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Article 23 On Trial: How oil and gas producers are challenging the EU’s flagship CCS market-building measure

Article 23 of the Net-Zero Industry Act (NZIA) is the European Union’s first large-scale market-creation measure aimed at accelerating the deployment of CO2 storage infrastructure. It requires oil and gas producers operating in the EU to contribute towards making 50 million tonnes of annual CO2 injection capacity available to the market by 2030. The measure was introduced in response to a growing recognition that the lack of available injection capacity has become one of the main bottlenecks slowing the deployment of carbon capture and storage (CCS) in Europe.


At the end of 2025, 15 legal cases have been brought against the European Commission by twelve groupings of obligated entities spanning eight Member States. Together, these litigating entities account for more than 65% of the total injection capacity obligation. The cases challenge Article 23 of the NZIA, the Delegated Regulation establishing the methodology for calculating companies’ contributions, and the Commission Decision identifying the obligated entities and their respective shares of the target.
Although the litigants rely on different legal arguments, the cases ultimately seek to alter the obligation established under Article 23, including by challenging their scope, calculation, or applicability. The applicants raise claims relating to proportionality, equality and non-discrimination, subsidiarity, legal certainty, commercial freedom and property rights, the feasibility of the 2030 timeline, the absence of a formal impact assessment, alleged shortcomings in consultation procedures, and the Commission’s use of delegated powers.

Read more in the recent legal brief by the Article 23 Project

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