Can the EU Oblige Oil and Gas Producers to build CO2 injection capacity? Article 23 of the Net-Zero Industry Act and the Pending Actions before the General Court

Abstract The Net Zero Industry Act (NZIA) requires 44 oil and gas producers to provide 50 million tonnes of annual CO2 injection capacity at permitted storage sites by 2030. Requiring private companies to build infrastructure for a market (that some believe does not yet exist) is a new phenomenon in European Union (EU) law. Not surprisingly, some of those obligated companies brought fifteen actions against the Act before the EU General Court in October 2025. The article addresses four main lines of attack: the legal basis, proportionality, business freedom and property rights, and equal treatment. The article argues that the Achilles' heel of the Act is the mismatch between a fixed 2030 deadline and the time needed to permit and build offshore injection capacity. The court may annul part of the Act, not Article 23 entirely. The outcome may show how far the EU can rely on the private sector to provide infrastructure for carbon management and carbon-neutral pathways.

Authors

Publication Details

Journal
Research Square
Published
2026-11-04
DOI
https://doi.org/10.21203/rs.3.rs-11399515/v1
Primary Topic
EU Law and Policy Analysis
Type
preprint
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Can the EU Oblige Oil and Gas Producers to build CO2 injection capacity? Article 23 of the Net-Zero Industry Act and the Pending Actions before the General Court

Reza Maddahi
Research Square
EU Law and Policy Analysis
preprint

Can the EU Oblige Oil and Gas Producers to build CO2 injection capacity? Article 23 of the Net-Zero Industry Act and the Pending Actions before the General Court

Reza Maddahi
preprint en

Abstract

Abstract The Net Zero Industry Act (NZIA) requires 44 oil and gas producers to provide 50 million tonnes of annual CO2 injection capacity at permitted storage sites by 2030. Requiring private companies to build infrastructure for a market (that some believe does not yet exist) is a new phenomenon in European Union (EU) law. Not surprisingly, some of those obligated companies brought fifteen actions against the Act before the EU General Court in October 2025. The article addresses four main lines of attack: the legal basis, proportionality, business freedom and property rights, and equal treatment. The article argues that the Achilles' heel of the Act is the mismatch between a fixed 2030 deadline and the time needed to permit and build offshore injection capacity. The court may annul part of the Act, not Article 23 entirely. The outcome may show how far the EU can rely on the private sector to provide infrastructure for carbon management and carbon-neutral pathways.

Research Square
EU Law and Policy Analysis
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