Powering Industrial Defossilisation: Our Key Recommendations for the IDAA

With input from its members across the Carbon Capture and Utilisation (CCU) value chain, CO₂ Value Europe has submitted key recommendations to the European Commission’s consultation on the forthcoming Industrial Decarbonisation Accelerator Act (IDAA), part of the Clean Industrial Deal launched in February.

The IDAA aims at bridging the gap between the Union’s industrial competitiveness and climate goals, helping Energy Intensive Industries (EIIs) transition towards climate neutrality. For CCU, it looks at supporting the development of lead markets for captured carbon in products.

Our Key Recommendations

🔵 Clarifying the Net Zero Industry Act (NZIA): The inclusion of CCU technologies in the NZIA is a welcome step, but their classification under multiple categories complicates the permit submission process. CO₂ Value Europe calls on the Commission to provide clear guidance to CCU project developers.

🔵 Defining ‘Alternative Carbon Feedstocks’: CO₂ Value Europe highlights the need for a clear definition of ‘alternative carbon feedstocks’ CCU, sustainable biomass, and waste recycling as a foundation for developing a dedicated carbon market. Other measures will be reinforced by this clarity.

🔵 Mandates for Alternative Carbon Feedstock and CCU in Products: To boost CCU deployment, CO₂ Value Europe calls for mandatory targets to drive demand for CCU-based products (i.e. construction materials and chemicals), building on models like ReFuelEU Aviation.

🔵 Levelling the Playing Field with Virgin Fossil Carbon: The European Commission should provide financial support and incentives for alternative carbon feedstocks to compete fairly with fossil carbon and advance the EU’s climate neutrality goals.

We urge the Commission to adopt the ICM Forum’s February 2025 recommendations, including reviewing the 2036 and 2041 “sunset clauses” that hinder the uptake of the use of unavoidable process emissions from hard-to-abate industries in CCU fuels projects. A grandfathering clause for projects launched before, e.g. 2040, should ensure continuous operation and CO₂ supply during their entire lifetime.

🔵 CO₂ Transport Infrastructures for All ICM Pathways: CO₂ Value Europe urges the European Commission and infrastructure planners to account for the full range of CCU, CCS and CDR projects when designing CO₂ transport networks.

Find our full answer to the consultation here.