The EU Approves a Certification Framework for Carbon Capture

The European Council has approved a regulatory framework to certify carbon capture and storage activities, a significant milestone toward the EU's 2050 carbon neutrality target.

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The European Council adopted on November 19 a European Union-wide certification framework for carbon capture, storage, and soil emission reduction activities. This regulation is part of the broader strategy to achieve carbon neutrality by 2050, a crucial climate goal.

The new regulation integrates several technologies, including Direct Air Capture (DAC) and Bioenergy with Carbon Capture and Storage (BECCS), alongside agricultural practices enhancing carbon sequestration in soils and forests. These initiatives must demonstrate measurable benefits over a minimum of five years to qualify under the framework.

A Central Pillar for Carbon Neutrality

According to the Council, these mechanisms will enable the permanent removal of carbon from the atmosphere, complementing strategies aimed at reducing emissions. The focus is on sustainability: projects must guarantee a net, verifiable reduction in carbon, ensure long-term storage, and avoid significant environmental harm.

Beyond their direct climate impact, these activities must contribute to one or more sustainability goals, such as biodiversity preservation or soil improvement. The European Commission will establish a unique electronic registry to ensure transparency and traceability of certified units. This registry will become operational four years after the regulation comes into force.

A Voluntary but Ambitious Framework

While the framework remains voluntary, it is a critical lever for encouraging emission reduction efforts within the EU. Operators must comply with rigorous certification schemes to ensure adherence to the regulation. This approach is also designed to motivate companies to include high-quality carbon credits in their offset strategies.

However, challenges remain. Technologies such as direct air capture, while highly promising, are still costly and require significant investments to achieve industrial scale. Critics also point out that these technologies sometimes lack maturity, complicating their deployment.

A Global Trend

Despite these limitations, the demand for premium carbon credits continues to rise. Companies are increasingly leaning toward technological solutions capable of meeting high sustainability standards. According to Platts, credits from technology-based carbon capture projects were trading at $120/mt CO2e on the voluntary market as of November 19.

With this certification framework, the EU takes a strategic step to structure a growing sector and meet the expectations of companies and investors seeking effective solutions for carbon neutrality.

TotalEnergies reduced its stake in the Bifrost CO2 storage project in Denmark, bringing in CarbonVault as an industrial partner and future client of the offshore site located in the North Sea.
The United Kingdom is launching the construction of two industrial carbon capture projects, backed by £9.4bn ($11.47bn) in public funding, with 500 skilled jobs created in the north of the country.
Frontier Infrastructure, in partnership with Gevo and Verity, rolls out an integrated solution combining rail transport, permanent sequestration, and digital CO₂ tracking, targeting over 200 ethanol production sites in North America.
geoLOGIC and Carbon Management Canada launch a free online technical certificate to support industrial sectors involved in carbon capture and storage technologies.
AtmosClear has chosen ExxonMobil to handle the transport and storage of 680,000 tonnes of CO₂ per year from its future biomass energy site at the Port of Baton Rouge, United States.
The Dutch start-up secures €6.8mn to industrialise a DAC electrolyser coupled with hydrogen, targeting sub-$100 per tonne capture and a €1.8mn European grant.
Japan Petroleum Exploration is preparing two offshore exploratory drillings near Hokkaidō to assess the feasibility of CO₂ storage as part of the Tomakomai CCS project.
The Singaporean government has signed a contract to purchase 2.17 million mtCO2e of carbon credits from REDD+, reforestation and grassland restoration projects, with deliveries scheduled between 2026 and 2030.
The Canadian government is funding three companies specialising in CO2 capture and utilisation, as part of a strategy to develop local technologies with high industrial value.
European carbon allowance prices reached a six-month high, driven by industrial compliance buying ahead of the deadline and rising natural gas costs.
Zefiro Methane Corp. completed the delivery of carbon credits to EDF Trading, validating a pre-sale agreement and marking its first revenues from the voluntary carbon market.
Hanwha Power Systems has signed a contract to supply mechanical vapour recompression compressors for a European combined-cycle power plant integrating carbon capture and storage.
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Frontier Infrastructure Holdings drilled a 5,618-metre well in Wyoming, setting a national record and strengthening the Sweetwater Carbon Storage Hub’s potential for industrial carbon dioxide storage.
The Northern Lights project has injected its first volume of CO2 under the North Sea, marking an industrial milestone for carbon transport and storage in Europe.
Verra and S&P Global Commodity Insights join forces to build a next-generation registry aimed at strengthening carbon market integration and enhancing transaction transparency.
Singapore signs its first regional carbon credit agreement with Thailand, paving the way for new financial flows and stronger cooperation within ASEAN.
Eni sells nearly half of Eni CCUS Holding to GIP, consolidating a structure dedicated to carbon capture and storage projects across Europe.
Investors hold 28.9 million EUAs net long as of August 8, four-month record level. Prices stable around 71 euros despite divergent fundamentals.
The federal government is funding an Ottawa-based company’s project to design a CO2 capture unit adapted to cold climates and integrated into a shipping container.