The European Union is moving forward with major plans to capture and store carbon dioxide to reduce industrial emissions. The goal is to capture 50 million tonnes of CO₂ each year by 2030 and 280 million tonnes by 2040. To achieve this, the EU needs to build a much larger network of carbon capture and storage, also known as CCS.
Right now, Europe only has five CCS sites in operation. These capture a total of just 2.7 million tonnes of CO₂ per year. A large portion of that—about 63 percent—is handled in Norway, which is not part of the EU. This shows how far the EU is from meeting its future goals.
CCS works by capturing CO₂ from industrial sites. The gas is then turned into a liquid and transported by ship or pipeline to underground storage locations. These storage sites are often located deep under the sea or ground. The technology is seen as necessary for reducing emissions from heavy industries like cement and steel.
However, some environmental groups are worried. A recent report from WWF said the EU’s focus on CCS is taking away attention and funding from renewable energy and energy-saving efforts. In the cement sector, most EU grants now go to CCS, while cleaner production methods receive much less support.
Investigative reporters recently reviewed three EU-backed CCS projects. These are Northern Lights, Pycasso, and Callisto. Their reports found many challenges. Costs are going up, transportation capacity is limited, and some project goals appear too ambitious to be reached on time.
The Northern Lights project in Norway is one of the most advanced. It is managed by Shell, Equinor, and TotalEnergies and is expected to begin operations this year. It aims to store 1.5 million tonnes of CO₂ per year from companies like Yara, Orsted, and Heidelberg Materials. The carbon dioxide will be moved by two special ships, each able to carry 8,000 tonnes per trip. The ships will take the CO₂ to Øygarden on the Norwegian coast. From there, it will travel through a 100-kilometer pipeline to storage sites under the North Sea.
The costs are very high. Experts at Wood Mackenzie estimate that moving and storing the CO₂ will cost around $145 or €128 per tonne. The International Energy Agency says capturing emissions from ammonia production may cost another $30 or €27 per tonne. Using these numbers, Yara might spend up to €178 million per year to remove just part of its emissions. That amount is nearly equal to Yara’s entire European profits last year.
Northern Lights has ordered two more ships for 2026 to increase transport capacity. But even with four ships, delays caused by bad weather or mechanical problems could affect schedules. Each unloading also requires cleaning the tanks to avoid water contamination. This adds more time and costs.
Another key project is Callisto. It is based in Italy and aims to become the largest CCS network in the Mediterranean. It is being built by Eni, Snam, and Air Liquide. The plan is to capture CO₂ in Italy and France. Emissions from Italy will go through pipelines. Emissions from France will be shipped around Italy to reach storage sites under the Adriatic Sea.
This project also faces big challenges. Building pipelines, capturing carbon, and operating ships all require large investments. Right now, the EU’s carbon price under the Emissions Trading System is about €80 per tonne. This is not enough to make CCS profitable. Without higher prices or government support, companies say they cannot invest in long-term projects.
Experts warn that price changes in the carbon market add more risk. Carbon prices can go up and down quickly. This makes it hard for businesses to plan for the next 10 to 15 years. Some companies are now asking for carbon contracts for difference. These are government deals that promise a minimum price per tonne of CO₂. Without them, many CCS projects may not survive in the long run.
The EU says CCS is a vital tool for cutting emissions from hard-to-decarbonize sectors. But critics believe that the current focus is too narrow. They argue that clean energy and efficiency projects are just as important and should get more support.
The road ahead will not be easy. The EU must increase its CCS capacity nearly 20 times by 2030. That means building new transport systems, setting stable carbon prices, and improving cooperation between member states.
Despite the big goals, high costs and slow progress raise doubts about whether CCS can deliver as promised. The EU’s climate future may depend on how it balances innovation, investment, and realistic planning.
