As the EU continues to advance its climate goals, several important policy updates have emerged this summer. From carbon capture regulations to accounting rules for sustainable fuels, these developments will shape the future of clean technologies and emissions reduction efforts across Europe.
Here’s a quick summary of the most significant changes occurred over the Summer you need to know:
🔵 EU Elections 2024: Awaiting Policy Priorities for the Next 5 Years
The recent EU elections (6-9 June 2024) brought significant changes to the European Parliament, with 720 new MEPs elected. While elections resulted in a shift to the right, centre-right, centre-left, and liberal parties are expected to continue leading EU policymaking for the next 5 years. Ursula von der Leyen was re-elected as European Commission President on 18 July, and while the Green Deal remains a priority, we are closely watching the development of her new “Clean Industrial Deal” and how it will impact CCU projects in the coming years.
🔵 Permanent CCU Delegated Act: New EU Rules for CO2 Mineralisation
On the Carbon Capture and Utilisation (CCU) front, this summer, DG CLIMA published a draft Delegated Act (DA) on permanent CCU, which clarifies how companies capturing CO₂ and binding it permanently in products can avoid paying ETS allowances.
CO2 Value Europe actively contributed to the consultation, advocating for rules that promote investment in CCU technologies. The final rules have now been published, reflecting some improvements to be more inclusive of different pathways, though we still believe the scope could be expanded to cover all forms of permanent CCU.
The next step? The DA is now with the Council and Parliament, who must either accept or oppose it. If approved, it will come into force at the end of 2024 or early 2025.
🔵 Update on ETS Accounting Rules for CCU Fuels (MRR)
This summer, DG CLIMA released a draft implementing act amending the Monitoring and Reporting Regulation (MRR). This technical document outlines how CO2 captured and valorised in CCU fuels will be accounted for under the ETS system, tackling various complex scenarios.
CO2 Value Europe provided feedback during the consultation process, offering recommendations on how to refine the accounting framework to support the growth of CCU fuels. You can read our full position here.
The final version of the document will be published soon, and will then move to the Council and Parliament for approval.
