Carbon capture and utilization under EU law: impermanent storage of CO2 in products and pre-combustion carbon capture

Abstract

The evolving regulatory landscape within the European Union demonstrates a transition from prioritizing carbon capture and storage over carbon capture and utilization towards a more equitable treatment of both approaches in relevant legislation and policy frameworks. Nevertheless, the ‘permanence’ criterion of carbon dioxide in the products remains an ongoing challenge. Within the current European legal framework, harnessing the regulatory incentives depends on how long carbon dioxide remains in carbon capture and utilization products. The study elucidates the evolving regulatory landscape surrounding carbon capture and utilization by examining recent legislative initiatives and amendments to key directives such as the Emissions Trading System Directive and the Renewable Energy Directive. Furthermore, it explores the implications of the European Union Net-zero Industry Act and the Carbon Removal Certification Framework. In addition, this article examines and explains the need for expanding the scope of carbon capture and utilization and storage by incorporating pre-combustion carbon capture through methane splitting into the definition.