The EU's upcoming Net Zero Industry Act (NZIA) aims to bolster Europe's green industry, but its implications for Norway are significant, particularly for the oil and gas sector. If incorporated into the EEA agreement, Norwegian companies may be obligated to build up considerable CO2 storage on the Norwegian continental shelf.
The NZIA mandates EU oil and gas companies to establish a storage capacity of at least 50 million metric tons of CO2 annually by 2030. While this aligns with Norway's existing efforts in carbon capture and storage (CCS) technology, the extent of responsibility for Norwegian companies remains unclear.
Preliminary indications suggest that the obligation for CO2 storage will be proportionate to the companies' share of oil and gas production in Europe, potentially placing a substantial burden on Norwegian firms due to their significant production levels.
Offshore Norway, initially supportive of the NZIA, now expresses concerns about the lack of clarity regarding the regulation's impact on Norwegian players and how CO2 storage on the Norwegian shelf will contribute to meeting the EU's target.
Renewable Norway, on the other hand, strongly advocates for the NZIA's incorporation into the EEA agreement, highlighting its potential to incentivise investment in offshore wind projects in Norway.
