Building Future-Proof CO2 Transport Infrastructure in Europe

The document examines the necessity of a Europe-wide CO2 transport network, estimating a need for 15,000 to 19,000 km of infrastructure by 2050 to move 250 million tonnes of CO2 annually. It highlights the risk of 'natural monopolies' in pipeline transport and advocates for a shift from negotiated third-party access to a regulated access regime to prevent excessive tariffs. The brief proposes inter-temporal cost allocation mechanisms, such as Germany's 'amortisation account', to solve the 'first mover disadvantage' where early users bear disproportionate costs for oversized infrastructure. It also addresses 'cross-chain' financial risks and the need for standardised CO2 purity specifications to ensure network interoperability and safety.

• To meet the EU's net-zero target by 2050, the region will need to capture and store 250 million tonnes of CO2 annually, requiring a transport network estimated to span between 15,000 and 19,000 km.
• CO2 transport infrastructure is likely to function as a 'natural monopoly', creating a risk that operators may charge excessive user tariffs, which would then be passed on to public subsidies for capture projects.
• While negotiated third-party access is currently common in the EU, the document recommends transitioning to a regulated third-party access regime for major trunklines and cross-border pipelines to ensure non-discriminatory access and fair pricing.
• Early users of CO2 infrastructure often face a 'first mover disadvantage' because they must bear the high costs of 'future-proofed' (oversized) networks before more users join. The document suggests using inter-temporal cost allocation, such as Germany's 'amortisation account', to spread these costs across future customers.
• Investment in CO2 infrastructure is hindered by 'cross-chain' risks, where financial losses occur due to dependencies between capture plants and transport/storage operators (e.g., unplanned downtime or delays). The brief suggests a state-backed insurance fund to mitigate these risks.
• Current CO2 purity specifications in Europe, particularly for shipping projects like Northern Lights and Aramis, are very demanding (e.g., a NOx limit of 1.5 ppm), which increases purification costs for industrial emitters.

APA

Lockwood, T. (2025). Building Future-Proof CO2 Transport Infrastructure in Europe. Clean Air Task Force. https://www.catf.us/resource/building-future-proof-co2-transport-infrastructure-europe/

Chicago

Lockwood, Toby. Building Future-Proof CO2 Transport Infrastructure in Europe. Clean Air Task Force, 2025. https://www.catf.us/resource/building-future-proof-co2-transport-infrastructure-europe/.

Wikipedia

{{cite report |last1=Lockwood |first1=Toby |title=Building Future-Proof CO2 Transport Infrastructure in Europe |publisher=Clean Air Task Force |date=21 February 2025 |url=https://www.catf.us/resource/building-future-proof-co2-transport-infrastructure-europe/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lockwood2025building, author = {Lockwood, Toby}, title = {{Building Future-Proof CO2 Transport Infrastructure in Europe}}, institution = {Clean Air Task Force}, year = {2025}, month = feb, url = {https://www.catf.us/resource/building-future-proof-co2-transport-infrastructure-europe/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }