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Robust and clear regulation needed to realise Commission’s Industrial Carbon Management Strategy

Robust and clear regulation needed to realise Commission’s Industrial Carbon Management Strategy
The ewb Bern Forsthaus waste-to-energy (WtE) combined heat and power (CHP) plant in Bern, Switzerland (photo courtesy ewb).

Responding to the European Commission's much-anticipated Industrial Carbon Management Strategy, the European Suppliers of Waste-to-Energy Technology (ESWET) says that it "wholeheartedly welcomes this initiative", as it addresses critical aspects of carbon dioxide emissions capture, storage, and utilization, vital for achieving the EU climate targets.

On February 6, 2024, the European Commission published a Communication on its Industrial Carbon Management Strategy, which provides details on how carbon capture, utilization, and storage (CCUS) technologies could contribute to reducing emissions by 90 percent by 2040 and reaching climate neutrality by 2050.

In a statement, the European Suppliers of Waste-to-Energy Technology (ESWET) says that it “wholeheartedly welcomes this initiative” adding that well-designed regulatory frameworks are crucial to transform this strategy into reality.  well-designed regulatory frameworks are crucial.

CCUS technologies are already there and are ready to serve the EU cause, however, to do that, the frameworks that regulate their development and deployment must be comprehensive and well-designed, said Charoula Melliou, Head of Policy at ESWET.

Thorough consideration of infrastructure and storage development

The trade body is pleased to see that the topics of geological storage exploration and carbon dioxide (CO2) transport infrastructure development have been considered thoroughly in the strategy.

However, ESWET notes that a strong investment and financial policy to support both the transport and storage of CO2 is essential. The EU should therefore also ensure a balanced distribution of carbon storage projects across regions to facilitate equal contributions to its goals.

Furthermore, with carbon dioxide removals (CDR), a field where the waste-to-energy (WtE) sector has significant potential thanks to its more than 50 percent biogenic CO2 emissions allowing for Bioenergy with Carbon Capture and Storage (BECCS), the topic requires more consideration in the execution of this strategy.

The EU legislation must incentivize industrial carbon removals very concretely, with clear objectives and support mechanisms.

Good starting point for CCU

As for carbon capture and utilization (CCU), the Commission’s proposed strategy offers a good starting point as to how the EU intends to support the utilization of carbon, both in its production and in its consumption in industrial sectors.

ESWET deems that clear objectives and targets in relevant legislation, as well as precise accounting rules, are crucial to enable a higher uptake of sustainable carbon, substituting fossil carbon adding that a technology-neutral approach is required here.

ESWET appreciates the inclusion of various policy strands in the strategy, creating a favourable environment for industrial carbon management approaches.

Yet, hard-to-abate sectors, including Waste-to-Energy, should be carefully taken into account, and more is expected from the EU on this matter, Charoula Melliou, Head of Policy at ESWET, highlighted.

Regarding specific legislative matters, ESWET urges the inclusion of CCU alongside CCS in the upcoming Net-Zero Industry Act and stresses the importance of the Carbon Removal Certification Framework to counterbalance residual emissions from hard-to-abate sectors, while evaluating all available options and being technology-specific.

Finally, ESWET says that it supports the potential integration of industrial carbon removals into the EU Emission Trading System (ETS) accompanied by tailored certification methodologies and an intermediary body handling carbon removal certificates.

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