The development of regulations governing carbon capture and storage (CCS)

Carbon capture and storage (often referred to as CCS) is a process involving technology for the capture of CO2, typically from emission-intensive industries and other activities that generate high greenhouse gas emissions. Carbon dioxide can also be captured directly from the atmosphere using direct air capture (DAC). The captured CO2 is then transported to a storage site, which in Norway effectively means suitable subsea reservoirs on the Norwegian continental shelf. The acronym CCUS is also used in some contexts, with the U denoting utilisation, which refers to projects in which is CO2 also utilised as a product or service production input.

CCS status in Norway

Interest is growing among companies seeking to receive and permanently store CO2, and the government has signalled its intention to offer attractive storage sites to providers of commercial CO2 storage solutions. To date, one storage permit and several exploration permits under the CO2 storage regulations on the Norwegian continental shelf have been awarded. The first storage permit was granted to Northern Lights in 2019 as part of the Longship project. In June 2025 Longship became operational, making it Norway’s largest-ever climate initiative.

In recent years, a number of exploration permits have been granted to various entities. Most recently, in June 2025, Equinor Low Carbon Solution was offered an exploration permit for the storage of carbon dioxide (CO2) in an area of the North Sea. In 2024, six exploration permits were awarded; two to Equinor; one to a consortium of Vår Energi, OMV and Lime Petroleum; one to a consortium of Aker BP and PGNiG; one to a consortium of Harbour Energy Norge and Equinor Low Carbon Solution; and one to a consortium of Equinor Low Carbon Solution and Aker BP.

The granting of exploration permits is normally accompanied by a work programme that includes various phases and conditions specifying decision points for either continuing activities or relinquishing the area to the state. The work programme will typically conclude with a requirement that the company either makes an investment decision to realize a CO2 storage facility and then submits a plan for development and operation, or returns the area. If the area is returned, other operators with storage needs may apply to be allocated the site.

The Norwegian continental shelf has proven attractive to CCS operators. There is therefore reason to believe that the number of exploration and exploitation permits granted will increase over time.

Current CCS regulations

EU Directive 2009/31/EC on the Geological Storage of CO2 (the CCS Directive) defines the legal framework governing environmentally safe CO2 storage within the EEA. The objective of the Directive is to ensure that there is no significant risk of CO2 leakage and that CO2 storage activities do not entail any detrimental health or environmental effects, while at the same time averting any negative effects on safety and security in the transport network or the CO2 storage site. A key feature of the CCS Directive is that it requires member states to establish a licensing arrangement for exploration for, and development of, suitable storage sites. It also requires monitoring of stored CO2, financial security and establishment of third-party access to CO2 pipelines and transport infrastructure, as well as to the storage sites. The Directive also includes provisions on the decommissioning of installations, including provisions on the transfer of responsibility to the state.

The Directive was incorporated into the EEA Agreement in 2012 and was implemented into Norwegian law through the
Regulations relating to Exploitation of Subsea Reservoirs on the Continental Shelf for Storage of CO₂ and relating to Transportation of CO₂ on the Continental Shelf of 2014 (the CO2 Storage Regulations). In addition, new provisions were enacted in the Pollution Regulations and the Petroleum Regulations. These constitute, along with the CO2 Safety Regulations, the key regulations governing CO2 transport and storage in Norway.

The CO2 Storage Regulations are, as mentioned, based on the EU CCS Directive and largely mirror the Directive in scope. In addition, the CO2 Storage Regulations include provisions on, inter alia, conditions for the transfer of responsibility to central government, financial security for liabilities under the Regulations during the operating period and for a subsequent period until the transfer of responsibility – as well as further regulation of financial contributions to cover central government costs during a period after the transfer of responsibility. Requirements for third-party access to CO2 transport and storage facilities have also been implemented.

