Changes from report parliamentary committee draft to plenary report

Added2. Member States shall take the necessary measures to ensure that potential users of storage sites are able to obtain access to CO2 transport networks and to storage sites for the purposes of geological storage of the produced and captured CO2.

Added3. In order to minimise the environmental impact of CO2 transport, the Union, its Member States and all other actors involved shall aim to minimise the need for CO2 transport.

Added4. Member States may form, or may provide support for the formation of, entities that have the objective of creating CO2 transport networks including the construction of infrastructure or the provision of vessels or other means of conveyance. The formation of such entities shall be reviewed at least every two years.

Added5. By ... [by six months from the date of entry into force of this Regulation], the Commission and Member States shall draw up a common strategy to finance the infrastructure referred to in paragraph 1.

Added1. Each entity selling crude oil, petroleum products or natural gas in the Union shall be subject to an individual and obligatory contribution to the Union-wide target for available CO2 injection capacity set in Article 16. Those individual contributions shall be calculated pro-rata on the basis of each entity’s share in crude oil, petroleum products and natural gas sold in the Union ▌ from 1 January 2020 to 31 December 2023 and shall consist of CO2 injection capacity in a storage site permitted in accordance with Directive 2009/31/EC on the geological storage of carbon dioxide and available to the market by 2030.

Added1a. Entities referred to in paragraph 1 shall be able to meet their individual contribution to the Union-wide target for available CO2 injection capacity through making available injection capacity in storages located in countries referred to in Article 16(8).

Added1b. Member States shall take the necessary measures to facilitate and incentivise emitters to capture emissions, to incentivise investors to finance the needed infrastructure to transport CO2 to the storage site, and where needed, to directly fund of CO2 storage projects.

Added1c. Where CO2 is captured and transported in one Member State and transported and stored in other Member States, Member States shall coordinate measures stated in paragraph 1b. The Commission shall ensure and facilitate such coordination through the establishment of CCS Regional Groupings.

Added2. Within three months of the entry into force of this Regulation, Member States shall, identify and report to the ▌Commission the entities referred to in paragraph 1 and their volumes in crude oil and natural gas sale from 1 January 2020 to 31 December 2023.

Added3. Following the receipt of the reports submitted pursuant to Article 17 (2), the Commission after having consulted Member States and interested parties, shall specify the share of the contribution to the Union CO2 injection capacity objective by 2030 from entities referred to in paragraph 1.

Added4. Within twelve months of the entry into force of the Regulation, the entities referred to in paragraph 1 shall submit to the Commission a plan detailing how they intend to meet their contribution to Union CO2 injection capacity objective by 2030. Those plans shall:

Added(a) confirm the entity's contribution, expressed in terms of targeted volume of new CO2 storage and injection capacity commissioned by 2030;

Added(b) specify the means and the milestones for reaching the targeted volume.

Added5. To meet their targeted volumes of available injection capacity, entities referred to in paragraph 1 can do any of the following:

Added(a) invest in, or develop, CO2 storage projects alone or in co-operation;

Added(b) enter into agreements with other entities referred to in paragraph 1, thereby considering the overall aim of increasing regional storage capacity across the Union;

Added(c) enter into agreements with third party storage, capture and transport, project developers or investors to fulfil their contribution.

Added6. By ... [two years from the entry into force of the Regulation] and every year thereafter, the entities referred to in paragraph 1 shall submit a report to the competent authorities of the Members States and the Commission detailing their progress towards meeting their contribution. In accordance with Directive 2009/31/EC, that report shall include details on the newly commissioned storage capacities, the extent of its utilisation, and an overview of the economic feasibility of planned injection capacities and recommendations to the Member States on additional measured required to reach the CO2 injection targets.The Commission shall make these reports public.

Added6a. The Commission shall assess the compliance of the entities referred to in paragraph 1 with the requirements of this Chapter. In this assessment the Commission shall take into account the development of CO2 transport modalities to the injection sites as well as the development of CO2 capture activities to produce the demand for CO2 injection. If either or both infrastructure and capture activities, needed for a specific injection project to become operational, are lacking resulting in a specific entity not meeting its obligations this Article the Commission may reduce the injection obligation of a specific entity for a specific year. Any reduction shall be recovered within five years after the reduction took place.

