Breaking Down Borders: Why Europe Must Simplify Cross-Border CO₂ Transport Now

Europe risks stalling its industrial decarbonisation unless we fix CO₂ transport – fast. Without dependable routes to permanent storage, capture projects cannot reach FID and emitters face untenable risks. The NZIA’s 50 Mtpa storage goal and the 450 Mtpa capture need by 2050 make clear: cross-border, interoperable transport is essential and urgent. 

Today, the deployment of CO₂ transport infrastructure in Europe is still nascent – like the rest of the CCS value chain. However, the direction is clear:

According to the EU’s Industrial Carbon Management Strategy, Europe will need to capture 450Mt CO₂ annually by 2050 to deliver the EU’s net-zero target.

Most importantly, CCS is not just critical to decarbonise the energy-intensive sectors but also to prevent Europe from deindustrialising.

To do so, we must develop a transport network that matches our need for carbon capture and storage and that takes into account the varying needs of all emitting sites, both large and small, remote and in clusters. To make this possible, the EU must take on a stronger role: aligning and empowering Member States, enabling action at different starting capacities, and creating a regulatory framework that is fit for purpose, without becoming overly complex. This will provide the investment certainty needed to build the cross‑border transport backbone Europe requires and unlock FIDs across the full value chain.

From Patchwork to Platform

As noted, the CO₂ transport infrastructure and industry in Europe is still nascent – and the progress across Europe is as diverse as Europe itself. While some Member States have already fully developed a CO₂ transport legislation on national level, others have not even started yet. To be able to deploy CCS at a large-scale across Europe, we need the EU to step in, coordinate planning for cross-border CO₂ infrastructure and support multimodal transport strategies – pipelines, ships, and rail – and empower national governments to unlock the EU’s potential for CO₂ transport infrastructure. This is not just about efficiency; it is industrial policy. 

Streamlined rules, harmonized permitting, liability, and access rules for cross-border CO₂ flows would give companies the confidence to commit billions in infrastructure investment.

A centralised knowledge-sharing platform between national authorities, stewarded by the European Commission, could be a gamechanger.

The Commission should apply its convening power urgently, introducing single contact points, clear time limits, mutual recognition, standardised documentation, and model contracts. All CO₂ transport modes must be recognised within an interoperable pan-European network linking clusters and storage hubs. Practical digital tools – shared permitting trackers and common data rooms – would bring transparency and speed. Predictability and proportionality must be the guiding principles.

De-Risking Early Investments Along the Value Chain

Development of standards and common rules take time. Time that creates investment uncertainty – and halts the much needed FIDs not only for CO₂ transport infrastructure that needs to be built, but also for emitters that need to install the capturing plants. 

To ensure that the required CO₂ transport infrastructure is ready when needed – and can support first-mover projects, we need to introduce de-risking mechanisms.

These could include blended finance and risk-sharing mechanisms and additional measures like time limited-contractual backstops (offtake guarantees or availability payments), regulated tariffs, a regulatory asset base model can address revenue risk. Or, even the development of dedicated first-loss guarantee program for CCUS value chain.

Most importantly, there is no CO₂ to transport, without emitters taking FID. Their main hurdles are the underlying risks across the value chain for such first-of-a-a kind ventures: Today, any disruption along the value chain until the permanent storage, e.g. delay in development of infrastructure across the value, could require the venting of the captured CO₂. Despite having invested in carbon reduction technologies or carbon infrastructure, the emitters would still be held liable under the EU Emissions Trading Scheme (ETS) for these unintended emissions (“double penalty” risk). Therefore, also de-risking mechanisms for early-movers on the emitters-side are needed, such as a funds to cover unexpected ETS exposure.

Why This Matters Now

With NZIA storage capacity targets now in place, Europe has momentum. But without a coherent, EU‑led effort to align permitting rules, technical standards and cross‑border procedures, the deployment of a true low-carbon economy will stall. Our message is clear: regulation must align everything, but remain simple enough for Member States with different levels of capacity and experience to act quickly.

Simplifying and standardising cross‑border CO₂ transport will accelerate industrial decarbonisation, strengthen Europe’s industrial base, protect jobs, and secure our climate commitments. The Commission must step in to enable Member States to cooperate more easily, de‑risking investments, ensuring predictability, and avoiding unnecessary complexity.

The choice ahead is stark: act now to build the connected CO₂ transport infrastructure Europe’s value chain depends on – or risk watching the opportunity pass us by.