Industrial carbon management focuses on 3 technological pathways.
Capture of CO2 for storage (CCS): CO2 emissions of fossil, biogenic or atmospheric origin are captured for permanent and safe geological storage.
Capture of CO2 for utilisation (CCU): captured CO2 is used to substitute fossil-based carbon in construction products, chemicals or fuels.
Removal of CO2 from the atmosphere: biogenic or atmospheric CO2 is captured by technological means and stored permanently.
CO2 transport infrastructure serves as a key enabler for these 3 pathways and is esential for developing a fully-fledged CO2 market in Europe. Whenever CO2 is not used directly at the capture site, it must be transported either for use in industrial processes, for example for construction products, synthetic fuels, plastics or other chemicals, or for permanent storage. CO2 transport options include pipelines, ships, rail and trucks.
Industrial carbon management strategy
The adoption of the European Green Deal, the European Climate Law and the subsequent proposals to increase energy and climate targets for 2030 have made carbon management technologies an important part of the EU decarbonisation effort.
On 6 February 2024, the Commission adopted the industrial carbon management strategy (COM/2024/62), introducing a comprehensive approach to scale up carbon management in the EU. The strategy outlines a set of actions to be taken, at both EU and national level, to establish a single CO2 market in Europe and to foster a more attractive environment for investments in industrial carbon management technologies.
An open public consultation on the industrial carbon management strategy ran between 8 June and 31 August 2023. In November 2023, the Commission published a report providing an analysis of the responses received from stakeholders and citizens.
Existing legislative framework
In 2009, the Geological Storage of Carbon Dioxide Directive (2009/31/EC), also known as the CCS Directive, was adopted establishing a regulatory framework for the safe transport and storage of CO2.
The EU Emissions Trading System Directive (2003/87/EC) provides an incentive to capture and permanently store CO2 generated from fossil fuel and industrial process emissions, through a carbon pricing mechanism.
EU legislation has covered CCU since 2018, in particular through the Renewable Energy Directive (EU/2018/2001), and more recently in the amending Directive EU/2023/2413, which encourages the use of renewable fuels of non-biological origin, including fuels produced from captured CO2.
In December 2021, the Commission adopted a Communication (COM/2021/800) aimed at establishing sustainable and climate-resilient carbon cycles. It lists key actions to support industrial capture, use and storage of CO2, including the assessment of cross-border CO2 infrastructure deployment needs at EU, regional and national levels until 2030 and beyond.
The Net Zero Industry Act (EU/2024/1735) adopted in June 2024 sets a legally binding target of 50 million tonnes of annual CO2 injection capacity in the EU by 2030 as well as corresponding obligations on oil and gas producers in the EU to develop CO2 storage sites.
The Carbon Removals and Carbon Farming Certification Regulation (EU/2024/3012) adopted in December 2024 creates a voluntary framework for certifying carbon removals and carbon storage in products sourced from atmospheric or biogenic origin.
ICM Forum and its Working Groups
The Industrial Carbon Management Forum (ICM Forum) is a robust stakeholder consultation platform established by the Commission in 2021, initially under the name 'CCUS Forum', which meets annually. Between 2021 and 2025, 7 working groups provided valuable input in an inclusive bottom-up process, resulting in the publication of issue papers to prepare the discussions of the annual plenary session.
The ICM Forum plenary is traditionally co-hosted by the Commission and a different EU country each year. Spanning 2 days, it gathers approximately 500 stakeholders active in the CO2 value chain, including EU institutions, EU and non-EU countries, industry, NGOs, academia and many others to discuss the deployment of industrial carbon management technologies in the EU.
Legislative initiative on CO2 transportation infrastructure and markets
The Communication on a 2040 climate target and its impact assessment underscores the need for CCU and CCS to meet the EU 2050 climate objectives. The Industrial Carbon Management strategy, published at the same time in February 2024, recognises the need for a legislative initiative with a view to ensuring the development of competitive markets and transportation infrastructure for CO2. The political guidelines for the 2024-2029 Commission reiterate this need. This initiative will implement this ambition.