Added7. The Commission is empowered to adopt delegated acts in accordance with Article 32 to supplement this Regulation concerning:

Added(a) The modalities in which agreements between entities referred to in paragraph 1 and investments in storage capacity held by third parties are taken into account to meet their individual contribution under paragraph 5, points b and c.

Added(b) The content of the reports referred to in paragraph 6;

Added(ba) Dissuasive and proportionate sanctions and penalties that may be applied to entities referred to in paragraph 1 that fail to comply with the requirements of this Regulation.

Added7b. To contribute to the Union CO2 injection capacity objective, entities referred to in paragraph 1 are entitled to account the CO2 injection capacity corresponding to the project shares owned by another shareholder involved in a storage project, in case that shareholder does not fall under the scope of paragraph 1.

AddedRegulatory framework for the market for captured CO2

Added1. By ... [six months from the date of entry into force of the Regulation], the Commission shall publish guidelines indicating the maximum appropriate levels of CO2 purity and of trace elements within the flow that is to be specified by an entity seeking to have a CO2 storage project confirmed as contributing to the Union's injection capacity objective.

Added2. By ... [2 years from the date of entry into force of this Regulation], the Commission shall carry out an assessment in accordance with paragraph 2 and, if appropriate, submit a legislative proposal to establish a regulatory framework for a Union-wide CO2 capture, usage, storage and transport market to complement the rules set out in Directive 2009/31/EC, laying down rules on:

Added(a) open, fair and non-discriminatory access and safety of the CO2 storage and transport network;

Added(b) open, fair and non-discriminatory access to capture CO2 for usage or storage purposes;

Added(c) the functioning and interconnection of the CO2 transport network and other infrastructure across the Union;

Added(d) economic incentives, funding and financial assistance mechanisms;

Added(e) specification standards for CO2 storage and transport;

Added(f) environmental standards;

Added(g) guarantees for the origin of CO2;

Added(h) enforcement mechanisms.

Added2a. Before adopting any legislative proposal as referred to in paragraph 2, the Commission shall assess whether:

Added(a) the functioning of the CO2 market ensures sufficient access to injection capacity for unavoidable CO2 emissions;

Added(b) the obligations set out in Article 18(1) effectively promote the development of the CO2 storage market in the Union.

AddedWhere the assessment pursuant to this paragraph shows that the market is not developing in line with the objectives of this Regulation, the Commission may decide to include rules to provide priority access for unavoidable emissions to injection capacity as well as to amend this Regulation to change the obligations set out in Article 18(1).

AddedThe Commission shall ensure that all sectors with unavoidable industrial process emissions have sufficient access to the CO2 injection capacity. Where its assessments show the market is not developing in line with this objective, the Commission shall develop rules to provide priority access for unavoidable industrial process emissions to the CO2 injection capacity.

AddedTo facilitate the assessment pursuant to this paragraph, the Commission shall develop a list of sectors with unavoidable industrial process emissions from large-scale industrial installations for which no direct emissions reduction options are available after the best available techniques have been applied, based on a clear methodology including scientific evidence, the current state-of-the-art of relevant technologies, economic feasibility, as well as appropriate demand-side emissions reduction measures.

Added1. Without prejudice to the World Trade Organization Agreement on Government Procurement (GPA) and other international agreements by which the Union is bound as well as applicable sectoral legislation, in particular Regulations (EU) 2022/1031 and (EU) 2022/2560, contracting authorities andcontracting entities shall base the award of contracts for purchase or use for net-zero technology listed in Article 3 of this Regulation, as well as, particularly through public procurement of innovative solutions and pre-commercial public procurement, innovative net-zero technologies or other innovative technologies, in a public procurement procedure on the most economically advantageous tender, which shall include the best price-quality ratio, comprising at least the environmental and social sustainability and resilience contribution of the tender, in compliance with Directives 2014/23/EU, 2014/24/EU, or 2014/25/EU ▌. Contracting authorities and contracting entities shall ensure that the procurement process is open, non-discriminatory and transparency, allowing fair competition among all eligible suppliers.

