Carbon capture and storage (CCS) has been heralded as a pivotal technology to reduce industrial CO2 emissions, which are among the most challenging to mitigate. Detractors claim that the technology is overhyped and will prolong our reliance on fossil fuels. The technology looks likely to feature highly in this new European Commission mandate. Preparations are already underway on new CCS legislation, which may take the form of an overarching strategy. 

What do the European Union’s Member States think? Over the next few weeks, we will be taking a closer look at how the technology is being seen by key EU members, to gain insights on how CCS policy may develop and impact Europe’s industry and energy systems.  

Today we will focus on the Netherlands’ revised National Energy and Climate Plans (NECP) to see how one of the EU’s climate leaders is integrating this critical technology into its climate strategy. The Dutch vision shows us effective policy frameworks and implementation strategies that can inform and inspire similar efforts across the EU. 

The EU has mandated that each Member State develop updated National Energy and Climate Plans. Each plan provides a comprehensive roadmap for national policies and measures to be implemented over ten years, aiming to:  

• achieve significant reductions in greenhouse gas emissions; 

• improve energy efficiency; enhance energy security;  

• foster a competitive internal energy market; 

• stimulate research and innovation in clean energy technologies.  

To date, only nine Member States submitted their updated plan. The Netherlands, known for its proactive approach to climate policy, has been a frontrunner and was the first Member State to submit. 

The Dutch government identifies CCS as a central and effective solution for achieving CO2 emission reductions, particularly in sectors where affordable sustainable alternatives are not yet available. The Netherlands sees CCS as essential for addressing both fossil and non-fossil CO2 emissions – such as burning biofuels for energy.  

Several significant CCS projects are underway in the Netherlands: 

• Porthos Project: this project, aiming to capture and store approximately 2.5 megatons of CO2 per year, made its final investment decision in October 2023. It is now in the construction phase.  

• Aramis Project: the project has moved into the front-end engineering design (FEED) phase, with plans for further development. 

• Yara Sluiskil: in November 2023, Yara Sluiskil decided to proceed with its CCS project, partnering with Northern Lights for CO2 storage in Norway starting from 2025. 

These projects illustrate the Netherlands’ commitment to developing a robust CO2 storage infrastructure, supported by cross-border collaborations with Belgium, Denmark, and Norway. 

Supporting European initiatives, the Dutch government aligns its efforts with the EU’s Net Zero Industry Act (NZIA), which mandates a CO2 injection capacity of 50 megatons per year by 2030 within the EU. This applies even if the Member State has not set specific national targets for CCS.  

The country also supports the European Commission’s Industrial Carbon Management Strategy, which aims to scale up European storage and injection capacity. Dutch policy encourages market-driven, cost-effective emission reduction measures, with the actual development of storage capacity depending on market interest and permitting process speed. 

The Dutch government is also following the Green Deal Industrial Plan, which aims to accelerate the uptake of green technologies through the Net Nero Industry Act. The Act includes strategic technologies like CCS, considered essential for the Netherlands to meet its increased climate targets of a 55-60% reduction in emissions by 2030. 

The Netherlands promotes CCS through its Stimulering Duursame Energieproduktie en Klimaattransitie (SDE++) subsidy scheme. This program gives financial support to companies and non-profits engaged in large-scale renewable energy production and CO2 emission reduction. For CCS projects, the SDE++ scheme covers the financial gap between the European Emissions Trading System (ETS) price and the marginal costs of emissions reduction. This Dutch financial tool supports the entire CCS chain, including capture, transport, and storage. 

While the SDE++ scheme also supports bioenergy with carbon capture and storage (BECCS), subsidies for BECCS remain limited to waste incineration and small-scale biomass combustion plants. There are currently no active BECCS projects, although this is expected to change soon. The scheme opened to waste incineration plants with significant biogenic emissions in 2022 and 2023, and further expansions are being considered for 2024 and beyond. The government aims to achieve 1.5 megatons of negative emissions by 2030 and is developing a roadmap on the topic to guide long-term commitments. 

The Netherlands’ approach to CCS is part of a broader strategy to increase the share of renewable energy, replace fossil fuels, and achieve climate neutrality by focusing on negative emissions. This includes technological and nature-based solutions for CO2 sequestration. The SDE++ scheme plays a critical role in this strategy, providing multiannual investment certainty and promoting large-scale CO2-reducing technologies. 

The Netherlands’ NECP outlines a comprehensive and ambitious approach to incorporating carbon capture and storage into its national climate strategy. By focusing on market incentives, cross-border collaborations, and strategic projects, the Member State is positioning itself as a leader in CCS within the EU.  

Next time, we will have a detailed look at Italy’s vision and what it says about the potential of CCS to significantly contribute to achieving net-zero emissions, as well as the importance of sustained investment, innovation, and international cooperation in the fight against climate change.