03.09.2025

CCSA Press Release: Bridging the Channel on CCUS: EU and UK need to act now on ETS linkage

Brussels, 3 September 2025 – Today, the CCSA and 55+ other leading businesses, associations, and civil society groups have joined forces to deliver a clear message to Brussels and London: it’s time to fast-track cooperation on Carbon Capture Utilisation & Storage as part of the ongoing discussions on linking the EU and UK Emissions Trading Systems (ETS).

In a joint letter sent today to European Commission President Ursula von der Leyen, UK Prime Minister Keir Starmer, and senior EU and UK leaders, the signatories welcome progress towards linking the EU and UK ETS systems. But they warn that without urgent steps to coordinate on Carbon Capture, Utilisation and Storage (CCUS), the ambition risks getting stuck in the pipeline.

The signatories call for the immediate creation of a dedicated Working Group on CCUS under the Trade and Cooperation Agreement’s Specialised Committee on Energy. Such a forum would provide structured dialogue on cross-border CO2 transport and storage and regulatory coordination, key elements for ensuring clarity and predictability for industrial actors investing in decarbonisation.

“Establishing a Working Group on CCUS would allow ETS linkage and cross-border CO2 trade discussions to progress in parallel, accelerating the development of cross-border projects,” the letter states. “This will benefit both EU and UK industrial stakeholders by enabling them to decarbonise their activities while staying competitive”.

According to CCSA’s report Accelerating a Europe-wide CO₂ storage market, with access to UK CO2 storage sites, EU emitters would also benefit from significant cost savings (on average) up to 28% (€16/t of CO₂).

The letter outlines key recommendations for the EU and UK’s preparatory work on ETS linkage, including:

  • Ensuring mutual eligibility of emission allowances across both systems and joint oversight of registries and auctions
  • Developing compatible market stability mechanisms and aligning phase-out of free allowances
  • Recognising CO2 transport and storage under both regulatory regimes, to enable access to UK storage sites and deliver significant cost savings for EU emitters
  • Coordinating standards on CO2 specifications, metering, carbon removals integration, and certification methodologies

With both the EU and UK highlighting CCUS as a pillar of their decarbonisation strategies, the signatories stress that now is the opportune moment to act. By confirming the role of CCUS into ETS linkage negotiations, policymakers can accelerate the rollout of crucial CO2 cross-border infrastructure.

ENDS

 

Notes to Editor 

Media contact: For questions or requests, please contact francesco.dapolito@ccsassociation.org

About the CCSA 

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting Europe’s climate target at least cost. CCUS enables industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS). 

The CCSA is the trade association accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations. 

The CCSA currently has over 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO2 transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.