These technologies will be most needed in 'hard-to-abate' sectors with limited mitigation options. The Communication recognizes that industrial carbon management technologies are part of the solution to achieving climate neutrality by 2050. Role of CCUS Technologies to Reach Climate Neutrality

However, upcoming European Parliament elections in June 2024 and the resulting change in the Commission raise uncertainty as to how the Communication's actions will be pursued after 2024. Looking Ahead: While the Communication does not change current rules, it identifies a series of actions to undertake at the EU and national level to establish a business environment that enables industrial carbon management in the EU in the decades ahead. Technologies for carbon capture and storage ('CCS') and carbon capture and utilization ('CCU') (together referred to as 'CCUS'), can play an important role in the EU's decarbonization efforts. The Background: The EU is committed to reaching net-zero CO2 emissions by 2050 and is implementing a comprehensive policy framework to reduce net emissions by at least 55% by 2030. The Development: The European Commission ('Commission') adopted an Industrial Carbon Management Communication ('Communication') on 6 February 2024, outlining the Commission's ambitions for a strategy to boost the deployment of technologies in the European Union ('EU') that can capture, store, transport, and use CO2 emissions from industrial facilities.

Net zero vs carbon neutral