenges. High costs and inadequate transportation and storage infrastructure make the widespread adoption of CCS, CCU, and CO2 removal technologies challenging. To overcome these impediments, the EU is encouraged to establish favorable conditions for a CO2 internal market. This involves creating a central coordination platform intended to enhance transparency and competitive fairness. Harmonized EU-wide coordination of grid planning will also be crucial in ensuring that these technologies can be implemented successfully.
A concern persists regarding localized restrictions on CCU applications, which may prevent some companies from capitalizing on these opportunities. The EU Commission is urged to develop definitive strategies to promote CO2 removal technologies. Currently, the integration of such technologies into the EU Emissions Trading System (ETS) is unfeasible due to cost disparities compared to other abatement technologies. This calls for the design of new, intelligent funding instruments aimed at supporting the market development needed for large-scale CO2 removal.
In summary, achieving the 2050 climate neutrality target necessitates the deployment of CCS, CCU, and CO2 removal technologies in the industrial sector. While economic and infrastructural challenges remain, establishing a robust regulatory framework and strategically promoting CO2 removal technologies are vital steps in overcoming these hurdles. This multifaceted approach underscores the critical role of regulatory and market development in ensuring a sustainable, carbon-neutral future for the EU.
