Federația Patronală a Energiei (FPE) takes note of this week's adoption of the Net Zero Industry Act (NZIA) by the EU Council.
On this occasion, FPE informs the public and all interested parties about the impact of the adoption of this new Regulation which will produce significant market interventions and specific, major obligations for oil and gas producers, directly influencing the Romanian industry.
As a reminder, the FPE position on the NZIA is based on four critical issues to be taken into account when implementing carbon capture, transport and storage (CCS) projects. The issues consistently presented to stakeholders are:
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Economic viability and technical feasibility of CCS projects
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Facilitating and stimulating investment
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Creating an optimal legislative framework
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Informing authorities and the general public about technology to create understanding
The NZIA introduces market intervention and imposes CO₂ injection capacity obligations on oil and gas producers based on their production volumes in the period 2020-2023. Smaller producers below a certain threshold will be exempted from these obligations, details of which will be defined in a separate delegated act.
Quota Allocation
The total calculated quota is 50 Mtpa. The adopted text runs the risk of uneven interpretation in the way allowances are allocated between EU Member States. This creates significant disadvantages for Member States that are large gas producers. Thus, Romania - the second largest gas producer after the Netherlands - received an allocation of 9 Mtpa.
Responsibilities of Member States
Within 6 months of entry into force, Member States must:
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Make publicly available data on all areas where CO₂ sites could be authorized;
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Require entities to make publicly available, without reliance, geologic data on decommissioned sites and, if available, an economic evaluation of the costs of permitting CO₂ injection;
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Report on the mapping of CO₂ capture, infrastructure and storage projects.
Responsibilities of Romanian producers
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Within 12 months, the obligated entities shall submit to the Commission a plan detailing how they intend to meet their contribution to the Union target for CO₂ injection capacity by 2030;
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Within 2 years, entities must report on progress to the competent national authority and the European Commission.
Detailed information on CCS technology and related regulations can be studied in the policy document created by FPE.
FPE recognizes that the adoption of the NZIA is an important step towards achieving carbon reduction targets. However, we call for increased attention to the specific needs of Romania, as a large gas producer, to ensure a fair distribution of allowances and adequate support for the energy transition.
Federația Patronală a Energiei (FPE), as the representative of the oil and gas industry, respectively, more than 95% of Romania's producers, is in favor of a permanent, open, constructive dialogue.
Founded in 1991, Federația Patronală a Energiei (FPE) represents the framework for development, dialog and efficient resource management in the Romanian energy sector. Within FPE there is a consolidated team of professionals, who have gained recognition both domestically and internationally, demonstrating that the Federation is a pillar of the Romanian energy system.