A call for evidence on the legislative initiative ran between 31 July and 11 September 2025 and received 174 responses.
EU support for the ICM value chain
CINEA
The Commission actively supports industrial carbon management projects. The European Climate, Infrastructure and Environment Executive Agency (CINEA) launched in February 2024 a web tool presenting a portfolio of interactive ICM projects.
Innovation fund
As of February 2024, the Innovation Fund supports 26 industrial carbon management projects that have successfully applied to one of the small or large-scale calls organised since 2020, totaling more than €3.3 billion. Selected applicants currently benefiting from Innovation Fund grants can be consulted on the Commission's website.
Horizon EU
The Commission also supports research, development and innovation for industrial carbon management technologies through Horizon Europe and stakeholder engagement, such as the Strategic Energy Technology Plan Working Group on CCUS and its associated European Technology and Innovation Platform ‘Zero Emissions Platform’.
Under Horizon Europe Cluster 5 (Climate, Energy and Mobility), the Commission supports developing new and/or improving existing CO2 capture, transport, utilisation and storage technologies. A dedicated project, CCUS Zero Emission Network (ZEN), supports the integration of CCS and CCU in hubs and clusters, including knowledge-sharing activities.
Under Horizon Europe Cluster 4 (Digital, Industry and Space), several calls address carbon capture and utilisation in topics related to industrial symbiosis and Hubs for Circularity.
State aid
The Commission also enables EU countries to support industrial carbon management projects through state aid under certain conditions specified in the Guidelines on State aid for climate, environmental protection and energy (CEEAG) from 2022 and in the Clean Industrial Deal State Aid Framework (CISAF) from 2025.
EU support for CO2 transport infrastructure
Cross-border CO2 transport infrastructure projects are within the scope of the Trans-European Networks for Energy (TEN-E) Regulation. They can apply to become Projects of Common Interest or Projects of Mutual Interest and subsequently apply for support under the Connecting Europe Facility (CEF). Every 2 years, the Commission adopts an EU list of PCIs and, since 2023, also of projects of mutual interest (PMIs), which involve non-EU countries.
In November 2021, the Commission published the 5th PCI list from the TEN-E Regulation. This list includes 6 CO2 trans-European infrastructure projects focusing on the development of CO2 hubs. As announced in December 2023, in the last call for funding proposals open to projects from the 5th PCI list of November 2021, 5 CO2 networks projects were selected for funding under CEF.
In November 2023, the Commission adopted a new PCI list based on the revised TEN-E Regulation, which also includes PMIs between EU and non-EU countries. This list includes 14 CO2 network projects across Europe. The PCI/PMI list entered into force in early 2024. The second list of PCI/PMIs is under preparation and its adoption is planned for early 2026.
The Commission's Joint Research Centre (JRC) published in February 2024 a study on the future CO2 transport network for Europe and related investment needs.
CCUS Zero Emission Network
The Commission supports the CCUS Zero Emission Network (ZEN), which took over the activities of the previously supported CCUS Project Network (2018-2023). It aims to build a coherent ecosystem of CCUS actors capable of decarbonising Europe’s industry and delivering the EU’s climate target plan.
Related links
- 6/2/2024 Communication on industrial carbon management - Press release | Factsheet
- 30/11/2022 Certification of carbon removal - Press release | Factsheet
- Commission Communication on industrial carbon management (COM/2024/62)
- EU strategy on energy system integration
- Consolidated version of Directive establishing a scheme for greenhouse gas emission allowance trading within the Community (2003/87/EC)
- Delegated Regulation supplementing Directive 2003/87/EC as regards the requirements for considering that greenhouse gases have become permanently chemically bound in a product (EU/2024/2620)
- Carbon Capture and Storage Directive (2009/31/EC)
- Renewable Energy Directive (EU/2023/2413)
- Renewable Energy Directive (EU/2018/2001)
- Regulation on guidelines for trans-European energy infrastructure (EU/2022/869)
- Regulation on Carbon Removals and Carbon Farming (EU/2024/3012)
- Regulation on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem (EU/2024/1735)
- Industrial Carbon Management (DG Climate Action)