The European Union has introduced a set of instruments that support the deployment of CCUS technologies. The EU Emissions Trading System (ETS) remains a central pillar, and its upcoming inclusion of carbon removals will have direct implications for CCUS deployment. For industrial operators in hard-to-abate sectors, this shift increases the importance of permanent CO₂ storage as a cost-effective compliance strategy. In this context, CCUS becomes a necessary solution for maintaining competitiveness under stricter emissions rules.
The Net-Zero Industry Act (NZIA), in force since June 2024, reinforces these dynamics by setting a binding EU-wide target of 50 million tonnes of annual CO₂ injection capacity by 2030. It mandates open-access storage and contributions from oil and gas producers, aiming to address one of the major barriers to CCUS scale-up: the lack of accessible, shared CO₂ storage infrastructure.
Complementary initiatives such as the Clean Industrial Deal, the Projects of Common Interest (PCI) framework, and the Innovation Fund are also designed to support new CCUS projects by improving access to funding. They aim to streamline and simplify permitting procedures through the Net Zero Industry Act and foster cross-border cooperation. These instruments can benefit Romania, provided national frameworks are aligned and capable of absorbing such support.
At the same time, the general landscape of CCS project development in the EU remains uneven. Infrastructure and investment are heavily concentrated in Western and Northern Europe, leaving Central and Eastern European (CEE) countries dependent on storage capacity developed in other Member States – a solution that is not desirable in Romania’s case. While the EU-level framework offers a strong foundation, its effective implementation depends on national action. The following assessment analyses how Romania is responding to these developments and what remains to be done to enable CCUS deployment at scale.
In this regulatory context, Romania’s three main oil and gas operators, OMV Petrom1, Romgaz2, and Black Sea Oil & Gas3, must collectively account for over 20% of the EU’s total CO₂ storage targeti, despite Romania’s currently limited domestic CO₂ storage infrastructure. While the NZIA obligation has been introduced without a fully defined business model, feasibility studies, or established financial instruments to ensure cost recovery, it marks an important step forward for accelerating CCS deployment in the EU. By creating a clear demand signal, it encourages investment in CO₂ infrastructure that might not have progressed otherwise. Nonetheless, successful implementation will require greater clarity on cost recovery mechanisms, regulatory conditions, and long-term viability to support industry commitment.
The delegated regulation defines who must contribute but leaves enforcement and penalties to individual Member States, potentially resulting in inconsistent implementation and legal uncertainty for cross-border operators. In Romania’s case, the lack of precedent and administrative readiness in this area could further delay the development of a clear and predictable compliance environment. Without guidance on proportionality, timelines, or acceptable justifications for delays, companies may struggle to assess their risk exposure and investment timelines, potentially discouraging timely engagement in CO₂ storage development.
The environmental and safety aspects of CCS storage in the EU are governed by three key directives. First, the CCS Directive establishes the core framework. Second, the Environmental Liability Directiveii addresses environmental damage from CO₂ storage, excluding climate impacts covered under the EU ETS. Third, the Environmental Impact Assessment Directiveiii ensures thorough ex-ante evaluation, public consultation, and regulatory oversight for CCS projects.
At national level, the Romanian Energy Strategy outlines two possible scenarios available to the economic operators concerned, in line with NZIA’s provisions:
- Scenario 1: Invest in the development of their own CO₂ storage projects;
- Scenario 2: Enter into agreements with existing storage project developers or third-party investors (mainly from other countries) to meet their storage target.
This paper was written as part of the GreenHorizon CEE Project: Industrial Carbon Management for a Sustainable Future in CEE. The project is funded by the European Climate Initiative (EUKI) of the German Federal Ministry of Economic Affairs, Climate Action, Nature Conservation and Nuclear Safety.
Ioana Vasiliu, EPG Senior Researcher
Ioana Maria Vasiliu is Senior Researcher within the Clean Economy Department at EPG, where she leverages her extensive expertise in climate policy. She holds a bachelor’s degree in public administration management and a post-university diploma in sustainable development, both from the Economic Academy of Bucharest.
Before joining EPG, Ioana worked as a European Affairs Advisor in the Climate Strategies and Reporting Department at the Romanian Ministry of Environment, Waters and Forests, where she was responsible for developing policies aimed at reducing greenhouse gas emissions and enhancing climate resilience. Her work reflects a strong focus on climate change, sustainable development and international cooperation.
Notably, Ioana played a key role in formulating Romania’s national position on EU climate legislation, helping align the country’s climate goals with broader EU objectives. She actively participated in expert-level EU negotiations, advocating for Romania’s specific needs and ensuring they were represented in final policies. She also coordinated Romania’s climate-focused efforts during its accession to the OECD, representing the country in key working groups, including the Environment Policy Committee, the Working Party on Climate, Investment and Development, and the Inclusive Forum on Carbon Mitigation Approaches.
She also played a role in preparing international reports on Romania’s environmental performance, such as the UNECE Environmental Performance Reviews and the OECD Economic Surveys 2024, with a focus on decarbonizing Romania’s industry and the EU report on Strengthening cultural heritage resilience for climate change – Where the European Green Deal meets cultural heritage and she contributed to the development of the UNIDO Strategy for Climate Change.
In addition to international work, Ioana supported significantly the development of Romania’s National Strategy for Adaptation to Climate Change, the National Strategy for Disaster Risk Reduction and the Climate Change Strategy for Ministry of National Defense. She also served as Romania’s rapporteur for Articles 17 and 19 of EU Regulation 2018/1999.
Further, as a member of the interministerial Working Group for the Social Climate Fund, Ioana provided recommendations to address energy poverty and the socio-economic impacts of Romania’s green transition. She also contributed to the review and amendment of Romania’s Emergency Ordinance 64/2011, ensuring it remained aligned with EU legislation and national priorities.
Contact: ioana.vasiliu@epg-thinktank.org