EU Forces Big Oil to Store CO₂—Or Pay Up

The Net-Zero Industry Act Just Got Teeth

The European Union is putting fossil fuel producers on the hook for carbon storage—literally. Under the Net-Zero Industry Act (NZIA), oil and gas companies must collectively ensure at least 50 million tonnes of annual CO₂ injection capacity by 2030. The move, part of Brussels’ aggressive decarbonization push, transforms carbon capture and storage (CCS) from a voluntary climate effort into a mandated industry obligation.

“This isn’t about asking nicely anymore. It’s a binding ‘clean up your mess’ directive,” says a senior EU energy official involved in the policy rollout.

The rules, finalized in May 2025, assign specific targets to 44 companies responsible for 95% of the bloc’s oil and gas production between 2020 and 2023. Dutch firm NAM faces the heaviest lift at 6.3 million tonnes/year, while Denmark’s BlueNord must handle 1.3 million tonnes. Each company has until June 2025 to submit detailed plans proving they’ll meet their quotas—or risk penalties under the CCS Directive.

Denmark’s $4.31 Billion Bet

While the EU framework sets the stage, national initiatives like Denmark’s are proving CCS can scale. Copenhagen has earmarked $4.31 billion to slash 2.3 million tonnes of CO₂ annually from 2030, with 10 companies already prequalified to bid for storage contracts. “The math is simple: we either bury carbon or miss our climate targets,” notes a Danish Energy Agency spokesperson.

The delegated regulation, adopted May 21, 2025, establishes how obligations are calculated, while a follow-up decision (May 22) locks in company-specific shares. Both take effect after a two-month scrutiny period, likely in late July. Crucially, designated storage sites will fast-track as “net-zero strategic projects,” bypassing bureaucratic hurdles to accelerate deployment.

“Hard-to-abate sectors like cement and steel need this infrastructure yesterday. The EU just gave them a lifeline,” argues a Brussels-based carbon management analyst.

For oil giants, the mandate is a double-edged sword. While some resent the forced investment, others see profit in repurposing depleted offshore fields for CO₂ storage. Either way, the clock is ticking: operational capacity must be online by December 31, 2030. Fail to comply, and the fines could make carbon taxes look like parking tickets.