Annual report: The first year of Article 23

Abstract

This report presents the first annual independent assessment of Article 23 of the EU's Net Zero Industry Act, which requires 44 obligated oil and gas producers to jointly deliver 50 MtCO2 per year of carbon injection capacity by 2030. Based on announced projects, the analysis finds the EU on track for approximately 43 MtCO2 of capacity by 2030, with the full target more likely reached around 2032. Individual compliance varies: a small group of companies is on track to meet their individual obligations, while others face significant shortfalls that may be partly addressed through agreements with third-party storage developers. Enforcement remains uneven across Member States, with only a small number of the 11 Member States hosting obligated entities having begun developing the penalty regimes required by 30 June 2026. Stakeholders broadly support Article 23’s role in breaking the long-standing deadlock in CCS deployment. Yet, the mechanism faced legal uncertainty, following legal challenges filed by 12 obligated companies before the EU's General Court in October 2025 disputing the transparency and proportionality of target-setting. The report recommends clearer European Commission guidance on compliance assessment and third-party agreements, more consistent penalty frameworks across Member States, and improved permitting and data access, and notes that Norway's possible incorporation of the NZIA following a recent EFTA Court ruling could extend the mechanism's reach.