CCS regulations in Norway are still evolving. In April 2022, proposed amendments to the Company Act were circulated for consultation; more specially an expansion of the exemption provision defining forms of collaboration that fall outside the scope of the Company Act. The crux of this proposal was to expand the said provision to also encompass collaboration between participants in activities under the CO2 Storage Regulations. Correspondingly, it is proposed that carbon transport and storage collaboration be structured, to an even greater extent, along the same lines as petroleum activities. However, the proposal to amend the Company Act was abandoned, and work is underway on a new consultation paper that proposes only amendments to the storage regulations. This consultation paper has not yet been published.

Need for international regulations

There is a need for regulations at the international level to establish an efficient global CCS market. At present, cross-border CO2 transport is not permitted other than by specific agreement between affected countries. Since 2006, the contracting parties under the London Protocol have acknowledged the right to store CO2 beneath the seabed when this can be done safely. However, Article 6 prohibits the export of wastes or other matters for dumping in the marine environment. CO2 is held to fall within the scope of this export prohibition. An amendment to this provision, allowing for CO2 export between countries on certain conditions, was adopted in 2009. Such amendment to the London Protocol is, however, conditional upon ratification by no less than two thirds of the contracting parties, and this seems unlikely to happen in the near future. By 2019, only six of 53 had ratified the amendment. Until the said amendment enters into effect, it will therefore be necessary to conclude bilateral agreements between exporting countries and Norway in order to commence cross-border CO2 transport. The Norwegian authorities are actively pursuing additional bilateral agreements, as well as further ratifications.

The government has concluded several bilateral agreements on cross-border CO2 transport. In April 2024 Norway signed Memoranda of Understanding (MoUs) with Sweden, Denmark, Belgium and the Netherlands on cross-border CO2 transport for storage. In June 2024 Norway and Belgium signed a letter of intent to construct a pipeline for transporting CO2 to Norway, establishing the framework for negotiations on a future bilateral agreement that will govern the pipeline’s construction, installation and operation. In June 2025 Norway reached agreements with Switzerland and France on cross-border CO2 transport and storage; the agreement with France permits CO2 to be transported from the industrial cities of Le Havre, Dunkirk and Saint-Nazaire for storage in the North Sea, while the agreement with Switzerland also covers CO2 removal for permanent geological storage.

Focus area in the EU

On 6 February 2024 the European Commission published a Communication on a European approach to industrial carbon management (the Industrial Carbon Management Strategy). The Communication sets out clear objectives to scale up industrial carbon management as an important contribution to achieving climate neutrality by 2050.

Key legislation that will help achieve these objectives has already been adopted. The Net‑Zero Industry Act, which entered into force in June 2024, is intended to facilitate increased production of zero‑emission technologies in the EU. The Net‑Zero Industry Act establishes a target for the EU to develop at least 50 million tonnes of CO2 storage capacity per year by 2030. The injection capacity relates to CO2 storage sites located on the EU’s territory, in its exclusive economic zone or on the continental shelf. Oil and gas companies holding extraction licences as defined in the Hydrocarbons Licensing Directive (94/22/EC) are required to contribute to the development of new CO2 injection capacity. The obligation to contribute may be fulfilled either by (i) investing in or developing CO2 storage projects, alone or in cooperation with other entities, (ii) entering into agreements with other entities that are subject to the obligation, or (iii) entering into agreements with third parties that develop CO2 storage sites or with investors. Member States are also to endeavour to contribute to the development of the necessary CO2 transport infrastructure, including cross‑border infrastructure.

In addition, on 27 November 2024 the EU adopted new rules on CO2 removal, carbon farming and carbon storage in products (the CRCF Regulation). The Regulation aims to scale up sustainable carbon removal activities in the EU, counter greenwashing and develop a credible market for carbon removal. It is voluntary for entities to certify their carbon removal activities under the Regulation. Entities whose activities are certified will be issued credits representing the climate benefit delivered by the activity; these credits may be sold by the entities on the voluntary carbon market.

The Government is currently assessing whether these Regulations are relevant to the EEA Agreement and whether they should be incorporated into Norwegian law.

Please do not hesitate to get in touch with us if you want to learn more about carbon capture and storage opportunities in Norway.