Rationale for the Regulatory Framework
The regulations governing the implementation and operation of carbon capture and storage (CCS) in Norway are both complex and fragmented. To navigate this landscape, stakeholders must understand not only national laws but also how these laws interact with international agreements and EU directives. This article provides an overview of some of the central laws, regulations, and standards shaping the CCS landscape in Norway. The development of the CCS regulatory framework has largely been driven by the Paris Agreement’s goal of limiting the global temperature increase to below 1.5 degrees Celsius. Several international organizations have also pointed out that achieving this target would be impossible or significantly more expensive without CCS.
The European Regulatory Framework for CCS – The Storage Directive
EU climate policy has focused on carbon capture and storage for many years. A key contribution to the regulatory framework is the Storage Directive, also known as the CCS Directive, adopted in 2009. The Directive establishes a legal framework for the responsible development, operation, and closure of carbon storage projects in Europe. While the Directive regulates carbon storage, the capture and transport of CO2 are covered by other EU regulations.
The Storage Directive requires, among other things, that member states establish a licensing system for the exploration and development of CO2 storage sites based on objective, transparent, and non-discriminatory criteria. Similar requirements apply to permits for the actual storage of CO2. The purpose of the licensing process is to ensure that carbon storage opportunities are allocated fairly. The Directive also sets requirements for the operation of carbon storage projects, including financial security, technical requirements for CO2 storage, monitoring of storage sites, and the possibility of third-party access to CO2 transport and storage. The Directive also imposes requirements for the closure of storage projects and includes rules for transferring responsibility for the storage site to the state.
Another important part of the EU’s climate policy in relation to CCS is the Emissions Trading System (ETS), introduced in 2005. The ETS is a key contributor to carbon capture and storage, as it provides financial incentives to reduce emissions. The economic incentive for CO2 storage under the ETS is that CO2 that can be documented as stored is not considered an emission. This means that the operator who would otherwise have released CO2 into the atmosphere does not need to use ETS allowances for that emission and can thus avoid purchasing allowances from the market. Norway joined the ETS in 2008, and the Directive has since undergone several reforms to strengthen the system’s effectiveness and incentives for emission reductions.
A more recent European initiative is the Net Zero Industry Act (NZIA), adopted by the EU in June 2024. The NZIA aims to strengthen the development of low-emission technologies, such as CCS, as part of the EU’s strategy to achieve the “Fit for 55” target—a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. The Act, which may also be implemented in Norway, is intended to simplify the regulatory framework for zero-emission technologies, improve the investment climate for clean technology, and create long-term security and economic sustainability for zero-emission projects. This includes increased funding for research, development, and infrastructure related to CCS, as well as support for large-scale implementation of CCS technology.
National Regulatory Framework for CCS – The Storage Regulations
The Norwegian regulatory framework for CCS is heavily influenced by the EU and the Storage Directive. The Directive is implemented in Norwegian law primarily through the Storage Regulations (Regulations on the Use of Subsea Reservoirs on the Continental Shelf for the Storage of CO2 and on the Transport of CO2 on the Continental Shelf). These regulations are central because they implement most of the articles in the Storage Directive and regulate several aspects of the CCS process. The regulations emphasize a comprehensive framework to promote sustainable energy and industrial production.
The regulations are divided into various chapters covering key parts of the CCS process. Chapters 2–4 address permits for the investigation, exploration, and utilization of CO2 storage sites, before consent for injection and storage of CO2 can be granted under the rules in Chapter 5. Chapter 6 regulates the transport of CO2 on the continental shelf and the operation of facilities related to storage. Other chapters include Chapter 7 on the closure of storage locations, Chapters 8 and 9 on liability, and Chapter 10 on safety requirements.
In addition to the Storage Regulations, the Storage Directive was also incorporated into other legislation. For example, the Pollution Control Act, the Pollution Regulations, the Petroleum Regulations, the Impact Assessment Regulations, and the CO2 Safety Regulations all received new provisions on CO2 storage upon the implementation of the Storage Directive.
There are also several European and national incentives for carbon capture and storage, aimed at commercializing CO2 storage as a measure to reduce greenhouse gas emissions. One such incentive is the ETS, which is implemented in Norwegian law through the Climate Quota Act and the Climate Quota Regulations. Another incentive in Norway is the CO2 tax, introduced as early as 1991 by the Act on Tax on CO2 Emissions from Petroleum Activities on the Continental Shelf. These incentives are central to making CCS technologies economically viable.
Standards as Guidance
Internationally, there are several standards for the capture, transport, and storage of CO2. The International Organization for Standardization (ISO) develops global standards, and the ISO/TC 265 committee leads the work on standards for carbon capture and storage. Although Norway is not obliged to adopt ISO standards, they are already being used in the Norwegian Longship project.
Within the EU, there is also CEN (Comité Européen de Normalisation), a standardization body that develops European standards for CCS. Norway is required to implement CEN standards as Norwegian Standards. In 2023, it was announced that a new committee within CEN will develop a standard for CO2 capture, transport, utilization, and storage, as well as for carbon accounting through CEN/TC 474. This committee will build on existing standards from ISO/TC 265 but supplement them with adaptations for European conditions.
International standards are important for simplifying the understanding of regulations for stakeholders, contributing to coordination (also within the EU), and promoting cooperation in the CCS market. Standards Norway’s committee, SN/K 544, actively monitors the work of both the ISO and CEN committees. This is important because international standards can reduce the costs of carbon capture and storage and reduce the risks and uncertainties associated with CCS projects.
The Future of the Regulatory Framework
Overall, there are a number of important regulations for carbon capture and storage in both Norway and Europe, and international standards play a central role in this work. Nevertheless, there is still a significant need for further regulation, especially at the international level, to ensure global adoption of CCS technology. Effective regulation of CCS across borders will not only stimulate more projects but also enable large-scale implementation of the technology, which is crucial in the fight against climate change. Therefore, close international cooperation is essential to establish unified guidelines and standards that can ensure effective and sustainable implementation of CCS globally.
