Potential Regulatory Frameworks for Cross-Border CO2 Transport between the EU and UK

Carbon Capture, Utilization & Storage (CCUS) has been identified as a critical decarbonisation solution especially for hard-to-abate sectors such as cement, steel, chemicals and refining. CCUS development has accelerated over the last few years in Europe, with several projects expected to come online by 2030. This pace has been backed by ambitious targets of European governments – EU, UK and Norway – while the North Sea has emerged as the main hub of CO₂ storage activity in Europe, hosting most of the sites under development.

To achieve this, cross-border transport of CO2 becomes essential, and new CO₂ pipelines and CO₂ ships are in advanced stages of development, while the potential to repurpose natural gas pipelines and LPG ships provides optionality. However, CO₂ producers are limited in their ability to leverage the entire network under current regulations. Specifically, the London Protocol and the respective Emissions Trading Systems (ETS) of the EU and UK represent hurdles that must be addressed for cross-border CO₂ transport to be feasible. This article explores and proposes potential regulatory frameworks that can enable a competitive cross-border CO₂ transport and storage network between Western Europe and the UK.

By: Nnaziri Ihejirika