Europe must rapidly build a bankable, cross-border market for carbon capture and storage (CCS) if it is to cut industrial emissions while protecting its manufacturing base, jobs and competitiveness, according to a new industry position paper.

The paper argues that Carbon Capture and Storage is becoming a critical part of Europe’s climate and industrial strategy, particularly for emissions that cannot be eliminated through electrification, energy efficiency or alternative fuels.

“CCS is therefore not only a climate policy tool. It is also a strategic industrial policy instrument that enables Europe to retain production, protect jobs, strengthen resilience and avoid carbon leakage.”

Europe has the potential to become a global CCS leader, with significant geological storage capacity — particularly in the North Sea — alongside a large industrial base and established expertise in CO₂ capture technologies.

The push comes as the EU targets at least 50 million tonnes of CO₂ injection capacity by 2030. The European Commission estimates that around 280 million tonnes of CO₂ will need to be captured annually by 2040, rising to approximately 450 million tonnes by 2050 if Europe is to achieve climate neutrality.

The figures underline the scale of infrastructure that will be required and put pressure on policymakers to establish a functioning European framework for CO₂ transport and storage.

The forthcoming EU legislative initiative on CO₂ markets and transport infrastructure is being presented as a key opportunity to accelerate deployment.

“Building a bankable and scalable CCS market is essential for European decarbonisation and competitiveness.”

Five priorities for a European CCS market

The paper sets out five priorities for policymakers.

1. Strengthen Europe’s commitment to CCS

The EU should provide clearer, long-term policy direction to give investors greater certainty and help Member States coordinate infrastructure planning.

A common European approach, the paper argues, would reduce investment risk and strengthen Europe’s position in the global CCS market.

2. Build an integrated European CO₂ market

The paper calls for integrated, cross-border CO₂ value chains linking industrial emitters with transport networks and storage sites.

It argues that market development should be led by industry and project developers, with regulation supporting deployment rather than directing it.

European CO₂ storage sites and transport corridors should also be recognised as strategic infrastructure, given their potential role in industrial decarbonisation, competitiveness and resilience.

3. Mobilise investment and cut deployment risks

The infrastructure challenge is substantial.

According to the European Commission, CO₂ transport networks could stretch to 7,300 kilometres by 2030, requiring investment of up to €12.2 billion. By 2040, the network could reach around 19,000 kilometres, with investment needs of approximately €16 billion.

The paper argues that the EU Emissions Trading System remains central to creating an economic incentive for CCS, but says carbon pricing alone will not be enough to bring projects to maturity.

Additional public financing will therefore be required, particularly for cross-border infrastructure and projects facing the highest early-stage risks.

The paper calls for greater access to the Innovation Fund and Connecting Europe Facility, while urging the EU to use the proposed Decarbonisation Accelerator Act and Industrial Decarbonisation Bank to accelerate investment.

It also calls for risk-sharing mechanisms and dedicated financing for CO₂ storage sites, with particular attention to first-mover projects facing uncertainty over demand and the timing of capture, transport and storage infrastructure.

4. Cut permitting delays

Permitting and regulatory complexity remain major obstacles to the rapid development of CO₂ storage and transport infrastructure, the paper says.

It calls for more efficient and coordinated approval procedures and argues that regulation should reflect the current maturity of Europe’s CCS market.

The paper specifically highlights the European Commission’s four-month consultation on CO₂ storage permits as an administrative process that can create delays while adding limited value.

It also argues that responsibility for storage development, permitting and national storage strategies should remain primarily with Member States, while the EU focuses on common standards and cross-border coordination.

5. Remove barriers to cross-border CO₂ transport

Cross-border transport is described as fundamental to creating a competitive European CO₂ market.

The paper calls for legal certainty around the movement of CO₂ between countries and for interconnected infrastructure spanning pipelines, shipping and port facilities.

With industrial emitters, transport networks and storage sites often located in different countries, the ability to move CO₂ across borders will be critical to scaling the market.

A race to build the infrastructure

The paper's central message is that Europe’s climate ambitions and industrial competitiveness are increasingly tied to the same infrastructure challenge.

“Europe is well-positioned to become a global leader in CCS.”

But reaching that position will require more than storage capacity. It will depend on investment, permitting, cross-border rules and coordinated development across the entire CO₂ value chain.

The paper argues that Europe now needs to turn its growing political commitment to CCS into a functioning market capable of supporting industrial decarbonisation at scale.