What is the EU’s Industrial Carbon Management Strategy?
The EU’s Industrial Carbon Management Strategy encompasses a range of technologies to mitigate CO2 emissions from industrial processes and enhance carbon removal from the atmosphere. The EU created this strategy to develop these technologies and establish a cohesive regulatory and investment framework. The three main areas of the strategy are Carbon Capture and Storage (CCS), Carbon Capture and Utilisation (CCU), and Atmospheric Carbon Removal.
The industrial sector has been shown to be particularly challenging to decarbonise and this strategy emphasises the need for technologies like CCUS to be deployed to decarbonise the industry by 2050 effectively. In doing so, the Industrial Carbon Management Strategy aligns with the EU’s climate targets of reducing greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050.
The strategy is expected to complement and complete existing EU policies and markets such as the CCS directive for geological storage, the EU's Emissions Trading System (ETS), the proposed EU certification framework for carbon removals, and the Net-Zero Industry Act.
The strategy will occur in a phased approach:
By 2030, the EU aims to establish a storage capacity of at least 50 million tonnes per year, which will be supported by a robust transport infrastructure, consisting of pipelines, ships, rail, and road.
By 2040, CO2 will become a tradeable commodity to create an economically viable market using regional carbon supply chains. The goal is to have at least one-third of all captured carbon used.
Beyond 2040, industrial carbon management is expected to be fully integrated into the EU’s economic framework, focusing on utilising biogenic or atmospheric carbon for industrial processes or transport fuels.
Funding for industrial carbon management is crucial for their development and deployment. The EU, therefore, leverages various funding mechanisms, such as the Innovation Fund, Connecting Europe Facility (CEF), and Horizon Europe, to support research, infrastructure development and large-scale projects.
Doing so will help aid the EU in achieving suitable and effective technologies that will be imperative for achieving industrial decarbonisation. Additionally, the Commission is exploring avenues for public-private partnerships and international collaborations to maximise the economic and environmental benefits of these technologies.
Ensuring public acceptable and stakeholder engagement is important for the success of the Industrial Carbon Management Strategy. The Commission has emphasised transparency and involvement of local communities and stakeholders throughout the policymaking and implementation processes. The aim is to help international collaboration for aligning reporting standards, addressing global emissions, and fostering open markets for carbon management technologies.
The EU’s Industrial Carbon Management Strategy represents a comprehensive framework to tackle industrial emissions and advance carbon neutrality goals. Through strategic investments, policy coordination, and stakeholder engagement, the EU aims to position itself as a leader in industrial decarbonisation and contribute significantly to global efforts to combat climate change.
