A wave of lawsuits filed by at least 15 oil and gas companies against the European Commission is threatening to stall one of the EU ’s most important climate policies, according to a joint statement from Carbon Balance Initiative (CB), Clean Air Task Force (CATF), and Bellona Europa. 

The challenges target the Net Zero Industry Act’s (NZIA) CO2 injection capacity obligation, which requires 44 EU-operating fossil producers to collectively deliver 50 Mt of annual CO2 injection capacity by 2030.

The Article23Watch partners say the litigation is unsurprising, but deeply concerning. “After decades of promising large-scale CO2 storage, these companies are showing they are more interested in delay than delivery,” said Lina Strandvåg Nagell, Deputy Director at Bellona Europa.

“Government support gives confidence in carbon mar | RSS.com

While the requirement is ambitious, it is also achievable. “We cannot risk obligated entities opting out of developing injection capacity due to low, non-dissuasive or weak penalties,” said Ingrid Udd Sundvor, Executive Director and Co-founder of CB.

The 50 Mt Target: Ambitious, But Fully Within Reach

According to CATF, Europe has vast, well-characterized storage potential and multiple commercial-scale projects already advancing. “The technology is ready, suitable geology is available and project timelines workable,” said Codie Rossi, CATF’s Europe Policy Manager.

Crucially, the NZIA requires injection capacity, not physical CO2 storage, giving obligated firms flexibility through joint ventures and third-party storage providers. Many are already well-positioned to meet their pro-rata allocations.

Opponents’ claims of insufficient CO2 supply are also misleading. Projections from announced capture projects exceed 60 Mt per year by 2030, far outpacing the EU’s expected 37 Mt of storage availability, with less than 3 Mt under construction.

Relevant: Denmark Converts North Sea Oil Field Into Major CO2 Storage Hub

“There is in fact a strong and growing demand for CO2 storage,” said Toby Lockwood, CATF’s Director of Carbon Management.

Industry-wide underinvestment is the core barrier, NGOs argue. Insufficient penalties risk letting obligated firms walk away from a responsibility critical to Europe’s climate goals and industrial competitiveness.

“This is a stalling tactic, the worst of its kind, and has very real consequences for European industry, community and society as a whole, as Europe works to decarbonise in an effective manner,” said Nagell.

Read more: German Bundesrat Greenlights Large-Scale CO2 Storage