AddedWhere a net-zero technology is not the main object of the contract but only part of it and the estimated value of the relevant part of the contract is above the thresholds set out in Directive 2014/23/EU, 2014/24/EU or 2014/25/EU, contracting authorities or contracting entities shall do one of the following:

Added(a) separate the net-zero technology part into dedicated lot or lots;

Added(b) prepare a separate contract or contracts for the net-zero technology part; or

Added(c) impose on the main contractor an obligation of competitive subcontracting for the supply of the respective net-zero technology products applying Directive 2014/23/EU, 2014/24/EU or 2014/25/EU, as appropriate, and this Article.

Added2. The tender’s environmental and social sustainability ▌contribution shall be based on the following cumulative criteria which shall be objective, transparent and non-discriminatory:

Added(a) environmental sustainability going beyond the minimum requirements in applicable legislation;

Added(b) where an innovative solution needs to be developed, the impact and the quality of the implementation plan, including risk management measures;

Added(c) where applicable, the tender’s contribution to the energy system integration;

Added(d) the tender’s contribution to decent wages and working conditions, including where relevant the offering of apprenticeships as well as well-defined objectives in terms of skilling, reskilling and upskilling, to increase the attractiveness of employment in net-zero industry sectors.

Added2a. The tender’s resilience contribution shall be based on the following cumulative criteria, which shall be objective, transparent and non-discriminatory:

Added(a) where applicable, the tender’s contribution to the energy security of the Union;

Added(b) the tender’s contribution to the resilience of the Union, taking into account the security of supplies by considering the proportion of the products originating from a single source of supply, as determined in accordance with Regulation (EU) No 952/2013. The supply shall be deemed insufficiently secured where a single source supplied, in the last year for which data is available, more than 50% of the total demand within the Union for a specific net-zero technology or the components primarily used for the production of these technologies;

Added(c) where applicable, contribution to innovation by providing entirely new solutions or improving comparable state-of-the-art solutions.

Added3. Contracting authorities and contracting entities shall give the ▌sustainability and resilience contribution a weight of at least 30% of the award criteria for the net-zero technology part of a tender, taking into account both the sustainability and the resilience contribution in a balanced way.

AddedFor the implementation of the criteria referred to in paragraph 2a of this Article, the contracting authorities or contracting entities refer to the latest data entered in the list referred to in Article 22(2) of this Regulation, and the origin of supply shall be determined in accordance with Regulation (EU) No 952/2013..

Added4. By way of derogation from paragraph 3 of this Article, the contracting authority or the contracting entity shall not be obliged to apply the considerations relating to the sustainability and resilience contribution of net-zero technologies where their application would clearly oblige that authority or entity to acquire equipment having disproportionate costs ▌.. Cost differences shall be calculated only for the cost of the equipment, excluding related services, and may be presumed by contracting authorities and contracting entities to be disproportionate when they are above 30% , compared to a tender without the sustainability and resilience contribution .This provision shall be without prejudice of the possibility to exclude abnormally low tenders under Article 69 of Directive 2014/24/EU and Article 84 of Directive 2014/25/EU, ▌without prejudice to other contract award and exclusion criteria according to the EU legislation, and without prejudice to prerogative of contracting authorities to formulate technical specifications in line with Article 42 of Directive 2014/24/EU in order to ensure the application of paragraph 3 does not lead to the procurement of incompatible equipment requiring unreasonably high costs to ensure the compatibility with the existing equipment.

AddedThe Net-Zero Europe Platform may issue recommendations to the contracting authorities and entities across the Union regarding appropriate higher thresholds for defining disproportionate costs in light of the market circumstances for specific net-zero technologies.

AddedMember States may adjust their overall budgets allocated to public procurement procedures as well as the related maximum bid levels in order to accommodate the implementation of non-price criteria.